House Speaker Sal DiMasi announced his leadership team, committee chairs, and committee members on Tuesday, February 7th. Representative Kevin Honan will join Senator Brian Joyce as co-chairman of the Joint Committee on Housing. Representative John Rogers of Norwood will serve as the Majority Leader, Representative Lida Harkins of Needham will be Assistant Majority Leader, Representative Byron Rushing of Boston will be Second Assistant Majority Leader. The new position of Speaker Pro Tempore will be held by Representative Thomas Petrolati of Ludlow. Representative Robert DeLeo of Winthrop will chair the Ways & Means Committee. He will be assisted by Representatives St. Fleur and Vallee.

Democrats on the Joint Committee on Housing (Republican members have not been appointed.)

Supplemental Budget Referred to House

Governor Romeny filed an FY 2005 supplemental budget request of $93.7 million on January 26th., which includes $28.7 million for the Mass. Highway Department and the Department of Conservation and Recreation for snow and ice removal. There is also $2.9 million for the public housing operating subsidy account to help cover "fuel deficiencies." Additionally, in Section 17, the governor calls for amending and extending, until June 30, 2008, the expedited disposition process for state surplus land.

Informally known as Section 548 (a reference to the section in the FY 2004 budget where it was adopted as part of the customary legislative process), the expedited disposition procedure has allowed the Division of Capital Asset Management to sell state surplus property without the need for having each individual sale approved by the legislature. The process includes the same public hearing requirements as found in the original disposition process, and cities and towns maintain control through local zoning and permitting. Half-way through FY 2005, DCAM has already closed 26 transactions, and more than $15 million is expected to be raised this fiscal year. In contrast, during FY 2001, before Section 548, DCAM closed 13 transactions for a total of $1.2 million.

Responding to concerns raised by communities, the governor would give communities the right of first refusal to purchase surplus land at 90% of its value. He would also give communities where the property is located 10% of the net cash proceeds from each sale if they choose not to exercise the right of first refusal.

CHAPA supports the extension and these reasonable compromises which would help fund the Smart Growth Zoning and Housing program (Ch. 40R).

DHCD Announces Winter Funding Round

The Department of Housing and Community Development has announced the start of its Winter 2005 funding round for rental developments. Applications must be submitted by the close of business on Thursday, February 17th. One-Stop Affordable Housing Applications will be accepted for the following programs: Federal and State Low Income Housing Tax Credits; HOME Investment Partnerships Program; Housing Stabilization Fund; Housing Innovations Fund; and the Facilities Consolidation Fund. Applications may be downloaded by clicking here.

CHAPA Makes Smart Growth Demonstration Awards

CHAPA has granted seven technical assistance awards under its Smart Growth Demonstration Initiative. Recipients include: Berkshire Regional Planning Commission, Boxford Housing Partnership, City of Chelsea, Lawrence CommunityWorks, Town of Sharon, South Shore Housing Corporation for a project in New Bedford, and HAP, Inc. for work in Springfield. Recipients will use the assistance to help fund demonstrations of smart growth and affordable housing development in their communities. For more information contact Karen Wiener at CHAPA, 617-742-0820.

MHP Production Capacity Grants for Affordable Housing

The Massachusetts Housing Partnership (MHP) will provide grants to housing nonprofits and Community Development Corporations to support an expansion of affordable housing development. The program goals are to increase the capacity of community-based nonprofit housing development organizations to create affordable housing in their communities, now and in the future; and to increase the supply of affordable housing. Grant money must be directly linked to supporting the production of affordable housing. Requests for funding are due on March 9, 2005.

MHP is making two types of grants available: the Production Capacity Grant ($90,000 - $105,000 over three years) and the Organizational Support Grant ($5,000 - $20,000 for one year). Applicants must be nonprofit and tax-exempt. The organization must also be a CDC or a regional nonprofit housing organization or a Community Housing Development Organization. Nonprofit organizations that do not meet these requirements may still be eligible if they have the development of affordable housing as a primary goal, have been in existence for at least 2 years, and can demonstrate that they are a community-based organization.

For additional information and a complete description of the grant programs and eligibility criteria, contact Susan Connelly at: sconnelly@mhp.net.

Massachusetts Housing Construction Up in 2004

Building permits issued in Massachusetts last year totaled 21,219 units, the highest level since 1989, according to U.S. Census data. While multifamily housing units in buildings with five or more units were down slightly (from 5,657 units in 2003 to 5,513 in 2004), single fa! mily construction rose by more than 1,300 units. However, multifamily housing construction has more than doubled when compared to 2002. Detailed information can be found here.

Romney Administration Terminates Preservation Program

The Romney Administration has said that it is terminating the Capital Improvement and Preservation Fund (CIPF), a program that has preserved 2,600 units of low income housing in expiring use buildings that otherwise would have been converted to market rate use. CHAPA successfully advocated for this program as part of the 1998 and 2002 housing bond bills. To date, the Department of Housing and Community Development has committed more the $31 million to this program from a total authorization of $50 million.

The Executive Office of Administration and Finance has expressed dissatisfaction with the state’s preservation programs, including CIPF, public housing, and the Housing Stabilization Fund, arguing that the sole focus of state government should be on expanding housing supply. CHAPA will continue to advocate forcefully for a balanced state housing policy that includes both new production and preservation and revitalization of existing housing units.

President’s Budget Slashes CDBG and Transfers Programs to Commerce Department

President Bush’s proposed FY2006 HUD budget cuts the Community Development Block Grant Program (CDBG) by 40% and moves the program along with other HUD economic development programs to the Department of Commerce. Overall, the HUD budget was cut from $32.4 billion in FY05 to $28.5 billion in FY06.

If adopted by Congress, most HUD programs would receive substantial cuts, including: HOPE VI program (eliminated); a reduction of the HOME Program due to a proposed increase in the American Dream Downpayment setaside; Public Housing Capital Fund (-$400 million); Housing for Persons With Disabilities (-$118 million); Housing Opportunities for Persons With AIDS (-$14 million); and Lead Hazard Reduction (-$48 million). The only bright spot is that Homeless Assistance Grants is increased by $199 million.

According to the Center on Budget and Policy Priorities (CBPP), HUD requested $15.845 billion for the voucher program in FY2006, an increase of $1.079 billion compared to FY 2005. For voucher renewals, HUD has requested an increase of $734 million above the 2005 amount, plus an additional $45 million as essentially a central fund to be used at the Secretary's discretion. The remainder of the increase is due to an increase of nearly $200 million for tenant protection vouchers plus an increase of nearly 8% (from $1.2 billion to $1.295 billion) for administrative fees. However, there is a significant decrease in funding requested to renew project-based expiring contracts ($272 million, roughly equivalent to 47,000 units).

To fund the voucher program in FY 2006, HUD proposes to base each agency's funding on the "pre-proration" amount that HUD found the agency eligible for in 2005 adjusted by the Annual Adjustment Factor (AAF) and for any additional tenant protection vouchers awarded in 2005. According to Barbara Sard of CBPP, funding would no longer be based on actual PHA data on leasing and costs; the funding for the program would effectively be block-granted. If Congress does not appropriate sufficient funds to meet the "need" as determined on this basis, funding for each agency would be pro-rated. CBPP’s initial estimate is that HUD has requested funding to renew about 95% of expiring vouchers.

The entire HUD budget can be accessed by clicking here.