By Jon Seidel, Chicago Sun-Times, May 8, 2013

Protections against income discrimination already existing for Chicago tenants will be extended across all of Cook County after a vote Wednesday by the county board. [From Oregon Housing Blog - Wikipedia says Chicago is about 54% of the Cook County population, and that the 5.5 million population of Cook County is larger than 29 states.]

The commissioners approved in a 9-6 vote an amendment to the Cook County Human Rights Ordinance that prohibits landlords from discriminating against Housing Choice — or Section 8 — voucher holders. The amendment effectively adds “source of income” to the list of factors landlords may not consider — along with race, sex, age and disabilities, among others — when screening tenants.

County Board President Toni Preckwinkle said the amendment exactly mirrors the Chicago ordinance that has been in effect for 20 years. A vote on the amendment has been on hold, she said, in order to marshal support.

“It signals a new day in Cook County,” said Commissioner Jesus G. Garcia as he introduced the amendment during the meeting, “if we adopt it.”

Supporters of the amendment, which kicks in in August, cheered the board after the vote. The Illinois Association of Realtors has been among the groups opposing the amendment, however, and critics on the board said the rights of building owners who don’t want to participate in the voucher program should also be considered. One commissioner said the law should be as fair to building owners as it is to renters.

“If it’s fair to one it should be fair to all,” said Commissioner Elizabeth Gorman before urging a “no” vote.

HUD’s Office of Multifamily Housing will now require radon testing and, if applicable, mitigation for most new FHA-insured construction, conversion and substantial rehabilitation projects, as well as most FHA-insured refinance transactions. Radon testing and mitigation is not required for refinance projects located in low risk areas, or if a certified Radon Professional determines that radon risk is sufficiently low for the project. In a typical year, there are some 21,000 lung cancer deaths in which radon is a factor in the United States. For more, see http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2013/HUDNo.13-047

Seeking to protect the rental housing and homeless assistance for millions of extremely poor Americans while increasing investments in key initiatives to serve some of the nation’s most distressed neighborhoods, President Obama and HUD Secretary Donovan have proposed a $47.6 billion budget for HUD in fiscal year 2014 – October 1^st, 2013 to September 30^th, 2014.

The proposal, said Donovan, includes $37.4 billion to provide rental housing assistance to 5.4 million low-income families; nearly $2.4 billion in homeless assistance grants;  10,000 new rental vouchers for homeless veterans; $400 million to transform 30 neighborhoods with extreme poverty into opportunity-rich, mixed-income neighborhoods; A combined $526 million to sustain rental assistance and produce an estimated 4,100 through its supportive housing programs for low-income seniors and persons with disabilities; $726 million to meet the housing needs of native Americans and $326 million to meet the housing needs of people with AIDS/HIV.

It also reduces funding for the HOME Investment Partnership program, a cut mitigated by a proposed $1 billion Housing Trust Fund.  “The President understands that in today’s budget climate, we can’t build ladders of opportunity on a mountain of debt,” said Donovan.  “As we work to strengthen our nation’s housing markets, we can’t lose sight of our commitment to house and serve millions of extremely low-income families who live on the margins of our economy.”  For additional details, see http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2013/HUDNo.13-050

In his April 10 briefing to stakeholders about HUD’s proposed fiscal year 2014 budget, Secretary Donovan reported that from 2010 through 2012, the Department’s been able to provided rental assistance to an additional 220,000 families.  So what happens if the effects of sequestration aren’t mitigated in an adopted 2014 budget?  “That progress” – as in those families – would be put “at serious risk.”  For a look at the Secretary’s summary of the 2014 budget proposal, visit http://portal.hud.gov/hudportal/documents/huddoc?id=FY14BudgetPresFINAL.pdf

Washington, DC – The Federal Housing Finance Agency (FHFA) on April 11 directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program (HARP) by two years to December 31, 2015. The program was set to expire December 31, 2013.

“More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,” said FHFA Acting Director Edward J. DeMarco. “We are extending the program so more underwater borrowers can benefit from lower interest rates.”

In addition, FHFA will soon launch a nationwide campaign to inform homeowners about HARP. This campaign will educate consumers about HARP and its eligibility requirements and motivate them to explore their options and utilize HARP before the program ends. HARP is uniquely designed to allow borrowers who owe more than their home is worth the opportunity to refinance their mortgage. Extending the program will continue to provide borrowers opportunities to refinance, give clear guidance to lenders and reduce risk for Fannie Mae, Freddie Mac and taxpayers.

To be eligible for a HARP refinance homeowners must meet the following criteria:

• ·  The loan must be owned or guaranteed by Fannie Mae or Freddie Mac.
• ·  The mortgage must have been sold to Fannie Mae or Freddie Mac on or before

May 31, 2009.

