Governor Files Reorganization for New Cabinet Secretaries
On February 9, Governor Deval Patrick filed a reorganization plan to create several new secretariats, including the Executive Office of Housing and Economic Development. Under the plan, there are three departments within the Executive Office of Housing and Economic Development: the department of business and technology, the department of consumer affairs and business regulation, and the department of housing and community development. DHCD is under the supervision and control of an undersecretary of housing and community development, who is appointed by the secretary of housing and community development, with the approval of the Governor. There are no provisions related to the quasi-public housing agencies.
The reorganization plan also creates the Executive Office of Labor and Workforce Development (the Massachusetts Commission Against Discrimination is under this secretariat) and the Executive Office of Energy and Environment.
Under Article 87 of the amendments to the state Constitution, the legislature must approve or reject the plan without amendments. Unless disapproved by a majority vote in each branch within 60 days, the plan stands approved.
Patrick Administration Holds Hearing on Private Activity Bonds
Use of federal tax-exempt bonds (private activity bonds) and the state's volume cap of $547 million for 2007 will be the subject of an important public hearing on Thursday, February 15, 3:00-5:00 p.m., State House, Room B-1. Sponsored by the Executive Office of Administration and Finance, the hearing will include presentations by MassDevelopment, MassHousing, and the Massachusetts Educational Facilities Authority. Public testimony will be taken from 4:10-5:00 p.m.
As stated in its policy paper to the new administration, CHAPA will be urging the Patrick Administration to increase the bond cap for multi-family rental housing; to lift the restrictions on use of these funds to preserve expiring use properties; and to develop a multi-year capital plan which is released at the beginning of the calendar year.
Senator Tucker Named Co-Chair of Joint Committee on Housing
On January 29, Senate President Robert Travaglini appointed Senator Susan Tucker of Andover as the new co-chair of the Joint Committee on Housing, replacing Senator Brian Joyce. She joins Representative Kevin Honan of Boston as the co-chair, who was reappointed by House Speaker Sal DiMasi. Top leadership teams in both the House and Senate remain the same from last session.
Other new appointments impacting housing issues include: Rep. Anthony Petruccelli of Boston as co-chair of Community Development and Small Business (Sen. Harriette Chandler continues as co-chair); Rep. Vincent Pedone as co-chair of Municipalities and Regional Government (Sen. James Timilty continues as co-chair); Sen. Patricia Jehlen as co-chair of Elder Affairs; and Sen. Stephen Buoniconti as co-chair of Financial Services.
CHAPA wishes to thank Senator Joyce for his strong leadership on the housing committee over past two years and welcomes Senator Tucker to this important position.
Governor Files Supplemental Budget for Fiscal Year 2007
On February 6, Governor Patrick filed a supplemental appropriations bill totaling $19 million. The bill would cover anticipated funding shortfalls in key programs, including $4.1 million to fund higher caseloads in the Emergency Aid to the Elderly, Disabled and Children (EAEDC) Program and $2.7 million to maintain capacity at the emergency shelters funded by the Department of Transitional Assistance (DTA).
The supplemental bill also abolishes the Commonwealth Development Coordinating Council (established under the Romney Administration) and transfers the balance of its funds to the Governor's office.
The Governor's FY08 budget is due to be released at the end of this month.
MassDevelopment Announces Funding Availability for Brownfields Fund
MassDevelopment has released a Notice of Funding Availability (NOFA) to assist with the abatement of asbestos and lead paint in existing buildings. A priority of this $1 million pilot program is the reuse of vacant, abandoned, or underutilized mill buildings and downtown block buildings. Grants will range from $50,000 to $350,000. Applications are due on March 30, 2007.
Poll Finds Deep Concerns About Housing Costs and Strong Support for Affordable Housing
Massachusetts residents are deeply concerned about the cost of housing and its effect on their communities, according to the third annual UMass Donahue Institute/CHAPA housing poll. The poll revealed strong support for the development of affordable housing with a majority of residents hoping that Governor Deval Patrick will make affordable housing a high priority in his administration.
Key findings include:
- Over 66% of Massachusetts residents rated the cost of housing as a significant concern, up from 48% in 2005. Concerns about the cost of housing surpassed public education and health care by nearly 15 percentage points.
- A strong majority expressed concern about the cost of housing and the effect on our economy (66%), and the ability of young families (80%) and senior citizens (71%) to remain in their communities.
- 36% reported that they or members of their immediate family have seriously considered moving out of Massachusetts because of the high cost of housing.
Fiscal Year 2007 HUD Budget Boosts Funds for Key Housing Programs
The Joint Resolution for the remainder of FY2007 would provide an increase for Section 8 vouchers, public housing operating subsidies, and homelessness assistance compared to the FY06 budget. The House passed the bill (H.J. Res. 20) on January 31 and the Senate is expected to complete action on the resolution this week. The resolution also extends the Section 8 mark-to-market program for five years.
In addition to an increase of $502 million for the Section 8 voucher program, the bill revises the allocation formula so that HUD would use the most recent 12 months of leasing and cost data. It also creates a $100 million fund for adjustments for public housing agencies that experience an increase in renewal costs because of unforeseen circumstances. According to national housing groups, the funding increase and policy change will mean that no housing agency will have to cut its vouchers in 2007 and some will be able to restore vouchers cut in recent years.
The bill also provides an increase of $939 million to renew all project-based Section 8 contracts, an increase of $300 million for public housing operating subsidies (although PHAs are still $672 million short of what is needed), and a boost of $115 million for homeless assistance grants. CDBG Formula Grants and the HOME Program are level-funded.
CHAPA wishes to thank Congressmen Frank, Olver, and Capuano for their outstanding advocacy for the HUD budget, which was initially slated for significant cuts.
New England Congressional Delegation Will Play Key Role on Housing
The following New England members of Congress will be playing important roles on affordable housing and community development issues in the 110th Congress:
Senate:
Appropriations: Patrick Leahy (VT), Jack Reed (RI), Judd Gregg (NH)
Banking, Housing, and Urban Affairs: Chairman Christopher Dodd (CT), Jack Reed (RI), John Sununu (NH)
Housing and Transportation Subcommittee: Jack Reed (RI), John Sununu (NH)
Finance Committee (tax legislation): John Kerry (MA), Olympia Snowe (ME)
House:
HUD Appropriations Subcommittee: Chairman John Olver (MA)
Financial Services: Chairman Barney Frank (MA), Michael Capuano (MA), Stephen Lynch (MA), Paul Hodes (NH), Christopher Murphy (CT), Christopher Shays (CT)
Housing and Community Opportunity Subcommittee: Stephen Lynch (MA), Christopher Murphy (CT), Christopher Shays (CT)
Ways and Means (tax legislation): Richard Neal (MA), John Larson (CT)
President's Budget Cuts HUD Programs By 8 Percent
The President's FY08 budget, released on February 9, reduces funding for HUD programs by 8% compared to the pending FY07 joint resolution. Slated for significant cuts are: CDBG (-20%); Public Housing Capital Fund (-17%); HOPE VI (eliminated); Section 202 (-22%) and Section 811 (-47%). In addition, the President's budget does not include sufficient funds for the Section 8 voucher program and would negatively change the funding formula. The budget level-funds most other programs and provides for a modest increase in the HOME Program and Homeless Assistance Grants.
