State Roundup
Legislature Passes Supplemental Budget
The Massachusetts legislature passed a supplemental budget bill last week (H.4282) that includes several pieces beneficial to housing. The public housing operating subsidy account (7004-9005) received a boost of over $5 million and DHCD's operations account (7004-0099) received an additional $600,000 for this fiscal year. Up to $10 million will be allocated to both the Affordable Housing Trust Fund (AHTF) and the Smart Growth Housing Trust Fund from the Bay State Competitiveness Investment Fund, which was set up to expend revenue collected but unspent after the Commonwealth fulfills its stabilization fund and appropriations obligations. Fifteen million ($15,000,000) will be transferred from MassHousing from repaid SHARP loans to DHCD to fund 40R incentive payments, planning, technical assistance and an employe! r-assisted housing program. The bill language establishes a transfer of SHARP loan repayments for these purposes on an annual basis.
House Continues Work on Foreclosure Prevention Legislation
The House of Representatives continues to consider legislation to address the foreclosure crisis. The Committees on Housing, Judiciary and Financial Services are working together to incorporate provisions within H.1290, H.4850 and S.2296 in a comprehensive foreclosure prevention bill. The Senate passed S.2296 in July, which provides many positive solutions to prevent future foreclosures, including reasonable monitoring and oversight of mortgage lenders and a right to cure. CHAPA continues to work with members of the Foreclosure Prevention Coalition to advocate for inclusion of these provisions in the House bill.
Housing Committee Favorably Reports 40R Funding Bill
The Joint Committee on Housing favorably reported H.160, An Act Relative to Financing the Smart Growth Housing Trust Fund. This bill creates an automatic funding mechanism, not subject to appropriation, for the Smart Growth Housing Trust Fund to provide payments for communities that have adopted Chapter 40R. The funding would direct income taxes from residents living in 40R districts to the Smart Growth Housing Trust Fund and would not create a new tax or fee.
Hearing Held on Bill to Standardize Affordable Housing Restrictions
A hearing was held before the Joint Committee on Housing on S.754, An Act Relative to Creating a Statutory Housing Restriction and Providing Remedies Related to Statutory Housing. The purpose of this legislation is to standardize and simplify elements of affordable housing restrictions. Regularly used terms would have their meaning derive from the statute, which could be referenced in a deed. CHAPA submitted testimony in support of the legislation and continues to work with partners on its passage.
Federal Roundup
Full House Approves National Housing Trust Fund Bill
On October 10, the House of Representatives approved legislation to create a National Housing Trust Fund. The bill (H.R. 2895 - the National Affordable Housing Trust Fund Act of 2007) establishes a dedicated funding source for affordable housing production, rehabilitation and preservation. At least 75% of the Trust monies must be used to assist extremely low income households (incomes at or below 30% of area median). The bill would initially allocate $800 million to $1 billion annually to states and localities (the House has already approved two funding sources, including FHA revenues through the FHA reform bill described below). A Senate bill is expected to be introduced in November or December. CHAPA wishes to thank Representative Barney Frank and the entire Massachusetts delegation for their leadership on ! this legislation.
House Approves FHA Reform Bill
On September 18, the House of Representatives approved FHA reform legislation (H.R. 1852 - the Expanding American Homeownership Act of 2007). The bill allows an estimated $250 million a year in FHA surplus funds to be used for the National Housing Trust Fund. It reforms FHA operations in a number of ways, directing the FHA to offer mortgage loans to higher risk but qualified borrowers without fee hikes and increasing funding for homeowner counseling. It also increases FHA loan limits for single family and multifamily loans. Similar legislation, without funding for the National Trust Fund, has been marked up in the Senate Committee on Banking, Housing and Urban Affairs, but not yet formally introduced.
FY2008 Fair Market Rents (FMRs) Published
HUD published its final FMRs for FY2008 effective October 1, 2007. The final Massachusetts figures are the same as first proposed this summer and as reported in the July Housing Briefs, are 1% lower than last year for Greater Boston, but higher than last year for other areas (with increases ranging from 3% to 14%). Detailed information on the new FMRs and towns covered is available at HUD's website.
Senate Committee Approves Reauthorization of Homeless Programs; House Committee Holds Hearings
On September 19, the Senate Committee on Banking, Housing and Urban Affairs approved legislation to amend and reauthorize HUD's McKinney-Vento homeless assistance programs. The approved bill (S. 1518 - the Community Partnership to End Homelessness Act of 2007) differs from the version first introduced in May and is not yet available online. It makes a number of significant changes to current programs, including combining the three main competitive grant programs (Supportive Housing, Shelter Plus Care and Moderate Rehabilitation/ Single Room Occupancy) into one program called the Community Homeless Assistance program and merging two others (the Emergency Shelter Grant program and the Homelessness Prevention and Housing Stability Program) into a single new "Emergency Solutions Program".
Other changes include expanding the definition of "homeless" to include households who are doubled-up as well as some households living in a hotel or motel and expanding the definition of "chronic homelessness" to include unaccompanied youths and persons temporarily in institutional care. It also exempts rental assistance or supportive services provided under McKinney-Vento from counting toward eligible basis in the Low Income Housing Tax Credit program. The new bill also provides a $700 million increase in funding authorization ($2.2 billion) for these HUD programs and authorizes a three year pilot program ($8 million a year) to test ways to address family homelessness.
On the House side, hearings have begun on a companion bill (H.R. 840 - Homelessness Emergency Assistance and Rapid Transition to Housing Act of 2007 [HEARTH]) as well as on the Senate bill. The first hearing, held by the House Financial Services Subcommittee on Housing and Community Opportunity, was on October 4th. The proposed House bill would also consolidate the three major grant programs and revise the definition of homelessness more expansively than the Senate. A second hearing was held on October 11.
CHAPA Releases Two New Publications
Two new CHAPA-sponsored studies were released last week. The Greater Boston Housing Report Card 2006-2007 is the fifth annual report on housing production in Greater Boston and provides extensive data on regional and local housing trends in the 161 cities and towns that make up Greater Boston.
The second report, Voices from Forgotten Cities: Innovative Revitalization Coalitions in America's Older Small Cities, co-sponsored with PolicyLink and the Massachusetts Institute of Technology (MIT) School of Architecture and Planning, examines the challenges facing older poor small cities (population under 150,000), their strengths, and ways in which some cities have successfuly created coalitions of nonprofits, members of the business community and municipal government to bring about improvements.
Upcoming Events
The Metropolitan Area Planning Council (MAPC) is holding a Policy Summit on Equitable Development on Tuesday, October 23 at 8:30 a.m. at the Omni Parker House in Boston. The summit provides an opportunity to hear and discuss proposals on a number of topics including impact fees, housing choice, the aging population and regional planning.
CHAPA is sponsoring a breakfast forum on Transit Oriented Development and Affordable Housing on Wednesday, November 7 from 9;30 a.m. to 11:30 a.m. in Boston at One Beacon Street.