• ·  The mortgage cannot have been refinanced under HARP previously unless it is a Fannie

Mae loan that was refinanced under HARP from March-May, 2009.

• ·  The current loan-to-value (LTV) ratio must be greater than 80 percent.
• ·  The borrower must be current on their mortgage payments with no late payments in the

last six months and no more than one late payment in the last 12 months.

Borrowers should contact their existing lender or any other mortgage lender offering HARP refinances. Check here to see if your loan is owned by Fannie Mae or Freddie Mac. Fannie Mae and Freddie Mac have helped approximately 2.2 million borrowers refinance their homes since HARP was introduced by FHFA and the U.S. Department of the Treasury in April 2009.

Link:  http://www.fhfa.gov/webfiles/25112/HARPextensionPRFINAL41113.pdf

Office of Multifamily Housing Programs to consolidate into ten sites & 16 small HUD offices including Spokane to be closed

Mary McBride, Northwest Regional Administrator for the U.S. Department of Housing and Urban Development, today announced a series of restructuring and systemic changes within its Office of Multifamily Housing Programs and the Office of Field Policy and Management (FPM). The changes, which include consolidating Multifamily hubs nationwide and closing 16 smaller offices – including HUD’s Spokane field office –  affecting approximately 900 of the Departments’ 9,000 employees.  While closing the Spokane office, HUD will retain its regional office in  Seattle whose staff will work with HUD clients serviced by the closing office to ensure uninterrupted, quality service going forward.

While implementation will begin this fall, completion of the entire restructuring process is expected to take approximately two and a half years.  Throughout implementation, HUD leadership will work on an ongoing basis to ensure employees are fully informed, and that all notification requirements for both union and non-union workers are satisfied.   Every affected employee will be offered the opportunity to continue working for HUD, though in some cases in a new location or role.

“The closure plan provides for optimal use of HUD’s human capital, better results for HUD customers, and greater efficiencies for American taxpayers,” said McBride. “Like families and businesses across the country, we cannot continue to operate like we did several decades ago. America has changed, communities have changed and we must change.”

“The current organizational model for HUD is not sustainable from a financial and a service delivery point of view,” said Maurice Jones, HUD’s Deputy Secretary.  “We are reviewing every aspect of our operation to determine if we have the right people in the right places and we’re determining where we can be even more efficient, to get the most value out of our limited resources.  We’re in a different budget environment and we’re at a point where we must make some extremely tough choices. That being said, we certainly understand that this type of change can be challenging for the agency’s employees and we are committed to moving forward on the plan in a way that is sensitive to the needs and concerns of HUD’s staff.”

HUD’s Multifamily Office provides mortgage insurance to HUD-approved lenders to facilitate the construction, substantial rehabilitation, purchase and refinancing of multifamily housing projects as well as administering a number of project-based rental assistance programs. The office’s restructuring plan, scheduled to begin this fall, will be fully implemented by 2016.  This plan involves streamlining Multifamily’s organization in both headquarters and the field, plus implementing several operational improvements. In addition to improving program effectiveness, Multifamily estimates that the plan will generate up to $40-45 million in annual savings once implementation is complete.

A key component of the Multifamily plan will be consolidating its field employees who currently work in 50 offices around the country, into ten offices that will report to five Multifamily Hubs.  These Hubs will be located in New York, Atlanta, Chicago, Fort Worth, and San Francisco, with satellite offices in Boston, Jacksonville, Detroit, Kansas City, and Denver.  This more streamlined model will allow more consistent, efficient processing of loans and servicing of existing assets.  Combined with operational improvements in line with industry standards, these changes will help ensure continued high quality work that creates and protects affordable rental housing opportunities.

“Multifamily is one of HUD’s core programs, and this is its first major restructuring since 1998,” said Marie Head, Deputy Assistant Secretary for Multifamily Housing Programs. “We have to change in order to be nimble and  keep pace with the marketplace by leveraging technology, reducing our footprint as appropriate, and enhancing customer service in ways that will help ensure that we perform as a 21^st century institution.  In today’s budget climate, we must also look for every opportunity to increase our operating efficiency, but we also have to keep in mind the impact of these changes on our employees. We will be doing all we can to move forward on the plan in a way that offers workers as much flexibility as possible.”

HUD’s Office of Field Policy and Management is also managing towards the future.  It is closing 16 of its 80 field offices this year in a cost-cutting move that will save the agency between $110 and $150 million over a 10-year period.  The closures, which are expected to be completed early in fiscal year 2014, will affect approximately 120 employees.

