Analysis of Conference Report for ARPA Spending Proposal

by iwd Tina | Dec 6, 2021 | Housing News

The following analyzes the language of the affordable housing related programs in the Conference Committee Report (H.4269) of American Rescue Plan Act (ARPA) spending proposal. The Conference Committee reconciled the differences between the House (H.4234) and the Senate (S.2580) ARPA spending proposals.

Homeownership Assistance (1599-2020)

House:           $100,000,000
Senate:           $50,000,000
Conference:   $65,000,000

Language Summary:

• Conference Committee aligns with House and Senate for allocating funding to address the homeownership gap by creating opportunities for first time home-buyers through down payment assistance programs, mortgage insurance programs and mortgage interest subsidy programs in disadvantaged communities impacted by the pandemic
• Conference Committee does not allow debt reduction programs to be an authorized use for these funds (originally proposed by Senate)
• Conference Committee requires administering agency to submit spending plan 30 days before obligating funds and a report to the Legislature

1599-2020 For a reserve to create and maintain opportunities for homeownership for residents of communities disproportionately impacted by the 2019 novel coronavirus pandemic; provided, that funds shall be expended to create and enhance access to homeownership in order to foster a strong, inclusive and equitable recovery with long-term benefits for housing security, health and economic outcomes and to address a systemic homeownership gap that contributed to more severe impacts of the 2019 novel coronavirus pandemic in socially disadvantaged communities and among targeted populations; provided further, that funds shall be expended to create opportunities for first-time homebuyers; provided further, that funds may be expended for down payment assistance programs, mortgage insurance programs, and mortgage interest subsidy programs administered by the Massachusetts Housing Finance Agency and the Massachusetts Housing Partnership; provided further, that funds may be expended to first-time homebuyer counseling and financial literacy programs; and provided further, that not less than 30 days prior to obligations being made from this item, the administering entity shall submit a report to the executive office for administration and finance, the joint committee on housing and the house and senate committees on ways and means on proposed allocations and spending plans for programs within this item including, but not limited to, any program criteria and guidelines for the distribution of funds…………………..$65,000,000

CommonWealth Builder – Homeownership Production (1599-2021)

House:           $100,000,000
Senate:           $125, 000,000
Conference:   $115, 000, 000

Language Summary:

• The Conference Report aligns with House and Senate to direct funds to first-time homebuyers and socially disadvantaged individuals in disproportionately impacted communities in the pandemic through MassHousing’s CommonWealth Builder program
• Conference language limits spending to MassHousing’s CommonWealth Builder program, removing Massachusetts Housing Partnership or other similar program from being able to administer funds (as originally proposed by the House)
• Conference Committee aligns with Senate language to explicitly limit income eligibility to 70-120% of Area Median Income (AMI) and create a preference for the following:
  • Projects serving 70% AMI
  • Projects that include clean energy and sustainability initiatives
  • Projects in communities that have changes zoning using Housing Choice
• Conference Committee adopted the House language to include minimum size of 6 units for projects
• Conference Committee requires funds to be distributed in a way that promotes geographic equity
• The Conference Committee language also allows grants to include a requirement for matching funds

1599-2021 For a reserve to support the production of for-sale, below market housing to expand homeownership opportunities for first-time homebuyers and socially disadvantaged individuals in communities disproportionately impacted by the 2019 novel coronavirus pandemic through the CommonWealth Builder Program administered by the Massachusetts Housing Finance Agency; provided, that grants and loans to developers shall be used to facilitate production of affordable homeownership units for households earning between 70 per cent and 120 per cent of the area median income; provided further, that projects with units restricted to households earning 70 percent of the area median income shall receive preference; provided further, that projects that include clean energy and sustainability initiatives, such as electric heat pumps, net-zero developments, Passive House or equivalent energy efficiency certification and all-electric buildings, shall receive preference; provided further, that the minimum number of units for qualifying projects under the program shall be 6 units that funds in this item shall be distributed in a manner that promotes geographic equity; and provided further, that preference may be given to projects in communities that have adopted comprehensive zoning changes allowed by simple majority under paragraph 5 of section 5 of chapter 40A of the General Laws or otherwise have made zoning or other reforms to encourage the production of affordable or smart growth housing; and provided further, that grants may include a requirement for matching funds…………………………………………………………….$115,000,000

