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Senate Ways & Means Releases Budget Proposal for FY2023

by iwd Tina | May 11, 2022 | Housing News

On May 10, the Senate Committee on Ways and Means (SWM) released its FY2023 state budget proposal. The budget would provide increased funding for many of CHAPA’s affordable housing priorities, including the Massachusetts Rental Voucher Program, the Alternative Housing Voucher Program, Public Housing, and RAFT. The Massachusetts Senate will debate its budget proposal in the last week of May.

CHAPA thanks Senate President Spilka, Chairman Rodrigues and members of the Senate Ways & Means Committee for making strong investments in affordable housing priorities!

SWM budget proposal includes $850 million in housing funding. Please refer to the CHAPA Budget Priority chart for funding amounts on affordable housing. Below is the summary of some of CHAPA’s priority programs:

  • Mass. Rental Voucher Program (MRVP) – SWM funds MRVP at $154 million ($4 million over the House proposal) along with language to carry forward $21.9 million in unspent funds from FY22 bringing the MRVP total allocation at ~$175 million. SWM also proposes language changes to move MRVP to a payment standard and a few other changes.
  • Residential Assistance for Families in Transition (RAFT) – SWM funds RAFT at $150 million. This is critical given that the federal funding for rental assistance has almost ended. The increased allocation is in addition to the $100 million allocated for RAFT through the FY2022 Supplemental budget. SWM also includes language to carryover the $60 million carryover from the Supplemental budget bringing the total RAFT allocation to $210 million for FY2023.
  • Alternative Housing Voucher Program (AHVP) – SWM allocated $13.6 million along with language to carry forward $5.6 million in unspent funds from FY22 bringing the AHVP total allocation to $19.2 million.
  • Public Housing – SWM proposes increased funding for Public Housing Operating line item at $92 million.
  • HomeBASE – SWM allocates increased funding of $56.9 million for HomeBASE with automatic renewal of benefits up to 2 years.

Full analysis of line-item language.

Line-Item Program FY2023 Requests SWM

FY2023 Budget

House

FY2023 Budget

Gov’s

FY2023 Budget

FY2022 Budget
7004-9024 Mass. Rental Voucher Program $200,000,000 $175,000,000† $171,900,000†† $129,981,667* $150,000,000
7004-9030 Alternative Housing Voucher Program $19,000,000 $19,685,355‡ $19,285,355‡ $8,685,355 $14,200,000
7004-9316 Residential Assistance for Families in Transition $250,000,000 $210,000,000ˇ $140,000,000 $80,000,000 $122,000,000^
7004-3036 Housing Consumer Education Centers $8,200,000 $8,200,000 $9,700,000 $8,200,000 $8,200,000
7004-9005 Public Housing Operating $92,000,000 $92,000,000 $92,000,000 $85,000,000 $85,000,000
7004-9007 Public Housing Reform $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
7004-0104 Home & Healthy for Good $6,390,000 $3,890,000 $6,390,000 $3,890,000 $3,890,000
7004-0108 HomeBASE $56,911,201 $56,911,200 $59,411,201 $56,911,201 $25,970,612
7006-0011 Foreclosure & Housing Counseling $3,050,000 $3,050,000 $2,850,000 $1,500,000 $3,050,000
7004-3045 Tenancy Preservation Program $1,800,000 $1,800,000 $1,800,000 $1,800,000 $1,800,000
4120-4001 MassAccess Registry $150,000 $150,000 $80,000 $80,000 $80,000
4000-0007 Unaccompanied Homeless Youth $10,000,000 $8,500,000 $8,500,000 $8,500,000 $8,000,000
7004-0106 New Lease for Homeless Families $250,000 $250,000 $250,000 $250,000 $250,000

† Includes $20.7 million in funds carried forward from FY22.

†† Includes $21.9 million in funds carried forward from FY22.

* The Governor stated that his budget would make $145.6 million available for MRVP in FY23. However, the actual appropriation in the line item only provides $130 million. The Governor may be including unspent funds from FY22 that could carry over into FY23 but this language is not included in the line-item.

‡ SWM & the House budget include $5.6 million in funds carried forward from FY22.

ˇ Includes $60 million carried over from the FY22 supplemental budget

^ This number includes the $100 million appropriated to RAFT in FY22 in a supplemental budget.

Analysis of FY2023 Senate Ways & Means Budget

by iwd Tina | May 11, 2022 | Housing News

This page includes a language analysis of affordable housing, homelessness prevention, and community development programs in Senate Ways & Means FY2023 Budget Proposal. A detailed analysis of budget language is included if the SWM budget makes substantive language changes to the FY2022 final budget language.

