State Roundup
Housing Committee Advances Strong Housing Bond Bill
This morning, the Joint Committee on Housing Committee favorably reported the Housing Bond Bill (H. 4472). Realizing the need to produce, preserve and maintain affordable housing in the Commonwealth, the legislation provides for a $1.255 billion investment in housing programs. The legislation will next be considered by the Joint Committee on Bonding, Capital Expenditures and State Assets, co-chaired by Senator Mark Montigny of New Bedford and Rep. David Flynn of Bridgewater.
H. 4472 is very similar to H. 2030/S. 18, the original bill filed by Representative Kevin Honan and Senator Brian Joyce, but borrows from the Governor's Housing Bond Bill (H. 4375) in a few key aspects. H. 4472 increases Community Development Action Grant funding to $55 million, consistent with the Governor's proposal. The legislation also increases Housing Innovations Fund authorization to $75 million.
In addition, H. 4472 uses the Governor's language to establish a right of first refusal for many but not all of the funded programs, including the Facilities Consolidation Fund, Community Based Housing, the Housing Innovations Fund, and the Housing Stabilization Fund. The Governor filed H. 4375 in November, which was very similar to H. 2030/S. 18.
H. 4472 makes a small language change with important significance to the Home Modification Loan Program by clarifying that home modifications for severe cognitive disabilities are authorized expenditures. In addition, it is less restrictive in prohibiting the refinancing of outstanding mortgage loans funding through the Housing Innovations Fund. In addition, CHAPA was very pleased to see the continuing commitment to fund the Massachusetts Low Income Housing Tax Credit at $10 million per year. Without prompt legislative action, the tax credit will not be available for the spring funding round. All of these provisions were advocated for by CHAPA and the Building Blocks Coalition and we appreciate their inclusion.
CHAPA thanks Chairwoman Susan Tucker and Chairman Kevin Honan for their support and leadership in advancing this important piece of legislation. We look forward to working with Chairman Montigny and Chairman Flynn towards the ultimate goal of passing a strong Housing Bond Bill and bolstering affordable housing and community development in the Commonwealth prior to the budget season.
State Commission to End Homelessness Releases Report and Recommendations
The State Commission to End Homelessness issued its report and recommendations today, outlining a strategy to end homelessness in Massachusetts by 2013. The report calls for the State to gradually move away from the use of shelters by emphasizing prevention and early intervention, rehousing and housing stabilization. The guiding principle of the strategy is to "target the right resources to the right people at the right time".
The Commission recommends that the plan be executed under the direction of the Interagency Council on Housing and Homelessness (ICHH). It notes that many of its recommendations will require changes in state and federal legislation and administrative policies and recommends that the Commission policy working group continue for another year to advise in this process. It recommends using January-June 2008 to develop and test preliminary tools, with implementation starting in FY2009. It recommends a preliminary goal of reducing shelter use by 20%.
The strategy calls for the development of a new uniform assessment tool to identify the housing needs of each homeless or at-risk individual or family as they make contact with various state and local systems, including the housing courts. The assessment would also look at whether households have housing support service needs and provide linkages to "asset development" services as well (e.g. income supports, job training, help with financial literacy). The Commission also calls for the creation of regional preventive services coordinating agencies, using existing networks.
While the strategy will require additional public investment upfront to produce new housing and fund new rent subsidies and support services, the Commission expects these to be balanced over time by savings in shelter costs. The Commission recommends producing 1,000 new units of single person occupancy (SPO) housing over 5 years, at an estimated capital cost of $100 million. It also recommends the development of 800 new units of family housing (including 300 public housing units) at an estimated capital cost of $150 million (using 4% and 9% low income housing tax credits). It recommends "capturing" reduced shelter expenditures for future housing needs.
CHAPA Gears Up for Final Seven Months of Formal Legislative Session
With seven months remaining until the Legislature adjourns for the 2007-08 session, CHAPA is focusing on several legislative and budget priorities for a final push. CHAPA's budget priorities are highlighted by an increase for the Massachusetts Rental Voucher Program to $50 million for both tenant-based and project-based assistance.
The program, which currently provides 4,900 low income families and individuals with rental assistance in private apartments, is a key resource in helping to prevent homelessness. With the Commonwealth's homeless shelters over capacity, we cannot afford to have any additional people experience homelessness and need to provide permanent housing for these families, children and others experiencing difficulty.
CHAPA will continue to advocate for a comprehensive affordable housing opportunities agenda, including increased funding for Public Housing Operating Subsidies, Housing Consumer Education Centers, the Alternative Housing Voucher Program, the Soft Second Loan Program, Residential Assistance for Families in Transition, and the Affordable Housing Trust Fund. While the housing market has slowed, prices are still well beyond the reach of low and moderate income residents in the Commonwealth and the rental market is expected to tighten in the months ahead.
