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Home >Newsroom > May 2009 Newsletter
National Housing Trust Newsletter
May 2009
In this issue:
Transit-Connected Affordable Homes Go Green >>
New Resources for Implementing Stimulus Funds >>
Weatherization Funds Help Preserve Homes for Elderly in Western PA>>
Seizing ARRA's Opportunities to Green Our Affordable Multifamily Homes >>
News from D.C. >>
Preservation Commentary
At a recent event announcing $1 billion in public housing investments, HUD Secretary Donovan remarked on the need for a balanced federal housing policy. Secretary Donovan observed, "We've effectively had a national housing policy only about home ownership, with not even a focus or discussion in Washington about the importance of rental properties."
Given this, HUD's 2010 budget proposal is certainly "change we can believe in." It would restore the federal government's leadership on preserving and producing quality affordable rental housing.
HUD's proposed budget builds on the commitment to rental housing embodied in the American Recovery and Reinvestment Act (ARRA). ARRA included significant investments in affordable rental housing, including $2 billion to fully fund project-based Section 8 contracts. President Obama's 2010 budget proposal would continue this policy by providing $8.1 billion for project-based Section 8 housing, a $1 billion increase over the previous year funding level.
HUD's commitment to full Section 8 funding ends the practice of short funding contracts that occurred in recent years. That practice put affordable rental housing in real jeopardy. Without full funding, properties cannot be refinanced or secure investment due to the perceived risk of loss of the Section 8 subsidy.
HUD's commitment to affordable rental housing is also embodied in its request of $1 billion to capitalize the Housing Trust Fund. The Housing Trust Fund is the first major federal rental housing production program since 1990.
In yet another sign change has come to D.C., earlier this month HUD and the Dept. of Energy (DOE), took an important step towards ensuring that families living in rental housing have an opportunity to benefit from the DOE administered Weatherization Assistance Program. HUD and DOE announced an interagency agreement that will reduce administrative obstacles to improving the energy efficiency and livability of affordable rental homes. HUD also announced a partnership with the Dept. of Transportation to integrate affordable housing and transit choice.
The rebalancing of national housing policy and cross collaboration between HUD, DOE, and DOT is truly taking root in Washington, D.C.--and low income families and seniors in affordable housing stand to benefit.
Stay Tuned,
Michael Bodaken
| Transit-Connected Affordable Homes Go Green
      Considered a "walker's paradise" by Walkscore.com for its convenience to public transportation, jobs, and shopping, R Street Apartments in Washington, D.C. could have easily been converted to high price rental housing or condos. Instead, residents banded together to save their homes. On April 17th, residents joined D.C. Mayor Adrian Fenty to celebrate the grand re-opening of their newly improved and energy efficient homes.
Constructed in 1912, the five historic buildings have provided affordable housing for 40 plus years. When former owners put the apartment buildings up for sale, the residents reached out to the National Housing Trust-Enterprise Preservation Corporation (NHT/Enterprise) and Hampstead Development Group for help in purchasing the buildings.
The development team recognized the chance to both improve the physical needs of the property and the health of residents. R Street Apartments received a $50,000 grant from Enterprise's Green Communities Initiative to support the planning and installation of energy efficient, sustainable and healthy features in this renovation. The long-term outcomes will be lower utilities, less maintenance on systems, lower operating costs, and a healthier environment for residents.
Preserving R Street Apartments maintains a vibrant mixed-income neighborhood, and provides families with healthy housing that safeguards their access to amenities, transportation, and employment opportunities in the downtown D.C. business district.
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| New Resources for Implementing Stimulus Funds
Maximizing the Impact of TCAP and Exchange Funds. The Exchange and Tax Credit Assistance Program (TCAP) provisions in the American Recovery and Reinvestment Act of 2009 have added significant opportunity along with complexity to the affordable housing tax credit allocation process. With the fast approaching deadlines recently established by HUD and the U.S. Treasury, NHT recognizes that state housing finance agencies are quickly drafting implementation plans and soliciting public comments on those plans. This memo prepared by NHT highlights implementation strategies that would maximize the impact of TCAP and Exchange funds.
ARRA Reference Chart for Affordable Housing Developers. NHT has prepared a quick reference guide designed to help developers understand the eligibility requirements and application process of ARRA's main housing provisions. The reference guide includes the tax credit Exchange and TCAP programs, the Neighborhood Stabilization Program, the Weatherization Assistance Program, and HUD's Green Retrofit Program.
