by iwd Tina | Aug 1, 2022 | Housing News
The Legislature failed to pass an economic development bill by the close of the legislative session, which ended on July 31. A conference committee could not agree to a final bill as it negotiated differences between each chamber’s respective versions.
For housing, the Economic Development Bill contained potentially hundreds of millions of dollars in capital authorizations for affordable housing programs, including nearly $100 million for public housing capital repairs. The legislation could have also included up to $400 million in the state’s American Rescue Plan Act Fiscal Recovery Funds and budget surplus funding for homeownership, workforce housing, and affordable housing for extremely low- and very low-income households. Both the House and Senate versions of the bill also included critical public housing reforms that would have helped redevelop and rehabilitate our public housing.
The bill also included proposed tax relief for millions of Massachusetts residents.
In the usual hectic lead up to the end of the legislative session, when legislators often come together with last minute deals on major pieces of legislation, the Economic Development Bill faced an unexpected challenge. Until the last week of session, legislators were unaware of a state law that will likely be triggered requiring $3 billion in direct tax relief because of unexpectedly high revenue collections.
Lawmakers were unsure if the state could afford the $3 billion in unexpected tax relief in addition to the $4 billion full price tag of the current economic development proposals. Legislative leaders announced that the bill would remain in conference until they could better understand the scope and impact of triggering the tax rebate law.
Unfortunately, this leaves all of the provisions of the economic development bill in limbo. With the end of the formal legislative session on July 31, the House and Senate will only meet in informal sessions between now and the beginning of 2023.
Informal sessions are not typically used to pass large or controversial pieces of legislation, like a multi-billion dollar economic development bill, because any member can object to a bill and hold up the process. Also, certain legislation cannot be passed during informal sessions, like borrowing authorizations, because they require recorded votes, which only happen during formal legislative sessions. The borrowing authorizations would include the nearly $200 million in capital authorizations for affordable housing.
The House and Senate both indicated they will decide if pieces of the Economic Development Bill could be taken during informal sessions but anything passed would likely be a much slimmed-down version of either the House or Senate Economic Development Bills.
CHAPA is disappointed that the Economic Development Bill did not pass. The bill would have provided the opportunity to plan for growth to ensure everyone in every community could thrive, meet the growing demand for housing, and invest in our neighborhoods in ways that benefit everyone.
CHAPA will be advocating for the Legislature to pass these pieces of the Economic Development Bill during informal sessions, including over $400 million in resources for homeownership, workforce housing, and homes for those with the lowest incomes as well as funding and policies to rehabilitate our public housing.
by iwd Tina | Jul 28, 2022 | Housing News
Governor Charlie Baker today signed the Fiscal Year 2023 budget, a $52.7 billion budget with historic investments in affordable housing programs along with other critical priorities.The final budget deposits nearly $1.5 billion into the Rainy Day Fund bringing the balance of the Fund to $8.4 billion.
CHAPA thanks the Legislature and Governor Baker for making historic investments in affordable housing programs. These investments are critical as Massachusetts recovers from the pandemic.
The budget allocates $884.6 million for the Department of Housing and Community Development, a $300.5 million (51%) increase above FY22. This includes $154.3 million for the Massachusetts Rental Voucher Program (MRVP), which will support enhanced benefits and reforms that will give families more housing choice and flexibility.
Along with eligibility expansions that will multiply the number of households served and increase benefits, the budget invests a historic $150 million in Residential Assistance for Families in Transition (RAFT), a 582% increase above FY22, and it provides $59.4 million for HomeBASE, a 129% increase vs. FY22. It also supports $110 million for homeless individual shelters, a 90% increase above FY22.
Specifically, the budget invests in the following:
- $219.4 million for the Emergency Assistance family shelter system
- $154.3 million for MRVP to support more than 10,000 vouchers in FY23
- $150 million for Residential Assistance for Families in Transition (RAFT), an increase of $128 million above FY22
- $110 million for Homeless Individual Shelters and $5 million to continue an innovative model to create new housing opportunities with wraparound services for chronically homeless individuals
- $92 million in funding for Local Housing Authorities
- $59.4 million for HomeBASE Household Assistance
- $12.5 million for a collaborative program through which the Department of Mental Health provides mental health services and DHCD provides rental assistance
by iwd Tina | Jul 27, 2022 | Housing News
On July 27, the U.S. Treasury Department released updated guidance that allows governments to use State and Local Fiscal Recovery Funds (SLFRF) from the American Rescue Plan Act (ARPA) to fully finance long-term affordable housing loans, including the principal of any such loans, subject to certain conditions and other changes that will facilitate significant additional financing for affordable housing projects, including those using the Low Income Housing Tax Credit (LIHTC).
