National Housing Trust
National Housing Trust Newsletter

July 28, 2010
In This Issue
State Energy Program: New Funding Opportunity for Green Retrofits
HFA Staff Discuss Emerging Preservation Issues
NSP: Critical Preservation Resource
News from DC
Greetings!
Tryout
Yesterday, the House Financial Services Committee approved H.R. 4868, the Housing Preservation and Tenant Protection Act. This is a very significant victory and a big step forward for affordable housing preservation reform.

The National Housing Trust and the Preservation Working Group, a coalition of nonprofit organizations supporting affordable rental housing, have crafted common sense reforms to make it easier to save and improve much needed affordable rental housing. We developed a series of legislative proposals based on some clear principles:
  • Maintain affordable housing at risk of being converted to market rate housing;
  • Restore housing at risk of loss due to deterioration;
  • Protect and empower residents; and
  • Provide better data to facilitate preservation transactions.
Yesterday's committee action provides an unambiguous endorsement of these principles.

The bill approved by the committee provides resources and incentives to help stem the loss of affordable apartments across the country and prevent the displacement of low-income tenants, many of who are elderly or disabled.

The bill also provides the tools needed to recapitalize aging Section 202 elderly properties and Section 515 rural properties.

Click here for more information about the bill and yesterday's committee action. 

We will continue to work toward introduction of similar legislation in the Senate.

Stay Tuned,
Tryout
State Energy Program Provides New Funding Opportunity for Green Retrofits of Affordable Multifamily Housing

The American Recovery and Reinvestment Act of 2009 (ARRA) provided $3.1 billion in funding for energy projects through the U.S. Department of Energy's State Energy Program (SEP). A number of states are successfully using these funds to make green, cost-saving retrofits to existing affordable multifamily properties.

A new fact sheet by the National Housing Trust and Enterprise summarizes how states are using ARRA SEP funds to retrofit affordable multifamily housing.

Click here for the fact sheet.
 
Trust Convenes State Housing Agency Staff to Discuss Emerging Preservation Issues

State housing finance agencies (HFA) continue to develop creative solutions to save affordable housing during a challenging economic environment. At a round table discussion convened by the National Housing Trust, HFA representatives from 21 states shared how they are using federal energy efficiency funds and the New Issue Bond Program to preserve affordable rental housing.

HFAs continue to view affordable housing preservation as a cost-effective investment in ensuring that low income families and seniors have decent and affordable places to live.  In a pre-meeting survey, nearly all HFAs attending the discussion reported either increasing or maintaining their commitments to preservation over the last several years.

Meanwhile, new federal resources, such as Weatherization and the State Energy Program funding, are hitting the ground and directly impacting preservation deals. HFA representatives acknowledged the difficulty accessing resources that have not historically been used for multifamily properties. Nonetheless, a number of successes were highlighted. The Penn. Housing Finance Agency is using federal Weatherization funds to supplement its Preservation through Smart Rehab multifamily energy retrofit program.   Both the Maryland Dept. of Housing and Community Development and the New Jersey Housing and Mortgage Finance Agency have secured State Energy Program funds for affordable multifamily retrofit programs.

Another important resource for preservation is the New Issue Bond (NIBP) program.  Nine HFAs present at the discussion are using the program to finance affordable housing acquisition and rehabilitation. The Illinois Housing Development Authority has opted to target preservation given the program's tight time constraints and has closed in escrow $180 million for multifamily housing. Likewise, the DC Housing Finance Agency is allocating $168 million for NIBP preservation deals.
 
Southpoint Crossing, Florida City, FL Neighborhood Stabilization Program: Critical Resource for Affordable Housing Preservation

The financial reform legislation signed into law by Pres. Obama last week included another $1 billion for the Neighborhood Stabilization Program (NSP). All totaled, NSP has now been appropriated nearly $7 billion since the program was first authorized in 2008.  Funds can be used for acquiring and redeveloping abandoned and foreclosed homes. NSP resources are not limited to single family homes and are proving critical in efforts to preserve and rehabilitate affordable rental housing. 

In an era of increasing constraints on funds for affordable rental housing, it's important to keep in mind that NSP is as one means to help save existing affordable housing. As a strategy to preserve affordable rental housing, the National Housing Trust/Enterprise Preservation Corporation (NHT/Enterprise) has secured NSP funding to acquire and rehabilitate a number of properties. For example, Southpoint Crossing in Florida City, FL is the only source of decent affordable housing in the area. The property's previous owner went bankrupt and the property is in need of significant repairs.  NHT/Enterprise has secured $7.4 million in NSP funding provided by Miami-Dade County to make renovations that will improve residents' quality of lfe. Florida Housing Finance Corporation made this transaction possible by agreeing to extend the term of a state loan in a subordinate position as a cash flow note.

NSP is a significant opportunity to preserve and revitalize affordable rental housing.  

Click here to learn more about Southpoint Crossing and other NHT/Enterprise preservation development projects using NSP.
News from DC

President signs financial reform legislation into law. On July 21, the President signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. Among its many provisions, the act provides $1 billion for the Neighborhood Stabilization Program and directs HUD to create a Mortgage Resolution and Modification program to preserve multifamily properties at-risk of foreclosure.

For bill language related to the NSP funding, click here. For bill language related to the multifamily Mortgage Resolution and Modification program, click here.

For a summary of the full bill, click here.

NHT submits comments to the Federal Housing Finance Agency on implementation of the GSEs' 'Duty to Serve' affordable housing preservation.  Click here for the comments.

House and Senate Appropriations Committees approve HUD spending bills; Funding level sufficient to fully fund project-based Sec. 8 contract renewals. Both House and Senate HUD appropriations bills provide approximately $9.4 billion for the project-based Section 8 program.  This is equivalent to the president's request and is approximately $830 million more than what was enacted in 2010.  

NHT submits letter to HUD with recommendations to improve the Administration's legislative proposal for the Preservation, Enhancement, and Transformation of Rental Assistance (PETRA).  Click here for the letter.