Mark-to-Market Program Extended Through November 17, 2006. The Continuing Resolution (CR) passed by Congress last month extended the Mark-to-Market program through November 17. The CR contained language that continues HUD’s authority to receive, assign, and process referrals until the CR expires on November 17.  As we reported last month, the House of Representatives has passed legislation extending the Mark-to-Market program for 5 years, but the Senate has yet to pass similar legislation.

H.R. 5039 Not Considered in House; Passage Unlikely this Congress. Congress failed to consider H.R. 5039, the “Saving America’s Rural Housing Act of 2006”, before it recessed last month. According to the National Rural Housing Coalition, it is unlikely the bill will make it onto the House calendar when Congress reconvenes after the November 7^th elections.

HUD Publishes 2007 Difficult Development Area (DDAs) and Qualified Census Tract (QCTs) Lists. On September 28, HUD published the 2007 lists of DDAs and QCTs for the Low-Income Housing Tax Credit program. The lists can be accessed by visiting HUD User: http://www.huduser.org/datasets/qct.html.

HUD Publishes 2007 Operating Cost Adjustment Factors (OCAFs) for Section 8 Rents. The new OCAFs for Section 8 rent adjustments at contract renewal, effective as of February 11, 2007, can be accessed by clicking here.

HUD Publishes 2007 Fair Market Rents (FMRs). The data can be accessed by visiting HUD User: http://www.huduser.org/datasets/fmr.html.

On October 4^th, Rose St. Anand, a 10-year resident of Vincent House in Seattle, made a change that will save both energy and money: she replaced an incandescent light bulb with an energy-efficient compact fluorescent bulb.  The City of Seattle and City Light, Seattle’s public utility company, donated four Energy Star light bulbs for each of the 60 apartments at this federally assisted senior complex. The new light bulbs were part of the ‘Change a Light, Change the World’ campaign, an effort of the EPA, Department of Energy, and HUD to promote energy efficiency and conservation throughout the nation.

The new light bulbs come at a perfect time: Vincent House is undergoing a significant renovation including other energy enhancements that are expected to save the tenants nearly $100 a year in utility costs.  In 2004, with the help of Providence Health System, Vincent House received a $6.3 million HUD Section 202 rehabilitation grant. At the same time, the city agreed to donate $40,000 to make certain energy enhancements, including adding energy efficient lighting, thermostats, and refrigerators to all of the units.

An annual utility savings of $100 may not seem like much to some, but the Vincent House serves a very poor population of formerly homeless and disabled low income seniors. Developed in 1983, the Sisters of Providence religious community operated the building without federal subsidy for twenty years, instead privately subsidizing rents and paying ALL utility expenses. With increasing operating and capital expenses, Sisters of Providence realized this was no longer feasible: it would not be possible to keep rents affordable without federal support.

Located in the heart of downtown Seattle near the waterfront and the famous Pike Place market, Vincent House occupies some very desirable real estate. The property is convenient to public transportation and shopping. According to Dan Smerken, housing developer for Providence Health System, many of the residents have views that would cost private property owners millions to own. Without federal support, the property could have easily been converted to luxury housing.

The property was developed by the Sisters of Providence in partnership with the City of Seattle as part of an urban revitalization program. In the early 1980s, the city was offering incentives through a forgivable loan for private developers to create low income housing.  The Sisters of Providence, who had served Seattle’s health care needs since 1850, saw this as an opportunity to expand its service to Seattle’s low income population. The Sisters of Providence agreed to commit $1.5 million to the project on a 30-year forgivable debt basis, while the city pitched in $900,000.  The apartments were open for occupancy on March 4, 1985.

By 2003, the property was in jeopardy: significant renovations were needed and operating expenses were on the rise. A number of factors contributed to the squeeze on the operating budget. The Sisters of Providence had been very charitable, choosing to serve a very low income population, and tenant contributions are very small. They also provided rich support services. Vincent House is situated in a mixed-use condominium building and a large special assessment took place in the late 1990s to address deferred maintenance. As a shareholder, Vincent House had to contribute towards the building repairs.

The money provided by HUD ensures that Vincent House can continue operating. The Section 202 grant included $5.2 million for renovations and a project based rental assistance contract. Renovations are currently underway and are expected to be completed in January.

“One of the initial works of Blessed Emilie Gamelin, foundress of the Sisters of Providence, was the care of the elderly and the infirm,” noted Sister Barbara Schamber, Team Leader/Provincial.  “That legacy continues today with compassionate care and personal attention to the needs of the poor.  The Sisters of Providence and all who collaborate with us in carrying out the ministry to the residents of Providence Vincent House thank God for the HUD funds,” she added. 

Although tenants will now be responsible for their own utility expenses, the energy efficiency improvements funded by the city will ensure that electricity costs are low. The switch to compact fluorescent bulbs alone should have a significant impact on energy use. According to the EPA, compact fluorescent light bulbs use at least 2/3 less energy than standard incandescent bulbs to provide the same amount of light, and last up to 10 times longer.