Incorrect comments have been made recently blaming the Community Reinvestment Act (CRA) and minority homeowners for the current economic crisis. A statement from Doris W. Koo, president and CEO of Enterprise Community Partners, clarifies that not only has CRA not caused this crisis, it has helped build our nation’s economy.Read the CRA packet (333KB) containing the release and fact sheet.
The President recently enacted the Consolidated Security, Disaster Assistance and Continuing Appropriations Act of 2009 (H.R. 2638). The Senate- and House-approved bill continues funding most federal programs, including those administered by HUD at fiscal year 2008 levels until March 6, 2009.
One notable exception is HUD’s project-based Section 8 rental assistance program. Enterprise, along with other members of the National Preservation Working Group, pushed for language to allow HUD to renew all expiring project-based Section 8 contracts, even if such renewals would result in funding that exceeds the allowable fiscal 2008 levels.
Congress is not likely to consider an appropriations bill to fund federal programs for the rest of fiscal year 2009 until the new president is inaugurated in January.
$700 Billion Emergency Economic Stabilization Act Signed into Law
The Emergency Economic Stabilization Act of 2008 (HR 1424) was signed into law Oct. 3. The House passed it earlier that day with Senate approval earlier in the week. This new law authorizes the Treasury Department to purchase up to
$700 billion in troubled assets from financial institutions. According to Treasury and other advocates of the program, such action is necessary to stabilize the nation’s financial markets and help resolve the credit crisis that is preventing many banks from lending to each other. Read a summary.
In addition to the rescue provisions, the law contains a number of tax provisions, including:
- Energy-related provisions
- A one-year change to the alternative minimum tax (AMT) designed to prevent 25 million families from becoming subject to the AMT
- Extensions of various popular expired and expiring tax provisions to the end of 2009
- Disaster tax relief for the Midwest and areas affected by Hurricane Ike
The energy-related provisions include an extension of the residential solar property and 30 percent investment credits through the end of 2016 – both are now able to offset AMT liability. Among the expiring tax provisions that are extended under the law is a one-year extension of the New Markets Tax Credit which provides another $3.5 billion allocation round for 2009.
The disaster relief provisions were patterned on tax relief for Hurricane Katrina. The Midwest disaster areas, which include affected counties in the states of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska and Wisconsin, receive an extra $8 per capita of Low-Income Housing Tax Credit and $1,000 per capita of tax-exempt private activity bond authority (which includes single-family Mortgage Revenue and Multifamily Bonds). The Hurricane Ike disaster areas, which include the Gulf counties of eastern Texas and parishes of southwest Louisiana, receive an extra $16 per capita in LIHTC and $2,000 per capita in bond authority.Rescue Bill Summary. (PDF, 162KB)
Neighborhood Stabilization Program Allocations, Regulations and Procedures Explained
HUD has announced funding allocations for the $3.92 billion Neighborhood Stabilization Program (NSP), authorized in the Housing and Economic Recovery Act of 2008. A notice explaining the regulations and procedures under which the program will operate was also released.
The funds may be used to purchase and rehabilitate abandoned and foreclosed homes. However, all of the funds must be used to benefit families with incomes at or below 120 percent of area median income (AMI) and at least 25 percent must be used to benefit families with incomes at or below 50 percent of AMI.
Because these special allocation funds come from HUD's Community Development Block Grant (CDBG) Program, all CDBG statutory and regulatory requirements apply. The only exceptions are the waivers and alternative requirements specified in the notice.
See how much funding each state and eligible locality will receive.
Read a summary of the regulations.
Native American Housing Assistance Program Reauthorized
Congress has approved the Native American Housing Assistance and Self-Determination Reauthorization Act of 2008 (H.R. 2786) and it now moves to the President’s desk for his signature.