Rental Production (1599-2022)

House:           $100,000,000
Senate:           $125,000,000
Conference:   $115,000,000

Language Differences:

• The Conference Report establishes funding for affordable housing production and preservation to be administered by Dept. of Housing and Community Development (DHCD), MassHousing and Community Economic Development Assistance Corporation (CEDAC) agencies through grants, loans and financial assistance for affordable housing projects receiving LIHTC, state tax exempt bond funds or other state funds
• The Conference language allows $2M from this line item to be spent on Housing Development Incentive Program
• The Conference Committee establishes priorities for projects with clean energy and sustainability initiatives and directs funds to be spent in a way that promotes geographic equity
• The Conference Committee also requires a spending plan to be submitted 30 days before distributing funds

1599-2022 For a reserve to support the production and preservation of affordable rental housing for residents of communities disproportionately impacted by the 2019 novel coronavirus pandemic through programs administered by the department of housing and community development directly or through 1 or more of the following: (i) Massachusetts Housing Finance Agency; (ii) Massachusetts Housing Partnership; and (iii) Community Economic Development Assistance Corporation; provided, that funds shall be expended in the form of grants, loans or other financial assistance to projects receiving federal or state low-income housing tax credits, state tax-exempt bond financing or other state financial assistance in the form of grants or loans; provided further, that notwithstanding any general or special law to the contrary, funds from this item may be made available to increase the annual cap by up to $2,000,000 for the housing development incentive program under chapter 40V of the General Laws; provided further, that projects that include clean energy and sustainability initiatives, such as electric heat pumps, net-zero developments, Passive House or equivalent energy efficiency certification and all-electric buildings, shall be prioritized; provided further, that funds in this item shall be distributed in a manner that promotes geographic equity; and provided further, that not less than 30 days prior to obligations being made from this item, the administering entity shall submit a report to the executive office for administration and finance, the joint committee on housing and the house and senate committees on ways and means on proposed allocations and spending plans for programs within this item including, but not limited to, any program criteria and guidelines for the distribution of funds…………………$115,000,000

Supportive Housing (1599-2023)

House:           $150,000,000
Senate:           $150,000,000
Conference:   $150,000,000

Language Differences:

• The Conference Committee establishes funding for production of permanent supportive housing for the following priority populations:
  • Individuals and families who may be classified as chronically homeless
  • Survivors of domestic violence
  • Seniors
  • Veterans
  • Individuals and families with behavioral health needs or substance abuse needs
  • Survivors of human trafficking
  • Survivors of sexual violence
  • Individuals and families at risk of entering or transitioning out of the foster care system
  • Youth and young adults
• The Conference Report includes language explicitly allowing funds to be used for acquisition of temporary housing, like hotels and motels, to convert into supportive housing
• The Conference Report includes House language to provides $15 million to the Massachusetts Alliance for Supportive Housing (MASH) to create supportive housing to address overcrowded congregate shelters and encampments of unsheltered individuals
• The Conference Report directs the DHCD to consult with MASH on evidence-based and evidence-informed best practices for creating and expanding permanent supportive housing for the populations prioritized in this item
• The Conference Report requires DHCD, in consultation with MASH, to submit a report on how the funds are being used to reduce chronic and long term homelessness
• The Report provides $50 million for DHCD, in consultation with MASH, to create supportive housing for chronically homeless individuals and families
• The Conference adopts Senate language to explicitly prioritize disproportionately impacted communities
• The Conference Report allows funds to be used for medical, health and wellness facilities within existing and planned supportive affordable housing communities
• The Conference Report directs funds to be used to ensure geographic equity
• The Conference Report directs $20 million for increasing geographic equity and accessibility related to the continuum of long-term care services for veterans not primarily served by the Soldiers’ Home in Massachusetts located in Chelsea or Holyoke

