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National Housing Trust Newsletter
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Greetings!
HUD's proposed FY 2011 budget released last month represents a clear investment in quality affordable rental housing. The budget proposal also outlined an ambitious plan to streamline HUD's rental assistance programs. The Transforming Rental Assistance (TRA) initiative would provide public housing authorities and private owners the option to convert public housing and assisted multifamily properties to new long-term, property-based rental contracts that include a resident mobility feature. HUD should be applauded for striving to eliminate administrative inefficiencies, simplify program administration for residents and owners provide choice for renters, and broaden support for HUD's rental assistance programs as we head into budget battles ahead. However, reducing the number of rental assistance programs and promoting choice should be accomplished while simultaneously maintaining our current commitment and tools to achieve long-term affordability. The project-based Sec. 8 program currently serves more than 1.2 million low-income families, ensures long-term affordable rental homes and attracts private capital Recently the Trust sent a letter to HUD outlining core principles that should be included in the TRA initiative. In brief, we strongly recommend that TRA retain the core elements that make the project-based Sec. 8 portfolio an effective tool for leveraging private capital, development, and management: 20 year commitments with renewability, centralized administration, and market-based rents. In addition, all owners should retain the ability to maintain and renew existing Sec. 8 contracts under the same terms as their existing contracts. Stay Tuned,
Michael Bodaken |
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Dept. of Energy, HUD Streamline Multifamily Weatherization Eligibility; Release Lists of Income Eligible Properties
The Dept. of Energy (DOE) has determined that nearly 16,000 public housing and HUD assisted multifamily properties automatically meet certain eligibility criteria for the Weatherization Assistance Program (WAP) without the need for further review. In doing so, DOE has significantly reduced the burden of evaluating WAP applications for hundreds of thousands of subsidized apartments.
DOE has posted lists of those multifamily properties that have been determined to meet certain WAP eligibility criteria. The lists can be downloaded HERE.
In order for a multifamily building to be eligible for WAP, certain eligibility requirements must be met:
1. No less than 66% of the building's households must have incomes at 200% of poverty or less;
2. Residents must not be subject to rent increases for a reasonable period of time after weatherization work has been completed; and
3. No undue or excessive enhancement to the unit can occur.
On Jan. 25, DOE announced new regulations amending WAP eligibility provisions to allow certain properties identified by HUD and USDA to be considered automatically compliant with the above mentioned requirements. The final rule implementing these changes can be found HERE, and a National Housing Trust summary can be found HERE.
A fourth requirement of WAP is that the benefits of weatherization must accrue directly to the tenants. DOE has not determined that the identified public housing and HUD assisted multifamily properties automatically meet this requirement. Rather, it is up to each individual State to establish criteria for making this determination.
DOE has, however, clarified that States may consider benefits other than reduced utility costs, including the preservation of affordable housing, when demonstrating that weatherization benefits accrue to tenants. If States follow this guidance it will help ensure that low-income families who do not directly pay utilities have an opportunity to participate in the program. For more background about this issue, click HERE for a short policy brief prepared by the National Housing Trust.
Although the file rule announced on Jan. 25 states that DOE was to identify LIHTC properties that meet the program's income eligibility requirement, it appears that HUD does not have the necessary income data to make an eligibility determination and has not a provided a detailed list of these properties. LIHTC properties (and other HUD and USDA properties not included on the lists) may still be eligible for WAP assuming owners can demonstrate that the properties meet program requirements. |
 Green Preservation: Take an Online, Interactive Tour!
Preserving affordable housing is inherently resource efficient- the greenest building is the one that already exists. Retrofitting existing affordable housing to increase energy efficiency and conserve water creates green jobs and healthier homes, and also leads to lower utility bills and operating costs. Galen Terrace Apartments in Washington, DC, is a prominent example of Green Preservation. In 2007, Galen Terrace re-opened as the first rehabilitated property in DC to meet all of the green criteria under the Enterprise Green Communities Initiative and the city's new green building requirements. Now you can learn more about the many green improvements made to Galen Terrace by taking an Online Interactive Tour. We've recently released a 3D replica of the building, and have highlighted all of the energy and water conserving improvements.Click HERE to take the tour today!
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Upcoming Forum: Preserving Affordable Rental Housing through Energy Conservation
Join federal, state, and local officials, industry leaders, and advocates for a critical dialogue on green preservation in Boston on April 14. The National Housing Conference and the John D. and Catherine T. MacArthur Foundation are hosting a Partners in Innovation forum that will highlight state and local best practices in green rental housing preservation and explore ways to better support this work through innovative partnerships, policy development, and legislative reform. Toby Halliday, NHT vice-president for public policy, will moderate a panel discussion on why preservation matters for a sustainable future. More information and registration instructions can be found HERE.
