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Home >Newsroom > July 2009 Newsletter
July 2009
In this issue:
Preservation of Skyview Park Contributes to Neighborhood Revitalization >>
Obama Administration Emphasizes Sustainable Communities >>
Trust Convenes Housing Agency Staff to Discuss Preservation in Uncertain Times >>
News from D.C. >>
Preservation Commentary
With the current economic crisis continuing to magnify the importance of providing quality affordable housing and creating jobs, it's time for Congress to approve new policy tools and incentives to support preserving and improving our nation's affordable rental homes.
Over the last several weeks, the House Financial Services Committee has held two hearings on the need to preserve federally- and state-assisted affordable rental housing and has released a discussion draft of a preservation reform bill, the "Housing Preservation and Tenant Protection Act of 2009."
Yesterday, Toby Halliday, NHT vice president for public policy, testified in support of the draft legislation. As Toby stated in his testimony, the legislation would significantly strengthen the foundation upon which a balanced and complete national housing policy rests.
Further, taking action now to support affordable housing preservation will complement the action taken by Congress and the Administration to stimulate affordable housing development and create jobs through ARRA.
Last week we learned that HUD has already approved plans for $1 billion in Tax Credit Assistance Program funds to help 26 state housing finance agencies resume funding for stalled affordable rental housing projects. As Secretary Donovan explained, "The funding is an important step in achieving the goal of putting the American people back to work while providing quality, affordable housing options for low-income families at a time when those options are needed more than ever."
Similarly, improving preservation tools makes the rehabilitation of these properties less risky, leading to the creation of more construction jobs. According to recent studies in Oregon, the rehabilitation of 100 units creates over 150 new well paying jobs.
With so many families facing homelessness, paying so much for housing that their food or health care needs are compromised, or living in substandard or overcrowded conditions, the time for federal housing legislation is now.
Stay Tuned,
Michael Bodaken
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| Preservation of Skyview Park Contributes to Neighborhood Revitalization
      On July 7th, residents, neighbors, and city officials gathered to celebrate the grand re-opening of Skyview Park Apartments in Scranton, P.A. Skyview Park underwent more than $8 million in renovations to preserve 188 affordable apartments.
"The rehabilitation of Skyview Park will assist in stabilizing the neighborhood by providing long term affordable housing in a clean and safe environment," Scranton Office of Economic and Community Development director Linda Aebli observed.
In 2006, Skyview Park's Section 8 contract was about to expire. The apartments were in dire need of renovation. National Housing Trust-Enterprise Preservation Corporation (NHT/Enterprise), in partnership with Evergreen Partners, acquired the property.
The renovation plan included the construction of the 6,000 square foot Weinberg Community Center that will serve both residents and the surrounding community. The goal of the community center is to increase the self-sufficiency of the low-income residents by adding much needed facilities and programming, such as a computer learning center and adult education courses.
The support of many partners made this renovation possible. HUD approved a 20-year Section 8 contract. The Pennsylvania Housing Finance Agency provided scarce low income housing tax credits and a soft loan through its PennHOMES program. Construction of the community center was supported by a grant from the Harry and Jeanette Weinberg Foundation. Much needed capital was also provided by city, county, and state housing and economic development agencies.
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| Obama Administration Emphasizes Sustainable Communities
 In a recent speech addressing participants of an urban and metropolitan policy roundtable, Pres. Obama pledged a federal commitment to revitalizing American cities and fostering sustainable, livable communities. The speech and roundtable discussion were the latest in a series of efforts to underscore the Administration's goal of re-imagining federal urban policy.
Consistent with the President's commitment to an integrated urban policy, last month the Administration announced an interagency Partnership of Sustainable Communities led by Secretary of HUD Donovan, Secretary of Transportation LaHood, and EPA Administrator Jackson. The unprecedented partnership included the establishment of six livability principles to guide future policymaking. Among the principles are: promote equitable, affordable housing and support existing communities.
These principles- and the sustainable communities theme- were reflected in Secretary Donovan's recent congressional testimony before a House Financial Services committee hearing on the need to preserve critical housing resources. Secretary Donovan specifically identified HUD's interest in "prioritizing the preservation of developments that are integral to sustainability- such as those adjacent to transit or with great access to job opportunities."