For a reserve to support the production of permanent supportive housing for individuals and families who may be classified as chronically homeless, individuals and families with behavioral health needs or substance addiction needs, survivors of domestic violence, survivors of human trafficking, survivors of sexual violence, individuals and families at risk of entering or transitioning out of the foster care system, youth and young adults, seniors and veterans through programs administered by the department of housing and community development directly or through 1 or more of the following: (i) Massachusetts Housing Finance Agency; (ii) Massachusetts Housing Partnership; and (iii) Community Economic Development Assistance Corporation; provided, that funds shall be expended in the form of grants, loans or other financial assistance to projects that will provide stable housing options and supportive services to the populations prioritized in this item; provided further, that funds shall be expended in the form of grants that shall include rental assistance and funding for support services to projects that provide services to support long-term homelessness prevention; provided further, that said projects and services shall prioritize those communities most affected by the physical and mental health impacts of the pandemic and by prior physical and mental health disparities; provided further, that funds may be expended for the acquisition of temporary housing including, but not limited to, hotels, motels and nursing facilities, to be converted into permanent and affordable supportive housing; provided further, that funds for acquisition and development shall be encouraged to be integrated with other federal, state and municipal resources for operating subsidies and services; provided further, that a portion of these funds may be invested in the creation of non-congregate shelters as part of a transition to permanent supportive housing or as a small component of emergency units within a supportive housing project; provided further, that the department shall consult with Massachusetts Alliance for Supportive Housing LLC on evidence-based and evidence-informed best practices for creating and expanding permanent supportive housing for the populations prioritized in this item; provided further, that not later than March 1, 2022, the department shall submit a report, in consultation with the Massachusetts Alliance for Supportive Housing LLC, to the house and senate committees on ways and means and the joint committee on housing on recommendations for creating permanent supportive housing for the populations prioritized in this item to reduce the incidence of chronic and long- term homelessness in the commonwealth; provided further, that not less than $50,000,000 shall be made available and administered by the department, with input from the Massachusetts Alliance for Supportive Housing LLC, for the creation of permanent supportive housing targeted at individuals and families classified as chronically homeless based on the recommendations; provided further, that the department shall prioritize communities disproportionately impacted by the 2019 novel coronavirus pandemic; provided further, that a portion of these funds may be expended for the planning, construction and fit-out of medical, health and wellness facilities within existing and planned supportive affordable housing communities; provided further, that not less than $15,000,000 shall be expended for the Massachusetts Alliance for Supportive Housing LLC for the creation of supportive housing to address the public health emergency of homelessness, exacerbated by COVID-19, due to densely populated congregate shelters and growing encampments of unsheltered individuals; provided further, not less than $20,000,000 shall be expended, in consultation with the executive office of health and human services, for costs associated with increasing geographic equity and accessibility related to the continuum of long-term care services for veterans not primarily served by the Soldiers’ Home in Massachusetts located in the city of Chelsea or the Soldiers’ Home in Holyoke, including the establishment of regional or satellite veterans’ homes and new or expanded supports for community-based care services and home-based care services; and provided further, that the department shall ensure geographic equity when distributing funds from this item…………………………………………………………….$150,000,000

Public Housing (1599-2024)

House:           $150,000,000
Senate:           $150,000,000
Conference:           $150,000,000

Language Differences:

• The Conference Report establishes funding for rehab and modernization of state public housing for improvements that will help comply with current code
• Prioritizes projects in disproportionately impacted communities
• The Conference Report directs funds to be distributed to achieve geographic equity
• The language allows grants to require matching funds from the municipality
• The Conference Report requires spending plan to be submitted to the Office of Administration and Finance 30 days before distributing any funds

1599-2024 For a reserve to rehabilitate and modernize state-aided public housing developments through the funding of infrastructure improvements undertaken pursuant to clause (j) of section 26 of chapter 121B of the General Laws; provided, that funds in this item shall be administered by the department of housing and community development; provided further, that expenditures shall include, but not be limited to, contracts entered into for projects: (i) to replace existing failed and beyond useful-life sewer lines, water lines, heating lines, electrical lines and transformers; (ii) to address failing and unsafe zoned fire alarm systems with addressable systems; (iii) to complete approved projects underfunded due to code triggers and construction multi-phasing; (iv) that were requested based on approved formula funding figures delayed due to increased costs due to the 2019 novel coronavirus pandemic; and (v) to mitigate issues relating to flooding and climate hazards; provided further, that the department shall prioritize projects in communities disproportionately impacted by the 2019 novel coronavirus pandemic when distributing funds; provided further, that the department shall ensure geographic equity when distributing funds; provided further, that when appropriate the department may require a matching grant from the municipality in which a recipient housing development resides; and provided further, that not less than 30 day prior to obligations being made from this item, the department shall provide a distribution methodology to the executive office for administration and finance, the house and senate committees on ways and means and the joint committee on housing………………………………………………………………………………$150,000,000

