|
|
| National Housing Trust Newsletter |
|
|
|
|
|
Greetings! ,
Although it seems like all that's being discussed in DC these days is health care reform, there have been a number of developments that bode well for affordable housing preservation.
Consider these holiday gifts:
First, Congress and President Obama approved a 2010 omnibus appropriations bill with funding for HUD programs. The project-based Sec. 8 program received $8.5 billion- a 15% increase over 2009 and enough, in our judgment, to protect all Sec. 8 apartments up for renewal in 2010.
In addition, the bill renews existing authority for a number of tools that will help preserve project-based Sec. 8 apartments. (More details on the appropriation bill in the News from DC section below.)
Second, Fannie Mae announced new underwriting standards that should help preserve project-based Sec. 8 apartments. The changes are the result of recommendations from the National Housing Trust on how Fannie Mae can better meet its duty to serve affordable housing preservation.
The new Fannie Mae underwriting considerations could potentially save hundreds of thousands of dollars in a typical Sec. 8 preservation transaction. Among the changes: in making debt decisions, Fannie Mae has agreed to accept the annual appropriations risk for Section 8 contracts; In certain cases, Fannie Mae will no longer require a re-stabilization reserve; also in certain cases, Fannie Mae will underwrite to the higher of the Section 8 or LIHTC rent.
These changes will help preserve and improve literally hundreds of thousands of apartments affordable to very low income households in America. Now that's something to celebrate.
Happy Holidays and Stay Tuned,
|
|
|
NYS Launches Multifamily Weatherization Program
 More than 9,400 multifamily affordable homes throughout New York State will be made more energy efficient and safer through Weatherization thanks to the American Recovery and Reinvestment Act (ARRA) and the NY Division of Housing and Community Renewal (DHCR). DHCR, the state agency administering NY's Weatherization Assistance Program (WAP), has set aside $60 million of the state's $394 million ARRA WAP allocation to make improvements in multifamily housing, focusing on the state's Low Income Housing Tax Credit (LIHTC), Section 515 rural housing, and HUD assisted housing portfolios.
The WAP program has not traditionally served multifamily housing. As a result, many of the existing agencies that deliver services do not have the experience to complete weatherization improvements in multifamily housing. DHCR resolved this issue by forming partnerships with new subgrantees with experience addressing energy efficiency in multifamily housing. For example, the Local Initiatives Support Corporation and Enterprise have partnered to deliver weatherization services to more than 2,100 HUD and LIHTC units in NYC. Similar partnerships have been formed to provide services to multifamily residents in upstate NY and Long Island.
NY Gov. Patterson observed the importance of weatherizing multifamily housing in his announcement: "By targeting federal stimulus dollars to make the State's multifamily housing developments more energy-efficient, we can reduce energy consumption and residents' monthly utility bills, cut overall operating costs and make these buildings safer and more affordable."
For more information about NY's multifamily weatherization program, visit DHCR's website: www.nysdhcr.gov. |
New Affordable Housing Preservation Tools Announced in MA
 Massachusetts Gov. Deval Patrick recently signed a new "expiring use" law to keep publicly-assisted properties affordable and announced a $150 million loan fund to support affordable housing preservation.
The expiring use law provides a regulatory framework to preserve at-risk, publicly subsidized affordable housing. The legislation establishes notification requirements for families living in properties where the owner intends to terminate participation in an affordable housing program, a right of first refusal for the state Department of Housing and Community Development (DHCD) or its designee to purchase publicly assisted housing, and modest tenant protections for projects with affordability restrictions that terminate.
The Governor also announced a $150 million preservation loan fund created by the Community Economic Assistance Corp (CEDAC) in partnership with the state Department of Housing and Community Development. The loan fund will provide much need capital including predevelopment and acquisition financing to support large-scale preservation efforts. The loan fund is a public-private partnership. The program is leveraged through state bond funds along with a $3.5 million award to Massachusetts from the John D. and Catherine T. MacArthur Foundation, $40 million from private lenders, and $100 million from the Massachusetts Housing Investment Corp (MHIC).
"Preserving affordable rental housing keeps our working families strong and our economy strong. By securing and expanding housing opportunities now and over the long-term, we can make a difference in the lives of our neighbors, bolster our communities and maintain Massachusetts on a path toward recovery," said Governor Patrick.
For a detailed summary of the expiring use law visit the website of the Citizens' Housing and Planning Association: http://www.chapa.org/?q=node/1280.