Line-Item Program FY2023 Requests SWM

FY2023 Budget

House

FY2023 Budget

Gov’s

FY2023 Budget

FY2022 Budget
7004-9024 Mass. Rental Voucher Program $200,000,000 $175,000,000† $171,900,000†† $129,981,667* $150,000,000
7004-9030 Alternative Housing Voucher Program $19,000,000 $19,685,355‡ $19,285,355‡ $8,685,355 $14,200,000
7004-9316 Residential Assistance for Families in Transition $250,000,000 $210,000,000ˇ $140,000,000 $80,000,000 $122,000,000^
7004-3036 Housing Consumer Education Centers $8,200,000 $8,200,000 $9,700,000 $8,200,000 $8,200,000
7004-9005 Public Housing Operating $92,000,000 $92,000,000 $92,000,000 $85,000,000 $85,000,000
7004-9007 Public Housing Reform $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
7004-0104 Home & Healthy for Good $6,390,000 $3,890,000 $6,390,000 $3,890,000 $3,890,000
7004-0108 HomeBASE $56,911,201 $56,911,200 $59,411,201 $56,911,201 $25,970,612
7006-0011 Foreclosure & Housing Counseling $3,050,000 $3,050,000 $2,850,000 $1,500,000 $3,050,000
7004-3045 Tenancy Preservation Program $1,800,000 $1,800,000 $1,800,000 $1,800,000 $1,800,000
4120-4001 MassAccess Registry $150,000 $150,000 $80,000 $80,000 $80,000
4000-0007 Unaccompanied Homeless Youth $10,000,000 $8,500,000 $8,500,000 $8,500,000 $8,000,000
7004-0106 New Lease for Homeless Families $250,000 $250,000 $250,000 $250,000 $250,000

† Includes $20.7 million in funds carried forward from FY22.

†† Includes $21.9 million in funds carried forward from FY22.

* The Governor stated that his budget would make $145.6 million available for MRVP in FY23. However, the actual appropriation in the line item only provides $130 million. The Governor may be including unspent funds from FY22 that could carry over into FY23 but this language is not included in the line-item.

‡ SWM & the House budget include $5.6 million in funds carried forward from FY22.

ˇ Includes $60 million carried over from the FY22 supplemental budget

^ This number includes the $100 million appropriated to RAFT in FY22 in a supplemental budget.

Massachusetts Rental Voucher Program (7004-9024)

Description of Changes:

  • Sets the tenant rent share between 30% and 40% of monthly adjusted income in the first year of occupancy until the implementation of a payment standard
  • Requires the program to use a payment standard between 100% and 110% of the fair market rent starting on January 1, 2023
  • For rents that are below the payment standard, sets the minimum amount a tenant must pay to 30% of the household’s income
  • Allows households the option to pay more than 40% of their income towards rent after the first year of participating in the program
  • Removes language directing funds to be used to support a voucher management system; and
  • Adds language allowing unspent funds to be carried over.

Language

For a program of rental assistance for low-income families and elderly persons through mobile and project-based vouchers; provided, that such assistance shall only be paid under the Massachusetts rental voucher program; provided further, that the income of eligible households shall not exceed 80 per cent of the area median income; provided further, that the department of housing and community development may require that not less than 75 per cent of newly issued vouchers be targeted to households whose income at initial occupancy does not exceed 30 per cent of the area median income; provided further, that the department may award mobile vouchers to eligible households currently occupying project-based units that shall expire due to the non-renewal of project-based rental assistance contracts; provided further, that department, as a condition of continued eligibility for vouchers and voucher payments, may require disclosure of social security numbers by participants and members of a participant’s household in the Massachusetts rental voucher program for use in verification of income with other agencies, departments and executive offices; provided further, that if a participant or member of a participant’s household fails to provide a social security number for use in verifying the household’s income and eligibility, then that household shall no longer be eligible for a voucher or to receive benefits from the voucher program; provided further, that until the implementation of a payment standard by the department, each household shall pay not less than 30 per cent of its monthly adjusted income but not more than 40 per cent of its monthly adjusted income for rent at initial occupancy; provided further, that until the implementation of such payment standard, the monthly dollar amount of each voucher shall be the department-approved monthly rent of the unit less the monthly amount paid for rent by the household; provided further, that any household that is proven to have caused intentional damage to its rental unit in an amount exceeding 2 months of rent during any 1-year period shall be terminated from the program; provided further, that if the use of a mobile voucher is or has been discontinued, then the mobile voucher shall be reassigned; provided further, that the department shall pay regional administering agencies not less than $50 per voucher per month for the costs of administering the program; provided further, that subsidies shall not be reduced due to the cost of inspections; provided further, that beginning on January 1, 2023, for newly issued vouchers and at the time of income recertification, relocation and otherwise required interim recalculation for households with existing vouchers, the department shall provide assistance using a payment standard that shall not exceed 110 per cent of the area-wide fair market rental established by the United States Department of Housing and Urban Development for the same size of dwelling unit in the same region and shall be not less than 100 per cent of that area-wide fair market rental, except that a reduction by the United States Department of Housing and Urban Development in such fair market rental shall not reduce the payment standard applied to a household continuing to reside in a unit for which the household was receiving assistance at the time the fair market rental was reduced; provided further, that if the rent for the household does not exceed the applicable payment standard, the monthly assistance payment for the household for both project based and tenant-based assistance shall be equal to the amount by which the rent exceeds 30 per cent of the monthly adjusted income for the household except that the household payment in any project based unit that is subsidized under another federal or state subsidy or public housing program shall be subject to applicable limits on tenant paid rent under such federal or state program; provided further, that for a household receiving tenant-based assistance under this section, if the rent exceeds the applicable payment standard, the monthly assistance payment for the household shall be equal to the amount by which the applicable payment standard exceeds 30 per cent of the monthly adjusted income of the household; provided further, that the total amount that the household may be required to pay for rent may not exceed 40 per cent of the monthly adjusted income of the household at the time a household initially receives tenant-based assistance with respect to any dwelling; provided further, that households receiving tenant-based assistance under this section may pay more than 40 per cent of the monthly adjusted income of the household, at their option, provided that this amount may not exceed 40 per cent of the monthly adjusted income of the household in the first year of occupancy; provided further, that the department shall establish the amounts of the mobile and project-based vouchers so that the appropriation in this item shall not be exceeded by payments for rental assistance and administration; provided further, that the department shall not enter into commitments that shall cause it to exceed the appropriation set forth in this item; provided further, that the department may impose certain obligations for each participant in the Massachusetts rental voucher program through a 12-month contract which shall be executed by the participant and the department; provided further, that such obligations shall include, but shall not be limited to, job training, counseling, household budgeting and education, as defined under regulations promulgated by the department and to the extent said programs are available; provided further, that each participant shall be required to undertake and meet these contractually established obligations as a condition for continued eligibility in said program; provided further, that for continued eligibility, each participant shall execute such 12-month contract not later than September 1, 2022 if said participant’s annual eligibility recertification date occurs between June 30, 2022 and September 1, 2022 and otherwise not later than the annual eligibility recertification date; provided further, that any participant who is over 60 years of age or who is disabled may be exempt from any obligations unsuitable under particular circumstances; provided further, that participating local housing authorities may take all steps necessary to enable them to transfer mobile voucher program participants from the Massachusetts rental voucher program into another housing subsidy program; provided further, that the department’s approved monthly rent limits for mobile vouchers issued or leased on or after July 1, 2022 shall not be less than 100 per cent or exceed to 110 per cent of the area or small area fair market rent based on unit size as established annually by the United States Department of Housing and Urban Development; provided further, that the requested rent level for mobile vouchers shall be determined reasonable by the administering agency; provided further, that for mobile vouchers currently leased, the new rent limit shall not begin until the anniversary date of the lease; provided further, that not later than December 1, 2022 the department of housing and community development shall submit a report to the house and senate committees on ways and means and the joint committee on housing on the utilization of rental vouchers during the last 3 fiscal years under this item and item 7004-9030; provided further, that the report shall include, but not be limited to, the: (i) number and average value of rental vouchers currently distributed in the commonwealth in each county and in each municipality; (ii) average number of days that it takes for a household to utilize a voucher after receiving it from the administering agency; (iii) number of households that reach the date by which they must lease up their voucher without having found an available unit; (iv) number of households that apply for an extension by the deadline to lease up their voucher and the number of extensions granted; (v) actions taken by the department to reduce the wait time for households to lease up their voucher; (vi) number of distributed vouchers available to be utilized; (vii) number and type of new vouchers issued after July 1, 2022; (viii) number of families on a waitlist for an available rental voucher; (ix) average number of days that it takes for project based vouchers awarded by the department to be utilized after the award is made; and (x) obstacles faced by the department in its efforts to provide the information detailed in the preceding provisos, if applicable; provided further, that the report shall comply with state and federal privacy standards; and provided further, that the department may expend funds from this item for costs related to the completion of the voucher management system, prior appropriation continued

