Legislature Champions Housing Opportunity, Passes Lottery-Backed Bonds
Oregon Housing and Community Services Will Cut Staff, Programs
Mixed Use PWR Bill Stalled in Senate Rules Committee at Session’s End
Oregon Gets $27 Million in TCAP Stimulus Money for Affordable Housing
TCAP Stimulus Elusive – Developers Must Show Effort to Find Investors
$2 Million Awarded to Rural Oregon Communities in Block Grants
FEDERAL NEWS
Congress Changes Davis-Bacon for Some HUD ARRA Programs
Appropriations Committee Leaves Most Rural Housing at FY 2009 Levels
Rural Multifamily Housing Preservation Bill Introduced
Hearing Set for Bill Directing $1 Billion to National Housing Trust Fund
TARP for Main Street Act Funds National Housing Trust Fund
HUD Section 8 Voucher Reform Act Draft Introduced with Two Changes
Donovan Outlines “New Priorities” for Preserving Affordable Housing
HUD Climate Bill Passes House with New Money for Housing
HUD Nominations: One More Confirmation, Two More to Go
Homeless Prevention Program Notice -New Deadlines, Provisions
PORTLAND METRO NEWS
Oregon ON Member Tualatin Valley Housing Partners Closes After 15 Years
11 Youth Graduate from First Graduating Class of NAYA Academy
Portland Community Land Trust Changes Name to Proud Ground, Moves
Council Amends Zoning Code to Extend Land Use Expiration Dates
Enforcement of Sit-Lie Law Officially Suspended
AWARDS
CASA Receives Competitive $2 Million Award Under ARRA Act
FUNDING AND AWARD OPPORTUNITIES
Apply Now for Tax Credits For Farmworker Housing
HUD Funds For Housing Counseling, Training and FSS: July 17, Aug 11
SBA Support for Small Business Development Centers Deadline: July 23
Support for Social Change – UUA Fund for a Just Society Deadline: Sept 15
EDA Grants for Regions Experiencing Chronic High Unemployment
NW Natural Funding for Residents at Less than 80% Median Family Income
EVENTS, TRAININGS AND CONFERENCES
Bridges to Housing Benefit Film Screening: July 16
Save the Date: Sustainable, Affordable Communities Conference –Sept. 25
HAC Summer CHDO Trainings: July 15-16 and 29-30, August 5-6 and 12-13
REPORTS
HUD Report Finds Lowest Income Renters Have 2 Million Fewer Options
Harvard Joint Center: Housing Duress Despite Sales and Starts Stabilization
NCRC Report Details Race, Gender Discrimination in Subprime Lending
NW America Reports Low-Income Families Suffer More Foreclosures
RESOURCES
State Treasury Dept Introduces Financing Tool for Building and Expansion
Federal Data Sets On Housing Updated and Available
Download AEO National Summit on Entrepreneurship Workshop Materials
Aspen Institute Releases Fund Guide on Microenterprise Policy
ONE FUN THING
High-design Green “i-house” Manufactured Dwelling Unveiled
Legislature Champions Housing Opportunity, Passes Lottery-Backed Bonds -top
Responding to the economic pressure that has beset communities throughout the State, the Oregon’s 2009 Legislature passed two historic housing bills that commit almost $35 million in new money for affordable housing. The funding, which is generated from an increase to a real estate document recording fee and lottery-backed bonds, will be used to provide new housing opportunities for working families, seniors, and people with disabilities, as well as preserving existing affordable housing at risk of being lost to the private market.
The Legislature also passed housing bills that expand tenant protections in foreclosed properties and support Oregon’s manufactured dwelling park residents, spared the Emergency Housing Account the worst of the budget cuts, and restored General Fund money cut from the State Homeless Assistance Program.
“We have made great progress this session in spite of the economic downturn,” said Michael Anderson, Executive Director of Oregon Opportunity Network. “Dedicating Lottery-backed bonds to fund the preservation of existing affordable housing is especially important now, when so many are facing housing insecurity. We are grateful to the many legislators who stepped up to champion the importance of housing and worked to find resources in this difficult session to maintain stability for individuals, families and communities.”
In addition to the strong support for affordable housing within the Legislature, the success of housing legislation is largely a result of the advocacy of the Housing Alliance, a broad local coalition of local governments, housing authorities, community development corporations, environmentalists, service providers, business interests and other housing supporters.
The Housing Opportunity Bill, passed in February, raises the document recording fee in Oregon’s real estate transactions by $15 dollars. Over 2009-2011, it will generate an estimated $15 million in funds that will be used to prevent homelessness through emergency rent assistance, to create new affordable housing, and to provide greater opportunities for home ownership for families who would qualify for home ownership but don’t have the income to get in.
The Lottery-backed bonds bill funds housing programs that preserve existing subsidized rental housing and manufactured home parks. The measure, passed in the final hours of the Legislative session, will produce an estimated $19.4 million in 2009-2011 to keep vulnerable Oregonians in their homes.
“We were thrilled to see this session-long, passionate, and bi-partisan support of affordable housing,” said Janet Byrd, Executive Director of Neighborhood Partnerships. “The commitment of legislative leaders has been unwavering. We are extremely heartened by their dedication.”
To summarize our wins:
• SB 5535 — provides $19.4 million in Lottery Backed Bonds to support preservation of existing affordable housing. $16.3 is for multi-family housing with federal rent assistance, and $3.1 million is for manufactured home parks.
• HB 2436, the Housing Opportunity Bill creates a dedicated revenue source for affordable housing. An estimated $15 million will be generated in the 2009-2011 biennium.
• SB 952 — Tenants living in foreclosed properties gain some protections.
• Funding for the Emergency Housing Account was cut in the General Fund budget – the cuts will be offset by the EHA portion of the document recording fee. While this hardly seems a victory, it was indeed a victory to maintain level funding this session.
• The State Homeless Assistance Program was maintained at level funding – cuts proposed early in the session were restored in the last hours.
We were not successful with SB 199, which would have expanded the Oregon Affordable Housing Tax Credit cap. If development activity increases, we may approach the Emergency Board about reconsidering the cap increase.
We also lost funds for homeownership. These funds will be more than offset by the document recording fee, but the loss in funding is problematic as our communities work to recover from the loss of housing stability.
Click here for a recap of what the Housing Alliance has accomplished in the last four years.
More on Lottery-backed bonds:
SB 5535 will provide $19.4 million in lottery-backed bonds to preserve affordable housing and manufactured home dwelling parks, passed on June 29. Taking effect on July 1, 2009, lottery-backed bonds will help keep Oregon’s aging federally subsidized housing affordable and prevent the closure of manufactured dwelling parks.
Oregon Housing and Community Services (OHCS) estimates that $16.3 million for preservation will allow OHCS and its partners to acquire and rehabilitate 1,598 units of existing affordable housing. Preserving these units will generate a substantial economic return for the next 20 years as Oregon retains federal subsidies worth about $115.1 million.
The package dedicates an additional $3.1 million in bond proceeds to preserving manufactured dwelling parks—a critical and unsubsidized source of affordable housing. Victor Merced, Director of Oregon Housing and Community Services, says “The current devalued market for land has diminished the interest by developers in snapping up existing dwelling parks for condos, but OHCS is prepared should demand shoot up again. In other words, should conditions change, OHCS stands ready to move forward in facilitating the purchase of these communities in concert with partner advocates. If this does not transpire, the bonding authority reverts to preservation of subsidized rental housing.”
