Housing Briefs - April 2, 2013

State Updates

CHAPA Continues to Pursue State Budget and Policy Priorities

CHAPA is in the midst of advocating for its FY2014 state budget and legislative priorities. Chief among these priorities is the housing bond bill, which has been scheduled for a hearing on April 4^th at 10:00 a.m., Room B-2. CHAPA encourages its members to attend the hearing in support of this bill.

Both the bill filed by Housing Committee Chairs Representative Kevin Honan and Senator Jamie Eldridge (H. 1127) and the bill filed by Governor Patrick (H. 3333) will be heard.

Below are some differences between the two bills:

CHAPA Issues Statement in Favor of Increasing State Revenues

CHAPA has joined a broad coalition of affordable housing organizations to issue a statement on increasing revenues for the State of Massachusetts.  Specifically, CHAPA supports increasing revenues in an equitable way that will generate sufficient revenue to make greater investments in our state’s infrastructure, including the state's affordable housing stock. CHAPA believes making the larger investments that additional revenues will allow will help the state reduce homelessness and housing instability; help persons with disabilities and seniors access affordable housing; and create jobs.

DHCD Issues Draft Moving to Work Plan for FY2014 Housing Choice Voucher Program

DHCD has posted the draft FY2014 Moving to Work Annual Plan for its Section 8 Housing Choice Voucher program and is accepting public comments through April 3 (see notice).  Because DHCD is a Moving to Work (MTW) agency, it can administer its program more flexibly than conventional public housing agencies, enabling it to test new approaches.  New activities planned for FY2014 (starting July 1, 2013) include finalizing the design of an “Opportunity Neighborhood” initiative to provide support to participants who wish to move to areas with good schools, job access and/or other advantages; starting an “Expiring Use Preservation” initiative; and project-basing 536 more units in 26 developments.

Number of Gateway Cities Expand

On February 25, the State announced the addition of two cities (Peabody and Attleboro) to its list of “Gateway Cities” (cities with population greater than 35,000 and less than 250,000, a median household income below the state average and a rate of educational attainment of a bachelor’s degree or above that is below the state average).  With these additions, the state now has 26 Gateway City communities.  Designation qualifies communities for several targeted state programs (Gateway Cities Parks program, Housing Development Incentive Program, Housing Planning Grants and Gateway Plus Action Grants) as well as a preference under others, including the MassWorks Infrastructure and Brownfields programs.

Federal Reserve Bank of Boston Announces “Working Cities” Initiative

In late February, the Federal Reserve Bank of Boston announced a Working Cities grant program open to 20 cities in Massachusetts to support initiatives that will “benefit lower income residents in a deep and lasting way” and improve the quality of life and economic opportunities in the selected cities.  It encourages approaches that involve the public, private and for-profit sectors.  It will award three multi-year grants of $100,000-700,000 and three smaller grants for early stage projects.   Winners will also receive technical assistance and help accessing below market rate debt.   Letters of intent are due by April 19, with a formal RFP to be issued in May.

CHAPA Announces Winners of Welcome Home Massachusetts Technical Assistance Grants

CHAPA congratulates the four recipients of small Technical Assistance Grants awarded through our Welcome Home Massachusetts Initiative.  Chosen through a competitive process, the successful applicants include the Towns of Barnstable, Brookfield, and Middleborough and the North Shore Community Development Coalition, demonstrating a wide range of activities designed to promote affordable housing in their communities.  Click here for more information.

CHAPA Honors the Memory of Long-time Board Member Mary Doyle

Long-time CHAPA Board Member Mary Doyle passed away on February 23 after a protracted battle with cancer.  Mary served as CHAPA’s Clerk and Co-Chair of the Homelessness Committee.  She will be sorely missed by all.

CHAPA member Judy Perlman has formed a team of walkers called “Loving Colleagues Walking in Mary Doyle's Memory” to participate in the Housing Corporation of Arlington's fundraising walk on Sunday April 7.  To walk in Mary’s memory – and/or to donate on her behalf – please click here.

For more information, contact Joanna Ain, 781-316-3606.

Federal Updates

HUD FY2013 Budget (Continuing Resolution) Finalized; Sequestration Begins

On March 26, the President signed the Continuing Resolution (H.R. 933), finalizing the FY2013 budget.  The CR provides most HUD programs with the same appropriation as in FY2012, and continues the FY2012 budget language and restrictions for each program with a few exceptions.  Two programs (Homeless Assistance Grants and the Public Housing Operating Fund) received “anomaly” increases to help offset sequestration but remain underfunded (e.g., public housing operating subsidies will be prorated at 81%). 

