State Roundup
DHCD Announces Availability of New Housing Vouchers and Increases Project-Based Rents
On October 25, the Department of Housing and Community Development (DHCD) announced that it is making 100 new mobile Massachusetts Rental Voucher Program (MRVP) vouchers available. Housing agencies can apply for up to 10 vouchers. Agencies that can issue vouchers very quickly will receive a preference and all vouchers must be issued by February 1, 2008. Agencies that do not have up-to-date MRVP mobile and/or project-based waiting lists will be allowed to select applicants from their state public housing waiting lists.
DHCD also announced an across-the-board increase in rents for most MRVP project-based units effective January 1, 2008. (Rents for most of these units were cut by $30-$60 during the 2002 state fiscal crisis and not raised since). Rents will rise by $40 a month for MassHousing and Rural Housing Service units that did not receive a $40-$60 increase in 2006 and by $100 for SHARP units that did not receive a $100 increase in 2006. Most other types of MRVP units will also receive a $100 increase if they were in existence before 2006. Units that received an increase under a waiver within the past two years will receive an increase equal to the difference between $100 and the waiver increase.
Bill to Help Revitalize Cities Moves Forward
In an effort to revitalize housing in cities with weaker housing markets, Senator Susan Tucker filed Senate Bill 17, An Act Relative to Revitalizing Communities through Homeownership. This week, the bill was reported favorably out of the Senate Committee on Ways and Means as S. 2375.
If enacted, the bill will provide flexibility in housing production program requirements in weak market areas where the requirements of DHCD programs impede homeownership. Weak market areas will be determined by DHCD by considering the following factors: low homeownership rates, low average housing sales, high levels of assisted rental housing, high levels of abandoned properties, local median incomes that are less than the area median income, and high levels of unpaid taxes. Not more than $5,000,000 in Housing Stabilization Fund monies could be used for this purpose. CHAPA supports this legislation and thanks the Senate Ways and Means Chairman Steven Panagiotakos for his support.
Zoning Reform Task Force Makes Progress
The Patrick/Murray Administration has continued an initiative initially convened by CHAPA on behalf of the Massachusetts Smart Growth Alliance to develop consensus around new zoning reform legislation. The initiative is chaired by Undersecretary Greg Bialecki and involves the major stakeholders in crafting a consensus zoning reform bill that will meet local, regional and state needs for housing, jobs, and environmental protection. This group also includes the active involvement of key legislative leaders. For more information, please visit the Zoning Reform Task Force website.
Foreclosure Bill Summary Available
The Legislature has yet to name a conference committee to resolve the differences between the House and Senate foreclosure prevention bills. However, CHAPA is hopeful that the Legislature will pass final legislation prior to adjourning for the holidays on November 20th. To assist in this effort, CHAPA has prepared a bill comparison.
Federal Roundup
House Committee Holds Hearing on Mortgage Reform/Anti-Predatory Lending Bill
The House Committee on Financial Services held a hearing on October 24 on the Mortgage Reform and Anti-Predatory Lending Act of 2007 (H.R. 3915), a bill introduced by Chairman Barney Frank. The proposed bill would amend the Truth in Lending Act to reform mortgage lending practices and would require federal agencies to develop and implement the necessary regulations within 18 months of bill enactment. Among other things, the bill:
- Forbids prepayment penalties on "subprime" loans and requires that all other prepayment penalties expire 3 months before loan reset.
- Protects renters in foreclosed properties by requiring that leases survive foreclosure and by requiring that bona fide tenants without a lease receive at least a 90 day notice before being required to vacate.
- Requires that all mortgage originators be registered and licensed under state or federal law (states would have two years to develop laws that meet minimum federal standards). It also forbids originators from steering consumers to mortgage loans not in their interest and from receiving any form of compensation that varies with the terms of a mortgage loan.
- Sets minimum mortgage lending standards, including a requirement that all residential mortgages be based on verified, documented information demonstrating reasonable borrower ability to repay and a ban on refinancing products where loan costs exceed newly advanced principal. It also limits securitizer liability for loans meeting minimum underwriting standards or when a securitizer cures a loan to meet those standards.
The Committee expects to mark up the bill in November.
House Subcommittee Working on Legislation to Address Section 8 Late Payments and Housing Preservation
The House Financial Services Subcommittee on Housing and Community Opportunity held a hearing on October 23 on proposed legislation (H.R. 647) to revise HUD's Mark to Market program and to address the ongoing problem of late payments of Section 8 project-based assistance by HUD to property owners. It then introduced a revised version of the bill, H.R. 3965 (the Mark to Market Extension and Enhancement Act of 2007) on October 25th.
The Mark to Market program affects projects with expiring Section 8 contracts above market rents and with FHA-insured mortgages. HUD restructures the mortgages so that the Section 8 rents can be reduced. The bill raises the cap on the number of units that can receive exception rents (above 120% of fair market rents) from 5% of the portfolio to 9%. It would also extend the period of debt foregiveness for properties acquired by tenant organizations or nonprofits, extend eligibility for restructuring to projects in major federal disaster areas, and extend the program overall for one more year (to October 1, 2012).
In response to late project-based Section 8 payments, the bill would require HUD to notify owners at least 10 days in advance if a payment is going to be late and when payment is likely to be made. It would also allow owners to use project reserves to cover costs if payments are going to be more than 10 days late and would require HUD to pay simple interest if a payment is more than 30 days late. Panelists at the October 23rd hearing noted that late payments - caused by HUD's failure to request sufficient funding in the FY07 budget - are likely to continue in FY2008 due to an estimated $2.5 billion shortfall between funding requirements and HUD's FY08 budget request.
Mark up of the bill began on October 31.
Upcoming Events
Workshops on Using Community Preservation Act (CPA) Funds for Housing The Massachusetts Housing Partnership (MHP) and CHAPA are holding two half-day workshops in November and December on ways communities can use Community Preservation Act funds to preserve and produce affordable housing. MHP and CHAPA will also be publishing a guidebook on this topic. One workshop will be held on Thursday, November 29 from 9 a.m. to noon at the Clarion Inn in Northampton and the second will be held on Thursday, December 13 from 9 a.m. to noon at the Westford Regency Inn and Conference Center. CPA Workshop Information and registration is available online! . One can also register by calling Carole Spear at MHP (617-330-9944 x286).
The Community Preservation Coalition is also holding a CPA Conference on Saturday, November 10th at Bridgewater State College, that will include a morning session on CPA and community housing (10:15 a.m. to 11:45 a.m.). Information on the conference can also be obtained by calling the Coalition at 617-367-8998.
North Shore Housing Trust Annual Meeting and Discussion The North Shore Housing Trust will hold Annual Meeting on Wednesday morning, November 28th from 8:00-9:30 a.m. at Ipswich Town Hall. The meeting, co-sponsored by CHAPA, will feature a panel discussion on "Challenges and Successes in North Shore Affordable Housing Development" with Senator Susan Tucker, Clark Ziegler of MHP, Joanne Graves of the Manchester Housing Authority, David Holden of the Gloucester Housing Authority and Nipun Jain, Amesbury Town Planner.
