November 14, 2007

State Roundup

DHCD Releases Draft Chapter 40B Regulation

Last week, DHCD issued a draft 40B regulation that consolidates and extensively revises the existing regulations.  As detailed in a DHCD summary, the new regulation covers the entire 40B application, review, appeal, and monitoring process and codifies a number of court and Housing Appeals Committee decisions as well as policies previously spelled out in state guidelines.  A public hearing is tentatively scheduled for December 11th. 

The draft regulation proposes a number of changes to current policy.  It allows communities facing three or more 40B applications to temporarily defer consideration of additional applications if the number of units under review exceeds the "large project" thresholds established under existing regulations.  It sets more rigorous standards for early project design and for housing plans under the planned production program, but also lowers the one- and two-year production thresholds by one-third (to 0.5% and 1.0% of total housing units).

Other changes include more extensive guidance on the procedures local boards must follow when reviewing applications, clarifying what concerns are proper for review, addressing fee issues, and setting a time limit of 180 days for the public hearing.  The draft regulation also establishes an upfront expedited DHCD appeal process when a zoning board intends to deny a permit on the grounds that they are appeal-proof under the statutory minima, planned production or other standards.   CHAPA will be providing a detailed comparative analysis of the current regulations and the new draft regulations shortly.

Landlocked Tidelands Uncertainty Resolved

Both the House and Senate approved landlocked tidelands legislation aimed at ending months of uncertainty over the ability to build on filled, landlocked tidelands.  H. 4324 authorizes the Department of Environmental Protection (DEP) to issue Ch. 91 exemptions for landlocked tidelands, consistent with the previous regulatory process in place since 1990.  It also creates a public-hearing process for tideland building requests and creates a process to benefit communities where such projects are proposed to seek public benefits from developers.  

In addition, H. 4324 amends the Massachusetts Environmental Policy Act (MEPA) to require an enhanced review of projects on landlocked tidelands and creates an enforcement mechanism for MEPA certificates where tidelands are involved.  Finally, the bill calls for a study of the drainage and ground and surface water flow issues associated with the Miller's River in the cities of Cambridge, Somerville and Boston.  The legislation is now on the Governor's desk awaiting his signature.

Conferees Named to Resolve Foreclosure Legislation Differences

Last week, the House and Senate named conference committee representatives to resolve the differences between the foreclosure bills passed by each branch (H. 4306 and S. 2382).  Representative Mariano, Representative Torrisi and Representative Williams Gifford will represent the House.  Senator Tucker, Senator Buoniconti and Senator Brown will negotiate on the Senate’s behalf. 

Because both pieces of legislation are very comparable, we are hoping for a swift conference and adoption of comprehensive foreclosure legislation before the end of the year.

Governor Expected to File Housing Bond Bill This Week

Governor Deval Patrick is expected to file a housing bond bill this week to recapitalize the existing affordable housing preservation and production programs.  When the bill is available, CHAPA will provide a detailed analysis of this legislation compared to the $1.2 billion bill co-sponsored by Rep. Kevin Honan and Sen. Brian Joyce, which is currently in the Joint Committee on Housing.

New England Housing Conference Report Available

 CHAPA has prepared a summary report that provides recommendations on federal housing policy based on participant suggestions at the New England Housing Network conference that was held on September 10, 2007.

Federal Roundup

 Full House Expected to Vote on Mortgage Reform/ Anti-Predatory Lending Bill This Week

On November 6, the House Financial Services Committee approved a revised version of the mortgage reform and anti-predatory lending bill introduced last month by Chairman Barney Frank.  The version of H.R. 3915 approved by the full committee expanded the disclosures required when making a mortgage and clarified that the new bill overrides state law in the case of assignee liability.  The full House is expected to take up the bill this week. 

 HUD FY2008 Budget Vote Expected This Week

Both the House and the Senate are expected to vote this week on the conference committee report approved November 8th for Transportation, Housing and Urban Development, and Related Agencies (THUD).  The White House has threatened to veto the bill because it provides funding in excess of the president's budget request.  The text of the conference report is not yet available on line, but it is reported to provide small increases to a number of programs (see budget chart prepared by the National Low Income Housing Coalition). 

There is general agreement that the bill does not include enough funding to renew all current project-based Section 8 contracts.  While the conferees funded the program at $6.2 billion, rather than the lower amount recommended by the Senate, they rejected requests by a number of representatives and senators to provide an advance appropriation of FY2009 budget authority to cover the remaining gap.

The bill contains a number of provisions sought by housing advocates, including using the Senate formula for setting renewal funding levels for Section 8 housing choice vouchers based on the most recent calendar year costs (rather than FY06 costs as the House had proposed).  It also includes $135 million to fund about 7,500 incremental vouchers for homeless veterans, about 4,000 vouchers for non-elderly persons with disabilities and 4,000 Family Unification Program vouchers.  It also has statutory language requiring one-for-one replacement vouchers for all federally assisted units occupied in the previous 24 months in properties lost to demolition or conversion to market rate housing.  The bill also provides small increases for public housing operating subsidies and the Community Development Block Grant program.

The bill also includes a $200 million funding increase for foreclosure mitigation, to be administered by NeighborWorks America.  NeighborWorks will distribute the funds to areas and states with high rates of defaults and foreclosures, using a competitive process.  Selected intermediaries will use the funds to help borrowers facing impending interest rate resets to keep their homes, using such tools as mortgage restructurings and modifications.