March 13, 2018

Community Developments: New Report on Shortage of Affordable Homes

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  • Today the National Low Income Housing Coalition (NLIHC) released a new report, The Gap: A Shortage of Affordable Homes, which finds a national shortage of 7.2 million affordable and available rental homes for extremely low income (ELI) renter households – those earning up to 30 percent of their area median income. The report also shows that there are only 35 affordable and available units for every 100 ELI renter households nationwide and that 71 percent of ELI renter households are severely housing cost-burdened - spending more than half of their income on housing. The report points out that the supply of affordable and available rental homes ranges widely across the states, from only 15 for every 100 ELI renter households in Nevada to 59 for every 100 ELI renter households in Maine. (NLIHC, March 13) 
     
  • The city of Detroit has announced plans to create a $250 million affordable housing fund that would preserve 10,000 Housing Credit units with expiring affordability requirements and create 2,000 affordable units by 2023. It will be funded by $50 million in grant funding, $150 million in low-interest borrowing, and another $50 million in city and federal funds over the next five years. Federal funding for affordable housing programs, such as HUD’s HOME Investment Partnerships program, in Detroit dropped by 45 percent to $41 million between 2002 and 2016. (Crain’s Detroit, March 12)
     
  • Today is the last day for Representatives to sign onto “Dear Colleague” letters in support of the HOME Investment Partnerships program, United States Department of Agriculture (USDA) Rural Housing programs, and the Community Development Block Grant (CDBG) program. Enterprise encourages housing and community development advocates to reach out to their Representatives and urge them to sign the following letters by COB today:
    • Representative Marcia Fudge (D-OH) is circulating a “Dear Colleague” letter urging the Transportation, Housing, and Urban Development (THUD) Appropriations Subcommittee to fund the HOME Investment Partnerships Program at $1.2 billion in FY 2019. House offices can sign on through this google form.  
    • Representatives Sean Duffy (R-WI) and Jim Costa (D-CA) are circulating a “Dear Colleague” letter urging the House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies to request adequate funding for USDA Rural Housing programs, including the Mutual Self-Help Program, Section 502 Direct Loans homeownership loans, rental assistance, new multi-family construction and preservation, and farmworker housing. House offices can sign on by contacting Ryan McCormack in Rep. Duffy’s office at Ryan.McCormack@mail.house.gov or Ben Goldeen in Rep. Costa’s office at Ben.Goldeen@mail.house.gov.
    • Representatives Robert Brady (D-PA), Lou Barletta (R-PA), James McGovern (D-MA), Peter King (R-NY), Maxine Waters (D-CA) and Gregory Meeks (D-NY) are circulating a “Dear Colleague” letter urging the House THUD Appropriations Subcommittee to provide at least $3.3 billion for the CDBG program in FY 2019 appropriations. House offices can sign on by contacting Caitlin Hodgkins in Rep. McGovern’s office at Caitlin.Hodgkins@mail.house.gov.
  • An analysis by CoreLogic shows that 5.3 percent of home mortgages in December were delinquent by 30 days or more, unchanged from December 2016. Between December 2016 and December 2017, the national foreclosure inventory rate, the share of mortgages in some stage of the foreclosure process, declined slightly to 0.6 percent. The analysis also shows that Florida was the state with the highest rate of mortgages in some stage of delinquency at 9.2 percent – its delinquency rate increased by 3 percentage points from a year earlier due to last year’s hurricanes. (CoreLogic, March 13)
     
  • An article in CityLab looks at the Community Restoration Fund (CRF) program in New York City, which allows the city to acquire distressed mortgages to create affordable homeownership and rental opportunities for low- and middle-income families. The CRF program enables nonprofits to purchase those mortgages on the behalf of the city and work with homeowners to find feasible solutions for handling their property, such as mortgage modification plans and temporary loan modifications. In cases where these solutions are not possible, the program ensures that these homes are repaired and sold as affordable units to qualified buyers. (City Lab, March 12)

Upcoming Webinar

  • On Tuesday, March 20, Enterprise Community Partners is hosting a webinar on “Navigating Federal Transportation Policy to Promote eTOD,” which will feature Ahmad Abu-Khalaf of Enterprise, Christopher Coes of Smart Growth America and Jenna Hornstock of Los Angeles County Metropolitan Transportation Authority. This webinar will discuss our new report, “Promoting Opportunity through Equitable Transit-Oriented Development (eTOD): Navigating Federal Transportation Policy,” which will be released on March 14. It will also provide stakeholders involved in achieving eTOD guidance on understanding and benefitting from federal transportation policies and programs. For more information: please contact Ahmad Abu-Khalaf at aabukhalaf@enterprisecommunity.org. Register here for the webinar.

For the latest housing and community development news and notes, follow the Enterprise policy team on Twitter: @E_Housing Policy and subscribe to the Capitol Express Newsletter. The Enterprise Public Policy team works to safeguard, expand and improve programs that end housing insecurity. Learn more about our public policy efforts.