ALTERNATIVE HOUSING VOUCHER PROGRAM (7004-9030)

Description of Changes:

  • Adds language allowing unspent funds to be carried over.

 Language

For the rental assistance program established in section 16 of chapter 179 of the acts of 1995; provided, that notwithstanding any general or special law to the contrary, the rental assistance program shall be in the form of mobile vouchers; provided further, that the vouchers shall be in varying dollar amounts set by the department of housing and community development based on considerations including, but not limited to, household size, composition, household income and geographic location; provided further, that the department’s approved monthly rent limits for vouchers issued or leased after July 1, 2023, shall not be less than 110 per cent of the current area-wide fair market rent based on unit size as established annually by the United States Department of Housing and Urban Development; provided further, that the requested rent level for vouchers shall be determined reasonable by the administering agency; provided further, that for vouchers currently leased, the new rent limit shall not begin until the anniversary date of the lease; provided further, that any household that is proven to have caused intentional damage to its rental unit in an amount exceeding 2 months of rent during any 1-year period shall be terminated from the program; provided further, that notwithstanding any general or special law to the contrary, there shall be no maximum percentage applicable to the amount of income paid for rent by each household holding a mobile voucher; provided further, that each household shall be required to pay not less than 25 per cent of its net income as defined under regulations promulgated by the department for units if payment of utilities is not provided by the unit owner or not less than 30 per cent of its income for units if payment of utilities is provided by the unit owner; provided further, that payments for the rental assistance program may be provided in advance; provided further, that the department of housing and community development shall establish the amounts of the mobile vouchers so that the appropriation in this item is not exceeded by payments for rental assistance and administration; provided further, that the department shall not enter into commitments which shall cause it to exceed the appropriation set forth in this item; provided further, that the amount of a rental assistance voucher payment for an eligible household shall not exceed the rent less the household’s minimum rent obligation; provided further, that not later than December 15, 2022, the department shall submit a report to the house and senate committees on ways and means detailing: (i) expenditures from this item; (ii) the number of outstanding rental vouchers; and (iii) the number and types of units leased; provided further, that the word “rent”, as used in this item, shall mean payments to the landlord or owner of a dwelling unit under a lease or other agreement for a tenant’s occupancy of the dwelling unit, but shall not include payments made by the tenant separately for the cost of heat, cooking fuel or electricity, prior appropriation continued

RAFT (7004-9316)