More on the Housing Opportunity Bill, aka Document Recording Fee:
The Housing Opportunity Bill, passed in February, raises the fee in Oregon’s real estate transactions by $15 dollars, and will bring long-sought stability to affordable housing funding. Six new positions at OHCS will implement the requirements of this bill. Over 2009-2011, it will generate an estimated $15 million in revenues for four activities:
1. Multifamily Housing. The lion’s share of the document recording fee, 70 percent as defined by the bill, is slated for multifamily housing. The Housing Opportunity Bill funds development of new multifamily housing, including housing for special needs populations, purchase of manufactured home communities and developing them into homeowner-cooperatives, along with housing for working Oregonians. In addition, the bill includes significant support to the department for preserving federally-subsidized multifamily rental housing.
2. Homeownership. The ongoing spike in home foreclosures puts great stress on homeownership. Accordingly, 14 percent of the document recording fee will go to support home purchase, largely through down-payment assistance, consumer education and homebuyer subsidies for Oregonians with lower incomes. The funds flow to agency partners throughout the state. Homebuyer education has been shown to pay enormous dividends. One-on-one counseling has been clearly demonstrated to provide consumers with better overall credit health, lower credit card balances and significantly lower foreclosure rates, compared to those who do not receive counseling.
3. Homelessness. Ten percent of the money will go to serve Oregonians experiencing homelessness through the Emergency Housing Account, largely through community action agencies in the counties. There will continue to be discussion about the value of permanent supportive housing as the most cost-effective way to help the chronically homeless. The aim is to stabilize people’s lives and to keep them out of hospital emergency rooms and jail cells.
4. Partner capacity building. The bill goes further still – to help finance the capacity of OHCS partners to continue enhancing their good work. Using 6 percent of the document recording fee, this initiative supports the network of nonprofits and housing authorities that maintain public housing serving Oregonians that the private market cannot. This helps seniors on fixed incomes, working families forced to make a go of it on low wages and unstable employment, and people with disabilities who cannot work.
Oregon Housing and Community Services Will Cut Staff, Programs -top
Victor Merced, Director of Oregon Housing and Community Services, reports that revenue sources that have traditionally supported OHCS operations continue to decline, driven by the changing economy, budget cuts, and other factors.
As a result, the agency originally contemplated the elimination of 17 positions beginning July 1, 2009. The new lottery-backed bonds will allow two of those positions to continue, and the growing energy program provides a spot for three. The Housing Opportunity Bill preserves two others. In the end, the 2009-11 budget cuts 10 positions, or 7 percent of OHCS’s total workforce.
Since the realities of this budget were apparent last fall, OHCS was able to help most of the affected employees find a safe place to land. The agency will struggle to cope with its shrinking operational funds and staff.
HB 5019, OHCS’ budget passed by the legislature, reduces the department’s General Fund budget by 20 percent. Effective July 1, the General Fund will no longer support the Homeownership Assistance program, making homeownership less possible for 160 individuals and families. The bill also reduces General Fund support of Emergency Housing Assistance by $1.6 million (a 23 percent reduction).
Mixed Use PWR Bill Stalled in Senate Rules Committee at Session’s End -top
HB 2430, a bill that would have clarified and restored fairness to the application of State prevailing wage requirements for mixed use affordable housing projects, died a quiet death in the Senate Rules Committee. Sponsored by the Oregon Opportunity Network, the Oregon Building Trades Council and the Association of General Contractors, HB 2430 was intended to fix prevailing wage law for affordable housing established in the 2007 Legislative Session (HB 2140).
HB 2430 would have extended the affordable housing exemption established in HB 2140 to include affordable housing projects four stories and under that had auxiliary ground floor commercial space. Since the passage of HB 2140, affordable housing developers have not had the consistency, clarity and timeliness in the determination of prevailing wage to this type of mixed use project, often resulting in changing project pro formas and in some cases project delays.
In lieu of the bill’s passage, Oregon ON with will work with the Bureau of Labor and Industries to increase the clarity and the consistency of the law as it currently stands.
Oregon ON extends its appreciation to all of the partners and allies who helped work on this bill over the past two years. We are particularly thankful to the Oregon Building Trades Council, the Association of General Contractors, the Association of Oregon Housing Authorities, the City of Portland, the Portland Development Commission and the Housing Authority of Portland. We would also like to acknowledge the pro-bono legal assistance from attorneys Paul Dagle (Dagle Law Office) and Doug Blomgren (Bateman Seidel Attorneys).
Oregon Gets $27 Million in TCAP Stimulus Money for Affordable Housing -top
The U.S. Department of Housing and Urban Development (HUD) approved Oregon’s Tax Credit Assistance Program (TCAP) application on June 30, awarding $27.3 million in federal funds to strengthen affordable housing projects throughout the state.
TCAP, a HUD program, was created by the federal American and Reinvestment Act of 2009 (ARRA) to support capitalization of affordable housing tax credit projects experiencing diminished tax credit value. It provides additional funds to agencies that allocate federal tax credits (i.e. State Housing Finance Agencies). Not to be confused with the Low Income Housing Tax Credit (LIHTC), the funds are provided to coordinate with the LIHTC to fill financing gaps caused by the collapse of the tax credit market and to jumpstart stalled housing development projects, thereby creating jobs.
“Many affordable housing projects were severely impacted when the nation’s economy worsened,” Gov. Ted Kulongoski said. “These federal economic stimulus dollars will cover the remaining financing gaps that will move these projects forward, developing critical housing for low-income Oregonians and creating jobs in communities throughout the state.”
Stalled projects that received awards of federal low-income housing tax credits in federal fiscal years 2007, 2008 and 2009 are eligible to participate in this federal capital investments subsidy program.
Sponsors of eligible housing projects may apply through a competitive process that examines remaining financial gaps and readiness to proceed. The process is administered by Oregon Housing and Community Services (OHCS), the state agency that manages the low-income housing tax credit program and finances low- and moderate-income housing throughout the state.
“We are pleased that HUD has approved our application and look forward to putting these funds to the best possible use in meeting critical affordable housing needs across the state,” Rick Crager, OHCS deputy director, said. “The sooner these projects can be built, the sooner communities will benefit from the resulting construction activity and the sooner families in need will have stable affordable housing.”
“The funding for these projects will come from a variety of public and private sources, Crager added, “and the TCAP stimulus funds will provide the last piece of the financial puzzle for many projects.”
OHCS is the direct grantee for TCAP and the associated ARRA Tax Credit Exchange Program. The state agency is responsible to implement and oversee deployment of these ARRA resources in Oregon. The implementation plan for TCAP and the exchange program are available on the OHCS Web site.
Next Steps:
• An application for these funds is currently under development by OHCS and is expected to be issued on the agency’s Web site in the coming weeks. OHCS will hold a training session on completing the application and will provide additional assistance about eligible uses of these funds during the training.
• Projects will be evaluated by OHCS based on their financial need, project readiness, investment availability, populations served, and other criteria as outlined in the state plan. The evaluation of projects will continue throughout the summer. TCAP will sunset February 16, 2012.
For more information on how the ARRA affects Oregon, visit the OHCS website.
TCAP Stimulus Elusive – Developers Must Show Effort to Find Investors -top
Developers of affordable housing are scrambling to tap into $27.3 million of federal stimulus money for Oregon low-income housing projects that feature new or existing construction.
But they’re finding themselves in something like a catch-22: To obtain that money and overcome a lack of private contributions, a developer must first make aggressive attempts to obtain at least some investment capital.
Click here to read the article in the Daily Journal of Commerce.
$2 Million Awarded to Rural Oregon Communities in Block Grants -top
Oregon Housing and Community Services recently awarded more than $2 million in grants to 11 city and county projects. Grants from the Oregon CDBG program will assist Oregon communities with funding for important community infrastructure projects around the state as detailed below. Recently funded projects include a homeless shelter, wastewater system improvements, off-site infrastructure for affordable housing and services microenterprises.