The small offices that are closing are located in  Camden, New Jersey; Syracuse, New York; Orlando, Florida; Tampa, Florida; Springfield, Illinois; Cincinnati, Ohio; Flint, Michigan; Grand Rapids; Michigan; Shreveport, Louisiana;  Dallas, Texas; Lubbock, Texas; Tucson, Arizona;  Fresno, California, Sacramento; California; San Diego, California and Spokane, Washington.  HUD will retain at least one office in each state.  Following the closures, several affected states will still retain more than one office, including California, Texas and New York with three offices each, and Florida and Ohio with two each.

“We looked at where our staffs are and where they need to be in order to make certain we can achieve the greatest possible impact on the people and the places we serve, especially given today’s tough fiscal climate” said Pat Hoban-Moore, HUD’s Assistant Deputy Secretary for Field Policy and Management. “We can implement this realignment while still serving communities throughout the nation, effectively and efficiently.  In addition, we will be focused on making sure staffs in the affected offices have full information on all of their options.”

“While these restructuring actions are personally difficult because of the impact on a very limited number of employees, they are necessary to improve execution and to the long term health of the Department,” explained McBride.  “We are realigning HUD to deliver the best value to customers and taxpayers.”

By closing these offices and undertaking this restructuring, HUD is striving to balance budget reductions and increasing workloads while continuing to focus on giving the agency’s staff the tools necessary to provide high quality service from the remaining office locations.

All employees affected by both the Multifamily restructuring and the Field Policy Management office closings will be eligible for relocation assistance, or they can elect to take voluntary separation incentive pay or voluntary early retirement. Every employee is being offered a position with the agency.

“The most difficult part of implementing these changes is the realization of the very personal impact they have on employees who have dedicated years of their life to the mission of HUD,” said Deputy Secretary Jones. “Realistically, there is no way to make the kind of structural changes we are talking about without there being some impact on our staff, but, again, we are committed to taking all necessary steps to reduce the negative impact they will feel.”

On March 26^th, President Obama signed into a law a measure to continue funding the government through the end of fiscal year 2013 – September 30, 2013. This budget compromise includes more than $12 million for HUD’s Section 184 Indian Home Loan Guarantee Program that provides mortgages to American Indian and Alaska Native families, Alaska Villages, Tribes, or Tribally Designated Housing Entities to construct a new home or purchase or refinance an existing home on or off native lands.  Starting March 27^th,  HUD resumed accepting new loan applications under the Section 184 Program and will begin issuing loan approvals no later than April 15, 2013.

Residents in 15 Additional States and the Commonwealth of Puerto Rico Join Pilot Program  

WASHINGTON, January 31, 2013 – Agriculture Secretary Tom Vilsack today announced that USDA is adding 15 more states and the Commonwealth of Puerto Rico to a pilot program that enables current USDA home loan borrowers to save money on housing costs by refinancing their mortgages with lower interest rates. USDA Housing Administrator Tammye Treviño made the announcement on behalf of Secretary Vilsack.

“USDA’s expansion of this program will help more rural borrowers refinance their mortgages to reduce their monthly payments and ease their financial burdens,” Vilsack said. “As our economy continues to recover, this program will enable rural families living in USDA-financed homes to take advantage of historically low interest rates.”

USDA unveiled the initiative almost one year ago. It initially included borrowers in 19 states hardest hit by the downturn in the housing market. To date, 3,394 rural borrowers have benefited from the USDA refinancing pilot program. These loans total nearly $453 million.

The pilot expands upon USDA’s ongoing effort to assist rural homeowners holding loans made or guaranteed by USDA Rural Development. In 2010, USDA established an aggressive modification policy for Guaranteed Loans that helps homeowners who are delinquent on their mortgages. These homeowners can lower their monthly payments through a loan modification that re-amortizes their payments over a term of up to 40 years, lowers their interest rate, or both. USDA also has a “Mortgage Recovery Advance” program in which the Department provides guaranteed lenders up to 12 months of mortgage payments on behalf of borrowers who have fallen behind on their payments due to job loss or other hardships.

Participants in the pilot refinancing program are required to meet income eligibility requirements, and must have made their mortgage payments on time for 12 consecutive months. Borrowers participating in USDA’s Single Family Housing Direct and Guaranteed loan programs are eligible to participate. Borrowers do not have to obtain new credit reports, property inspections or home appraisals. Refinanced loans must be at least one percent below the original interest rate. Terms cannot exceed 30 years. No cash out is permitted to the borrower.

