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HCDNNJ Report Calls for Renewal of Cities to Benefit State. In NJ and Its Cities: An Agenda for Urban Transformation, released on May 7, the Housing & Community Development Network of New Jersey conveys that such revitalization would restore the economic health of the state as a whole. "We hope that policymakers and concerned citizens will get behind these findings and become our partners in pursuing positive changes over the next few years," said Diane Sterner, executive director of the Network and co-author of the report. Copies available at www.hcdnnj.org. PACDC's Advocacy Efforts Pay Off. Members and partners of the Philadelphia Association of Community Development Corporations helped bring about a $3 million per year expansion of the Philadelphia Housing Trust Fund over the next five years, as approved by the Philadelphia City Council's Committee of the Whole in a unanimous vote on May 16. This new revenue would come from the City's General Fund and would supplement existing Trust Fund revenues from Deed and Mortgage Recording Fees, which are generating $12-$14 million per year. The final agreement was worked out in negotiations between the Mayor and City Council as part of the city's annual budget process. City Council is expected to give final approval to the budget on May 22. LISC Provides Green-Building Guide for Housing Rehab. Of interest to developers and affordable housing owners, the 58-page "Green Guide," from the Bay Area Local Initiatives Support Corporation partnering with Build It Green (California-based nonprofit), addresses site condition and systems, building construction, mechanical systems and interior spaces, with advice on incorporating green-building principles of energy-efficiency, water conservation, resource conservation and healthy indoor environments. Enterprise's 'Green Communities: Indoor and Outdoor Water Conservation' Live Online Event, June 3, beginning 2:00 p.m. EDT. The 90-minute presentation will include a high-level overview of water as a critical resource, and green building strategies for water conservation as well as practical strategies for indoor and outdoor water efficiency, illustrated through case studies of affordable housing projects. Registration 20 minutes before start time. Event and participation information available at http://webinars.enterprisecommunity.org/. National Housing Institute Launches Blog. Rooflines features posts and comments from such noted contributors as Peter Dreier, Andrew Macurak, Nathan Walpow, Kari Lydersen, Miriam Axel-Lute, Robert O. Zdenek and Shelterforce magazine editor Alice Chasan. 'Cribnotes' Blog Available for discussion of housing and related issues as contributing to larger economic development directives in both rural and urban settings. It will include the blogger's opinions as well as interviews and guest posts with professionals in the field--from developers and bankers to housing-related service providers, according to the blogger. Visit www.cribnotes.wordpress.com or contact Kristyna Jones at knicolejones@gmail.com. |
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Track federal legislation at http://thomas.loc.gov. Housing Rescue Deal Taps Fannie/Freddie/Trust Fund, Stalls in Senate The Senate inched closer to a bipartisan foreclosure relief package that could help half a million strapped borrowers get FHA mortgages. An emerging compromise between Sen. Christopher J. Dodd, D-Connecticut, the Banking Committee Chairman, and Sen. Richard C. Shelby of Alabama, the panel's senior Republican highlighted the political calculations involved in reaching a bipartisan housing deal in an election year when the economy is a top concern to voters. Dodd and Shelby said, after hours of negotiating, that they were near agreement, Dodd canceled a committee session to vote on the measure. One issue was how tightly to regulate Fannie Mae and Freddie Mac. Late last week, Dodd said he was "very close" to an agreement with Shelby and was "optimistic" the two could bring a bipartisan bill to the Senate floor. Shelby said the two had reached a deal that was "palatable to everybody," which would tap the Affordable Housing Trust fund to finance the new foreclosure-prevention program. Diverting the affordable housing fund -- which is to be drawn from Fannie Mae and Freddie Mac profits -- was something the White House would sign, Shelby said. It appeared Democrats would be willing to accept the bargain to advance the homeowner rescue plan. The measure allows the Federal Housing Administration to back up to $300 billion in new loans for debt-ridden homeowners facing foreclosure, who would otherwise be considered too financially risky to get a fixed-rate, government- insured loan. Congressional analysts project it would cost about $1.7 billion over the next five years. Under a tentative agreement, the entire $600 million fund would be used to pay for the mortgage rescue in the first