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Cook County Energy Savers Program Quickly Achieves Results
A Chicago program is on track to be one of the country's largest and most successful programs for retrofitting existing multifamily, rental housing. In just 18 months, the Cook County Energy Savers program has retrofitted 3,500 apartments in Chicago and neighboring communities, typically cutting energy consumption by 30 percent. The program is proving that residential energy retrofits can scale-up quickly, reach thousands of residents, create jobs, and deliver cost-effective, large-scale benefits. Operated by CNT Energy and supported by the John D. & Catherine T. MacArthur Foundation, Energy Savers, is one of six key initiatives spearheaded by The Preservation Compact, a public/private partnership working to preserve and improve the supply of affordable rental housing throughout Cook County. Click HERE for more information.
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Subsidized Housing Protects Children's Health
A new report by Children's HealthWatch finds that children living in Boston's subsidized housing are more likely to be food secure and less likely to be seriously underweight than children without access to affordable housing. The report, Rx for Hunger: Affordable Housing, concludes that when low-income families receive rental assistance, they have more resources needed to raise healthy children. Among the report's recommendations is targeting city resources to preserve at risk affordable housing.
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State Energy Program Funds from Stimulus Support Bay Area Multifamily Retrofit Initiative
The State of California awarded $3 million in funding from the State Energy Program (SEP) to create the new Affordable Multifamily Retrofit Initiative. The initiative is a partnership of the San Francisco Mayor's Office of Housing, Enterprise Community Partners, Inc. and the Low Income Investment Fund. Private capital will be added to the SEP award to create a $4 million green retrofit loan fund. The State Energy Program received $3.2 billion in funding under ARRA. According to a press release, "loans will finance energy and water efficiency improvements to existing, older affordable multifamily housing developments and be repaid through savings on utility expenses. Loan repayments will revolve back into the community to fund additional projects. The initiative is projected to serve 1,300 apartments in the targeted areas, reducing energy and water consumption by at least 25 percent." Click HERE for the full press release.
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 News from D.C.
HUD's Proposed FY 2011 Budget Invests in Affordable Rental HousingThe President's 2011 budget would provide $9 billion for project-based Sec. 8 contracts, an 8% increase over this year's funding level and enough to fully fund all contract renewals. It would also make a critical investment in affordable rental housing by providing $1 billion for the National Affordable Housing Trust Fund. An OMB fact sheet about HUD budget proposal can be found HERE. HUD Announces Potential Sec. 8 Regulation Waivers; Will Entertain Nonprofit Equity Distributions in Certain Cases To facilitate affordable housing preservation, local HUD offices will be permitted to request waivers of certain Sec. 8 regulations and sections of the Sec. 8 renewal guide on behalf of multifamily owners. Among the requests HUD Headquarters will entertain is allowing non-profits to receive a distribution on initial equity investment for certain projects. This waiver request and others are detailed in a HUD memo that can be found HERE. House Bill Would Expand LIHTC Exchange Program to 4% Tax Credit DealsRep. Linda Sanchez (D-CA) has introduced legislation (H.R. 4687) that would make it possible for developers to exchange both 9% and 4% tax credits for cash from the Treasury, allowing many stalled acquisition/rehab tax credit projects to proceed. 4% tax credits, a primary financing tool for preserving existing affordable housing, are currently not eligible to participate in the Treasury's Exchange program. Exchanging 4% tax credits for cash would provide the capital needed to move stalled projects forward. For more information visit the CA Housing Partnership Corporation's website HERE. The Trust supports the entire set of LIHTC reforms being proposed in Congress, including the modifications to the tax credit exchange program reflected in Rep. Sanchez's bill. For more information about the full spectrum of proposals, see www.rentalhousingaction.org.
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 Preservation in the News
Gov. Patrick (MA) Targets $7.06 Million in Recovery Funds to Replace Public Housing Heating Systems (RealEstateRama) As part of the Patrick-Murray Administration's Massachusetts Recovery Plan, Governor Deval Patrick today announced that the state will utilize $7.06 million in federal weatherization recovery funds to replace old, inefficient heating systems with new state-of-the-art units for 19 local public housing authorities across the Commonwealth. Read on...City's New Plan on Affordable Housing: Build Less, Preserve More (NY Times) Mayor Michael R. Bloomberg has changed the blueprint of his affordable housing plan to preserve more such homes but build fewer of them... The city will still build new homes, but the cost of doing so has risen, meaning that their investment will yield fewer units, a spokesman said. Read on...Opinion: The Next Housing Crisis (AOl News) by Sen. Jeff Merkley and David Abromowitz Reports still show that, more than two years into the housing led recession, the nation's foreclosure crisis is far from over... But while foreclosures dominate the news, there's a larger and more worrisome housing crisis ahead: a looming shortage of affordable rental housing. Read on...
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