CHAPA has also made progress on several legislative priorities. The Housing Bond Bill and the extension of the Massachusetts Low Income Housing Tax Credit are our highest priorities. To date, we've made significant progress on legislation to expand homeownership in weaker markets (S. 2375) and to clarify how common expenses are paid for in condominiums with affordability requirements (H. 4268).
We hope to push these bills over the finish line, continue to make progress on zoning reform proposals, and advance legislation to bolster the future of the Community Preservation Act (S. 137).
Governor Sends Back Cooperative Housing Bill
H. 1224, An Act Relative to Eligibility for Cooperative Housing Corporations, passed by the Legislature in informal session in December, was sent back to the Legislature with an amendment. The initial legislation would have limited cooperative stockholder eligibility to financial considerations only. Many raised concerns about the unintended consequences on limited equity coop buildings and other coops in screening residents for other legitimate reasons that are currently allowed. CHAPA will continue to work with legislators and the Governor's office to ensure that the legislation does not adversely affect affordable housing.
Senate President Therese Murray Shuffles Leadership
Several housing champions within the Senate are shuffling positions. Senator Steven Tolman is joining Senate President Murray's leadership team, while Senator Harriette Chandler is ascending to Assistant Vice-Chair of Senate Ways and Means. Senator Brian Joyce, former Housing Committee Chair, will be Chair of the Committee on Community Development & Small Business.
Federal Reserve and Five Banks Launch Targeted Mortgage Relief Fund
On December 20, the Federal Reserve Bank of Boston and five banks announced the creation of a $125 million Mortgage Relief Fund to make it easier for homeowners who are paying high interest rates or facing mortgage loan resets to refinance. The program is limited to New England homeowners who are current on their mortgage payments, have a good credit history and have equity in their homes (value exceeds mortgage). The Federal Reserve estimates that about one-quarter of subprime borrowers are in this category. The participating banks are Citizens Bank, Sovereign Bank, TD Banknorth, Webster Bank and Bank of America. Information on program eligibility criteria and bank contact information is available on the Fund website.
Boston Homeless Census Finds 22% Rise in Family Homelessness
The City of Boston released the results of its 28th annual homelessness census earlier this month. The count, conducted on December 18th, includes both persons living on the street and one-night census figures from all residential homeless facilities in the city. Overall, the City reports that the total count rose by 4% (to 6,901), as reductions in the number of homeless individuals were more than offset by increases in the homeless family population.
The City counted 3,817 individuals living on the street or in adult shelters, down 5% from 2006 and marking the third consecutive year of decline. Within this group, the number living on the street fell by 40% (184 in 2007) and the number in adult shelters also fell slightly. By contrast, the number of people in homeless families (men, women and children) rose to 3,084, up 22% from 2006 (2,535).
Federal Roundup
NLIHC Launches Website to Track Housing in Presidential Campaign
The National Low Income Housing Coalition (NLIHC) has set up a nonpartisan website, Housing2008.org, to provide information on the positions of the presidential candidates on housing issues. The website was launched in late December. In addition to providing information on the official statements of the candidates, the website will allow people to share what they have heard from candidates on the campaign trail.
U.S. Conference of Mayors Study Finds Foreclosure Crisis is Hurting Metro Area Economies
A recently released study sponsored by the U.S. Conference of Mayors, The Mortgage Crisis: Economic and Fiscal Implications for Metro Areas, indicates that the recent decline in housing values and current foreclosure crisis is likely to hurt state and metropolitan area economies in 2008. It outlines how declining home equity, low construction levels and weak residential sales are likely to constrain job growth and consumer demand and reduce sales tax and transfer tax revenues.
In Massachusetts, the authors expect almost 37,000 loans to go into foreclosure in 2008 (including over 10,500 prime loans and over 26,000 subprime loans). They also predict that sales tax revenues in Massachusetts will fall by $21 million in 2008 and property transfer tax collections by $34 million. Overall, they predict that the state's gross metropolitan product will grow by only 2.2% in 2008, one-third less than would have been projected without the mortgage crisis.
National Housing Conference to Launch Website on State and Local Housing Policy Solutions
The National Housing Conference announced this month that it will launch a new housing policy website this month to provide information on state and local policy tools and how to develop comprehensive housing strategies.
Upcoming Events
CHAPA Lunch Forum on Homelessness Commission Recommendations and Next Steps for Implementation Tuesday, February 5, 12:30 p.m. - 2:30 p.m. at Suffolk University Law School, 120 Tremont Street, Boston.