The CDBG program supports a variety of local projects and services aimed at improving community livability for citizens with low- to moderate-income.
Community/Public Facility projects ($800,000):
City of Roseburg—Homeless Shelter $800,000
Public Works projects ($1,225,000):
City of Lowell—Off-site Infrastructure for Affordable Housing $225,000
City of Sweethome—Sanitary Sewer Design/Construction $1,000,000
Microenterprise Assistance ($611,540):
City of Lincoln City—Microenterprise Assistance $100,000
City of Yoncalla—Microenterprise Assistance $60,000
City of Independence—Microenterprise Assistance $40,000
City of Maupin—Microenterprise Assistance $89,040
City of Junction City—Microenterprise Assistance $85,000
City of Philomath—Microenterprise Assistance $100,000
Benton County—Microenterprise Assistance $75,000
Jackson County—Microenterprise Assistance $62,500
For more information about the program, click here.
Congress Changes Davis-Bacon for Some HUD ARRA Programs -top
The 2009 supplemental appropriations act, now awaiting President Obama’s signature, exempts CDBG (including the Neighborhood Stabilization Program), Native American block grants, and public housing capital funds from provisions of the American Recovery and Reinvestment Act that imposed Davis-Bacon wage requirements on all ARRA-funded units. Pre-ARRA Davis-Bacon provisions apply. Other ARRA-funded programs are not exempt. Find H.R. 2346 at http://thomas.loc.gov.
Appropriations Committee Leaves Most Rural Housing at FY 2009 Levels -top
The House Appropriations Committee passed FY 2010 USDA Funding Bill HR 2997. Most rural housing programs would remain at FY 2009 levels, with increases for Section 523 self-help, Section 515 rental, Section 514/516 farm labor housing, and the MPR rental preservation program. Like the FY 2009 appropriations act, H.R. 2997 would eliminate interest subsidies for Section 538 guaranteed loans. The bill, which will be considered by the full House in July at the earliest, is available at
http://thomas.loc.gov/home/approp/app10.html. See a chart of the committee’s funding proposals, below.
USDA Rural Development FY 2009 FY 2010 FY 2010
Program (dollars in millions) Approp Admin. Budget House Cmte.
Loans
502 Single Fam. Direct $1,121.5 $1,121 $1,121
502 Single Family Guar. 6,223.9 6,200 6,204
504 Very Low-inc. Repair 34.4 34.4 34.4
514 Farm Labor Hsg. 20 22 29.4
515 Rental Hsg. Direct 69.5 69.5 80
538 Rental Hsg. Guar. 129.1 129.1 129.1
Rental Prsrv. Revlg. Loans 2.9 1.8 1.8
Grants and Payments
504 Very Low-inc. Repair 29.7 31.6 *
516 Farm Labor Hsg. 9.1 9 11
523 Self-Help TA 38.7 38.7 45
533 Hsg. Prsrv. Grants 8.9 9.4 *
521 Rental Assistance
(1-yr. contracts) 902.5 1,091 980
Preservation RA (6) (6) (6)
New Construction 515 RA (2.03) (2.03) (2.03)
New Construction 514/516 (3.4) (3.4) (3.4)
RA
542 Rural Hsg. Vouchers 5 5 5
Rental Prsrv. Demo. (MPR) 20 19.8 25
Rural Cmnty. Dev’t Init. 6.3 6.3 6.3
*A total of $45.5 million would be provided for Section 504 grants, Section 533 HPG, supervisory and technical assistance, and compensation for construction defects.
Rural Multifamily Housing Preservation Bill Introduced -top
On June 15, Rep. Lincoln Davis (D-TN) introduced H.R. 2876, “To Establish a Program to Preserve Rural Multifamily Housing Assisted under the Housing Act of 1949.” The bill would authorize the Secretary of Agriculture to carry out a program that encourages the preservation of Section 515 housing project developments for long-term affordable use; provide voucher assistance for tenants who live in such projects that are preserved under the Act; and provide voucher assistance for tenants who are displaced from such project as a result of prepayment of foreclosure on a loan for the project.
Hearing Set for Bill Directing $1 Billion to National Housing Trust Fund -top
Taking the next step toward making funding for the National Housing Trust Fund a reality, the House Committee on Financial Services will hold a hearing July 9 on H.R. 3068, the “TARP for Main Street Act of 2009.”
The newly introduced bill (see Memo, 6/26) would direct $1 billion to the National Housing Trust Fund from the dividends paid to the federal government by banks and other financial institutions under the Troubled Asset Relief Program (TARP). The bill also provides a third round of funding for the Neighborhood Stabilization Program; funds for mortgage relief for homeowners who have lost their jobs; and funds to stabilize troubled or foreclosed multifamily properties.
National Low Income Housing Coalition President Sheila Crowley will testify on the importance of funding the National Housing Trust Fund at the hearing, which will take place at 10 am in room 2128 Rayburn House office building. Other witnesses had not been announced as of July 3.
TARP for Main Street Act Funds National Housing Trust Fund -top
Late in the afternoon on Friday, June 26, House Financial Services Committee Chairman Barney Frank (D-MA) introduced H.R. 3068, the “TARP for Main Street Act of 2009,” which directs $1 billion to the National Housing Trust Fund, among other provisions. TARP (the Troubled Asset Relief Program) was created in October 2008 as part of the Emergency Economic Stabilization Act to make billions of federal dollars available to bail out struggling financial institutions. Some of those transactions are now producing dividends to the federal treasury. Chairman Frank is proposing that $1 billion of the dividends be used as initial capitalization for the National Housing Trust Fund.
In his FY10 budget proposal, President Obama called for $1 billion in one-time funding for the National Housing Trust Fund, and proposed that it come from the mandatory side of the budget. In its FY10 budget resolution, Congress determined the expenditure would be subject to “pay-go,” which means it would have to be offset or paid for from another source. Though not required, ideally the funding source would be one that was in the jurisdiction of the authorizing committees, in this case the Financial Services Committee in the House and the Banking, Housing, and Urban Affairs Committee in the Senate. Chairman Frank has identified a new source of funds that is within the purview of his committee that can be used for this purpose.
In addition to capitalizing the National Housing Trust Fund, the “TARP for Main Street Act” would provide an additional $1.5 billion from TARP dividends for the Neighborhood Stabilization Program (NSP) to “redevelop abandoned and foreclosed homes.” This would be the third infusion of funds into NSP since it was created in the summer of 2008 in response to the foreclosure crisis
The bill also directs $2 billion in TARP funds to the Emergency Homeowner Relief Fund at HUD to provide emergency loans and other aid to homeowners who cannot make mortgage payments because they are unemployed, but can be expected to make their payments in full again sometime in the future. Finally, another $2 billion is provided to fund a program that the HUD Secretary is directed to develop to prevent the loss of multi-family housing that is in default or foreclosure.
The bill is cosponsored by Representatives Maxine Waters (D-CA), Dennis Cardoza (D-CA), and Nydia Velasquez (D-NY). It has been referred to the House Financial Services Committee. A hearing on the bill is expected on July 9.
HUD Section 8 Voucher Reform Act Draft Introduced with Two Changes -top
The Section 8 Voucher Reform Act (SEVRA) was introduced on June 25 by House Financial Services Subcommittee on Housing and Community Opportunity Chair Maxine Waters (D-CA).
The bill, H.R. 3045, is cosponsored by Financial Services Committee Chair Barney Frank (D-MA), and Representatives Joe Baca (D-CA), Steve Cohen (R-TN), and Judy Biggert (R-IL). The bill as introduced has two notable differences from the discussion draft circulated in late April (see Memo, 5/1). Compared to the April draft, the bill decreases the number of housing choice vouchers the bill would authorize and includes a Housing Innovation Program demonstration to replace the existing Moving to Work demonstration program.