year of the plan, three-quarters of it in the second year, and one quarter of it in the third year. After that, all the money would go to affordable housing as originally intended. To qualify for the proposed FHA program, borrowers would have to show they could afford the new loans, while mortgage holders would have to agree to take a substantial loss on the existing loan in exchange for avoiding a costly foreclosure. The FHA would share at least half of any proceeds if the homeowner refinanced again or profited from selling the home. The bi-partisan bill, Federal Housing Finance Regulatory Reform Act of 2008, would also create a new regulatory agency, the Federal Housing Finance Agency, that would oversee the Fannie Mae and Freddie Mac. The bill would set new affordable housing goals for the GSEs and the Federal Home Loan Banks, and establish funds for affordable housing and for support of Community Development Financial Institution (CDFIs). The not-yet-introduced bill is considered a possible alternative to H.R. 3221, offering similar foreclosure prevention. Neighborhood Stabilization Act of 2008 Passes with Fine-Tuning in House on May 8, with a 239-188 vote that, as such, would appear not within striking distance of the two-thirds threshold needed to override a presidential veto. The $15-billion H.R. 5818 would allow cities and counties to buy back qualified foreclosed homes for resale families with incomes of up to 140% of area median income. A May 7 amendment from Rep. Shelley Moore Capito (R-WV) made HUD's Office of Community Planning & Development (CPD) the administrator of the program. The bill's author, Rep. Maxine Waters (D-CA), offered an amendment capping the purchase price of the foreclosed properties at the assessed value, or 110% of the local average home price, this to address Republican concerns that lenders and speculators could buy up properties from cities on the cheap. Additionally it provides that money go directly to communities rather than distributed by states. Recipient cities and counties must specify target neighborhoods for grant or loan funding when seeking HUD approval, according to an amendment from Rep. Dennis Kucinich (D-OH). An amendment from Rep. Tim Mahoney (D-FL) provides that local jurisdictions cannot restrict Second Amendment rights of those buying or renting foreclosed properties. Multi-Bill Housing Legislation Passes in House on May 8, 266-154, as 39 Republicans joined all the Democrats in support, but a presidential veto is likely. The American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) incorporates several earlier bills including the FHA Housing and Homeowner Retention Act (H.R. 5830), providing for the Federal Housing Administration to refinance at-risk borrowers into viable mortgages, and the Federal Housing Finance Reform Act of 2007 (H.R. 1427), which reforms the government-sponsored enterprises Fannie Mae and Freddie Mac, as well as the Federal Home Loan Bank system. It would enable the GSEs to buy more loans in higher-cost areas, allow lower interest rates for both new homes and refinanced mortgages, and create a new fund to boost the nation's affordable housing stock. Also brought in are the Housing Assistance Tax Act of 2008 (H.R. 5720), providing first-time homebuyers with $11 billion in tax benefits and states with $10 billion in mortgage revenue bonds to build low-income rental housing, as well as the Expanding American Homeownership Act of 2007 (H.R. 1852) and the Emergency Mortgage Loan Modification Act of 2008 (H.R. 5579). Among items not included is the National Affordable Housing Trust Fund Act of 2007 (H.R. 2895), as advocates requested due to concern over potential loss of Republican support. The House's H.R. 3221 does not contain the measure for $4 billion in foreclosure buyback funds that is included in the Senate-cleared version as part of H.R. 5818. While advocates hail H.R. 3221 as a way to help struggling homeowners keep their homes and restore property values, opponents criticize it as a bailout financed by responsible homeowners. SEVRA, Asset Management Bills Sidelined as nonpriorities in the current election year. S. 2684, the proposed Sec. 8 Voucher Reform Act (SEVRA) proposed by Sen. Charles Schumer (D-NY), last saw action in an April 16 hearing. Senate Banking Chairman Christopher Dodd (D-CT) has not moved on mark-up, and Ranking Member Richard Shelby (R-AL) says the bill would be too costly. H.R. 5829 (formerly 3521), revising some elements of public housing conversion to asset management, was held up over gun issues. To mollify the powerful gun lobby, Rep. Michelle Bachmann (R-MN) urged addition of a gun-ownership-in-public-housing protection clause, which then drew objections from gun control advocates. Other points of contention include restoration of the $300 million Drug Elimination Program scrapped by the Bush administration in 2002, and relaxation of the community service requirement. 'Protecting Tenants at Foreclosure' Bill Introduced by Reps. Keith Ellison (D-MN), Carolyn McCarthy (D-NY) and Michael Capuano (D-MA) on May 5. H.R. 5963 would provide for tenants a minimum of 90 days notice before eviction from a foreclosing property as well as the right to remain in the property for the remainder of the lease, subject only to the new owner's right to occupy the property. The bill would also provide specific protections for Section 8 voucher holders and would not pre-empt any state law that may be stronger. H.R. 5963 was referred to the House Committee on Financial Services. |