With today’s announcement, the pilot is being expanded to include residents in the following states: Alaska, Arkansas, Colorado, Idaho, Kansas, Missouri, Montana, North Dakota, Oklahoma, South Dakota, Texas, Utah, Washington, West Virginia, Wisconsin, and the Commonwealth of Puerto Rico. These states are being added because they have been identified as having a very high proportion of persistent poor counties, that is, those with a poverty rate of at least 20 percent in each of the last four U.S. Censuses. The Commonwealth of Puerto Rico has been included due to a poverty rate of at least 45 percent in recent years, according to a U.S. Census Bureau report.

The original states in the two-year pilot program are: Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee. The performance of the pilot will be reviewed after two years to evaluate whether to continue, terminate or make the refinance program permanent.

Rural Development’s housing loans and grants make a significant difference in the lives of thousands of rural Americans across the nation. These investments boost rural economies and create jobs. The pilot refinance program complements President Obama’s continuing efforts to help responsible homeowners and boost the nation’s housing market. The measures the President and USDA are taking will help stabilize communities and help middle class families across the country.

President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values. President Obama and Agriculture Secretary Tom Vilsack are committed to a smarter use of Federal resources to foster sustainable economic prosperity and ensure the government is a strong partner for businesses, entrepreneurs and working families in rural communities.

USDA, through its Rural Development mission area, has an active portfolio of more than $176 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.

from HUD Highlights, March 1, 2013

Marking the one-year anniversary of the National Mortgage Servicing Settlement, representatives of 49 state attorneys general, the Justice Department and HUD Secretary Donovan have announce that from March 1^st to December 31^st, 2012, the nation’s five largest mortgage lenders – Wells Fargo, JP Morgan Chase, Bank of America, Citi and Ally formerly GMAC) –  have distributed $45.83 billion in direct relief to over 550,000 homeowners. So what did that mean for at-risk homeowners in the Northwest?

Well, to date, the Settlement has brought $10.2 million in relief such as principal reduction, debt forgiveness  and 1^st and 2^nd mortgage modification, to 157 Alaska homeowners, $163million m to 2,743 Idaho homeowners, $384.7 million to 5,889 Oregon homeowners and just over $1 billion to 13,516 Washington homeowners.

“We have already surpassed our initial expectations,” noted Donovan.  “the settlement is testament to the fact that large scale principal reduction can be used an important tool in our efforts to prevent foreclosures without incurring negative results.”

Settlement Administrator Joseph Smith, however, has certified that only one lender – Ally -  “has met its Consumer Relief requirements.” “Our Department,” added Donovan “ will work vigilantly“ to ensure that the settlement’s terms continue to be implemented effectively.”  For the full report of the Office of Mortgage Servicing Oversight, visit www.mortgageoversight.com/wp-content/uploads/2013/02/Ongoing-Implementation.pdf and, for state-by-state break-outs, https://www.mortgageoversight.com/map/

from HUD Highlights, March 1 2013

A year ago most Americans probably never had used the word “sequestration” in a sentence or maybe even have known what it meant.  Today they do as $85 billion in across-the-board cuts begin to be made in virtually every Federal agency and their programs. So, you may ask, what are the potential effects for HUD and those it serves as sequestration moves forward in the days and weeks and months ahead?

Start with up to 125,000 fewer rental assistance vouchers, for example, for needy families and individuals trying to find an affordable place to call home.   An estimated 100,000 fewer transitional and emergency shelter beds for the homeless, including vets.   Some 75,000 fewer at-risk homeowners able to get foreclosure prevention and intervention help.  And that’s just the beginning, HUD Secretary Donovan said, of cuts that will be “ deeply  destructive, would damage the economy, and would harm numerous families, individuals, and communities across the nation.” For more,  see his recent testimony to the Senate Appropriations Committee at http://portal.hud.gov/hudportal/documents/huddoc?id=sequesterftestimony.pdf

from HUD Highlights, February 2013

Intent on bolstering the capital reserves of the Federal Housing Administration  Insurance Fund and encouraging “the return of private capital to the housing market,” FHA Commissioner Galante has announced a series of “essential and “appropriate measures” to insure that FHA ”remains a vital source of affordable and sustainable mortgage financing for future generations of American homebuyers.”  The steps include consolidation of certain HECM pricing options, increasing the mortgage insurance premium for most new FHA-insured mortgages by 10 basis points and for “jumbo” mortgages by 5 basis points, require most FHA borrowers to continue paying annual premiums for the life of their loan, require manual underwriting on mortgages with decision credit scores below 620 and debt-to-income ratios over 43 percent, raise the down payment required on mortgages with original principal balances above $625,500 and step up its efforts to restrictions on borrowers seeking an FHA mortgage who have a previous foreclosure.  For more information and links to FHA Mortgagee Letters governing them, visit http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2013/HUDNo.13-010 .