The bill would authorize 150,000 new vouchers for FY10, compared to the 150,000 new vouchers a year for each of the next five fiscal years included in the draft. The downward revision reflects the fact that Congressional Budget Office must “score” the bill to determine the bill’s cost to the federal treasury. More vouchers means a bill with a higher score, something some lawmakers are reluctant to support as the deficit climbs.
However, housing advocates note that a historic shortage of housing affordable to the lowest income households, exacerbated by the recession, rising unemployment and increases in homelessness, means that a significant number of new vouchers are needed in FY10 and beyond, both to address existing housing needs and prevent a rise in the number of people who become homeless. NLIHC and other organizations are working to secure at least 200,000 new vouchers a year for each of the next 10 years.
While SEVRA would authorize new vouchers, only Congressional appropriators have the ability to make new vouchers available by providing funding for them. The authorization of a significant number of new vouchers in SEVRA would send a strong message to appropriators that the reforms that SEVRA would enact will stabilize and improve the voucher program, making it a more effective and efficient mechanism to address the urgent housing needs of the lowest income households.
The bill’s Housing Innovation Program (HIP) demonstration would amend and expand the existing Moving to Work (MTW) demonstration program, by authorizing HIP for 10 years and allowing the HUD Secretary to determine how many PHAs participate in HIP and in a “HIP-Lite,” a more protective demonstration program.
The current MTW program, begun in 1996, allows about 30 public housing agencies (PHAs) to comingle their public housing and voucher funding, adjust income targeting to serve higher income households without requirements to assist extremely low income households, change rent-setting mechanisms so that rents would not have to be related to a household’s income, and establish work requirements, among other flexibilities.
Because HUD failed to establish the data collection and analysis systems necessary for such a large and far-reaching demonstration at the onset of the program, MTW has never been fully evaluated to assess the demonstration programs’ impact on the well-being of either the residents or participating housing agencies.
NLIHC opposes continuation of the MTW program for existing MTW agencies and expanding it to new agencies, because of the unchecked nature of the demonstration and the great likelihood of harm to residents given the significant flexibilities afforded PHAs that participate in MTW.
PHAs would apply to HUD to participate in HIP to engage in one of two priority areas: increasing housing opportunities, or rent reforms and family self-sufficiency. Under HIP, PHAs could comingle their public housing and voucher funds, change how rents are set, place conditions on households’ continued occupancy and participation in the voucher or public housing programs, impose time limits on families who have been employed for three years and who have earned at least 150% of the poverty level, and impose employment conditions for continued housing assistance.
Current requirements regarding income targeting, tenant representation on PHA boards, Resident Advisory Boards, housing quality standards, grievance procedures, portability of vouchers, demolition and disposition, and HUD’s Part 964 tenant participation regulations would not be waived under HIP.
Participating HIP PHAs would also have to complete impact analyses regarding any tenant rent policies or policies related to conditions for continued occupancy, comply with public notice and hearing requirements and submit an annual report to HUD. The HUD Secretary would evaluate HIP agencies and would have the authority to discontinue or modify agency policies that the Secretary found harmful to families.
The “HIP-lite” provisions of the bill would allow a number of PHAs, approved by the Secretary, to participate in more limited deregulation to “demonstrate other innovative strategies” beyond the two priority strategies of increasing housing opportunities and creating rent reform and family self-sufficiency.
HIP-lite agencies would not be able to impose time limits or employment conditions and would have to replace any lost public housing units on a one-for-one basis.
Also as part of HIP, the bill would authorize $10 million a year for each of the next five years for technical assistance to local, regional, state or national organizations that work with residents to “enhance the capabilities of low income families assisted or eligible for assistance under the program to participate in the process for establishment and revision of annual plans,” impact analyses and public housing demolition or disposition proposals.
The broad bill, in addition to the provisions described above, would:
· institute a voucher funding distribution system to stabilize voucher funding to the 2,800 agencies that administer vouchers,
· revise and improve how apartments and houses that are rented by voucher holders are inspected,
· encourage public and assisted housing residents to increase their earned incomes while also simplifying the rent-setting process,
· increase voucher holders’ ability to use vouchers in neighborhoods of their choosing by directing HUD to improve the portability of vouchers and to improve how Fair Market Rents are set,
· prohibit the rescreening of public housing residents receiving vouchers as replacement housing,
HUD Secretary Shaun Donovan testified in support of SEVRA legislation on May 21 (see Memo, 5/22), and several advocates, including NLIHC, did so on June 4 (see Memo, 6/5). H.R. 3045 was referred to the House Committee on Financial Services, which is expected to mark up the legislation the week of July 6.
Donovan Outlines “New Priorities” for Preserving Affordable Housing -top
Secretary Shaun Donovan testified on June 25 before the House Committee on Financial Services on what he called a “new set of priorities” for preserving affordable housing. The hearing focused on Committee Chair Barney Frank’s (D-MA) draft preservation bill, the “Housing Preservation and Tenant Protection Act of 2009.” The draft bill was circulated the week of June 22.
Chairman Frank opened the hearing by debunking the notion that assisted housing “blights neighborhoods” and by stressing the importance of preservation. “We believe that preserving units is the best way to preserve affordable housing,” he said. “With the appropriate set of incentives, we can keep most of these units in the affordable housing inventory.”
Secretary Donovan emphasized HUD’s central role in serving both low and extremely low income individuals and families. “We know that preserving affordability is critical… [especially] as homelessness numbers begin to rise. We can’t afford not to take this challenge on.”
Secretary Donovan stated that HUD supports the underlying principles of the bill, and he outlined three general themes related to HUD’s support. First, HUD needs to be a leader and partner. Secretary Donovan explained that HUD will adopt a “problem-solving ethos.” For example, HUD may provide money upfront for projects involving capital improvements. Second, HUD needs to grant longer-term Section 8 contracts, with the flexibility for cancellation, to demonstrate HUD’s interest in long-term investment.
Third, HUD needs to increase “information gathering.” Secretary Donovan applauded the draft bill’s call for the creation of a preservation database of all assisted housing, a provision NLIHC initiated and is working to enact. The bill as written would require that the database include all federally assisted units, and it would authorize grants to state and local governments so that state- and locally financed housing can be regularly included in the database. The development of a comprehensive list of individual rental projects receiving financial assistance would allow advocates to track the types of assistance at each project, and would be a powerful housing preservation tool.
“The more information that is released, the better,” Secretary Donovan said in support of the provision. “The national preservation database is essential to empowering tenants and advocates,” Representative Andre Carson (D-IN) said later in the hearing.
Housing and Community Opportunity Subcommittee Ranking Member Shelley Moore Capito (R-WV) used her opening remarks to express general reservations about the bill’s expense. “The legislation carries significant cost,” she said. Ms. Capito said she supports the bill’s provisions for the preservation of Section 202 Supportive Housing for the Elderly and for rural housing and urged other Committee members to move those two provisions separately and not move the remaining parts of the bill, which focus mostly on urban housing, she said.
Representative Michael Castle (R-DE) echoed the concern about cost later when he asked the Secretary about additional sources of funding that might be available given the current recession and the increased demand for housing. In response, Secretary Donovan stated that other funding sources for preservation could include the Low Income Housing Tax Credit (LIHTC), long-term savings from energy efficiency, and private capital.
Chairman Frank and Secretary Donovan agreed that all of the preservation tools in the bill should be available to preserve all types of affordable housing, whether it is federally assisted or from state or local housing programs, and that state and local governments should also be encouraged to do their fair share of preservation work.