Green Energy Retrofitting (1599-2035)

House:           Not included
Senate:           $10,000,000
Conference:   $6,500,000

Language Summary:

• The Conference Report establishes funding for a pilot program administered by the Dept. of Energy Resources for moderate to low-income housing in Gateway Municipalities, qualified census tracts and similar municipalities to be retrofitted with energy efficient/ clean/ renewable technologies
• The eligible projects require to retrofit 10 or more units
• Dept. of Energy Resources in consultation with the center, DHCD and Dept. of Public Utilities will set up the application criteria and incentives for property owners to maintain affordability for a certain period after the retrofitting
• The Committee Report directs the Dept. of Energy Resource to collect data, best practices and submit a report to the Legislature in 6 months on the energy savings and pollution mitigation through the pilot program

1599-2035 For a reserve to support a pilot program to retrofit existing low-income and moderate-income housing to: (i) be highly energy efficient; (ii) use noncombustion clean heating, hot water and cooking technologies; and (iii) include on-site renewable energy generating sources when possible; provided further, that funds in this item shall be administered by the department of energy resources, which may contract with the Massachusetts clean energy center; provided further, that funds from this item shall be limited to gateway municipalities as defined in section 3A of chapter 23A of the General Laws, qualified census tracts and municipalities with similar demographics as determined by the department; provided further, that funds in this item may ,also be used, as needed, for weatherization, pre-weatherization and pre-electrification barrier mitigation; provided further, that eligible projects shall retrofit not less than 10 existing low-income or moderate-income housing units; provided further, that the department of energy resources, in consultation with the center, the department of housing and community development and the department of public utilities, shall establish an application criteria, including an incentive structure that requires participating property owners to maintain their properties as low-income or moderate-income housing for a certain period as set by the department after retrofitting projects have been completed; provided further, that municipalities and nonprofits shall be eligible to apply for funding from this item; provided further, that the department of energy resources shall collect data and identify best practices for retrofitting low-income and moderate-income housing; provided further, that any grants distributed from this item may include a requirement for matching funds; and provided further, that not later than 6 months after completion of the pilot program, the department of energy resources shall submit a report to the house and senate committees on ways and means and the joint committee on telecommunications, utilities and energy that, for each pilot site, shall include, but not be limited to: (a) energy savings; (b) utility bill savings; (c) improvements in indoor and outdoor air quality; (d) reductions in greenhouse gas emissions and other pollutants; (e) improvements in resident safety and quality of life; (f) the most effective retrofitting approaches based on housing type; and (g) recommendations to expand the program…………………$6,500,000

DHCD Releases Draft 2022–2023 QAP

by iwd Tina | Dec 3, 2021 | Housing News

On December 3, 2021, the Department of Housing and Community Development (DHCD) released its Draft 2022–2023 Qualified Allocation Plan (QAP).

Analysis of Differences Between 2020-2021 QAP & 2022-2023 QAP Draft

DHCD will hold a virtual public hearing on the Draft QAP on Wednesday, December 22, 2021, at 10:30 a.m. Please e-mail Bertha Borin at bertha.borin@mass.gov if you wish to attend the remote hearing. DHCD will provide access instructions the week before the hearing. Written comments on the draft may be submitted to Borin until the end of the day on January 10, 2022.

The QAP determines how the state distributes the federal and state Low Income Housing Tax Credit and other affordable housing finance programs. The plan outlines specific criteria and eligibility requirements and establishes a scoring system to evaluate projects and priorities. The QAP is reviewed and revised every two years, with opportunity for public comment.

