Comments are due May 29 on changes intended to clarify requirements and processing of portability requests.

This proposed rule would amend HUD’s regulations governing portability in the Housing Choice Voucher (HCV) program. Portability is a feature of the HCV program that allows an eligible family with a housing choice voucher to use that voucher to lease a unit anywhere in the United States where there is a public housing agency (PHA) operating an HCV program. The purpose of HUD’s proposed changes to the portability regulations is to clarify requirements already established in the existing regulations and improve the process involved with processing portability requests to enable PHAs to better serve families and expand housing opportunities. It is HUD’s intent to increase administrative efficiencies by eliminating confusing and obscure regulatory language in areas that are known to be troublesome. This proposed rule attempts to balances the needs and interests of PHAs while increasing family choice.

See Federal Register or www.regulations.gov. Contact Laure Rawson, HUD, 202-708-0477.

The Homes for Heroes Act, H.R. 3298, would create a Special Assistant for Veterans Affairs in HUD to coordinate services to homeless veterans and would require an annual report to Congress. The bill passed the House on March 27 by a 414-5 vote and was sent to the Senate. The bill’s text and status updates are at http://thomas.loc.gov.

The Project Rebuild Act would inject $15 billion into the rehabilitation of residential and commercial properties left vacant following foreclosure. Sen. Jack Reed, D-R.I., introduced the bill.

(Sen. Jeff Merkley pictured right)

“Right now we’re in a cycle where we have more and more foreclosed homes that are empty; they drive down the value and that leads to more foreclosed homes, and we’ve got to reverse that downward cycle,” said Sen. Jeff Merkley, D-Ore., who is co-sponsoring the measure.

Click here to read more.

Today, February 13, 2012, President Barack Obama released his FY13 budget request to Congress. Here is the coverage from the National Low Income Housing Coalition:

A Grim Picture for Affordable Housing

The request for HUD programs is a mix of deep cuts to one of HUD’s largest assistance programs, basic maintenance of other programs and troublesome policy recommendations.

The Project Based Rental Assistance program is cut deeply, and the budget request only maintains the FY12 funding level for other programs such as HOME. Homeless Assistance Grants are increased by several hundred million dollars and Section 202 Housing for the Elderly is increased after experiencing deep cuts in FY12.

The request for USDA Rural Housing programs roughly maintains the FY12 funding levels for the rental housing programs serving extremely low income households, but eliminates funding for the Section 515 rental housing direct program. Funding is provided for preservation of Section 515 properties.

The President’s request also includes several policy proposals, including a proposal to increase minimum rents paid by the lowest income HUD-assisted households, which NLIHC strongly opposes. The provision would raise minimum rents to a mandatory level of $75.

This request to Congress is the first step in the annual federal budget and appropriations process. Congress will consider the President’s funding request and the priorities for housing programs reflected in the request. Soon, Congress will begin crafting its own budget resolution and appropriations bills.

Budget Request Specifics

Administration request for major HUD programs serving extremely low income households:

• Tenant Based Rental Assistance- $19.1 billion
• Project Based Rental Assistance- $8.7 billion
• Public Housing Operating- $4.5 billion
• Public Housing Capital- $2 billion
• Homeless Assistance- $2.2 billion

Administration request for HUD programs providing capital for affordable housing:

• HOME- $1 billion
• Section 811- $ 150 million
• Section 202- $475 million

Administration request for rural rental housing:

• Section 514- $26 million
• Section 515- $0 (funding for preservation is included)
• Section 516- $9 million
• Section 521- $907 million

Administration request on the mandatory side of the budget for housing production for extremely low income households:

• National Housing Trust Fund- $1 billion. (Funding for the NHTF is separate from the HUD appropriations process.)

Additional Information

For information on additional HUD and USDA affordable housing and community development requests included in the President’s FY13 budget request, download NLIHC’s budget chart (PDF file).