(Photo credit: Eugena Ossi/Governor's Office) |
|
Seattle Voters Overwhelmingly Approve Affordable Housing Levy
 In last November's election, 2 out of every 3 Seattle voters approved renewing an affordable housing levy that is expected to raise $145 million to preserve and build affordable housing over a 7 year period. In doing so, voters agreed to pay $65 more a year, on average, in taxes in order to invest in affordable housing.
The levy is expected to result in the preservation or production of nearly 1,700 affordable rental homes for Seattle's most vulnerable populations, including seniors and working families earning minimum wage. Among the objectives of the program are to preserve affordable housing with expiring federal housing subsidies and to focus resources on providing housing opportunities near transit.
For more information about the implementation of the Seattle Housing Levy, visit the website of the Seattle Office of Housing. |
Check Out NHT's New and Improved Website
 The National Housing Trust's website has received a "gut rehab." We have updated, reorganized, and retooled our website to make it a more effective resource for individuals and organizations striving to preserve and improve affordable housing.
- A new "Why Preserve" section with frequently asked questions and answers about affordable housing preservation;
- A featured property gallery with case studies of affordable housing preserved by the NHT/Enterprise Preservation Corporation;
- An updated public policy advocacy section with easy to find resources on successful policies, legislative summaries, policy reports, and more.
- Updated state data on project-based Section 8 properties with contracts expiring over the next five years.
Visit the new website today!
|
News from D.C. 
Congress, President Complete Work on FY 2010 Appropriations. Both the House and Senate have approved a FY 2010 consolidated appropriations bill that includes funding for HUD programs. President Obama signed the bill on Dec. 16th. Details include:
- $8.5 billion for project-based Section 8 contracts (including a $400 advanced appropriation). This funding level is $1.4 billion above the program's 2009 funding level and in our judgment will be sufficient to renew all expiring contracts.
- $150 million for a Sustainable Communities Initiative which will provide grants to assist local communities with integrated housing, transportation and energy planning efforts.
- $50 million for an Energy Innovation Fund to spur private sector investment in the energy efficiency of the Nation's housing stock, of which $25 million will be reserved for incentives for multifamily owners to invest in energy improvements.
- $65 million for the Choice Neighborhoods Initiative, to make a range of transformative investments in high-poverty neighborhoods where public and assisted housing is concentrated(program details TBD).
- $18 million for tenant based vouchers. Up to 20% of vouchers may be converted to project-based vouchers by local housing authorities.
In addition, the bill provides a number of tools to preserve project-based Section 8 properties:
HUD Office of Affordable Housing Preservation Staff Now Aligned with the Office of Multifamily Housing. Under the proposal, the Office of Affordable Housing Preservation will be housed within the Office of Multifamily Housing. The alignment of these two offices now creates a preservation group within the Office of Multifamily Housing. According to HUD, the alignment of these organizations better positions HUD to address the significant affordable housing preservation challenges.
House Approves $1 billion for National Housing Trust Fund, While HUD Announces Proposed Formula for Determining National Housing Trust Fund State Allocations; Public Comments on the Formula Accepted Until Feb. 2, 2010. The House has passed the Jobs for Main Street Act of 2010. The bill included $1 billion to capitalize the National Housing Trust Fund. The purpose of the fund is to provide grants to States to increase and preserve the supply of rental housing for extremely low- and very low-income families, including homeless families, and to increase homeownership for extremely low- and very low-income families.
Meanwhile, HUD has released a proposed formula for determining the amounts of NHTF funds to be distributed to each state. The formula and instructions for submitting comments can be found here.
The National Low Income Housing Coalition has posted here preliminary estimates of state allocation amounts under HUD's proposed formula.
In addition to capitalizing the NHTF, the Jobs for Main Street Act included $65 million for incremental project-based vouchers assistance or project-based rental assistance to be used solely in conjunction with NHTF grant funds. The bill also included $1 billion for competitive grants to be used for leveraging private sector investment in public housing renovations or energy efficiency retrofits of public housing.
"Cash for Caulkers" Should Include Multifamily Housing. A coalition of local, state and national affordable housing advocates has sent a letter to Congressional leaders urging them to support the inclusion of substantial funding for multifamily housing energy efficiency improvements in any legislation aimed at spurring the creation of additional jobs. The letter also urged Congress to eliminate technical barriers that have prevented the use of ARRA funds to weatherize the homes of low-income renters. Click here for the letter. HUD's Latest Breakthroughs Newsletter Includes Affordable Housing Preservation. The article discusses policies and regulations some local governments are adopting to preserve existing affordable rental housing. Click here for the article. | |
|
|
|
|
|
|