According to DHCD, the department will focus on promoting six overarching goals:

• Supporting the production of new affordable rental units in markets throughout the state, with ongoing emphasis on units that will serve populations particularly impacted by the pandemic.
• Supporting the production of new affordable rental units for homeless families and for unaccompanied homeless adults, as the Commonwealth seeks to deconcentrate the population living in homeless shelters and to increase the supply of housing with services.
• Investing in projects whose sponsors are responding to climate change by incorporating into their projects green, sustainable and climate resilient designs, building materials, and construction methods.
• Promoting greater diversity within the affordable housing industry, to be measured both by deeper and more significant MWBE participation on specific projects and by greater diversity within the entities constituting the development teams.
• Providing stability in the investment environment for development teams who currently are coping with unfavorable construction costs, an unpredictable supply chain, and labor shortages exacerbated by the pandemic. The development teams are the delivery system for the increased production which the state so greatly needs.
• Reinforcing with all participants in the Commonwealth’s LIHTC delivery system the critical importance of the original Congressional intent when the program was created in 1986. It is DHCD’s belief that LIHTC units are intended to stand the test of time as affordable housing and to serve low- to moderate-income renters for generations to come.

CHAPA will host a meeting on Monday, January 20, 3:00-4:00 p.m., to discuss and receive input on the Draft QAP. Register to attend the virtual meeting.

Conference Committee Releases ARPA Spending Bill

by iwd Tina | Dec 2, 2021 | Housing News

On Wednesday, December 1, 2021, the Massachusetts Legislature’s conference committee released its negotiated spending plan for more than half of the state’s American Rescue Plan Act (ARPA) Fiscal Recovery Funds. Their plan includes over $600 million for affordable housing investments.

CHAPA thanks Representatives Michlewitz, Hunt, and Smola, and Senators Rodrigues, Friedman, and O’Connor for prioritizing affordable housing! These housing investments are outlined below:

Detailed summary of line-item language for Conference Report on ARPA bill

House and Senate Leaders have noted that the House will take up the bill Thursday and the Senate is planning to take up the bill on Friday in informal sessions. Given that the legislature is only meeting in informal sessions, the bill will need unanimous support to move to the Governor’s desk.

In the meantime, CHAPA is preparing recommendations to the Governor to ask the administration to provide the strongest support for critical affordable housing resources to secure a healthy future for all. (Check back for more updates.)

DHCD Launches AHVP Security Deposit Pilot Program

by iwd Tina | Dec 1, 2021 | Housing News

On December 21, 2021, the Massachusetts Department of Housing and Community Development (DHCD) announced a new Alternative Housing Voucher Program (AHVP) Security Deposit Program, effective January 1, 2022 through June 30, 2023. According to DHCD, recognizing that security deposits are often a barrier to lease-up for AHVP voucher holders and, given current resources, DHCD is piloting this program to evaluate the effectiveness of offering assistance for security deposits and full first month’s rent to AHVP voucher holders for a limited time. AHVP currently supports about 800 vouchers to help non-elderly persons with disabilities rent apartments.

The security deposit pilot program can be used by new AHVP participants as well as to help current voucher holders relocate. There is no extra eligibility requirement to participate in the security deposit pilot program.

Please see the guidance memo for more information.  If you have any questions, please contact Stephanie Kan, AHVP & DMHRSP Coordinator, at Stephanie.Kan@mass.gov or 617-573-1222, or Thomas Timms, State Rental Assistance Programs Assistant, at Thomas.Timms@mass.gov or 617-573-1212.

U.S. House Passes Build Back Better Act

by iwd Tina | Nov 19, 2021 | Housing News

On Friday, November 19th, the US House of Representatives passed the Build Back Better Act, H.R. 5376, by a vote of 220-to-213. The legislation includes over $150 billion in housing investments, including:

• $65 billion for Public Housing to rebuild and repair the federal public housing stock.
• ~$25 billion for Housing Choice Vouchers to help low-income tenants afford rent, which could help reduce homelessness.
• $15 billion for the National Housing Trust Fund to increase the stock of affordable housing for low-income families.

