State Roundup
Action Alert – Call Your Senator in Support of the Housing Bond Bill (H. 4472)
Please contact your Senator and Senator Mark Montigny, Co-Chair of the Joint Committee on Bonding, Capital Expenditures, and State Assets to respectfully request passage of the Housing Bond Bill. It is extremely important that CHAPA's membership indicate their support for this important legislation within the next two weeks.
The Housing Bond Bill was filed at the beginning of the session, was favorably reported to the Bonding Committee on January 10th and received a hearing from the Committee on February 6th. Without action, the fate of programs funded through the bond bill, including public housing modernization funding and State Low Income Housing Tax Credits, will continue to be uncertain.
Your vocal support for the housing bond bill and immediate attention to this matter is appreciated. To contact your Senator click here.
Revised DHCD 40B Regulations Effective Today
DHCD issued the final version of its new consolidated regulation governing Chapter 40B today, effective immediately. The new regulation consolidates all previous regulations relating to the Chapter 40B, the Housing Appeals Committee and the Local Initiative Program into a single, revised regulation. The new regulation also incorporates and codifies many policies and practices that have evolved over the years as the result of court rulings, Housing Appeals Committee (HAC) decisions, and DHCD guidelines. DHCD will shortly issue new guidelines to supplement this regulation, covering d! esign, cost examinations, affirmative marketing, housing production plans and other matters. CHAPA has posted a summary of how the final regulation differs from the prior regulations.
DHCD to Hold Information Sessions for Spring 2008 Funding Round
The Department of Housing and Community Development (DHCD) will hold information sessions for developers interested in submitting funding applications during the spring 2008 rental funding round. The sessions will be held at DHCD, 100 Cambridge Street. in Boston, on the second floor in conference room 2B on the following dates:
Monday, February 25th at 2:00 p.m. for developers seeking Low Income Housing Tax Credit (LIHTC) financing; and
Tuesday February 26th at 11:00 am for developers seeking resources without LIHTC
The deadline for submitting funding applications to the spring 2008 rental round will be Thursday, March 20, 2008. At this time, DHCD's available resources during the winter round include: Low Income Housing Tax Credits, HOME, Housing Stabilization Fund, Capital Improvement and Preservation Fund, Housing Innovations Fund, Facilities Consolidation Fund, Community Based Housing, Commercial Area Transit Node Housing Program, Affordable Housing Trust Fund, and for some projects, Section 8 project-based assistance.
If you plan to attend or have any questions, please email Matt Seadale at matthew.seadale@state.ma.us.
Ways and Means Committee to Hold Public Hearing on Budget on Feb. 28th
Next week, the Joint Committee on Ways and Means will hold two important hearings on the proposed FY09 state budget. Committee members Rep. Finegold, Rep. Naughton, and Sen. Augustus will hear DHCD's budget testimony at the Auburn High School, 99 Auburn St. in Auburn at 10 a.m. on Tuesday, February 26th. In addition, the Committee will hold a public hearing on Thursday, February 28th at 10 a.m. in Gardner Auditorium at the State House, where members of the public will have the opportunity to testify in favor of affordable housing and other budget priorities.
Senate and House Sessions Available Live on the Web
House and Senate sessions are now available on live web-cast. Click on the links below to view live and recorded web stream broadcastings of the Massachusetts House and Senate.
CHAPA Issues Zoning Litigation Study
CHAPAhas just released a study of the incidence of zoning litigation in Massachusetts related to affordable housing developments. The study found that at least 84 projects have had their local zoning approvals challenged in court by abutters or municipal agencies between 2000 and 2007 (including 81 comprehensive permit projects). The litigated projects included 15% of all 40B developments approved or appealed between 2000 and 2006. It found that to date the courts have overturned only one local zoning approval, but that the litigants succeeded in delaying most projects for at least two years and some for four or more years.