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NYC Gives Tenants Legal Recourse on Harassment by Landlord. Mayor Michael R. Bloomberg in March signed legislation illegalizing repeated and baseless court proceedings by a landlord attempting to force a tenant to vacate so as to be able to raise the rent. This reportedly was prompted in part by indications that such intimidation was systematic. Previously, only poor apartment condition or failure to provide essential services were grounds for such action against a landlord. Minnesota School Seeks USGBC Silver Certification. Twin Lakes Elementary in Elk River is set to become the first to use new environmentally friendly tinted-glass windows in pursuit of the third-highest energy-efficiency rating from the U.S. Green Building Council, which claims that green schools enhance student performance and discourage absenteeism. The window company claims that the product can reduce energy bills by 28%. Delaware Eminent Domain Restrictions Could Tighten Further. S 245, a compromise between two earlier bills that failed in both houses, moved through the Senate Small Business Committee last week. The bill presents a revision of "public use," the current definition of which is prone to open-ended interpretations that could put private businesses and homeowners at risk for condemnations. The bill's linking of slum and blight laws to public safety reportedly would bring Delaware more in line with other states. |
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Continuum of Care Homeless Assistance Fund Registration Instructions Issued. Applicants for this HUD program now must use e-snaps, an electronic system separate from grants.gov. HUD-Veterans Affairs Supportive Housing Program Launched. Public housing authorities will partner with VA medical centers for this program, for which locations have been selected in all states, D.C., and Puerto Rico. Policies and procedures online and in the Federal Register, 5/6/08, pp. 25026-28. Contact a local PHA or David A. Vargas, HUD, (202) 708-2815. USDA Sections 502 Direct and 504 Funding Allocations Corrected. See percentages of funds available each quarter online and in the Federal Register, 4/30/08, p. 23417. Contact Martha E. Burton, USDA Rural Development, (202) 720-9651. |
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America's Rental Housing: The Key to a Balanced National Policy, from Harvard's Joint Center for Housing Studies, includes suggestions such as making foreclosed properties available as affordable rental housing, in response to the mortgage market crisis. The report is free online or $30 from the Joint Center, (617) 495-7908. Homeownership IDAs Most Popular 'Asset for Independence.' A report to Congress shows homeownership to be the number one use of the Department of Health and Human Services AFI Individual Development Accounts program through 2006. 'Rural Voices' on Foreclosure Issues Available free. Contact Luz Rosas, Housing Assistance Council, (202) 842-8600. |
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Form 990 Draft Instructions proposed by the IRS for what most nonprofit organizations will file for tax year 2008. Deadline: June 1. Visit http://www.irs.gov/eo. HUD Mortgage Settlement Cost Disclosure Requirement Changes under the Real Estate Settlement Procedures Act (RESPA). Due date extended to June 12 (formerly May 13). See Federal Register, 3/14/08, pp. 14029-124 or HUD website. Contact Ivy Jackson, HUD, (202) 708-0502. Affordable Housing Program Mortgage Aid: Proposal to authorize AHP homeownership set-aside programs to refinance or restructure nontraditional or subprime mortgages. Due date: June 16. See Federal Register, 4/17/08, pp. 20552-64 or http://www.regulations.gov. Contact Karen Walter, Federal Housing Finance Board, (202) 408-2829. 2010 Census Criteria for Alaska Native and American Indian Areas. Due dates June 16 and June 30 for the respective areas. See Federal Register, 3/17/08, pp. 14203-14 (Alaskan) and 4/1/08, pp. 17303-14 (Indian), online. Contact Michael Ratcliffe, Census, geo.tsap.list@census.gov or (301) 763-3056. |
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NACEDA Policy Update seeks your state/local news. Please send to Jane DeMarines. Copyright © 2008 by NACEDA. All rights reserved. Any republication must be credited to NACEDA. |
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