The bill also includes many investments and updates to the Low-Income Housing Tax Credit (LIHTC) program, including:

• Increasing the annual 9% credit allocation by 10% plus annual adjustments for the years 2022-2024.
• Reducing the 50% bond financing test to 25% for the years 2022-2026.
• Providing a permanent maximum 50% basis boost for developments serving extremely low-income (ELI) households.
• Repealing the Qualified Contract option for properties receiving LIHTC allocations after January 1, 2022, and modifies the specified statutory price for those properties that still make use of the qualified contract option.
• Modifying rights related to the Right of First Refusal in property acquisitions.
• Creating a Neighborhood Homes Investment Tax Credit to encourage building or rehabilitation of affordable homes (for home ownership) in distressed neighborhoods.

The bill will now move to the Senate and is expected to be taken up the week of December 6th. The Senate Parliamentarian may still consider issues raised by Senators on whether any provisions passed in the House’s bill follow the Senate rules for reconciliation legislation. Thus, there still may be investments that are pulled from the final bill considered by the Senate.

(Check back for more updates.)

CHAPA ARPA Spending Bill Recommendations for Affordable Housing, Homeownership, Supportive Housing, Public Housing, and Housing Rehabilitation

by iwd Tina | Nov 17, 2021 | Housing News

On November 17, 2021, CHAPA sent the following letter to the conference committee negotiating the Legislature’s final ARPA spending plan:  

Dear Chairman Michlewitz, Chairman Rodrigues, Representative Hunt, Senator Friedman, Representative Smola, and Senator O’Connor,

On behalf of Citizens’ Housing and Planning Association (CHAPA), thanks to both the House and Senate for expanding investments in permanent affordable housing solutions for production and preservation, homeownership, supportive housing, public housing, and housing rehabilitation.

As we continue to recover from the pandemic, the American Rescue Plan Act (ARPA) fiscal recovery dollars represent a once-in-a-generation opportunity to address historical housing discrimination and inequities, create more climate resilient communities, and build a future where everyone can thrive.

Housing resources also improve our overall health, strengthen our economy, protect the environment, and build wealth for everyone. Investing in housing affordability means our schools will have teachers, hospitals will have nurses, businesses will have workers, and young families can build a future.

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 ARPA spending bills and provide the strongest support for these critical resources to secure a healthy future for all.

Affordable Rental Production & Preservation (1599-2022)

• Adopt the $125 million appropriation in the Senate spending bill
• Adopt Senate language to allow for the “acquisition of existing…housing that is not currently subject to affordability restrictions”

Thank you to the House and Senate for prioritizing affordable rental production and preservation in both of its ARPA spending bills. CHAPA asks that you adopt the higher appropriation in the Senate spending bill of $125 million to enable the Department of Housing and Community Development (DHCD) to build and preserve more affordable rental housing to meet the Commonwealth’s production goals. This funding increase can help to create thousands of homes that are affordable and accessible to our most disproportionately impacted communities. There are currently 175 projects for affordable rental homes waiting for funding and these funds can immediately start to be distributed through our existing programs in order to allow for the projects to be built more quickly.

We also request that you adopt the Senate language that allows for the “acquisition of existing, occupied or unoccupied, multifamily rental housing that is not currently subject to affordability restrictions at the municipal or state level.” This language can help to support the acquisition of Naturally Occurring Affordable Housing (NOAH) with the goal of ensuring its long-term availability as high quality, affordable homes for people of modest means. Allowing funding for NOAH acquisition will allow Massachusetts to stop eviction and displacement, secure properties for long-term affordability, and facilitate quick action by municipalities or non-profits to enable them to compete for these properties with cash-ready speculators.

Homeownership Production (1599-2021)

• Adopt the $125 million appropriation in the Senate spending bill
• Adopt the Senate language

Thanks to both the House and Senate for supporting new homeownership opportunities for low- and moderate-income households through the CommonWealth Builder program. CHAPA asks that you adopt the higher appropriation of $125 million for CommonWealth Builder provided in the Senate spending bill. These additional funds will help build over a thousand new homes affordable to first-time homebuyers. MassHousing can immediately use this increase in funding to build both single-family homes and condominiums in our disproportionately impacted communities and qualified census tracts.

CHAPA also asks that you adopt the Senate language that provides more explicit language to target low- and moderate-income households. The Senate language also allows preferences for projects that include green energy or sustainability initiatives, which can help the Commonwealth meet both our climate and housing production goals.

