On Friday, Governor Romney vetoed the five-year extension of the state low income housing tax credit program (one of CHAPA's top legislative priorities) on the grounds that it is a "highly inefficient financing mechanism." Instead, he submitted legislation to authorize $100 million in bond authorization for a new program for "projects eligible for funding u nder the state low income housing tax credit program."

Although we recognize potential benefits of the Administration's alternative proposal, there are a number of uncertainties involved. One of these concerns is whether a $20 million annual bond cap increase will be forthcoming to pay for the new capital program and whether other housing bond programs will be negatively impacted. For example, public housing modernization suffered cuts last year after the state housing trust fund was moved from the operating budget to the capital budget.

After careful thought and deliberation, CHAPA has decided to advocate with the legislature to override the governor's veto and reinstate the tax credit program. At the same time, we will continue a dialogue with the Romney Administration on ways to enhance the state tax credit program.

Press Conference Supports Housing Bond Bill

At a well-attended press conference last Wednesday, legislators, consumers, and advocates called upon the House to pass An Act Authorizing the Funding of the Production and Modification of Housing for People with Disabilities (H.4748).

The bill would provide $170 million for housing productions programs, including the Home Modification Loan Program (HMLP), the Facilities Consolidation Fund (FCF), the Housing Innovations Fund (HIF), and a new Community-Based Housing Program. It would also allow Housing Stabilization Funds to be used for the Soft Second Program.

These funds are needed now. Representative Kevin Honan, Chairman of the Housing Committee said, "We are compelled to act by the struggles and the needs of our children, families and neighbors who need this financing to provide a place called home."

The HMLP ran out of money last January, and more than 350 people are on a waiting list for the low-interest loans that would allow them to make access modifications to their homes. Additionally, CEDAC believes that there may not be sufficient HIF uncommitted capital to meet demand in the next funding round.

The bill has already passed the Senate, and it received a favorable report from the House Committee on Long Term Debt. It is now before House Ways and Means. If the bill does not pass within the next four weeks (before the House completes formal sessions for the year), the bill will dies.

After the press conference, attendees met with their representatives and urged them to make passage of the housing bond bill a top priority. If you would like to help, please call your State Representative at 617-722-2000. A copy of the bill and fact sheet can be found at www.chapa.org/state_legislative.htm. For more information, call Chris Norris at CHAPA, 617-742-0280.

Attempt to Simplify Public Housing Application Process Vetoed

Governor Romney vetoed section 297 of the FY 2005 budget. If the veto is allowed to stand, families and individuals who want to apply to state-assisted public housing will continue to endure the time consuming process of filling out and sending applications to every individual authority. Section 297 called upon the Department of Housing and Community Development (DHCD) to "implement a statewide application system for all state public housing and, to the extent possible, other affordable housing resources." The proposal was meant to act as a single point of entry, whereby applicants would fill out one form, one time, that would then be automatically distributed. Housing authorities would continue to make their own eligibility and preference determinations. DHCD was given until December 2005 to implement the system. As a rationale for his action, in his veto message, the governor said, "the Department of Housing and Community Development has no regulatory oversight of non-state funded housing programs."

Anti-Predatory Lending Bill Passes House

The Massachusetts House of Representatives has passed a bill that would define high-cost loans and institute new protections for consumers. Some of the new requirements include: prepayment penalties are prohibited, a consumer must receive counseling before signing the loan, and a lender must reasonably believe that the borrower can repay the loan. A summary of the anti-predatory lending bill, which is one of CHAPA's legislative priorities, can be found at www.chapa.org/4606housebillsummary.pdf.

The bill now moves to the Senate for further consideration.