Originally enacted in 1996, NAHASDA consolidated several federal housing programs into a single, formula-based block grant program. This bill reauthorizes the program through 2013 at $627 million. It includes several improvements allowing greater flexibility for tribal housing authorities to leverage funds for their affordable housing goals. The program:
- Authorizes the multi-year use of grant amounts for affordable housing purposes
- Exempts purchases of goods and services less than $5,000 from the procurement rules
- Authorizes tribes to establish reserve accounts to accumulate funds for administration and planning related to affordable housing activities
- Authorizes a demonstration program to guarantee the notes and obligations issued by Indian tribes to finance activities that are eligible for financing under the Housing and Community Development Act of 1974, including economic development, housing rehabilitation, public facilities and large scale physical development projects
- Creates a new five-year “Self-Determined Activities” program under which tribes can set aside part of their NAHASDA grant for housing construction, acquisition or rehabilitation activities that are not approved or directly regulated by HUD
House Approves McKinney-Vento Reauthorization for Homeless Assistance
The House approved the Homelessness Emergency Assistance and Rapid Transition to Housing Act of 2008 (the HEARTH Act, H.R. 7221) this month. The bill, introduced by Rep. Gwen Moore (Wis.), reauthorizes the McKinney-Vento Homeless Assistance Act, which allocates funds to the program that serves the homeless.
While the McKinney-Vento program has not been authorized in the last 14 years, it has received an annual allocation. HEARTH includes a number of new provisions that reflect a compromise with the Senate version of the bill, the Community Partnership to End Homelessness Act (CPEHA, S. 1518) introduced by Sen. Jack Reed (RI). The HEARTH Act:
- Expands the reach of the McKinney-Vento program by broadening current definitions of “homeless” persons while authorizing $2.2 billion for fiscal year 2009, a significant increase over the $1.6 billion given to the program in fiscal year 2008.
- Increases the “eligibility window.” Under current law, a person must be in danger of losing his or her place of shelter within seven days to be eligible to receive assistance from federally funded shelters. This bill widens the eligibility window to 14 days.
- Establishes an Emergency Solutions Grant program, similar to the Senate proposal, combining emergency shelter activities with prevention and rehousing for people who are homeless or at risk of homelessness.
- Allows localities to have increased flexibility in determining how to distribute funds.
- Authorizes funds to help individuals or families fleeing domestic violence, as well as unaccompanied youths with unstable shelter.
- Emphasizes permanent housing solutions and “rapid rehousing” programs for individuals and families who experience chronic homelessness.
A different version of the bill (H.R. 840) was introduced by the late Rep. Julia Carson (Ind.) earlier in the 110th Congress. She sought to make more sweeping changes to the definition of a “homeless” person by striking all exclusionary time limits from considering whether a person’s living situation put them at significant and imminent enough risk of homelessness to qualify for federally backed assistance programs.
CPEHA (S.1518) awaits consideration in the Senate where Sen. Tom Coburn (Okla.) has placed a hold on the bill. It is unlikely that the House or Senate will take further action on either bill before the end of the 110th Congress.
House-Passed Energy Legislation Includes GREEN Act
The Green Resources for Energy Efficiency Act (the GREEN Act, H.R. 6078) has passed as part of the Comprehensive American Energy Security and Consumer Protection Act (H.R. 6889). The GREEN Act, bipartisan legislation introduced by Rep. Ed Perlmutter (Colo.), aims to strengthen HUD’s commitment to energy efficiency while providing needed flexibility.
The bill provides incentives to financial institutions to finance energy-efficient homes affordable to low-income families; promotes energy- and location-efficient mortgages; and ensures nonprofit affordable housing developers have the capacity to build green. It also establishes a revolving loan fund for states and tribes to help homeowners and apartment building owners improve energy efficiency, including through renewable energy.
This legislation builds on lessons learned through the Enterprise Green Communities® initiative, which provides financial incentives and technical assistance to affordable housing developers around the country to build smart, environmentally sustainable homes for low-income families. Enterprise commends the U.S. House of Representatives for including the GREEN Act in this bill and thanks Rep. Perlmutter for his leadership on this issue.
While a Senate companion bill has not been introduced, the GREEN Act is expected to be reintroduced in the House and the Senate in the 111th Congress. |