Homeownership Assistance (1599-2020)

• Adopt the $100 million appropriation in the House spending bill
• Adopt the Senate language to add “debt reduction” programs as an eligible use for the homeownership assistance funds

Thanks to both the House and Senate for supporting resources for homebuyers to assist them in buying their first home. CHAPA respectfully asks that you adopt the higher appropriation of $100 million in the House spending bill. This increase would allow for Massachusetts to provide down payment assistance through MassHousing’s existing programs and scale up existing mortgage interest subsidy programs, including One Mortgage, ONE+ Boston, MassHousing Mortgages, and STASH matched-savings program.

We also request that you adopt the language the Senate uses to allow debt reduction programs to be an eligible use of the homeowner assistance funds. Unfortunately, student loans and other forms of debt continue to be the main barrier to purchasing a home for many of our most disproportionately impacted communities and families. Expanding the eligible use of funds to debt reduction programs will help households with their debt-to-income ratio, improve credit scores, and allow them to purchase the homes the Commonwealth is producing for first-time homebuyers.

Supportive Housing (1599-2023)

• Adopt $150 million appropriation in the House spending bill
• Adopt language to include all priority populations included between the House and Senate bills
• Adopt Senate language to allow for DHCD to create supportive housing in consultation with the Massachusetts Alliance for Supportive Housing
• Change Senate language to direct DHCD, in consultation with the Massachusetts Alliance for Supportive Housing, to use $75 million to create supportive housing for all named priority populations
• Add new language to create $15 million flexible housing subsidy pool

Thanks to both the House and Senate for investing in housing with supportive services for our most vulnerable individuals and families. CHAPA asks that you adopt the higher appropriation of $150 million in the House spending bill. This increase would allow for the production of thousands of healthy and safe homes for some of our most vulnerable households. These resources can be immediately distributed through existing programs to cover the costs for supportive services and the acquisition of hotels, motels, nursing homes, and other forms of temporary housing for the purpose of conversion to permanent, deeply affordable homes.

In order for these supportive housing funds to serve as many as possible, CHAPA asks that you adopt language that includes all the priority populations named in both the House and Senate bills. Between the two versions, this would mean the supportive housing funds could serve individuals and families who may be classified as chronically homeless; survivors of domestic violence; seniors; veterans; youth and young adults; individuals and families with behavioral health or substance addiction needs; survivors of human trafficking; survivors of sexual violence; and individuals and families at risk of entering or transitioning out of the foster care system.

CHAPA also asks that you adopt the Senate language that would direct DHCD to consult with the Massachusetts Alliance for Supportive Housing on evidence-based and evidence-informed best practices for creating and expanding permanent supportive housing for the populations prioritized in this item. This will ensure coordination of these public resources by DHCD with best practices for creating supportive housing.

In order for these supportive housing resources to serve as many vulnerable populations as possible as quickly as possible, CHAPA asks that the Senate language directing DHCD to consult with the Massachusetts Alliance for Supportive Housing on spending at least $75 million supportive housing for chronically homeless families and individuals be expanded to include all priority populations named in the line-item. By not limiting the funds to a strict definition of “chronically homeless,” more supportive housing projects can be funded more quickly across the Commonwealth.

Finally, CHAPA respectfully requests that the following language be added: “provided, that not less than $15,000,000 shall be expended in consultation with Massachusetts Alliance for Supportive Housing LLC to test a flexible housing subsidy pool.” This language mirrors the intent of the House language to support a pool of funds that can be nimbly used to take coordinated, comprehensive action to ensure these resources are leveraged effectively and equitably. These funds would help support a statewide flexible funding stream through DHCD, managed by the Massachusetts Alliance for Supportive Housing, to support trauma-informed service delivery, regional coordination efforts, and integrated housing and healthcare services.

Language highlighting CHAPA’s request for supportive housing is included at the end of this document.

Public Housing (1599-2024)

• Support the $150 million appropriation in both the House and Senate spending bills

Thanks to both the House and Senate for supporting $150 million to preserve our aging public housing stock and protect its residents. CHAPA asks that you keep the $150 million appropriation proposed by both the House and Senate. This appropriation will allow our public housing agencies to begin to address the $3 billion of deferred capital repairs and maintenance needs. These funds will help install safer fire alarm systems, increase accessibility, fix leaky plumbing, improve energy efficiency, complete climate resiliency and mitigation projects, and close budget shortfalls caused by increased costs due to the pandemic.