Housing and Community Opportunity Subcommittee Chair Maxine Waters (D-CA) asked Secretary Donovan his opinion of the first right of purchase in the bill, which provides for the purchase of an at-risk building by a preservation purchaser. Secretary Donovan explained that he does not consider this method the most important tool for allowing tenants to preserve affordable housing because of potential legal issues. Instead, Secretary Donovan said, the bill’s information and notice requirements, technical assistance and funding resources could greatly benefit preservation-minded purchasers, including tenants, to be successful in purchasing the properties.
As drafted, the bill would make numerous improvements to increase the preservation of federal- and state-financed assisted housing at risk of converting to market-rate housing, enhance the ability to transfer existing project-based assistance to other properties, provide tools to help properties avoid foreclosure, and incentivize current assisted housing owners to maintain their housing as affordable.
The draft bill also includes the text of H.R. 2876, the rural housing preservation bill introduced on June 15 (see Memo, 6/19) and a version of S. 118, the Senate’s elderly housing bill introduced on January 6 by Senator Herb Kohl (D-WI) (see Memo, 1/9). This bill provides reforms for new construction, refinancing and preservation of HUD Section 202 elderly housing. A similar bill passed the House in December 2007 (see Memo, 12/7/2007).
Another hearing is expected on the legislation in July. Chairman Frank said he is optimistic that “we’ll have a very good piece of legislation available for the President’s signature by the end of the year.”
HUD Climate Bill Passes House with New Money for Housing -top
The bill designed to limit greenhouse gas emissions, known simply as the “climate bill,” (H.R. 2454), passed the House on June 26 by a vote of 219-212. As passed, the bill contains a number of provisions related to housing and assistance for low income households, including authorizing a Low Income Community Energy Efficiency Program that would provide grants to increase the energy efficiency of low income communities, and provisions to reimburse low income households for higher energy costs (see Memo, 5/22).
A recently introduced provision in the bill would make 10% of funds that states receive under the Retrofit for Energy and Environmental Performance (REEP) program in the bill available to public and assisted housing on a preferential basis. It is currently estimated that this would provide between $50 million and $100 million a year for retrofits to this stock intended to “achieve maximum cost-effective energy efficiency improvements and significant improvements in water use and other environmental attributes.”
Conditions for the funding include that none of funds be used for demolition, that the retrofit not be used to justify any rent increase, and that the period of affordability under the qualifying program be extended “commensurate with the funding received.” In the bill, “assisted housing” is defined as properties receiving funding from the Section 202, Section 811, and Section 8 programs or “similar programs.”
The REEP program would be a state-administered program and funded by the sale of pollution allowances (or permits). In earlier versions of the bill, public and assisted housing were considered eligible uses but this provision directs funds to this housing stock. The set-aside for public and assisted housing was filed as an amendment by Representative Maxine Waters (D-CA) on June 25 and was later included in the manager’s amendment for the final vote. Representative Bobby Rush (D-IL) played a leading role in advocating for the funding on the Energy and Commerce Committee.
HUD Nominations: One More Confirmation, Two More to Go -top
The Senate confirmed Mercedes Márquez to be Assistant Secretary for Community Planning and Development at HUD on June 25. President Obama announced his intention to nominate Ms. Márquez in April and her confirmation hearing was on May 13 (see Memo, 4/17 and 5/15). She has been the General Manager of the City of Los Angeles Housing Department since 2004 and also served as Senior Counsel to HUD Secretary Andrew Cuomo and as HUD’s Deputy General Counsel for Civil Rights and Fair Housing during the Clinton administration.
Also on June 25, the Senate Committee on Banking, Housing and Urban Affairs voted to confirm Raphael Bostic to be Assistant Secretary for Policy Development and Research and of David Stevens to be Assistant Secretary for Housing / Federal Housing Administration Commissioner. It is not yet known when the full Senate will take up these nominations.
Homeless Prevention Program Notice –New Deadlines, Provisions -top
The $1.5 billion Homelessness Prevention Fund is part of President Obama’s American Recovery and Reinvestment Act (ARRA). Funding for this program, called the Homelessness Prevention and Rapid Re-Housing Program (HPRP), is being distributed based on the formula used for the Emergency Shelter Grants program. Funds will be allocated to states, metro city governments, and urban counties, which will pass them to local governments and nonprofits. Click here to read more about HPRHP.
The HPRP Correction Notice makes clarifying and other corrections to the Notice of Allocations, Application Procedures, and Requirements for Homelessness Prevention and Rapid Re-Housing Program Grantees under the ARRA of 2009 (Notice), which HUD posted on its website on March 19, 2009.
These corrections include: (1) a revision of the time period for HUD’s review of HPRP applications, (2) the addition of a provision for waiving non-statutory requirements in the Notice, (3) the identification of the District of Columbia as a metropolitan city, (4) a clarification of the maximum number of months for which a program participant may receive housing relocation and stabilization services, (5) an extension of the timeframe for incurring eligible pre-award costs, and (6) a revision of the timeframe for drawing down funds for eligible costs incurred during the grant period.
A revised version of the Notice, which incorporates these corrections, will be posted on the HUD Homelessness Resource Exchange at: www.hudhre.info. Click here to see the HPRP Corrections and Clarifications.
Oregon ON Member Tualatin Valley Housing Partners Closes After 15 Years -top
For 15 years, Tualatin Valley Housing Partners (TVHP) has provided clean, safe, affordable housing to Oregon families who can’t keep up with rising rents. Now, TVHP has initiated a closure process that will be completed in September. Their Board of Directors points to tight budgets, public and private grants drying up, and a decreased flow of rental income from tenants due, in part, to Oregon’s 12% unemployment rate.
Oregon ON has been proud to count TVHP as a member organization. We honor the 15 years of excellent work done by TVHP board and staff, including long-time TVHP Director Tom Benjamin. Because of that work, thousands of low-income individuals and families over the years have had a safe, stable, affordable place to call home and to build a better life.
“TVHP has always been a solid, reliable, provider of stable housing for working families and people on fixed incomes,” says Ramsay Weit, former member of TVHP Board of Directors. “They’ve always been a good partner, and done good, innovative work.”
“We’re all connected in the nonprofit affordable housing community,” said Margaret Davidson, President of the Oregon ON Board of Directors. “Even more than being members of Oregon ON, or before that AOCDO, we have a shared mission and vision of creating opportunity for success for families and others. We appreciate the hard work TVHP did in Washington County and they will be missed.”
Larry Iverson, President of the TVHP’s Board of Directors, wants to emphasize that the families living in the approximate 600 units of TVHP housing will be taken care of.
“Transition will be as orderly as possible, and hopefully transparent to our 500+ tenant families,” said Iverson. “All properties are currently within acceptable vacancy standards, regular maintenance is still being completed, and site managers continue to actively manage and rent the properties.”
While celebrating TVHP’s accomplishments, housing advocates bear in mind a larger issue, the need to keep the pressure on to maintain and expand Oregon’s affordable housing stock.
“A lack of stable, consistent funding puts community nonprofits in a consistent race to stay ahead of the financial game,” says Michael Anderson, Executive Director of Oregon Opportunity Network, of which TVHP is a member. “With the turn in the economy, TVHP fell behind in that race. While all their units will stay online, this closure raises a larger issue: at a time when people need affordable housing more than ever, we need to shore up affordable housing delivery systems.”
“It’s hard to lose capacity in our system,” says Ramsay Weit. “We don’t have a big capacity in Washington County. That’s the bigger question. It’s hard to lose a provider in a system that’s already tight.”
Skilled volunteers are needed to answer phones at TVHP’s front desk while staff and board members complete the closure. If you can help, please call Rhonda Brown at (503) 641-5437. TVHP is located at 6160 SW Main Ave in Beaverton.
