State Roundup
House of Representatives Advances $1.275 Billion Housing Bond Bill
The Massachusetts House of Representatives unanimously passed the Housing Bond Bill today. The legislation, H. 4594, is the largest housing bond bill ever passed and is very similar to H. 4472, advanced by the Housing Committee earlier this year. The $1.275 billion bill includes the following:
$500 million for Public Housing Modernization;
$40 million for the Facilities Consolidation Fund;
$30 million for Community Based Housing;
$50 million for Home Modification Loan Program;
$220 million for the Affordable Housing Trust Fund;
$125 million for the Housing Stabilization Fund;
$50 million for a Public Housing Demonstration Program;
$55 million for Community Development Action Grants;
$75 million for the Housing Innovations Fund;
$100 million for the Capital Improvement and Preservation Fund; and
$30 million for the Commercial Area Transit Nodes
In addition, H. 4594 extends and expands the Massachusetts Low Income Housing Tax Credit (LIHTC) from $4 million to $10 million per year. Created in 1999, the LIHTC has funded the creation of over 3,500 homes, 65 percent of which are affordable to low income households. Extending and expanding the LIHTC continues to be one of CHAPA's top priorities. Because the tax credit was not included in the Governor's Housing Bond bill or budget, CHAPA requests that our members continue to contact their Senators and Governor Patrick to voice your support for this ! program to ensure that this critical tool remains a part of the final bond bill.
H. 4594 also includes provisions advocated for by the Patrick Administration, the Bonding Committee, and disability advocates that CHAPA supports, including opening the Facilities Consolidation Fund and the Community Based Housing to for-profit developers to increase opportunities to develop scattered site housing for people with disabilities (non-profits will receive preference), and increasing the funding amount for these two programs. Finally, H. 4594 de-authorizes unexpended authorizations from prior housing bond bills, consistent with the recommendations of the Governor and Bonding Committee.
CHAPA commends Speaker Salvatore DiMasi, Chairman Robert DeLeo and Chairman David Flynn for their support and leadership for this landmark affordable housing legislation. In addition, CHAPA especially recognizes and thanks Chairman Kevin Honan, who sponsored the Housing Bond Bill and has been a tireless advocate for its passage.
The Housing Bond Bill is now headed to the Senate, where we anticipate a vote in the near future.
CHAPA Issues Three New Publications
CHAPA has completed three new publications this month covering the Community Preservation Act, creating permanent housing for very low income families, and the foreclosure crisis:
1. The Massachusetts Housing Partnership (MHP) and CHAPA have published a new guidebook explaining how cities and towns can use Community Preservation Act (CPA) funds to support affordable housing. It also includes examples of how some communities have used CPA to date for housing. In addition, the guidebook includes local tools that all communities can utilize, including how to establish and run a municipal affordable housing trust.
2. Home Funders and CHAPA have issued a new report, called "Building the Stock" that examines how linking rental assistance and capital funding can increase the production of housing affordable to extremely low income households. CHAPA and Home Funders will also be co-sponsoring a breakfast forum on April 4th to discuss the report's findings and recommendations.
3. CHAPA issued a briefing paper this week listing current and proposed state, local and federal initiatives on foreclosures to assist policymakers and practitioners. It will be establishing a web-based information clearinghouse in the very near future. CHAPA will update the briefing paper on an ongoing basis as part of this clearinghouse and welcomes input from interested parties.
Local Mayors Weigh in on the Mass. Rental Voucher Program (MRVP)
Mayors from across the State have written to Chairman Robert DeLeo and Chairman Steven Panagiotakos requesting support for MRVP in the FY 2009 budget, one of CHAPA's top priorities. Spearheaded by Somerville Mayor Joe Curtatone, mayors from Metro Boston, the North Shore, MetroWest, and west to Easthampton and Greenfield have signed a letter highlighting the need to provide stable housing for families experiencing economic difficulty due to the high costs of housing. CHAPA thanks the mayors for their support and leadership.
DHCD Announces Hearing on its FY2008 Annual Section 8 Plan
DHCD will hold a public hearing on March 27 on its draft Annual Section 8 Housing Choice Voucher Program Plan. The hearing will be held in Boston at DHCD. As detailed in the public hearing notice, DHCD will also accept written comments through Thursday April 10 by mail or fax (627-573-1345). Persons planning to attend are asked to call DHCD in advance at 617-573-1206.
The draft plan includes several new initiatives, including a proposal to partner with the Massachusetts Housing Partnership (MHP) to use project-based vouchers for new small scale rental projects developed with housing authorities and a proposal to use project-based vouchers as part of a program to promote the sound disposition of foreclosed and at-risk properties.
Massachusetts Housing Partnership Announces Grant Program for Non-Profits
The Massachusetts Housing Partnership (MHP) published a request for proposals on March 10 under its Production Support Program (PSP). PSP provides grants to increase affordable housing production or preservation. Funding is limited to community or constituency-based or regional non-profits. The program will offer grants for equity investments, operating support grants for development work and grants for capacity innovation. The total funding available is $3 million. For the first two forms of assistance, applications are due by April 18, 2008. MHP will hold a training session on Wednesday, March 19 from 10:00 am-noon in Fra! mingham. Questions regarding the RFP should be directed to Connie Kruger at ckruger@mhp.net. Persons planning to attend the training are asked to contact Carole Spear at cspear@mhp.net.