NLIHC continues to study the budget request and other developments. Look for a full analysis of the President’s affordable housing budget request in the February 17 issue of Memo to Members.  To receive Memo to Members, become an NLIHC member by emailing outreach@nlihc.org or by visiting our website. You may also view the current issue of Memo to Members on our website.

from Northwest HUD Lines, March 2011

As part of efforts to encourage the return of private capital to the residential mortgage market and strengthen the Federal Housing Administration (FHA) Insurance Fund, Acting FHA Commissioner Carol Galante has announced a new premium structure for FHA-insured single family mortgage loans, increasing the annual mortgage insurance premium by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount.  Upfront premiums (UFMIP) will also increase by 0.75 percent.  A Mortgagee Letter will be issued shortly at http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee

In related news . . . The Federal Housing Administration launches a pilot to test an accelerated approval process for the purchase or refinancing of multi-family rental properties under Section 223(f) that are assisted through Low-Income Housing Tax Credits from approximately one year to just 90 to 120 days. Click here to learn more.

“DEAL-CIPHERING,” from Northwest HUD Lines, March 2011

After too many years of bad news, homeowners got some good news on  February 9^th  with the announcement that the federal government and 49 state attorneys general had reached a $25 billion agreement with the nation’s five largest mortgage servicers – Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc., and Ally Financial Inc (formerly GMAC) – to address mortgage loan servicing and foreclosure abuses.

Over the next three years, at least $10 of the $25 billion will go toward reducing the principal on loans for borrowers who, as of the date of the settlement, are either delinquent or at imminent risk of default and are “underwater” and at least $3 billion will go to refinancing loans for borrowers who are current on their mortgages but are “underwater.”

Up to $7 billion will go towards other forms of relief, including forbearance of principal for unemployed borrowers, anti-blight programs, short sales and transitional assistance, benefits for service members who are forced to sell their home at a loss as a result of a Permanent Change in Station order, and other programs.

Another $1.5 billion will go to a Borrower Payment Fund to provide cash payments to borrowers whose homes were sold or taken in foreclosure between Jan. 1, 2008 and Dec. 31, 2011.

$3.5 billion of the $5 billion payment will go to state and federal governments to be used to repay public funds lost as a result of servicer misconduct and to fund housing counselors, legal aid and other similar public programs determined by the state attorneys general.

It’s a big settlement and others have followed.  So should your customers, your clients or you go if you think it will help you? Start by visiting the Web site of your state attorney general.  In Oregon, visit Attorney General John Kroger at www.doj.state.or.us/homeowners/index.shtml. In Washington visit Attorney General Rob McKenna at www.atg.wa.gov/foreclosure.aspx

from HAC News, March 7, 2012

The House Appropriations Subcommittee on Agriculture heard testimony March 1 from USDA Under Secretary for Rural Development Dallas Tonsager and the RD program administrators, including Tammye Treviño of RHS. Her written testimony focused on the importance of the Section 502 guarantee program and multifamily preservation. Responding to a question, she said a regulation allowing nonprofits to help package Section 502 loans is expected by the end of the year. Written testimony is posted at the committee’s website.

Source: Office of Senator Jeff Merkley

March 6, Oregon’s Senator Jeff Merkley cosponsored the Project Rebuild Act to help communities hard hit by a high number of foreclosures. The legislation will provide funding to purchase, rehabilitate, and/or redevelop foreclosed, abandoned, demolished, or vacant properties.

Introduced by Senator Jack Reed (D-RI), Project Rebuild builds on the successful Neighborhood Stabilization Program by adding eligibility for commercial redevelopment and for private development companies to participate. The project will improve at least 150,000 properties across all 50 states, improving communities that are currently seeing home prices dragged down by abandoned or foreclosed homes.