11 Youth Graduate from First Graduating Class of NAYA Academy -top
NAYA Early College Academy, the Portland metro area’s only school for Native Americans, proudly welcomed its very first graduates last month. Nationally and locally, Native students have one of the worst dropout rates among ethnic and racial groups and the highest level of alcohol and drug abuse. The Native community believed a small high school, centered around Native culture and taught by Native teachers, could help the students achieve what others schools hadn’t.
Read the full Oregonian story by clicking here.
Portland Community Land Trust Changes Name to Proud Ground -top
Portland Community Land Trust’s membership voted in favor of changing their name to Proud Ground to better represent their work, to guide their growth and evolution, and to better assist them help more people realize the dream of homeownership.
They have also moved. You can now find them at:
PROUD GROUND
5288 N. Interstate Ave.
Portland, OR 97217
(503) 493-0293
www.proudground.org
Questions? Call Executive Director Jesse Beason at (503) 493-0293, x 16
Council Amends Zoning Code to Extend Land Use Expiration Dates -top
On May 20, 2009, Portland City Council adopted a Zoning Code amendment that for a limited period extends the expiration dates of land use reviews and related land use actions. The Code amendment, which went into effect May 27, is in response to the current economic climate, and the resulting difficulty developers and homeowners are having in proceeding to the building permit or land use review phase of their projects.
Typically, an approved land-use review expires if a building permit is not issued within three years of the land use decision, and approved preliminary plans for land divisions expire if a final plat application has not been submitted within three years of the decision on the preliminary plan. Pre-application conferences expire within a year of the date the conference was held. Final plat applications are voided if the applicant has not responded to Bureau of Development Services requests for additional information within 180 days.
The new expiration periods for these land use actions are identified below. For additional information, contact Douglas Hardy at 503-823-7816 or via email.
Land Use Decisions
For decisions that became effective between 5/27/06 and 12/31/08
New expiration date: Building permit must be issued by 6/30/12
Preliminary Plans
For decisions that became effective between 5/27/06 and 12/31/08
New expiration date: Final Plat application must be submitted by 6/30/12
Pre-Application Conferences
For conferences held between 4/1/07 and 12/31/08
New expiration date: Conference valid until 12/31/10
For conferences held between 1/1/09 and 12/31/09
New expiration date: Conference valid for two years from date conference held
Final Plat Applications
For Final Plat applications submitted prior to 12/31/09
New expiration date: Application voided if no activity for 365 days
Enforcement of Sit/Lie Law Officially Suspended -top
Click here to see a letter from the Portland Police stating that because a Multnomah County Circuit Court Judge ruled that Sit/Lie unconstitutionally exceeds the city’s authority, as it conflicts with and is preempted by state law, Portland police will stop enforcing it.
However, Sit/Lie is not entirely gone until the City takes it off the books.
Commissioners Fritz and Fish are organizing the following community meetings on Sit/Lie, the various services associated with the Street Access For Everyone (SAFE) oversight committee, and how all Portlanders can come together and discuss opportunities to make the city friendly for everyone:
• Saturday, July 18th from 10am-12:00pm Kaiser Town Hall 3704 N. Interstate, Portland
• Tuesday July 21st from 7pm-9pm First Unitarian Church 1011 SW 12th Ave, Portland.
Before Tuesday’s meeting, 5pm-7pm outside the church, Sisters Of The Road’s Civic Action Group will hold a peaceful rally, with more information regarding what happened at the meeting on the 18th. The purpose is so that all attendees can go into the community meeting well informed and ready to engage in important dialogue.
CASA Receives Competitive $2 Million Award Under ARRA Act
The Community and Shelter Assistance Corporation (CASA) has been selected to receive $2,000,000 in a financial assistance award under the Community Development Financial Institution (CDFI) Program. CASA will use its award to lend funds to Community Development Corporations, Housing Authorities and other non-profit groups so they may construct housing, clinics, Head Start Centers and other facilities serving low income families. Funds will also be lent to non-profit, manufactured housing park coops to assist them in purchasing the parks in which they live.
These awards were made possible through the American Recovery and Reinvestment Act of 2009 (Recovery Act) which authorized $90 million in financial assistance awards for 59 CDFIs in 26 states and Puerto Rico dedicated to helping communities hard hit by the economic crisis. Granted through a competitive application process, the awards will support new economic recovery projects in some of the U.S.’s most vulnerable communities.
One other award was granted in Oregon: $2 million to Albina Community Bancorp, who will use the funds to leverage $20 million in loan growth in Portland neighborhoods, creating an estimated 152 jobs, while maintaining another 1,573 jobs over the next couple of years.
FUNDING AND AWARD OPPORTUNITIES
Apply Now for Tax Credits For Farmworker Housing -top
Oregon Housing and Community Services (OHCS) announced a continuing funding opportunity for farmworker housing on July 8.
The agency’s Farmworker Housing Tax Credit program for 2009 has $2.3 million in remaining tax credits available to construct, acquire and/or rehabilitate housing for low- or very-low-income farmworkers. The credits are awarded for up to 50 percent of all eligible costs for improving or constructing the housing and can be taken over a five year period. The credits may also be sold.
Farmworker housing is housing that is occupied only by farmworkers and their immediate families. The housing may be year-round or seasonal, in-town or on-farm. The housing must be located in Oregon and remain designated for farmworker use for a minimum of 10 years.
Applications for these tax credits will be taken on a first-come, first-served through December 31, 2009. Application must be made no later than 180 days from construction start. For more information please contact Loren Shultz, OHCS program advisor, at 503-986-2008 or email her.
HUD Funds For Housing Counseling, Training and FSS: July 17, Aug 11 -top
Local counseling agencies, intermediaries, state agencies, and multi-state organizations can apply by July 17 for housing counseling funds; public and private nonprofits by July 17 for housing counseling training funds; and PHAs and TDHEs by August 11 for public housing Family Self-Sufficiency funds. Learn more by clicking here, or contact HUD’s NOFA Information Center, 1-800-HUD-8929.
SBA Support for Small Business Development Centers Deadline: July 23 -top
The U.S. Small Business Administration (SBA) invites applications to renew funding for existing recipient organizations currently funded under the Small Business Development Center (SBDC) program. Eligible applicants will provide business management and technical assistance, including short and long-term counseling, and training to clients who want to start or expand a small business. For more information, click here.
Support for Social Change – UUA Fund for a Just Society Deadline: Sept 15 -top
The Fund for a Just Society, a program of the Unitarian Universalist Association (UUA), provides grants to nonprofit organizations in the U.S. and Canada that address issues of social and economic justice. Consideration is given to projects that are less likely to receive conventional funding because of the innovative or challenging nature of the work or the economic and social status of the constituency. The maximum grant amount is $15,000; however, most grants range between $6,000 and $8,000.
Requests are reviewed two times per year; the next application deadline is September 15, 2009. Visit the Unitarian Universalist Association website to access detailed information on the application process.
EDA Grants for Regions Experiencing Chronic High Unemployment -top
The Economic Development Administration (EDA) offers a grant to assist communities and regions experiencing chronic high unemployment and low per-capita income to create an environment that fosters innovation, promotes entrepreneurship, and attracts increased private capital investment. Nonprofits with and without 501(c)(3) status are eligible to apply. The deadline is September 30, 2009. Click here for more information http://www.eda.gov/InvestmentsGrants/FFON.xml (“FY 2009 Economic Development Assistance Programs”) or click here to download a PDF of the notice.
NW Natural Funding for Residents at Less than 80% Median Family Income -top
Money is available to fix gas-heated homes. If your/your tenant’s income is too much to be considered low income but you can’t afford full price insulation, this NW Natural program is for you. For a limited time, we are offering customers an instant discount of up to 80% ($3,300) off the weatherization invoice.