Federal Roundup
New FHA, Fannie Mae, and Freddie Mac Loan Limits Take Effect
The new Federal Housing Administration (FHA) temporary loan limits and Fannie Mae/Freddie Mac temporary jumbo conforming loan limits authorized under the recent stimulus bill went into effect on March 6. The limits are set at 125% of the area median house price and vary by county. The new FHA limits will expire on December 31, 2008. The Fannie Mae/Freddie Mac limits will apply to loans originated between July 1, 2007 and December 31, 2008 and are the same as the FHA limits for Massachusetts.
Housing Tax Credit Bill Filed in Senate
On February 25, Senator Maria Cantwell of Washington introduced a bill, co-sponsored by Senator Kerry of Massachusetts, to update the Low Income Housing Tax Credit (LIHTC) program. S.2666 - the Affordable Housing Investment Act of 2008 – would change the name of the program to the Affordable Housing Tax Credit program, make it easier to use with other federal housing programs, and facilitate the preservation of existing affordable housing. The bill was referred to the Senate Committee on Finance.
HUD Issues Guidance on Fair Housing Reasonable Modifications
On March 5th, HUD and the Department of Justice issued guidance on the reasonable modifications provision of the federal Fair Housing Act. "Reasonable modifications" refers to structural alterations needed by a person with disabilities to fully enjoy their premises. The guidance covers what constitutes a disability and a reasonable modification, responsibility for associated expenses, the procedures to be followed in requesting a modification, including documenting a disability and establishing its nexus to the request. It also discusses procedures for reviewing a request and appealing a denial.
Comprehensive Foreclosure Bill Stalled in Senate
A comprehensive bill to expand foreclosure prevention programs, introduced by Senator Harry Reid of Nevada in mid-February - S. 2636 –- remains stalled in the Senate, as Republicans defeated efforts to close debate last week.
S.2636 would:
- Allow judges hearing Chapter 13 bankruptcy cases to modify home mortgages as needed, including reducing the principal and allowing a long term repayment plan;
- Authorize $10 billion in new tax-exempt bond authority in 2008 specifically to refinance subprime loans and make such refinances an allowable bond activity generally through 2010;
- Increase the FY2008 appropriation for NeighborWorks foreclosure mitigation activities by $200 million; and
- Appropriate $4 billion for the Community Development Block Grant program, specifically to help public agencies or nonprofits acquire and manage or resell vacant/abandoned properties. Funds could assist households with incomes up to 120% of area median and would be distributed within 90 days of bill enactment based on state and local need, as measured by home foreclosures, delinquencies and subprime loans.
The bill's prospects are uncertain due to Republican opposition, especially with regard to modifying mortgages in bankruptcy, and a threatened veto by the White House.
Recent Research
MCBC Study Finds Lending Disparities Continued in 2006
Last month, the Massachusetts Community & Banking Council (MCBC) issued "Changing Patterns XIV", its 14th annual report on mortgage lending to traditionally underserved borrowers and neighborhoods. The study reviewed lending patterns based on 2006 federal Home Mortgage Disclosure Act (HMDA) data on first-lien mortgages for owner-occupied homes. It found high levels of subprime lending (loans with APRs at least 3 percentage points higher than the current interest rate on long-term U.S. Treasury bonds) in 2006.
Over 40,000 high-APR loans (HALs) were made in 2006, accounting for 19% of all home-purchase loans and 25% of all refinance loans and much higher shares of the total loans made in larger cities (generally ranging upwards of 40%). Minority households were also far more likely to receive a HAL than white households in similar income brackets, with the biggest discrepancies at the highest income levels (household incomes above $165,000). The study noted that a borrower receiving an average sized HAL in Greater Boston in 2006 ($325,000) would pay an extra $900 a month, compared to the amount that would be due based on the prime loan rate.
National Low Income Housing Coalition Issues Two New Studies on Housing Affordability
The National Low Income Housing Coalition (NLIHC) issued two new studies on housing affordability recently. One is a primer on housing affordability standards in federal housing policies. The second is a Mid-Decade Progress Report, that details changes in rental housing affordability among different income groups by state and nationwide.
NLIHC has also issued its annual Advocates Guide. The 200 page guide provides clear and concise information on key federal housing programs, legislation and policy issues.
Upcoming Events
Friday, April 4, 9:00 a.m.-11:30 a.m., CHAPA/Home Funders Breakfast Forum, Strategies to Create More Deeply Affordable Permanent Housing, The Boston Foundation , 75 Arlington Street, 10th floor, Boston. Registration is required (no later than Tuesday, April 1).
Friday, April 11, 7:30 a.m.-2:15 p.m., Training on New Changes to Chapter 40B, Best Western Royal Plaza Hotel and Trade Center, 181 Boston Post Road, Marlborough MA. Registration is required (no later than Friday April 4).
Thursday and Friday, June 12-13, Massachusetts Housing Institute. This second annual training, sponsored by MHP, CHAPA and the Massachusetts Chapter of the American Planning Association, is designed for local officials, planners, housing committees, housing trusts, community preservation act committees and others interested in creating housing options in their community. It will feature a number of development and design experts. It will be held at the Babson College Executive Center in Wellesley. Pre-registration is required and the cost is $75.00. To register, call or e-mail Carole Spear, 617-330-9944 ext. 286.