Description of Changes:

  • Increases RAFT benefit to $10,000 until June 30, 2023, after which the benefit will drop to $7,000
  • De-links RAFT and HomeBASE so that a household could access the maximum of both programs
  • Adds language allowing receipt of MassHealth or DTA assistance as eligibility for RAFT for households to demonstrate below 50% AMI income
  • Removes language referencing ARPA and other Federal assistance

Language

For a program to provide assistance in addressing obstacles to maintaining or securing housing for families with a household income: (i) not more than 30 per cent of area median income who are homeless and moving into subsidized or private housing or are at risk of becoming homeless; or (ii) more than 30 per cent but not more than 50 per cent of area median income who are homeless and moving into subsidized or private housing or are at risk of becoming homeless due to a significant reduction of income or increased expenses; provided, that assistance shall be administered by the department of housing and community development through contracts with the regional HomeBASE agencies; provided further, that not less than 50 per cent of the funds shall be provided to households with an income not more than 30 per cent of area median income, subject to the department’s discretion based on data reflecting program demand and usage; provided further, that in distributing 50 per cent of the funds, the department shall prioritize those families most likely to otherwise require shelter services under item 7004-0101; provided further, that, from the effective date of this act to June 30, 2023, the amount of financial assistance shall not exceed $10,000 in any 12-month period; provided further, that subsequent to the previous proviso, the amount of financial assistance shall not exceed $7,000 in any 12-month period; provided further, that residential assistance payments may be made through direct vendor payments according to standards to be established by the department; provided further, that the agencies shall establish a system for referring families approved for residential assistance payments, who the agencies determine would benefit from these services, to existing community-based programs that provide additional housing stabilization supports, including assistance in obtaining housing subsidies and locating alternative housing that is safe and affordable for any such families; provided further, that the program shall be administered under guidelines established by the department; provided further, that income verification shall be conducted by using: (a) documentation provided by the household, requiring the same documentation and process used to conduct income verification under this item in fiscal year 2022 or fewer documents as directed by the department; (b) third-party income verification; or (c) validated receipt of certain MassHealth or department of transitional assistance benefits demonstrating that the household earns less than 50 per cent of area median income; provided further, that the manner in which income verification is conducted shall be at the discretion of the department but that the department shall not discontinue the use of said options for income verification listed in the preceding proviso; provided further, that the department shall allow a short, simple application requiring minimal processing time; provided further, that the department shall submit quarterly reports to the house and senate committees on ways and means detailing the: (1) number of families who applied for assistance; (2) number of families approved for assistance; (3) minimum, median and average amount of financial assistance awarded; (4) total amount of assistance awarded to date, including a breakdown by income category; and (5) number of families falling into each income category; provided further, that the department shall track a family’s reason for assistance by the same categories used in item 7004-0101; provided further, that not less than $3,000,000 shall be expended to provide assistance to households of all sizes and configurations including, but not limited to, elders, persons with disabilities and unaccompanied youths; provided further, that household assistance funds shall be advanced to the administering agencies at the end of each month and prior to the next month’s disbursement, the amount of which shall be estimated based on the prior month’s expenditure with a reconciliation not less than annually; provided further, that notwithstanding clauses (i) and (ii), funds shall be expended to families and individuals who are at risk of injury or harm due to domestic violence in their current housing situation and whose household income is not more than 60 per cent of the area median income; and provided further, that families and individuals that are at risk of injury or harm from domestic violence who meet the qualifications of enrollment in the address confidentiality program shall be afforded the opportunity to register with and become enrolled in the address confidentiality program as offered by the secretary of the commonwealth

Housing Consumer Education Centers (7004-3036)

Description of Changes:

  • Removes reporting requirement

Language

For housing services and counseling; provided, that funds shall be expended as grants to 9 regional housing consumer education centers operated by the regional nonprofit housing authorities; provided further, that the grants shall be awarded through a competitive application process under criteria established by the department of housing and community development; and provided further, that not less than $200,000 shall be made available to the Regional Housing Network for coordination and information technology.

Public Housing Operating (7004-9005)

Description of Changes:

  • Removes preference for elderly receiving rental assistance in public housing
  • Removes language prohibiting a housing authority employee from being an elected executive officer in the same municipality

Language

For subsidies to housing authorities and nonprofit organizations, including funds for deficiencies caused by certain reduced rentals in housing for the elderly, handicapped, veterans and relocated persons under sections 32 and 40 of chapter 121B of the General Laws; provided, that the department of housing and community development may expend funds appropriated under this item for deficiencies caused by certain reduced rentals which may be anticipated in the operation of housing authorities for the first quarter of the subsequent fiscal year; provided further, that no funds shall be expended from this item to reimburse the debt service reserve included in the budgets of housing authorities; provided further, that the amount appropriated in this item shall be considered to meet all obligations under said sections 32 and 40 of said chapter 121B; provided further, that new reduced rental units developed in fiscal year 2023 eligible for subsidies under this item shall not cause any annualization that results in an amount exceeding the amount appropriated under this item; provided further, that all funds in excess of normal utilities, operations and maintenance costs may be expended for capital repairs; provided further, that no employee of a housing authority shall simultaneously be an elected executive officer within the same municipality in which the authority is located; and provided further, that the administration shall make every attempt to direct efforts toward rehabilitating local housing authority family units requiring $10,000 or less in repairs