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| Trust Convenes Housing Agency Staff to Discuss Preservation in Uncertain Times
State
housing finance agencies nationwide are moving to adopt policies and
implement the American Reinvestment and Recovery Act's (ARRA) housing
provisions. These provisions include an extraordinary amount of new
resources intended to stimulate the Low Income Housing Tax Credit
market: $2.25 billion for the Tax Credit Assistance Program (TCAP) to
assist stalled low income housing tax credit transactions and a $3
billion program that allows agencies to "exchange" 9% tax credits to
the Treasury for 85 cents per dollar of credit. The programs require
that 75% of TCAP funds be expended by February 17, 2010 and that
exchange dollars be committed by January 1, 2011.
The
National Housing Trust is tracking how states are responding to ARRA
and is working with state agencies to streamline implementation of
these funds in a way that maximizes their ability to serve low-income
households living in affordable rental housing.
The landscape for
implementation of these new resources and tools is ever changing. Some
agencies have developed draft detailed plans (e.g. California and
Michigan), while others await upcoming guidance from HUD and Treasury
before adopting their policies. The Trust's tracking chart will be
updated as additional information becomes available.
We urge you to contact your state housing finance agency as it determines how to best allocate these new resources.
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| News from D.C.
 NHT Submits Recommendations to DOE for Weatherizing HUD Subsidized and LIHTC Housing. On July 6th, the National Housing Trust submitted comments supportive of the Department of Energy's proposal (DOE) to use HUD income data to determine the eligibility of HUD-assisted and LIHTC buildings for the Weatherization Assistance Program. Deeming properties automatically eligible should significantly reduce administrative costs and wasted time of tenants, sub-grantees, and owners, enabling more funds to be used for actual energy conservation work.
As a quid pro quo for weatherization, the Trust recommended that property owners be required to commit to a minimum period of affordability to ensure that weatherization benefits accrue primarily to tenants.
A number of other organizations, including the National Housing Law Project, SAHF, and Living Cities, submitted similar recommendations.
HUD FY 2010 Appropriations Bill Advances in the House. On Monday, July 13th, the House Appropriations Subcommittee on Transportation, Housing and Urban Development approved a spending bill for fiscal year 2010 with more than $47 million for HUD programs. The spending bill includes $8.1 billion to fully fund project-based rental assistance contracts including renewal of all expiring Section 8 contracts. This amount is consistent with what the Obama Administration has requested for project-based rental assistance contracts, and is an increase of $1 billion over the fiscal year 2009 appropriations level.
The subcommittee also approved $50 million for the Energy Innovation Fund in order to increase the utilization of FHA's energy efficient mortgages and to develop a strategy for incorporating green building standards into public and assisted housing; and $150 million for the Sustainable Communities Initiative, a partnership with DOT to encourage housing and transportation planning in coordination. Click here for a summary of the appropriations bill. The bill will now be considered by the full House Appropriations Committee on Friday.
The Senate has yet to begin considering 2010 appropriations for HUD. In June, a number of Senators submitted a letter to key Senate Appropriators requesting full funding to renew all project-based rental assistance contracts.
House Passed Climate Change Bill Includes Funds for Energy Retrofits of Affordable Rental Housing. The Cap-and-Trade Climate bill passed by the House on June 26th would direct states to spend funds on energy retrofits of public and HUD assisted housing as part of a national building energy efficiency retrofit program. States would be required to spend not less than 10 percent of their funding through the program on retrofits of public and assisted housing, amounting to about $100 million a year. The amendment to include funding for energy retrofits of HUD housing was sponsored by Rep. Maxine Waters (D-CA).
Department of Labor Seeking to Create "Weatherization Worker" Labor Category. The Department of Labor is currently surveying local weatherization agencies to determine the appropriate prevailing wage rate to be paid to weatherization workers under the Davis-Bacon Act. The American Recovery and Reinvestment Act (ARRA) requires weatherization agencies comply with Davis-Bacon prevailing requirements for the first time. The inclusion of this requirement has created confusion as to the appropriate wage rate to pay workers and concern that weatherization work might be delayed. Energy advocates believe an appropriate prevailing wage rate for weatherization will help state and local governments appropriately deploy the $11 billion in energy efficiency funding appropriated by ARRA.
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