Treasury has released updated FAQs, which include new guidance (2.14 and 4.9) on affordable housing development. Treasury also published a How-to Guide for Affordable Housing to assist SLFRF recipients in using their funds for affordable housing and provides information on combining different sources of federal funds.
Learn more from the Housing Advisory Group, who helped achieve these important updates to the guidelines!
by iwd Tina | Jul 26, 2022 | Housing News
The Legislature passed a $52.7 billion annual budget (H 5050) for the fiscal year 2023, which began on July 1st with an interim spending plan in place on July 18th. The FY2023 Budget is now on Governor Baker’s desk. The Governor has 10 days to review it and send it back with amendments and vetoes.
Below are CHAPA’s recommendations for Governor Baker on making the strongest possible budget for affordable housing, community development, and homelessness prevention.
On behalf of Citizens’ Housing and Planning Association (CHAPA), thanks the Governor for making investments in permanent affordable housing solutions, including our state’s rental assistance programs and public housing.
Although the health crisis from the COVID-19 pandemic may be coming under control, our housing challenges remain. We now have a chance to act on equitable housing policies that can ensure long-term stability and prosperity for Massachusetts residents.
CHAPA is a non-profit organization that advocates for the resources and policies needed to support renters, homeowners, and landlords and to preserve and expand the state’s affordable housing stock to make sure everyone in the Commonwealth has a safe, healthy, and affordable place to call home.
Below are funding and language recommendations supported by CHAPA that will help bridge the key differences between the House and Senate budgets and provide the strongest support for these critical resources to help many residents stay housed and recover during this pandemic.
Massachusetts Rental Voucher Program (MRVP) (7004-9024)
CHAPA asks you to approve the funding level of $154 million allocated through the FY2023 budget as well as the language to allow $20 million in prior appropriations from FY2022 to continue into FY2023. This total funding of ~$175 million for MRVP will help create new rental vouchers to serve more families, produce new affordable homes, and preserve existing affordable housing critical to recovering from the pandemic.
CHAPA requests you to keep the language on establishing a payment standard, lowering tenant rent share to 30% of the household income, and allowing utilities as a part of the tenant rent payment in the budget. These changes will better align the state MRVP program with the federal Section 8 Housing Choice Voucher program making MRVP vouchers more competitive and effective to use in a tight housing market.
Alternative Housing Voucher Program (AHVP) (7004-9030)
CHAPA asks that you support the increased appropriation of $13,600,000 allocated through the FY2023 budget as well as the language to allow $5.6 million in prior appropriations from FY2022 to continue into FY2023 for AHVP. This total funding of $19.2 million will create new rental vouchers for persons with disabilities.
Residential Assistance for Families in Transition (RAFT) (7004-9316)
CHAPA asks you to support the $150 million in total appropriations for RAFT, including $60 million leftover funds from the FY2022 Supplemental budget to be carried over. This will help thousands of households in Massachusetts avoid eviction and stabilize property owners, especially as the federal emergency rental assistance has ended.
We also request that you keep the language allowing the $10,000 maximum RAFT benefit to be in place until the next year and lowering to $7,000 after. CHAPA also requests you to support the language to de-link RAFT and HomeBASE to allow eligible households to receive maximum RAFT benefit for both RAFT and HomeBASE through June 2022.
Housing Consumer Education Centers (HCECs) (7004-3036)
CHAPA requests you to support the increased funding of $9.7 million for the HCECs so they can continue to offer critical housing and eviction prevention resources. These are the frontline agencies for delivering housing resources for critical programs like RAFT and HomeBASE.
Public Housing Operating Subsidy (7004-9005)
CHAPA asks you to approve the increased funding level of $92 million for public housing operating subsidy. Unfortunately, years of underfunding before the pandemic have left many housing authorities struggling to operate and keep apartments in good repair. The additional funds will help housing authorities operate and preserve this valuable resource while ensuring health and safety of their tenants, many of whom are at increased risk of the virus because they are elderly or have a disability.
Public Housing Reform (7004-9007)
CHAPA asks you to support the funding level of $1 million for public housing reform. These reforms improve governance and operation of local housing authorities by assisting with capital improvements, unit turn over, and help support a centralized waitlist.