“The financial collapse has led to more than three million foreclosures, and with 5 million more on the horizon, we need a plan to support our families and strengthen our communities,” Merkley said. “The Project Rebuild Act will invest in our communities, converting blighted, foreclosed houses to financial foundations for families seeking a home. Fixing up foreclosed homes will raise the value of every house in a community, and will create jobs in the renovations. This is the type of targeted investment we need to get our housing market and economy back on track.”

Under Project Rebuild, funding will go directly to states and communities across the country to take on the challenge of improving unused properties. Competitive grants will be available to states, local governments, for-profit businesses, non-profit entities and consortia of these entities.

The Neighborhood Stabilization Program, which Project Rebuild builds on and expands, was created in 2008 with the goal of creating jobs, treating foreclosed homes, and stabilizing home prices. The program created 88,000 jobs, treated nearly 33,000 properties, completed nearly 50,000 units of affordable housing, and provided homeownership assistance to more than 20,400 low-income households. The Project Rebuild Act is estimated to create nearly 200,000 jobs.

from Nonprofit Association of Oregon, 2/1/12

We’ve got good news! Last fall, the Nonprofit Association of Oregon reached out to our members to ask them to join us in signing on to a national nonprofit community letter urging our elected officials in Washington D.C. to preserve the charitable deduction. Congratulations! It looks like our collective efforts are paying off.

Many of those connected to this campaign watched last Tuesday’s State of the Union address with interest and speculated about the future of the charitable deduction given the president’s focus on eliminating deductions for the wealthiest taxpayers. On Friday the Nonprofit Quarterly reported receiving an unsolicited comment from a White House official “who noted on background that while the President’s Blueprint for an America Built to Last does contain a provision eliminating tax deductions for taxpayers making over $1 million, the proposal would not apply to charitable deductions.”

Today, the Chronicle of Philanthropy confirmed the President’s commitment to “ensure his efforts to force the richest Americans to pay more taxes do not hurt people who make big donations to charity.”

We don’t know where this will ultimately land, but for now it’s great news and we thank all of those Oregon nonprofits that signed on to the letter and helped us send an important message to Washington D.C.

from Enterprise Capitol Experess, 2/8/12

White House Releases Details on New Housing Programs Announced During the State of the Union Address

On Feb. 1, the White House released a fact sheet detailing new proposals aimed at helping homeowners and supporting the recovery of the housing market. An expanded mortgage refinance program, changes to the Home Affordable Modification Program (HAMP) and a Homeowner Bill of Rights were among the proposals outlined in the fact sheet. Learn More about the Obama Administration’s New Housing Proposals

 Fannie Mae Announces Pre-Qualification Process for Investors Interested in New REO Initiative

Fannie Mae and the Federal Housing Finance Agency (FHFA) announced on Feb. 1 the first step of a Real-Estate Owned (REO) initiative that is aimed at reducing the large inventory of government-owned vacant and foreclosed properties. More Information on the New REO Initiative

Proposed Transit Rule Would Provide Incentives for Affordable Housing

On Jan. 25, the Federal Transit Administration (FTA) released a proposed rule for the Major Capital Investments Program, also known as New Starts/Small Starts, which would award jurisdictions for the preservation and development of affordable housing near transit. Learn More about the New Proposed Transit Rule for the New Starts/Small Starts Program

Administration to Release FY 2013 Budget Request Amidst Congressional Budget Actions and Projections

As the Administration prepares to release its fiscal year (FY) 2013 budget request on Feb. 13, the Congressional Budget Office (CBO) has released The Budget and Economic Outlook: Fiscal Years 2012 to 2022 outlining its annual baseline budget projections. In addition, majority members of the House Committee on the Budget have introduced a package of ten bills aimed at overhauling the federal budget process, and committee Chairman Paul Ryan (R-Wisc.) is expected to release a FY 2013 budget proposal in mid-March. For more information on key housing and community development funding proposals in the President’s FY 2013 budget request, please register for Enterprise Community Partner’s live webinar from 2:00 p.m. to 3:00 p.m. on Feb. 15.