June 28, 2012 | Citizens' Housing And Planning Association

State Updates

Massachusetts Legislature Approves FY2013 Budget, Increases Funding for Several Housing Programs

On June 28, 2012 the Massachusetts Legislature finalized its FY’13 budget. Governor Patrick now has 10 days, excluding Sundays and holidays, to sign the budget and issue vetoes or amendments for budget items he does not approve.

The Legislature increased funding for several housing programs, including the following:

$42 million for MRVP. Although this is less FY’13 funding than proposed by the Governor and House, the 16% increase over FY’12 funding will allow an additional 500 households to secure housing. The MRVP authorizing language is very similar to FY’12 language and does not include the differing proposals in either the House or Senate FY’13 budgets.

$64.5 million for Public Housing Operating Subsidies, a $2 million increase from FY’12.

$8.76 million for RAFT, up from just $260,000 in FY’12 funding. The language would allow up to $4,000 in RAFT assistance and targets 90% of the funds to households earning less than 30% of area median income. It does not include proposed language that would hinder the lowest income households from accessing RAFT or language that created severe administrative challenges. The Conferees chose to reject the higher maximum assistance of $6,000 in the Senate budget. Questions remain about whether $4,000 will be enough to effectively assist low income families. However, there is no prohibition on families accessing assistance in consecutive years if necessary.

$83,374,371 for HomeBASE. Like RAFT, the maximum amount of financial assistance under HomeBase will be $4,000 in a 12 month period. HomeBase will be available to EA-eligible households as a tool to divert families from shelter or to help re-house families receiving EA assistance during their first 32 weeks on EA. The funding will also enable families who were enrolled in HomeBase rental assistance in FY’12 to continue to receive that assistance for a maximum of 24 months. Case management for all HomeBase families is required. This program is likely underfunded, with the conferees choosing the House amount that was $7 million less than the Senate.

$350,000 for the Tenancy Preservation Program, a small increase to make up for loss of federal ESG funds, but less than the Senate or Governor’s budget amounts.

$1.4 million for Home and Healthy for Good, a 14% increase over FY’12 funding, but less than the Governor’s budget proposal.

$50,000 for Individual Development Accounts, an asset development program that was eliminated in 2008 and has not been funded in the past three budgets.

Here are some other budget highlights:

The budget includes a $25 million transfer to the Community Preservation Act State Trust Fund if a budget surplus exists at the end of fiscal year FY’13. Under this provision, the CPA match is projected to increase in the Fall of 2013, up from the present 22% to approximately 45% if the FY’13 budget surplus is sufficient. The budget also includes amendments to Ch. 44B creating an alternative CPA adoption process and updating the allowable uses related to housing and recreational expenditures.

The Emergency Assistance language reflects most elements of the Senate proposal, and does not include a time limit. For the first time, the budget requires housing search for families receiving EA assistance in both shelter and hotels/motels. The budget also tracks EA-related spending on hotels and motels in a separate line item. Together, the two line items likely underfund Emergency Assistance for homeless families.

The budget establishes a new commission to examine how to provide housing and services to unaccompanied homeless youth, provides $11.3 million in payments to cities and towns to offset McKinney-Vento-required transportation costs, and changes the definition of Gateway Cities.

The Conference Committee report did not include several outside sections of interest, including a Senate Outside Section to provide funding for fuel assistance even if there are delays in federal LIHEAP funding, a Senate Outside Section requiring the Inspector General to hire Certified Public Accountants to audit Ch. 40B cost certifications submitted after July, 2004 and allowing the CPA to keep up to 10% of the costs recovered, and a Senate Outside Section to impose new requirements on new and existing cooperative housing.

CHAPA would like to thank the conferees, Chairman Dempsey, Chairman Brewer, Representative Kulik, Senator Flanagan, Representative DeMacedo and Senator Knapik, and many other legislators and staff for their assistance in crafting a budget that prioritizes affordable housing.

Patrick-Murray Administration Finalizes Gateway Cities Market Rate Housing Tax Credit Regulations; DHCD Accepting Applications

The Housing Development Incentive Program (HDIP) has opened for applications after the program regulations and guidelines were finalized. DHCD will hold information sessions on July 10^th in Boston and July 12^th in Springfield.

DHCD Announces Changes to Future Affordable Rental Housing Award Competitions

The next competitive application round for state funding for affordable rental housing will require a pre-application process and limit applicants to four priorities. DHCD will be holding an information session on the changes on July 9^th. Click here for more information.

Massachusetts Public Housing Commission Releases Report

The Report of the Commission for Public Housing Sustainability and Reform has been finalized and recommendations include creating a centralized waiting list for public housing, establishing performance benchmarks, and creating a unified management system for small housing authorities. An advisory committee will now be created to help develop important implementation details.

Office of Mortgage Settlement Oversight Launches Complaint Reporting Tool

Joseph Smith, the Monitor of the national mortgage serving settlement, has created an online tool to report mortgage servicing complaints available at: https://www.mortgageoversight.com/report-client-issues/

Massachusetts House and Senate Appoint Foreclosure Prevention Conference Committee

Both the Massachusetts House and Senate have now passed foreclosure prevention legislation and appointed conferees to resolve the differences. Both bodies would include a first-in-the-nation requirement that financial institutions conduct a net present value test on loans with criteria outlined in the bill prior to foreclosure and would compel a loan modification if the net present value including a modification utilizing government programs like HAMP is greater than anticipated recovery after foreclosure. The Senate legislation goes a step further and requires statewide mandatory mediation. The Conferees have until July 31^st to finalize a bill before the legislative formal sessions end.

CHAPA encourages Massachusetts Senate to act on Economic Development legislation that includes key community development tools.

CHAPA is requesting the Massachusetts Senate to pass H.4119, economic development legislation that cleared the House late last month. The legislation includes several helpful community development tools, including creating the Community Development Partnership Tax Credit, codifying the MassWorks Infrastructure Program, allowing a local option to use Chapter 43D to expedite permitting for residential development, extending the Brownsfields tax credit sunset, expanding the Historic tax credit to $60 million, extending the Permit Extension Act for two more years, and providing $4 million for the Ch. 40R Smart Growth Housing Trust Fund. Like all major legislation, the legislature has until July 31^st to enact the bill.

Announcements

Office of Mortgage Settlement Oversight Launches Complaint Reporting Tool

Upcoming CHAPA Forum

CHAPA will host a July 17th forum to discuss foreclosure responses with Attorney General Martha Coakley and Tim Warren from the Warren Group. Registration is available at: http://www.chapa.org/event?month=2012-07

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