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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 Housing
The
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 Deals
Rep.
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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