The Massachusetts House of Representatives has approved An Act Relative to Financing the Production of Affordable Housing. With the leadership of Speaker DiMasi, Ways and Means Chairman DeLeo, and Housing Chairman Kevin Honan, the House unanimously agreed to authorize $200 million to recapitalize the Affordable Housing Trust Fund and the Housing Stabilization Fund. The bill now moves to the Senate, and each CHAPA member is urged to contact his or her Senator now and request that the bill be brought up for consideration before July 31.

A copy of the bill and a summary are available on CHAPA’s web site by clicking here.

Capital Budget Released but Impact Unclear

Governor Romney released the long-awaited FY06 capital budget on Monday, which appears to provide level-funding for most of the state’s affordable housing programs. Funding amounts for each of the housing programs was not available.

Based on discussions with Romney Administration officials, it appears that the Housing Innovations Fund and Home Modifications Loan Program will receive modest increases and the new Olmstead Community Housing Program will receive $5 million. However, the Affordable Housing Trust Fund and the Housing Stabilization Fund may be cut. The Capital Improvement and Preservation Fund will be cut from $6.2 million to $1.4 million.

DHCD programs are now included in two different capital budgets: the DHCD budget and the new Commonwealth Capital Fund (CCF). In the DHCD capital budget, $84.1 million is allocated to the following programs: Public Housing Modernization (level funded at $52.3 million); Housing Innovations Fund; Home Modifications Loan Program; Olmstead Community Housing; Facilities Consolidation Fund; and Urban Revitalization Grants ($4.3 million).

The Commonwealth Capital Fund includes a total of $96.7 million with $33 million reportedly allocated to: the Affordable Housing Trust Fund; Housing Stabilization Fund; Transit Node Program; Capital Improvement and Preservation Fund; and Community Development Action Grant Program.

Legislature Continues FY 2006 Budget Veto Overrides

As this is being written, the House and Senate are considering which of Governor Romney’s FY 2006 vetoes to override. Last week the House overrode two housing related vetoes. They restored $221,000 to the Housing Services line item, and they overrode the Governor’s vetoes of the Emergency Assistance Family Shelter account and the Emergency Aid to the Elderly, Disabled and Children program.

Many CHAPA members have contacted their legislators and asked for veto overrides of the Massachusetts Rental Voucher Program, Residential Assistance for Families in Transition, and DMH rental assistance. CHAPA will continue to work with our allies to see that these accounts receive the funding that the Legislature originally approved. To view a list of vetoes and the actions taken, click here.

New Transit Oriented Housing Development Limited to Municipalities

Draft Regulations for the TOD Infrastructure and Housing Support Program are now available for public comment. This new program is designed to help create more compact, mixed use, walkable development close to transit stations. The program was authorized as item 6001-0421 in legislation last year. It will provide financial assistance for a variety of items in mixed use developments located within ¼ mile of a transit station.

A public hearing on the draft regulations has been scheduled for Tuesday, August 2 at 9:00 a.m. The hearing will be held at One Ashburton Place, 21st Floor, Boston. Comments will be accepted until August 4, 2005. Copies of the draft regulations are available at this site.

The Administration has indicated that the housing portion of the bond funds may only be awarded to public entities, not other private, non-profit or for-profit developers. CHAPA is pushing for a technical correction to the TOD language to allow non-profits and for-profits to access the TOD bond program for the production of affordable housing—as the Legislature intended, and we support including an appropriate amendment, with language similar to other housing bond authorizations, in the current housing bond bill. Last week, House legislative leaders worked diligently on a proposal, but an agreement could not be reached with the Administration.

For now, the draft regulations explicitly limit program funding to public entities, or to certain partnerships between public and private entities. Unless changes are made very little, if any, affordable housing will get built under this program because municipalities do not generally build affordable housing.

Deeds Excise Provision Prevents Double Taxation

Last Thursday, the Senate passed the “tax loophole” bill which could generate additional funds for housing. Although CHAPA supported the bill, which is based on legislation that was originally filed by Governor Romney, our members expressed concern that the new definition of conveyance for purposes of the payment of the deeds excise tax could lead to affordable housing developments (particularly those relying on state and federal tax credits) paying more than their fair share of taxes. We worked with the bill’s sponsors and with the assistance of the Joint Committee on Revenue, President Travaglini’s staff, Chairwoman Murray’s staff, Senate Housing Chairman Brian Joyce, and committee member Senator Barrios, to amend the bill and fix this problem. The legislation will most likely be referred to a conference committee to resolve differences between the House and Senate versions. CHAPA wishes to thank our members and supporters in the Senate who worked under significant time pressures to draft and review the new language.

Upcoming Hearings