HomeBASE (7004-0108)

Description of Change:

  • Allows for automatic renewal of HomeBASE up to a 24-month period, for a total benefit of $20,000 over those two years

Language

For a program of short-term housing assistance to help families eligible for temporary emergency shelter under item 7004-0101 in addressing obstacles to maintaining or securing housing; provided, that the assistance shall include not less than 12 months of housing stabilization and economic self-sufficiency case management services for each family receiving benefits under this item; provided further, that a family shall not receive more than $20,000 in a 24- month period from this item; provided further, that so long as they meet the requirements of their housing stabilization plan, a family that received household assistance under this item whose income exceeds 50 per cent of area median income shall not become ineligible for assistance due to exceeding the income limit for a period of 6 months from the date that the 50 per cent level was exceeded; provided further, that a family shall not be deemed ineligible as a result of any single violation of a self-sufficiency plan; provided further, that the department of housing and community development shall take all steps necessary to enforce regulations to prevent abuse in the short-term housing transition program, including a wage match agreement with the department of revenue; provided further, that a family that was terminated from the program or did not make a good faith effort to follow its housing stabilization plan during the term of its assistance shall be ineligible for benefits under said item 7004-0101 and this item for 12 months from the last date the family received financial assistance under said item 7004-0101 and this item; provided further, that a family’s housing stabilization plan shall adequately accommodate the ages and disabilities of the family members; provided further, that families receiving benefits under this program who are found ineligible for continuing benefits shall be eligible for aid pending a timely appeal under chapter 23B of the General Laws; provided further, that families who are denied assistance under this item may appeal that denial under said chapter 23B, including subsection (F) of section 30 of said chapter 23B and regulations adopted to implement said chapter 23B; provided further, that the department of housing and community development, as a condition of continued eligibility for assistance under this program, may require disclosure of social security numbers by all members of a family receiving assistance under this item for use in verification of income with other agencies, departments and executive offices; provided further, that if a family member fails to provide a social security number for use in verifying the family’s income and eligibility, then the family shall no longer be eligible to receive benefits from this program; provided further, that the department shall administer this program through the following agencies, unless administering agencies are otherwise procured by the department: the Berkshire Housing Development Corporation; Central Massachusetts Housing Alliance, Inc.; Community Teamwork Inc.; the Housing Assistance Corporation; the Franklin County Regional Housing and Redevelopment Authority; Way Finders, Inc.; Metro Housing Boston; the Lynn Housing Authority and Neighborhood Development; the South Middlesex Opportunity Council, Inc.; NeighborWorks Housing Solutions; and RCAP Solutions, Inc.; provided further, that the department shall reallocate funding based on performance-based statistics from underperforming service providers to above average service providers in order to move as many families from hotels, motels or shelters into more sustainable housing; provided further, that the department shall use funds provided under this program for stabilization workers to focus efforts on housing retention and to link households to supports, including job training, education, job search and child care opportunities available, and may enter into agreements with other public and private agencies for the provision of these services; provided further, that a stabilization worker shall be assigned to each household; provided further, that funds shall be used to more rapidly transition families served by the program into temporary or permanent sustainable housing; provided further, that notwithstanding any general or special law to the contrary, not less than 90 days prior to promulgating or amending any regulation, administrative practice or policy that would alter eligibility for or the level of benefits under this program to less than the benefit level available on June 30, 2022, the department shall submit a report to the house and senate committees on ways and means and the clerks of the senate and house of representatives setting forth the justification for such changes including, but not limited to, any determination by the secretary of housing and economic development that available appropriations will be insufficient to meet projected expenses; provided further, that the department shall submit quarterly reports to the house and senate committees on ways and means, which shall include, but not be limited to, the: (i) number of families served, including available demographic information, as well as the number of children served under this item broken down by age; (ii) type of assistance given; (iii) average, minimum and maximum cost per family of said assistance; and (iv) total number of families receiving benefits under 7004-0101 that have received assistance under 7004-0108 during the previous 1, 2 and 3 years, including available demographic information; provided further, that the department shall expend funds under item 7004-0108 on families residing in temporary emergency shelters and family residential treatment or sober living programs under items 4512- 0200 and 4513-1130 if said families otherwise meet all eligibility requirements applicable to emergency shelter under item 7004- 0101, except that, solely for the purposes of this item, the fact that a family is residing in a temporary emergency domestic violence shelter under item 4513-1130 or in a family residential treatment or sober living program under item 4512-0200 shall not preclude said family from receiving assistance; provided further, that this item shall be subject to appropriation and, in the event of a deficiency, nothing in this item shall give rise to, or shall be construed as giving rise to, any enforceable right or entitlement to services in excess of the amounts appropriated in this item; and provided further, that household assistance funds shall be advanced to the administering agencies at the end of each month and prior to the next month’s disbursement, the amount of which shall be estimated based on the prior month’s expenditure with a reconciliation not less than annually

Home and healthy for good (7004-0104)

Description of Changes:

  • Removes language for carryover of unspent funds from previous fiscal year

Language

For the home and healthy for good program operated by Massachusetts Housing and Shelter Alliance, Inc. to reduce the incidence of chronic and long-term homelessness in the commonwealth; provided, that not less than $250,000 shall be expended to continue a supportive housing initiative for unaccompanied homeless young adults who identify as lesbian, gay, bisexual, transgender, queer or questioning; provided further, that Massachusetts Housing and Shelter Alliance, Inc. shall be solely responsible for the administration of this program; provided further, that not later than March 1, 2023, the Massachusetts Housing and Shelter Alliance, Inc. shall submit a report to the clerks of the senate and house of representatives, the department of housing and community development and the house and senate committees on ways and means detailing: (i) the number of people served, including available demographic information; (ii) the average cost per participant; (iii) whether participants have previously received services from the department; and (iv) any projected cost-savings to the commonwealth associated with this program; provided further, that not less than $500,000 shall be expended for a statewide permanent supportive housing program to serve people experiencing long-term homelessness and who have complex medical and behavioral health needs for the purpose of ending homelessness, promoting housing stability and reducing costly utilization of emergency and acute care; provided further, that the Massachusetts Alliance for Supportive Housing LLC shall be solely responsible for the administration of this program; and provided further, that not later than March 1, 2023, the Massachusetts Alliance for Supportive Housing LLC shall submit a report to the clerks of the senate and house of representatives, the department of housing and community development and the house and senate committees on ways and means detailing: (a) the number of people served, including available demographic information; (b) the average cost per participant; (c) whether participants have previously received services from the department; and (d) any projected cost-savings associated with this program for the department or in the utilization of emergency and acute care

Summary of Housing Related Sections in 2022 Economic Development Bill

by iwd Tina | May 8, 2022 | Housing News

The following table summarizes the housing related sections in Governor Baker’s 2022 Economic Development Bill, H.4720, An Act investing in future opportunities for resiliency, workforce, and revitalized downtowns (FORWARD). The bill is now before the Joint Committee on Economic Development and Emerging Technologies. The Committee will hold a hearing on the bill on Monday, May 9, 2022, at 10:00 a.m.

Table summarizing the housing related sections in Governor Baker’s 2022 Economic Development Bill, H.4720

Section &
Line Item
Page Topic Description Amount
§ 2A – 1599-2064 12 Brownfields Redevelopment Fund Grants from ARPA funds for specific Brownfields projects $7,081,900
§ 2A – 1599-2067 15 Housing Choice Grants Grants from ARPA funds for specific Housing Choice projects $113,750
§ 3A – 7002-8048 47 MassWorks Capital authorization for infrastructure development program $400,000,000
§ 3A – 7002-8051 49 Redevelopment of Blighted Properties Capital authorization for MassDevelopment program to improve, rehabilitate, or redevelop blighted, abandoned, vacant, or underutilized properties to eliminate blight, increase housing production, support economic development, and other activities $50,000,000
§ 3A – 7002-8052 49 Technical Assistance for Planning Capital authorization for technical assistance grants for municipalities and regional applicants to support planning and local initiatives related to community development, housing production, and other activities $5,000,000
§ 3A – 7002-8054 50 Rural Community Grants Capital authorization for rural and small towns with less than 7,000 residents to support economic development, job creation, and housing and climate resilience initiatives $10,000,000
§ 3B – 7004-0070 51 Community Based Housing Capital authorization for the development of integrated housing for people with disabilities with priority for individuals who are in institutions or nursing facilities or at risk of institutionalization. Summary of changes to program:

  • Funds could only be used for development of community based housing and could not be used for the redevelopment of housing
  • Directs that housing built using these funds are for individuals with mental illness or intellectual disabilities;
  • Removes requirement that any housing built using these funds be integrated housing but a preference will remain for integrated housing
  • Allows DHCD, Department of Mental Health (DMH), and CEDAC to identify resources and guidelines for CBH grants to promote private housing development to provide for independent integrated living opportunities, to write down building and operating costs and to serve households at or below 15% of area median income (AMI) for the benefit of DMH clients
  • Creates $5 million pilot program of CBH or supportive housing loans to serve mentally ill homeless individuals in the current or former care of DMH
$32,000,000
§ 3B – 7004-0073 54 Housing Stabilization Fund Capital authorization for the acquisition, preservation, and rehabilitation of affordable housing, including foreclosed and distressed properties $73,100,000
§ 3B – 7004-0075 55 Public Housing Redevelopment Demonstration Program Capital authorization for demonstration program that allows public housing authorities to use innovative public housing finance tools to leverage new funds and partners to rehabilitate public housing and reduce ongoing capital costs $19,300,000
§ 3B – 7004-0076 56 Housing Innovations Fund Capital authorization to support the production of innovative and alternative forms of rental housing, including single person occupancy units, transitional and permanent housing for the unhoused, shelters for survivors of domestic violence, supportive housing, and housing for substance abuse recovery $29,500,000
§ 3B – 7004-0079 57 Housing at Transit Nodes Capital authorization for program that supports the creation of smart growth, affordable housing near public transportation $11,700,000
§ 3B – 7004-0081 58 Public Housing Capital authorization to help rehabilitate our state public housing stock. It allows local housing authorities to plan for capital improvements, renovations, abatement of hazardous materials, or to remodel homes for persons with disabilities. $95,200,000
§ 3B – 7004-0084 59 Climate Resilient Housing Capital authorization for program to support production and preservation of sustainable and climate resilient affordable multifamily housing $1,000,000
§ 3B – 7004-8026 60 40R Smart Growth Trust Fund Capital authorization for the Chapter 40R smart growth trust fund $6,900,000
§§ 31–45 73–75 Brownfields Redevelopment Fund Program Changes
  • Removes definition of “economically distressed areas” to allow grants to be made to projects not tied to the Massachusetts Oil and Hazardous Material Release Prevention and Response Act
  • Adjusts definition of “priority projects” to allow eligibility for projects that will receive substantial funds from the municipality even if those financial funds have not yet been received by the project
  • Increases maximum award from $500,000 to $750,000 for projects to conduct environmental cleanup
  • Increases maximum award from $100,000 to $250,000 for projects to conduct environmental site assessments
  • Allows the grant applicant’s required 20% contribution to the project to be not only cash support but also in-kind services or other non-cash contribution
  • Expands list of entities eligible for grants to add non-profit entities in connection with a project that has demonstrable public benefit
  • Adds a preference for awards to be made to projects within 1 mile of an environmental justice population
§§ 49–97 78–85 40R Changes Removes starter home zoning districts from Chapter 40R
§ 98 85–95 Starter Home Zoning Districts – Ch. 40Y Creates Chapter 40Y for Starter Home Zoning Districts (“Districts”). Summary of changes to districts, as compared with 40R:

  • Districts no longer need to be in eligible locations as defined by 40R. Districts can be anywhere in a municipality and do not need to be tied to a smart growth location
  • Districts no longer needs to be at least 3 contiguous acres
  • Districts will still be eligible for zoning incentive payments and $3,000 production bonus payments for each home built from the 40R Smart Growth Trust Fund
  • DHCD may revoke approval of district and any incentive payment if no building permit is issued for any starter homes in the district within 5 years. This is an increase from the 3 year time period 40R currently allows
  • Districts will not be eligible for 40S payments for any increased school costs
  • Districts may be enacted by a simple majority vote
  • At least 50% of starter homes in a district must contain 3+ bedrooms and districts may not impose any age or other occupancy restrictions
  • For any proposed development of 12+ starter homes, at least 10% of starter homes must be affordable for households at or below 110% AMI. 40R currently requires that at least 20% of units be affordable to those at 80% AMI, with the option for municipalities to exempt projects with 12 or fewer units from these affordability requirements
§§ 99–101, 107–109 95, 97 Brownfields Tax Credit Extension Extends the Brownfields Tax Credit program through 2028
§§ 102–104, 110–112, 129, 140 95–96, 97–98, 106, 113 Housing Development Incentive Program (HDIP) Increases annual HDIP authorization from $10 million to
$30 million
§ 114 98 Public Housing Reforms – Capital Funds Adds definition of “capital funds” to the public housing statute, ch. 121B
§ 115 98 Public Housing Reforms – Replacement Unit Adds definition of “replacement unit” to ch. 121B to describe the former public housing units that will be the affordable housing units at the rehabilitated development.
§ 116 99 Public Housing Reforms – Borrowing Against Capital Funds Allows LHAs to borrow against their capital funds in order to leverage more resources for rehabilitation projects
§ 117 100 Public Housing Reforms – Technical Amendment Technical amendment to ch. 121B that clarifies that an LHA’s power to undertake the disposition of property includes a disposition by a means other than sale (e.g., long-term lease).
§ 118 100–

101

Public Housing Reforms Revises the findings that DHCD must make to approve a sale or disposition of a public housing project to create greater opportunity for redevelopment of existing public housing, while adding a requirement for one-for-one replacement
§ 119 101–

102

Public Housing Reforms Requires, as a condition of sale or disposition of an existing housing project, that the redevelopment partner enter into a binding land use restriction, requiring compliance with public housing restrictions with respect to replacement units in perpetuity, except in limited circumstances for projects utilizing federal low income housing tax credits.
§ 120 102 Public Housing Reforms – Technical Amendment Technical amendment to ch.121B
§ 121 102 Public Housing Reforms – Technical Amendment Technical change to ch. 121B to address powers of a housing authority when it is not financially feasible to maintain units to a reasonable program standard for occupancy even if the units have not yet fallen below that standard.
§ 122 102 Public Housing Reforms – Technical Amendment Technical correction to make clear that section 26(p) applies to certain types of dispositions as well as demolition.
§ 123 102 Public Housing Reforms – Vacancy Requirement Changes the requirement that a unit must be determined to be vacant as of November 1, 2012, in order for a housing authority to seek DHCD approval to dispose of or demolish the unit to a requirement that the unit be vacant for a two year period before disposition or demolition.
§ 124 102–
103
Public Housing Reforms – Procuring Redevelopment Partners Adds provisions permitting LHAs to procure developer partners for redevelopment projects through a competitive, qualifications-based procurement process that will allow the disposition of property to the selected developer without having to go through a separate land disposition process.
§ 125 104 Public Housing Reforms Exempts LHAs that do not own, lease, or manage any state-aided public housing units from DHCD oversight.
§ 126 104–
105
Public Housing Reforms – Retaining Proceeds Allows LHAs to retain the proceeds of the sale of any housing authority land for the purpose of rehabilitating other LHA property
§ 127 105 Public Housing Reforms – Conforming Change Conforming change to allow disposition of LHA property
§ 128 105–

106

Public Housing Reforms – Filed Sub-bid Exemption Exempts public housing redevelopment projects from ch. 149 filed sub-bid requirements but does not relieve such redevelopment from prevailing wage requirements
§ 136 111 Hynes Convention Center Sale Directs proceeds from the sale of the Hynes Convention Center to be distributed as follows:

  • 50% for affordable housing in Boston
  • 30% for affordable housing outside of Boston
  • 20% for mitigation of impacts of the sale and closure of Hynes on the Back Bay neighborhood

 

Governor Releases FY2023 Capital Budget

by iwd Tina | May 5, 2022 | Housing News

On May 5, the Baker-Polito Administration released its FY2023 Capital Investment Plan, which includes resources for affordable housing and community development programs. The FY2023 budget includes a slight increase in overall capital funding for affordable housing and community development programs compared with last year.