Some of the eligible measures (and incentive amounts) include:
• Ceiling, Wall and/or Floor Insulation
($550 each measure)
• Duct Insulation/Wrap (ducts must be
sealed to qualify) ($350)
• Duct Sealing ($400)
• House Sealing ($350)
• Gas Furnace ($550)
• Furnace Tune up ($75)
• Direct Vent Space Heater ($500)
• Water Heater ($150)
You/your tenants may qualify for this program or one of two other energy incentive programs (Energy Trust of Oregon, Community Action Agency), or may qualify for Oregon State or Federal tax credits. If your/your tenant’s income is less than 60% of Oregon Median Income, a Community Action Agency may be able to cover all of the costs. Otherwise, the Energy Trust of Oregon provides services without regard to income. Contact us and we will help you find the best deal.
You must use contractors authorized to work with this program, who have been pre- approved because of their good track record weatherizing thousands of Oregon homes with high customer satisfaction. Interested in learning more? Call 1-866-513-8274.
# of people in household You are eligible if your household income is less than
this amount, which is 80% of Oregon median income:
1 $26,971
2 $35,268
3 $43,567
4 $51,865
5 $60,164
6 $68,387
7 $69,874
8 $71,334
Click here to learn more.
EVENTS, TRAININGS AND CONFERENCES
Bridges to Housing Benefit Film Screening: July 16 -top
Bridges to Housing, which many of Oregon ON’s members and allies are part of, is partnering with the National Association of Housing and Redevelopment Officials (NAHRO) to host a private film screening benefit. They will be screening Where God Left His Shoes, a movie about a family experiencing homelessness in New York City.
Here are the details:
When: Thursday, July 16th, 6 p.m. – 9 p.m.
Where: Memorial Coliseum
What: Before the screening of Where God Left His Shoes, we’ll have an hors d’oeuvres reception with no-host bar. After the film, we’ll talk about how Bridges to Housing and the NAHRO scholarship fund offer alternatives to the life depicted in the film.
Why: To benefit both Bridges to Housing, a unique four-county effort to help high-need homeless families and the NAHRO scholarship fund, a fund which helps public housing residents attend college.
How much? $100 Patron Tickets, includes name in program as well as the film and hors d’oeuvres. $15 general admission, includes screening and hors d’oeuvres. Tickets can be purchased at by clicking here.
Find out more information by clicking here.
Save the Date: Sustainable, Affordable Communities Conference –Sept. 25 -top
“Seeing Beyond Green: Building Sustainable, Affordable and Diverse Communities” is presented by Housing Land Advocates (HLA), Friday, Sept. 25th 2009, 8:30 AM – 4:00 PM at the Gresham City Hall Conference Center: 1333 NW Eastman Parkway, MAX Blue Line Gresham City Hall Station. HLA was formerly known as the Oregon Alliance for Housing and Land Use.
• What is sustainability?
• How does affordable housing fit into planning sustainable communities?
• How do social and economic issues relate to sustainability?
• How does Oregon’s land use planning system address these concerns?
• What have we learned from mixed-income planned neighborhoods in the region?
These are some of the questions that this conference will address as we navigate the interdependent frontiers of sustainability, affordable housing and land use planning in Oregon.
This conference will bring together some of the state’s leading professionals in the fields of planning, affordable housing development, law, design and local governance. Join us to explore whether sustainability can serve as a pathway for developing new laws, tools and practices that enhance the role of affordable housing as an essential building block of Oregon communities.
Full conference agenda and registration information will be available in late July.
About Housing Land Advocates (HLA)
HLA advocates for land use policies and practices that ensure an adequate supply of affordable housing in healthy environments for all Oregonians. We are a volunteer-driven, statewide grassroots organization committed to addressing the cumulative impacts of the lack of affordable housing. We believe that the way to address these impacts is through improved comprehensive planning, zoning and permitting practices as well as through incentives and financing. We are comprised of attorneys, planners, designers and others committed to this mission. This is HLA’s third annual conference.
HAC Summer CHDO Trainings: July 15-16 and 29-30, August 5-6 and 12-13 -top
The Housing Assistance Council (HAC) is offering “Single-Family Housing Development” and “Advanced Financial Management” on July 29-30 in Burlington, Vermont and August 5-6 in Boise. “Building HOME for CHDOs and Nonprofits” and “Fitting the Pieces Together” (combining HOME and private financing for homeownership) are set for July 15-16 in Orlando and August 12-13 in Milwaukee. “Single-Family Housing Development” is offered August 12-13 in McAllen, Texas. Limited travel scholarships are available. For details and to register online, click here. Contact: Dan Stern by email or at 202-842-8600.
HUD Report Finds Lowest Income Renters Have 2 Million Fewer Options -top
A new report by HUD analyzing changes in the U.S. rental market from 2005 to 2007 finds that the number of rental units affordable to the lowest income households significantly declined during that time period.
Over the two-year period, the net number of units that renters with incomes at or below 50% of the local area median income (AMI) could afford declined by a range of 1.5 million to 2.0 million units. The report attributed three-quarters of the loss to units becoming less affordable over the two-year span. The remainder of the loss, representing approximately 500,000 units, was attributed to units being transitioned into owner-occupied, seasonal, or non-residential units, or being demolished.
At the same time, the report found that the number of units affordable to renters with incomes greater than 50% and up to 80% of the local AMI increased by a net range of 1.2 million to 1.6 million units. The majority of the gain was due to units moving into and out of other affordability categories.
The report stated that filtering, the notion that as units age their rents tend to decline in relative terms, was modest during the time period. Among the highest-priced units, a slightly higher proportion became more affordable than less affordable. Among the lowest priced units, the reverse was true, with more units becoming less affordable. This may have been the consequence of efforts to upgrade older, less desirable units to make them more competitive, or of gentrification activity in older neighborhoods.
Overall, the rental housing stock – both renter-occupied units and vacant rental units – grew by approximately 1.3 million units between 2005 and 2007. There were a total of 39.8 million rental units in 2007.
The biennial report, the Components of Inventory Change (CINCH), is based on the biennial American Housing Survey, which tracks many of the same housing units over time. This comparison allows researchers to see changes in both the characteristics of housing units and the units’ occupants. CINCH is the only report to explicitly detail where additions to the nation’s housing stock come from and the characteristics and fate of the units that were lost.
The CINCH report is available by clicking here.
Harvard Joint Center: Housing Duress Despite Sales and Starts Stabilization -top
The worst housing downturn in generations continues to grind on, finds the 2009 State of the Nation’s Housing Report, released June 22nd by the Joint Center for Housing Studies of Harvard University. Despite some stabilization in homebuilding and home sales in the spring, real home prices continued to fall and foreclosures mount in most areas in the first quarter of the 2009. With mortgage interest rates heading higher in June and the economy still contracting, a sustained recovery for housing still faces an uphill climb. “Although there are some signs of improvement or at least steadiness in new construction and sales,” says Nicolas P. Retsinas, Director of the Joint Center, “housing starts stand near 60+ year lows and any life in home sales is coming from distressed foreclosure sales, temporary first-time buyer tax credits, and low interest rates that moved higher in recent weeks.”
Click here to read the 2009 State of the Nation’s Housing Report.
Housing demand has withered under the weight of crushing job losses, house price deflation, and tighter credit standards, the report concludes. First-time homebuyers are struggling to meet today’s stricter underwriting guidelines, household growth is well below long-term trends, and immigration has slowed; as a result, the share of homes for sale and vacancies stand at near record levels despite sharp decreases in housing production. “The best that can be said of the market is that house price corrections and steep cuts in housing production are creating the conditions that will lead to an eventual recovery,” remarks Eric S. Belsky, Executive Director of the Joint Center. “For now, markets remain under considerable stress.”