The impacts of the FY2013 final funding levels post-sequestration remain to be seen (HUD is expected to publish information in early April), but preliminary information on HUD’s sequestration information website indicate potential impacts.  For the Housing Choice Voucher program, for example, HUD indicates  it can fund only 94% of the renewal need and only 68.5% of the formula administrative fee amounts, assuming FY2012 funding levels.  The final CR does indeed maintain those levels, though it increased the set-aside for administrative fees and added language to allow HUD to adjust funding to PHAs to avoid terminating current Housing Choice Voucher participants. 

For the Project Based Rental Assistance, HUD expects to provide 12-month funding for all contracts expiring in FY 2013 and all existing multi-year contracts that expire after FY 2013 but have anniversary dates in the first quarter of FY 2013 (October-December).  All other multi-year contracts will receive less than 12-month funding but enough to carry them into the first quarter of FY2014.

Click here for a table developed by CHAPA detailing the estimated FY2013 appropriation levels post-sequestration, by program, assuming OMB uses the sequester amounts listed in its March 1, 2013 report to Congress (it is not yet clear whether OMB will revise the amounts as a result of the CR).

CHAPA and the New England Housing Network continue to pursue efforts to mitigate the impact of these cuts, and are collecting stories to share with members of Congress about the impacts of sequestration on households and organizations addressing housing and homelessness. These stories are important in order to demonstrate the impact of federal cuts on critical housing programs. Please send a paragraph or two describing your organization’s response to Cindy Rowe at crowe@chapa.org.

National Low Income Housing Coalition Launches Campaign to Fund Housing Programs through Mortgage Interest Deduction Reform

The National Low Income Housing Coalition (NLIHC) officially launched its campaign (“United for Homes”) to fund the National Housing Trust Fund through a modernization of the mortgage interest deduction on March 18.  The campaign supports a bill (H.R. 1213 - the Common Sense Housing Investment Act), filed by Representative Keith Ellison (D-MN), that would lower the cap on the size of a mortgage for which the interest can be deducted from $1 million plus $100,000 in home equity loans to $500,000 and phase out the current deduction over five years.  It would also convert the deduction to a 15% nonrefundable tax credit, making it more valuable, as well as more available, to middle and lower income households, as detailed in the campaign’s summary of the proposal.    

A Tax Policy Center study estimates that the tax changes would save about $197 billion over ten years.  The bill directs some of the savings ($14 billion) to the LIHTC program by increasing per capita allocations; of the remainder, 60% would go to the National Housing Trust Fund ($109 billion), 30% to Section 8 tenant- and project-based rental assistance ($54 billion) and 10% to the Public Housing Capital Fund ($18 billion).  NLIHC voted to use $1 million from its endowment for the campaign.

Congress Starts Hearings on Housing Finance (GSE) Reform

On March 19, the Senate Committee on Banking, Housing and Urban Affairs held a hearing on “Bipartisan Solutions for Housing Finance Reform,”  looking at the recommendation of the recent report by the Bipartisan Policy Center Housing  Commission on the  future of the GSEs and the appropriate federal role in supporting single and multifamily housing finance. 

The Commission recommends creating a new independent federal agency that would provide catastrophic insurance for qualified mortgage bond securities but would not buy, sell or hold mortgages like the GSEs.  It also sees mortgage interest deduction reform as a potential funding source for needed housing programs. 

The House Committee on Financial Services also held a hearing on the status of the Federal Housing Finance Agency (FHFA) conservatorship of the GSEs on March 19.  Democrats asked Acting Director Edward DeMarco why the agency is not making contributions to the National Housing Trust Fund now that the GSEs have become profitable; he stated he is waiting to see if the profits are sustainable.  The House Committee has scheduled a hearing on “the obstacles to private capital in the housing finance system” on April 17.

Recent Research and Reports

USDA Issues Updated Mapping Tool for Food Deserts

On March 11, the U.S. Department of Agriculture announced the release of an updated and more extensive mapping tool for “food deserts” – census tracts or other geographic areas in which “a substantial number or share of residents face challenges in accessing the nearest supermarket or large grocery store.”   The revised Food Access Research Atlas uses 2010 Census data and includes data on distance to stores, population characteristics and vehicle availability.

Upcoming Events

April 25, 2013, 9:00 a.m. – 11:00 a.m. - CHAPA Breakfast Forum: Housing Opportunities for All: Expanding Housing Choice for Persons with Disabilities, Families, & Persons Aging in Place, Boston Private Bank & Trust Company, 10 Post Office Square, Downtown Boston

May 7, 2013, 8:00 a.m. – 2:00 p.m. – DHCD Planning & Community Development Conference, Devens Common Center, Devens, MA