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| Weatherization Funds Help Preserve Homes for Elderly in Western PA
Broadview Manor in Pitcairn, Pennsylvania demonstrates how weatherization assistance program funds can be used to reduce energy expenses while safeguarding affordable housing for seniors. Broadview Manor is a Section 202 property home to more than 70 elderly residents.
ACTION-Housing, Inc. saw the rehabilitation of the property as an opportunity to make significant energy efficiency improvements, including furnace and air conditioning updates, duct cleaning, and window and sliding glass door replacements. The cost of all property improvements was approximately $600,000. The Weatherization Assistance Program (WAP) funded more than 20% of these costs, or approximately $2,000 per apartment.
As a result of ACTION-Housing's work, utility bills are more affordable, seniors are more comfortable in their homes, and greenhouse gases were reduced.
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| Seizing ARRA's Opportunities to Green Our Affordable Multifamily Homes
If smartly invested, the billions of housing and energy stimulus funds provided by the American Recovery and Reinvestment Act (ARRA) will create immediate jobs while protecting existing housing resources, lowering utility bills, and dramatically reducing greenhouse gases. States and localities are developing plans to direct Department of Energy (DOE) ARRA funds to create healthier, more affordable homes for low-income families:
- States such as Kansas, Ohio, and Oregon are developing coordinated and strategic approaches to streamline access to Weatherization funds for owners of affordable multifamily housing.
- The City of Chicago plans to use State Energy Program (SEP) and Energy Efficiency and Conservation Block Grant (EECBG) funds to support implementing geothermal systems in affordable housing and for a pilot ESCO program working with multifamily low-income housing developers.
- Congressman Cleaver (D-MO) of Kansas City, MO has proposed targeting stimulus investments to "green impact zones" in neighborhoods with high concentrations of low-income families in order to reduce utility expenses for those who are most in need.
- Washington State's governor has signed legislation prioritizing the use of federal Weatherization funds in properties financed through the state's housing trust fund.
- The States of Pennsylvania and Massachusetts are proposing their respective housing finance agencies receive funds for the weatherization of existing, subsidized multifamily housing.
States and localities are still developing plans for spending Energy Efficiency and Conservation Block Grant funds. These plans are due to DOE by June 25th. Among other eligible activities, local policymakers have the discretion to spend these funds on energy efficiency residential retrofits.
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| News from D.C.
 HUD Implements the Green Retrofit Program for Multifamily Housing
HUD has released details of how to apply, and grant and loan terms for the Green Retrofit Program. The program provides $250 million in grants and loans to eligible Section 8, 202, and 811 projects for green retrofits. HUD will begin accepting applications on June 15th. Applicants will be approved on a first come, first served basis.
Climate Change Legislation Introduced; Housing Advocates Urge a Portion of Revenues be Directed to Affordable Housing
Rep. Henry A. Waxman (D-CA) and Rep. Edward J. Markey (D-MA) introduced "H.R. 2454, The American Clean Energy and Security Act." The comprehensive energy legislation is intended to deploy clean energy resources, increase energy efficiency, cut global warming pollution, and transition to a clean energy economy. It would direct revenue from emission allowances to energy efficiency programs. The National Housing Trust drafted a joint letter for housing advocates urging Congress to target a portion of climate revenues to energy efficiency improvements in public housing and privately-owned HUD- and USDA- subsidized housing.
HUD Budget Proposal Supports Sustainable, Mixed-Income Neighborhoods
HUD's 2010 budget proposal would fund two new initiatives: the Sustainable Communities Initiative and the Choice Neighborhoods Initiative.
The Sustainable Communities Initiative would support integrated transportation and housing planning in order to maximize choices for families and business, lower transportation costs and drive more sustainable development patterns. The initiative would include funding for regional planning efforts and challenge grants to encourage states localities to adopt innovative land use planning policies.
The Choice Neighborhoods Initiative would build on the successes of the HOPE VI program by broadening eligible activities to include support for the transformation of privately owned subsidized and unsubsidized affordable housing. Cities and neighborhoods that are the focus of intensive school reform and early childhood development activities would receive preference in the competition for funding.
Erika Poethig Appointed Deputy Assistant Secretary for Policy Development and Research
HUD Secretary Shaun Donovan announced today that President Barack Obama has appointed Erika Poethig as Deputy Assistant Secretary for HUD's Office of Policy Development and Research (PD&R).
Currently as associate director for housing at the John D. and Catherine T. MacArthur Foundation, Poethig focuses on the $150 million special initiative for the preservation of affordable housing.
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