Capital funding for affordable housing, largely distributed through the Department of Housing and Community Development (DHCD), produces and preserves housing for extremely low-, low-, and middle-income residents, including housing for seniors, persons with disabilities, and families and individuals experiencing homelessness. These resources support public housing authorities, affordable housing in smart growth locations, and first-time home buyers.

According to the Governor’s press release, highlights for affordable housing include:

  • $151 million for the production and preservation of affordable housing
  • $110 million to support state-aided public housing portfolio

The Massachusetts capital budget is supported mainly through borrowing — as compared to the state operating budget which is funding through revenue collection.

For a description of the affordable housing capital programs, please read pages 27–31 of the FY2022 Capital Investment Plan Report.

Table of Affordable Housing and Community Development Programs in FY2023 Capital Budget

Program

FY23 Total Capital Budget

FY22 Total Capital Budget

Affordability Preservation (Capital Improvement & Preservation Fund) $ 5,000,000 $ 5,000,000
Affordable Housing Trust Fund (AHTF) $ 35,000,000 $ 35,000,000
Brownfields Redevelopment Fund $ 2,500,000 $ 2,500,000
Climate Resilient Affordable Housing $ 1,700,000 $ 1,700,000
Community Based Housing $ 5,000,000 $ 5,000,000
Community Scale Housing $ – $ 4,000,000
Facilities Consolidation Fund $ 11,600,000 $ 11,600,000
Gateway Cities Housing Rehabilitation $ 2,500,000 $ 1,300,000
Home Modification Loan Program $ 3,801,159 $ 3,801,159
Housing Choice Grants $ 4,000,000 $ 5,000,000
Housing Innovations Funds $ 14,938,194 $ 12,438,194
Housing Stabilization Fund $ 32,675,000 $ 21,175,000
Mixed Income Community Development $ 8,000,000 $ 8,000,000
Mixed Income Housing Demonstration (Public Housing Demonstration) $ 8,500,000 $ 8,500,000
Neighborhood Stabilization $ 6,538,841 $ 6,538,841
Public Housing – AHTF $ 5,000,000 $ 5,000,000
Public Housing – General $ 90,000,000 $ 90,000,000
Public Housing – New Accessible Units $ 1,000,000 $ 1,000,000
Public Housing – Sustainability & Resiliency $ 5,000,000 $ 5,000,000
Smart Growth – 4oR Trust Fund $ 3,000,000 $ 2,000,000
Supportive Housing $ – $ 10,000,000
Transit Oriented Housing $ 10,000,000 $ 10,000,000

TOTAL

$ 255,753,194 $ 254,553,194

House Concludes FY2023 Budget Debate

by iwd Tina | May 3, 2022 | Housing News

The House added nearly $130 million in spending making the FY2023 fiscal budget total $49.7 billion as it concluded debate on its budget on Wednesday evening, April 27. Although none of CHAPA’s priority amendments were adopted, the final House version of the budget provides increased funding for many of CHAPA’s affordable housing priorities, including the Massachusetts Rental Voucher Program, the Alternative Housing Voucher Program, Public Housing, RAFT, and HomeBASE. The Massachusetts Senate will debate its budget proposal in the last week of May.

The House budget increases housing funding by $841 million over the FY 2022 budget and provides $124.5 million more than the Governor’s budget. Please refer to the CHAPA Budget Priority chart for funding amounts for affordable housing. Below is the summary of some critical programs:

  • Mass. Rental Voucher Program (MRVP) – The House funds MRVP at $150 million along with language to carry forward $21.9 million in unspent funds from FY22 bringing the MRVP total allocation at $171.9 million
  • Residential Assistance for Families in Transition (RAFT) – The House funds RAFT at $140 million ($60 million over the Governor’s proposal). This is critical given that the federal funding for rental assistance has almost ended. The increased allocation is in addition to the $100 million allocated for RAFT through the FY2022 Supplemental budget. The Housing Consumer Education Center line item has also received an increased allocation of $9.7 million with $1.5 million dedicated to housing stabilization through the Eviction Diversion initiative.
  • Alternative Housing Voucher Program (AHVP) – The House allocated $13.6 million along with language to carry forward $5.6 million in unspent funds from FY22 bringing the AHVP total allocation to $19.2 million.
  • Public Housing – The House proposes increased funding for Public Housing Operating line item at $92 million.
  • HomeBASE – The House allocates increased funding of $59.4 million for HomeBASE with automatic renewal of benefits up to 2 years.

CHAPA thanks the Speaker of the House, Ronald Mariano, Chairman of House Ways & Means (HWM) Committee, Aaron Michlewitz, Members of the HWM Committee, Chairman of Housing Commitee, James Arciero, and all the Representatives for championing and supporting the affordable housing priorities.

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