STATE UPDATES
Conference Committee Finalizes Housing Bond Bill - $1.4 billion investment in affordable housing pledged over five years
This week, the Conference Committee appointed to resolve differences between the House and Senate versions of the $1.4 billion housing bond bill released their conference report. The reconciled bill was then accepted by the House and the Senate. Final approval is expected by both chambers next week. The bill is the largest housing bond bill ever passed and is critical in ensuring that the state has the resources over the next five years to provide additional affordable housing opportunities for families, the elderly, and people with disabilities.
The $1.4 billion five-year authorizing legislation includes the following investments:
- $500 million to invest in public housing. The Commonwealth has over 50,000 units of state-owned public housing, approximately 33,000 units of which house low income elderly residents. This funding will ensure that this housing stock is adequately maintained and preserved. In addition, the legislation includes $50 million for a Public Housing Demonstration Program to try to craft innovative ways to build and manage public housing.
- $47 million for the Facilities Consolidation Fund and $38 million for Community Based Housing to provide additional housing opportunities for people with disabilities; $55 million for Home Modification Loan Program to provide resources for residents with disabilities to make the modifications necessary for them to continue living at home.
- $305 million for the Affordable Housing Trust Fund, $135 million for the Housing Stabilization Fund, $80 million for the Housing Innovations Fund and $20 million per year for Massachusetts Low Income Housing Tax credits through 2020. These programs provide additional resources to create affordable rental and homeownership opportunities across the Commonwealth.
- $100 million for the Capital Improvement and Preservation Fund to ensure that the state, municipalities, and nonprofits have the resources to purchase deed restricted properties that are in danger of losing their affordability when the restrictions expire.
- $45 million for the Commercial Area Transit Node Housing Program to produce housing in commercial areas served by public transit. New language has been included to allow for funding of commercial space within mixed-use developments.
- $45 million for the Early Education and Out of School Time Capital Fund, a new program, for nonprofit providers serving low income children, to build facilities or renovate existing buildings in order to provide children and teachers with safe, healthy environments. The program will be administered by the Department of Early Education and Care.
Language added during the House and Senate debate weakening the state’s Affordable Housing Law, Chapter 40B, and changing immigration policy as it relates to public housing was removed from the bill by the Conference Committee. The conference report now heads back to the House and Senate for final approval with final votes expected in both the House and the Senate the week of November 7th. The bill will then be sent to the Governor for his signature.
CHAPA thanks the members of the Legislature for passing the strongest housing bond bill in Massachusetts history. Special thanks to conference committee members Representative Brian Dempsey (D-Haverhill), Representative Kevin Honan (D-Brighton), Representative Todd Smola (R-Palmer), Senator Stephen Brewer (D-Barre), Senator Jamie Eldridge (D-Acton), and Senator Bruce Tarr (R-Gloucester).
FEDERAL UPDATES
Senate Fails to Approve Nomination of Representative Mel Watt for FHFA Director
On October 31, efforts in the Senate to close debate on the nomination of Representative Mel Watt (D-NC) failed (56-42), four votes short of the 60 needed to proceed to a vote on the nomination. Only two Republican senators voted for cloture: Senators Burr (NC) and Portman (OH). The National Low Income Housing Coalition reports that Senator Harry Reid (NV) voted no when it was clear that there were not enough yes votes, so that he could file a motion to recommit, reserving the right to bring it up again. The vote failed despite widespread support for the Watt nomination from industry groups, such as the Mortgage Bankers Association, as well as housing organizations.
Senate Committee Hearings on Housing Finance Reform Continue
The Senate Committee on Banking, Housing and Urban Affairs held two more hearing this week on reform of Housing Finance System and the future of the Fannie Mae and Freddie Mac. The October 29 hearing focused on Essentials of a Functioning Housing Finance System for Consumers and the October 31 hearing on Elements of a Government Guarantee for Mortgage Backed Securities. A fifth hearing is scheduled for November 5, focusing on protecting small lender access to the secondary mortgage market. The hearing websites include the testimony of a number of national groups.
HUD Issues Final Rule on Public Housing Capital Fund
On October 24, HUD published its Final Rule on the Public Housing Capital Fund in the Federal Register. A summary of key provisions can be found here and here.
Cambridge Housing Authority Proposes to Use Rental Assistance Demonstration for Public Housing
The Cambridge Housing Authority announced plans last month to apply to convert 1,153 federal public housing units to project-based rental assistance units under the Rental Assistance Demonstration (RAD) program.
RECENT RESEARCH AND REPORTS
Urban Institute Launches Housing Finance Reform website
On October 24, the Urban Institute launched a Housing Finance Policy Center to provide data and analysis “on how the housing finance system affects households, communities and the broader economy.”
Center for American Progress Publishes a Guide to Housing Finance Reform
The Center for American Progress Mortgage Working Group has published an update on housing finance reform efforts, including four new fact sheets and links to recent reports.
UPCOMING EVENTS
November 1 – Forum on the Impact of Sequestration on the Section 8 Program – Friday, November 1, 8:45 a.m. – 11:30 a.m., The State House – Gardner Auditorium, Boston, MA. Panel of national and state experts discuss impacts of sequestration on housing choice vouchers and options to reduce harm. Click here for more information.
November 8 – What Works in Investing: A Community Development Summit, 1:00 p.m. – 5:00 p.m., Harvard Graduate School of Design, Cambridge. Click here for registration information.
November 12 - CHAPA Forum: HUD’s Rental Assistance Demonstration – What does the Program Hold for the Future? with guest speaker Margaret Salazar, Director, Office of Affordable Housing Preservation, HUD. Registration closes November 7. Click here for registration information.
November 13 -CHAPA Young Professionals in Housing Brown Bag Lunch Series: Lessons Learned from Hamburg: Climate-Friendly Urban Redevelopment - November 13, 12:00 noon-1:00 p.m., CHAPA, 18 Tremont Street, Boston. Click here for registration information.
November 20 – 2013 Massachusetts Smart Growth Alliance Conference, 8:30 a.m.–5:30 p.m.; Boston Convention and Exhibition Center, South Boston. Sponsorship Opportunities are available – click here for more information on sponsoring and here for registration information.
December 6 - New England Housing Network Annual Conference – Friday, December 6, 8:00 a.m.-3:30 p.m. Sheraton Framingham Hotel, Framingham, MA. Click here for registration information.
SPECIAL THANK YOU
Thank You to All Who Attended CHAPA Annual Dinner
CHAPA thanks all who attended our 46th Annual Dinner – your support is greatly appreciated. We would also like to thank Senator Elizabeth Warren who sent a video greeting, and keynote speaker John McDonough for his clear presentation on the Affordable Care Act and the connections between housing and health goals and policies. We have posted a link to his presentation on our website.