The housing downturn hit low-income minorities especially hard. With unemployment rates sharply higher among minorities, minority households are more likely than others to spend more than half of their incomes on housing. Also, higher shares of minorities live in neighborhoods with elevated foreclosure rates and where house prices fell the most.
Meanwhile, the number and share of households spending more than half their incomes on housing continues to remain at elevated levels. Before the economy began to shed jobs in 2008 and 2009, the number of households with such severe cost burdens, in 2007, stood at 18 million, up from 14 million, in 2001. Although renters are more cost burdened than homeowners, the most rapid growth in households with housing burdens, during the decade, occurred among owners.
Even though present housing challenges are legion—including still soaring foreclosures, millions of homeowners stuck in homes worth less than the amount they owe on their mortgage, and falling rental property values—the State of the Nation’s Housing report concludes that the demographic moorings of future demand remain strong. The largest generation in American history will be reaching young adulthood in record numbers over the next decade. As a result, even under a set of household projections that assume annual immigration falls some 40 percent below the average of the first half of this decade to just half of U.S. Census Bureau immigration projections, household growth from 2010-2020 should still rival the solid performance in the 1995-2005 period. Even if immigration slows considerably, minorities will still account for about three-quarters of household growth.
“With the echo baby boom driving demand for starter homes and apartments and the baby boom powering demand for homes suited to older Americans,” explains Mohsen Mostafavi, Dean of the Harvard University Graduate School of Design, “the design professions will be called upon to deploy new technologies and designs to meet the aesthetic tastes and functional needs of a new, more diverse younger generation on the one hand and a generation in need of home modifications to help them age more safely and healthfully in place on the other.”
Looking beyond the current turmoil, the report underscores the potential to reduce domestic energy consumption by making the existing housing stock more energy efficient and creating dynamic mixed-use communities. Bringing the efficiency of the existing housing stock up to that of homes built since 2000 could save as much as 20 percent of residential energy consumption and more compact urban development could cut vehicle miles traveled substantially. Getting there will be a challenge, cautions the report, because local regulations often discourage compact and mixed use developments. Further incentives may be necessary to get property owners to invest in meaningful energy upgrades.
NCRC Report Details Race, Gender Discrimination in Subprime Lending -top
A new report researched by the National Community Reinvestment Coalition (NCRC) shows that African American and Latino women continue to receive disparate treatment in the mortgage lending process. The report, Assessing the Double Burden: Examining Racial and Gender Disparities in Mortgage Lending, demonstrates that minorities continue to be much more likely to receive high-cost home mortgage loans than their white counterparts. The report examined data collected under the Home Mortgage Disclosure Act for the year 2007 (the latest year for which data is publicly available) for 100 of the largest metropolitan areas in the country. For access to the full report, click here.
NW America Reports Low-Income Families Suffer More Foreclosures -top
NeighborWorks America (NW America), the administrator of the Congressionally authorized National Foreclosure Mitigation Counseling (NFMC) program, announced that through May 31, 2009 more than 405,000 homeowners have received foreclosure prevention counseling as a result of NFMC funding.
The report found that more than 90 percent of those homeowners were still in their homes as of February 2009, although 18 percent had a foreclosure process started. Six percent had a foreclosure completed and another 3 percent had their mortgage paid off through a refinance, short-sale, or deed-in-lieu. Importantly, the report noted that lower-income homeowners are likely to have a greater rate of foreclosure starts than higher-income homeowners.
State Treasury Dept Introduces Financing Tool for Building and Expansion -top
A financing tool meant to help Oregon community nonprofits on building and expansion projects was introduced June 22nd. Working with the Office of the State Treasurer, the Oregon Facilities Authority provides oversight of building and expansion transactions, a reliable, cost-effective process for issuance, and a process for preventing problems arising from audits or compliance problems.
State Treasurer Ben Westlund sent a letter to legislators, encouraging them to spread the word about the program, and also unveiled a new Internet portal where nonprofit leaders can learn more about how the Oregon Facilities Authority can help them save money. Click here to visit the portal.
The Oregon Facilities Authority will help nonprofits of all sizes to qualify and benefit for tax-exempt bonds, which translates into lower interest costs. That bonding opportunity is meant to help them remodel, expand or construct a new facility, at a time when many nonprofits are realizing that owning their own facilities makes good business sense. OFA Bonds can also be used to refinance existing debt that was used to acquire facilities.
In a press release, the Office of the Treasurer cited two recent examples: the Oregon Facilities Authority helped PeaceHealth issue $350 million in bonds for its new hospital in Springfield, and helped the Deschutes Children’s Foundation in Bend issue $700,000 in bonds to complete construction of its new facility.
For more information about the Oregon Facilities Authority, contact Executive Director Gwendolyn Griffith at 503-802-5710, or visit the new web portal for the office by clicking here.
Federal Data Sets On Housing Updated and Available -top
The Office of Policy Development & Research (PD&R) recently updated our Guide to HUD USER Data Sets. The Guide briefly describes each of 20 data sets maintained and kept current by PD&R, and includes the website address, release information, format(s), and the relevant timeframe for each data set. Our collection is currently comprised of the following:
• Fair Market Rents
• Income Limits
• 50th Percentile Rent Estimates
• Annual Adjustment Factors
• The 2001 Residential Finance Survey
• Assisted Housing: National and Local
• Low-Income Housing Tax Credit Database
• Qualified Census Tracts and Difficult Development Areas
• American Housing Survey (National and Metropolitan Data)
• Property Owners & Managers Survey
• Consolidated Plan Data (CHAS Data)
• HUD Subprime and Manufactured Home Lender List
• Special Tabulations of Households
• Government Sponsored Enterprise Data
• State of the Cities Data Systems
• Neighborhood Stabilization Program Data
• Components of Inventory Change (CINCH) Reports
• Housing Affordability Data Systems
• HUD Aggregated USPS Administrative Data on Address
• Vacancies
The new Guide to HUD USER Data Sets can be downloaded by clicking here, or a print copy can be ordered by calling 800-245-2691, option 1. Both versions are available free of charge.
Download AEO National Summit on Entrepreneurship Workshop Materials -top
Did you miss a session at the 2009 Association for Enterprise Opportunity (AEO) National Summit last month? Download all the workshop materials by clicking here.
Aspen Institute Releases Fund Guide on Microenterprise Policy -top
The latest FIELD Funder Guide, Encouraging Entrepreneurship: A Microenterprise Policy Agenda for a New Political Era, presents a policy agenda created by members of the Microenterprise Anti-Poverty Consortium in 2008. It describes some of the philanthropic initiatives that support the underlying policy ideas, and outlines how funders can support policy development. To read the full guide, click here.
High-design Green “i-house” Manufactured Dwelling Unveiled -top
Architects at the country’s largest manufactured home company have rolled out a moderately priced “plug and play” dwelling for environmentally conscious homebuyers.
Maryville, Tenn.-based Clayton Homes’ “i-house” embraces the basic rectangular form of what began as housing on wheels and gave it a postmodern turn with a distinctive v-shaped roofline, energy efficiency and luxury appointments.
Clayton Homes plans to price the “i-house” at $100 to $130 a square foot, depending on amenities and add-ons, such as additional bedrooms. A stick-built house with similar features could range from $200 to $300 a square foot to start, said Chris Nicely, Clayton marketing vice president. They estimate costs for electricity and heating total only about $1 per day when the home is sited in an area like Omaha, Nebraska, where it was unveiled.
Click here to read the full story and see pictures in the Wenatchee World.