Home and Healthy for Good (7004-0104)
CHAPA asks that you allow for $6.3 million appropriation and language for Home and Healthy for Good (HHG) program from the Conference budget. This program helps reduce homelessness, promote housing stability, and reduce costly utilization of emergency care.
HomeBASE (7004-0108)
CHAPA requests that you adopt the total appropriation of $59,411,201 allocated through the FY2023 budget. This will offer more families an alternative to emergency shelter by providing stabilization services and up to $20,000 in financial assistance to pay rent, utilities, security deposits, and other expenses that would allow them to stay in their homes, move, or live with another family over a period of two years.
Foreclosure Prevention & Housing Counseling (7006-0011)
CHAPA asks you to support the $3.05 million appropriation for foreclosure prevention and housing counseling grants administered by the Division of Banks (DOB). These funds will help thousands of residents in Massachusetts purchase their first home and provide foreclosure counseling to help owners who are at risk of losing their home.
Tenancy Preservation Program (TPP) (7004-3045)
CHAPA asks you to support the $1.8 million appropriation for TPP, an effective homelessness prevention resource. TPP works with households with disabilities facing eviction to determine whether a disability can be reasonably accommodated in order to preserve the tenancy. Additional funds for the program will help prevent more evictions during the ongoing pandemic.
Massachusetts Accessible Housing Registry (MassAccess) (4120-4001)
Thanks to you and the Legislature for including $150,000 funding, for MassAccess, www.massaccesshousingregistry.org. The website is a searchable database of available affordable and accessible housing opportunities in Massachusetts.
The $70,000 increase will help support the replacement of MassAccess with two technologically modern websites for rentals (Housing Navigator – which is already up and running) and homeownership opportunities (MyMassHome – which needs additional funding to go live). The modest increase in funding will ensure that people can find the affordable housing that has been developed throughout the Commonwealth. In order for people to have opportunities to live in the communities they choose, it is critical that they know where affordable homes are located
Unaccompanied Homeless Youth (4000-0007)
CHAPA asks that you support the $9.5 million appropriation for housing and wraparound services for unaccompanied youth and young adults experiencing homelessness. We hope that you will support the increased appropriation to allow the program to serve more homeless youth.
New Lease for Homeless Families (7004-0106)
CHAPA asks you to support the $250,000 line-item for New Lease for Homeless Families. New Lease houses families residing in state-funded shelters and hotels by implementing a preference for these families in properties across the Commonwealth. Through New Lease, homeless families have the opportunity to live in desirable and affordable communities with the support they need to achieve successful tenancies. This appropriation will allow the program to continue serving the nearly 300 families that New Lease works with to help find and maintain homes.
by iwd Tina | Jul 22, 2022 | Housing News
The State Senate concluded debate on its Economic Development Bill late Thursday evening. The Senate adopted the following housing related sections by amendment.
Topic
|
Description
|
Amount
|
Accessory Dwelling Units (ADUs)
|
Allows ADUs to be built by-right in every municipality
|
|
Eviction Record Sealing
|
Allows certain eviction records to be sealed. Specifically, provides that:
- Tenants facing a no-fault eviction or who satisfy their judgments can seal their records after the conclusion of the case.
- A court may, at its discretion, process such petitions administratively without a hearing and the petition shall be on a form furnished by the trial court
- Sealed records are available to parties
- Tenant screening companies cannot report a sealed case
|
|
STASH Program
|
Funding for Massachusetts Affordable Housing Alliance’s STASH program to serve first generation homebuyers
|
$3,500,000
|
Permanent Supportive Housing for Human Trafficking Survivors
|
Funding for supportive housing for survivors of human trafficking
|
$4,000,000
|
Acquisition of Small Properties
|
Acquisition funds for 1–8 unit properties to create affordable housing; funded through the Housing Stabilization Trust Fund
|
$11,180,000
|
Fair Housing Study
|
Funding to support a fair housing study to help eradicate racial discrimination in housing to be managed through CHAPA
|
$100,000
|
The other housing related sections from the Senate Ways and Means Economic Development Bill remained unchanged.
Comparison of Housing Related Sections in House and Senate Economic Development Bill
A conference committee will now reconcile the differences between the House and Senate Bills before sending a final bill to the Governor for his signature or vetoes. The Legislature will be unable to override any vetoes because the legislative session ends on July 31st which is before the Governor is required to take action on the bill.