Federal Roundup
2008 HUD Income Limits Released
The U.S. Department of Housing and Urban Development released its 2008estimates of family median incomes and 2008 income limits by metropolitan and nonmetropolitan statistical areas. These limits are used to set income limits for assistance under almost all federal and state affordable housing programs. The new limits are generally higher than the FY2007 limits, rising 2% in the Boston-Cambridge-Quincy MSA, 3% in the Springfield area, and 6% in the Worcester area. HUD estimated a 2008 median family income statewide for Massachusetts of $78,200, up 3.3% from 2007 ($75,700).
Senate Banking Committee Releases Draft Section 8 Reform Bill
The Senate Banking Committee released its draft version of a Section 8 Voucher Reform Act (SEVRA) bill and expected to file a formal bill shortly. The House passed its own Section 8 reform bill in July 2007. Both bills include provisions designed to address important funding issues, including the renewal funding formula and use of reserves, and also propose administrative reforms to make portability easier and to simplify rent rules. The House bill also includes language allowing expansion of the Moving to Work program. More information is available on the National Low Income Housing Coalition website, including a fact sheet and a side-by-side comparison of the House and Senate bills and current law.
Final Stimulus Bill Allows Temporary Increase in FHA and GSE Loan Limits
The only housing element in the final economic stimulus bill signed into law this month is a temporary increase in the value of loans the FHA can insure and that Fannie Mae and Freddie Mac can purchase. The bill raised the limit under all three programs to 125% of the area median cost of a single family home. In Greater Boston, this would raise the current single family limit from $417,000 to $438,683. The bill also raised the limits for 2-, 3- and 4-unit properties. The new limits apply retroactively to all mortgages originated on or after July 1, 2007 and to all originated by December 31, 2008.
National Community Reinvestment Coalition (NCRC) Releases Foreclosure Prevention Proposal
The National Community Reinvestment Coalition is urging the federal government to create a two-year recoverable loan program to stem foreclosures. The proposal, called the Homeowners Emergency Loan Program (HELP Now), calls for existing institutions such as the Treasury Department, the FHA, Fannie Mae, Freddie Mac and/or the Federal Home Loan Banks, to purchase outstanding loans currently in securitized pools at a discount.
Once the loans were acquired, borrowers could refinance the loans through private lenders or the acquiring institution could modify loans in ways that would create long term affordability. The discounted value of the home would be reflected in the form of a lien (a soft second) and could be recaptured, at least in part, upon sale or transfer of the home in the future, with the recapture amount based on the home's appreciation. The proposal would also use nonprofit intermediaries to advise the homeowners on their refinance and modification options.
House Study Shows State Would Lose Millions Under President's FY2009 HUD Budget
The House Budget Committee recently released a report detailing how much funding individual states would lose under the President's FY2009 budget proposal for selected programs. The report compares projected FY2009 funding under the President's budget with the inflation-adjusted amount received in FY2008. According to the report, Massachusetts would lose $20.3 million in Community Development Block Grant (CDBG) funding, $13.2 million in fuel assistance (LIHEAP) funds and $12.65 million in capital grants for federal public housing alone.
Upcoming Events
CHAPA to Host February 28 Legislative Briefing
CHAPA will co-host a briefing for legislators and legislative aides with Housing Co-Chairs Senator Susan Tucker and Rep. Kevin Honan to provide an update on housing in Massachusetts and answer questions about the housing market, foreclosures, home ownership and rental assistance programs and other CHAPA budget and legislative priorities. The briefing will take place Thursday, February 28th from 10:30 a.m. to noon in room B-2 of the State House.
Training on New Chapter 40B Regulations Slated for April 11
CHAPA, DHCD, and MHP will be co-sponsoring a day-long training on the new Chapter 40B regulations and other related topics on Friday, April 11, 8:00 a.m.-2:30 p.m. at the Best Western Royal Plaza Hotel and Trade Center in Marlborough. Information will be posted on our web site and mailed five weeks prior to the event.