Green Energy Retrofitting & Housing Rehabilitation (1599-2035)

• Adopt the $10 million appropriation in the Senate spending bill

CHAPA requests that you adopt the $10 million appropriation for housing rehabilitation in the Senate spending bill. Massachusetts’ aging housing stock does not meet modern energy efficiency standards and are not climate resilient to withstand extreme weather conditions. This investment for green energy retrofitting will improve the safety of families currently living in these older homes while also allowing for our most disproportionately residents to live in more climate-resilient communities in the future.

All these investments will help thousands of residents find an affordable home, remain stably housed, and begin to close the racial homeownership gap.

Thank you for your consideration and for your leadership in helping everyone in Massachusetts have a safe, healthy, and affordable place to call home.

Sincerely,

Rachel Heller
Chief Executive Officer

CHAPA’s Requested Language for Supportive Housing (1599-2023)

The following reflects the changes to the supportive housing language (1599-2023), as requested by CHAPA. The bolded language would:

• Adopt $150 million appropriation in the House spending bill
• Adopt language to include all priority populations included between the House and Senate bills
• Adopt Senate language to allow for DHCD to create supportive housing in consultation with the Massachusetts Alliance for Supportive Housing
• Change Senate language to direct DHCD, in consultation with the Massachusetts Alliance for Supportive Housing, to use $75 million to create supportive housing for all named priority populations
• Add new language to create $15 million flexible housing subsidy pool

1599-2023 For a reserve to support the production of permanent supportive housing for individuals and families who may be classified as chronically homeless, youth and young adults, individuals and families with behavioral health needs or substance addiction needs, survivors of domestic violence, survivors of human trafficking, survivors of sexual violence, individuals and families at risk of entering or transitioning out of the foster care system, seniors and veterans through programs administered by the department of housing and community development directly or through 1 or more of the following: Massachusetts Housing Finance Agency; Massachusetts Housing Partnership; and Community Economic Development Assistance Corporation; provided, that funds shall be expended in the form of grants, loans or other financial assistance to projects that will provide stable housing options and supportive services to the populations prioritized in this item; provided further, that funds shall be expended in the form of grants that shall include rental assistance and funding for support services to projects that provide services to support long-term homelessness prevention; provided further, that funds may be expended for the acquisition of temporary housing including, but not limited to, hotels, motels and nursing facilities, to be converted into permanent and affordable supportive housing; provided further, that the department shall consult with Massachusetts Alliance for Supportive Housing LLC on evidence-based and evidence-informed best practices for creating and expanding permanent supportive housing for the populations prioritized in this item; provided further, that not later than March 1, 2022, the department shall submit a report, in consultation with the Massachusetts Alliance for Supportive Housing LLC, to the house and senate committees on ways and means and the joint committee on housing on recommendations for creating permanent supportive housing for the populations prioritized in this item to reduce the incidence of chronic and long-term homelessness in the commonwealth; provided further, that not less than $75,000,000 shall be made available and administered, in consultation with the Massachusetts Alliance for Supportive Housing LLC, for the creation of permanent supportive housing for the populations prioritized in this item; provided, that not less than $15,000,000 shall be expended in consultation with Massachusetts Alliance for Supportive Housing LLC to test a flexible housing subsidy pool; provided further, that the department shall prioritize communities disproportionately impacted by the 2019 novel coronavirus pandemic; provided further, that a portion of these funds may be  expended for the planning, construction and fit-out of medical, health and wellness facilities within existing and planned supportive affordable housing communities; provided further, that the department shall ensure geographic equity when distributing funds; and provided further, not less than $20,000,000 shall be expended, in consultation with the executive of health and human services, for costs associated with increasing geographic equity and accessibility related to the continuum of long-term care services for  veterans not primarily served by the Soldiers’ Home in Massachusetts located in the city of Chelsea or the Soldiers’ Home in Holyoke, including the establishment of regional or satellite veterans’ homes and new or expanded supports for community-based care services and home-based care services ……………………………..….$150,000,000