Federal Policy Project

What Are the Current Issues?

UPDATE! In a significant victory for the LIHTC program, Congress included the extension of the 9% Tax Credit Exchange Program in the Tax Extenders Act of 2009 (H.R.4213) recently passed by the House. Unfortunately, H.R. 4213 did not include the expansion to allow the exchange of 4% credits or the other two measures designed to stimulate further investment. The bill is now pending in the Senate.

BACKGROUND: Despite the partial success of innovative measures in the American Recovery and Reinvestment Act (ARRA) in providing states with tools to enable some stalled Low Income Housing Tax Credits (LIHTC) transactions to move forward, the writing on the wall is now clear for all to see. The LIHTC investor market will not be back to normal in 2010 and additional measures must be taken by Congress to insure that the production and preservation of affordable rental homes continues.  

NATIONAL COALITION: In this context, a new group called Rental Housing A.C.T.I.O.N. (A Call To Invest In Our Neighborhoods), representing broad spectrum of LIHTC industry leaders and nonprofit housing advocates, agreed in July to endorse a package of LIHTC measures. The package includes not only an extension of the 9% Tax Credit Exchange Program (TCEP) but also its expansion to include unusable 4% Credits, in addition to adding incentives to attract investor capital back into the LIHTC market.  Please click on the following link to review this package and sign on to it if you have not already done so and wish to do so now: http://www.rentalhousingaction.org/join-the-campaign.

LAST CHANCE TO TAKE ACTION:
• The last opportunity for getting the 4% Exchange and the other measures included in Federal legislation is in H.R. 4213 Tax Extenders Act of 2009 or any Jobs bill introduced in the Senate.
• Please contact your Senators and specifically request that the 4% LIHTC Exchange along with the carryback and investor eligibility expansion be included in one of these bills. It will help motivate them if you can list a couple of stalled LIHTC developments in California that would be helped by these measures and the jobs that would be created. 
• Explain how the most successful affordable rental housing production program in U.S. history has been so badly affected by the financial crisis.
• Emphasize that California will gain $1,140.2 million in additional equity investment that will be used to construct or rehabilitate 16,606 more rental homes, providing safe, affordable housing to low-income families, while also creating 25,074 jobs in California.
• Ask them to actively support the inclusion of these proposals in the Senate bills now!

LIHTC ACTION ALERT SUPPORTING DOCUMENTS:
Click here for Updated Talking Points, Alternate 1 Pager, and a California Fact Sheet.

MORE INFORMATION:
If you would like more information about the LIHTC Proposals, visit Rental Housing A.C.T.I.O.N or contact Matt Schwartz at CHPC.

IMPORTANT FEDERAL AFFORDABLE HOUSING LEGISLATION

National Housing Trust Fund & Jobs for Main Street Act of 2010

NEWS!

On December 16, 2009, the House passed amendments to H.R.2847, the Jobs for Main Street Act of 2010. The bill includes funding for two very important affordable housing initiatives, the National Housing Trust Fund and the Public Housing Capital Fund. The bill includes $1 billion for the National Housing Trust Fund and $65 million for project-based vouchers to support apartments built by the Trust Fund. Also included in the Jobs bill is $1 billion for the Public Housing Capital Fund for additional repairs and rehabilitation of public housing. Click here to download a copy of the bill text. Read a summary of all provisions in the Jobs for Main Street Act of 2010 here. We do not expect the Senate to vote on this legislation until after the new year.

On December 4, 2009, HUD released the Housing Trust Fund; Allocation Formula for the States and Territories. Based on the National Low Income Housing Coalition's Preliminary Estimates of State Allocation Amounts, the allocation for California would be $193,200,000 or 19.320%. The HUD release begins the public comment period that ends on February 2, 2010. Comments may be submitted to:

http://www.regulations.gov

OR

Regulations Division, Office of General Counsel

Department of Housing and Urban Development

451 7th Street, SW., Room 10276

Washington, DC 20410–0500

Next Step:

Part II of the National Housing Trust Fund rulemaking process will propose the requirements and procedures governing operation of the Housing Trust Fund. At this point in time, we do not know when HUD plans to release the requirements and procedures for public comment.

Background:

Establishment of the National Housing Trust Fund was enacted as a provision of the Housing and Economic Recovery Act of 2008, signed into law by President George W. Bush. Initially, low income housing advocates praised this event as a triumph for low income Americans and their families. The National Housing Trust Fund needs to be capitalized so that it can channel the funding directly to projects that create, preserve, and revitalize affordable rental homes for low income families, seniors, and disabled renters. Last week, President Obama and Secretaries Donovan and Geithner threw their support behind measures to improve housing and the housing market for Americans, including securing subsidy for the Housing Trust Fund. The announcement was not specific about the exact source of funding for the Trust but promised to “actively work with Congress to identify a specific offset to assure ($1 billion) of financing for the Fund.”

For information about the national Housing Trust Fund, go to: http://www.nhtf.org/template/page.cfm?id=40

HUD FY2010 Appropriations

• TITLE: Making appropriations for the Departments of Transportation and Housing and Urban Development, and related agencies for the fiscal year ending September 30, 2010, and for other purposes.

• STATUS: President Obama signed H.R. 3288 on December 16, 2009.

• Click here to access a copy of the 2009/2010 HUD appropriations comparison

• Click here to access a copy of the complete conference report.

• BILL TEXT: Click here to access a copy of President Obama’s proposal.

H.R.3045: Section 8 Voucher Reform Act of 2009 (SEVRA)

• TITLE: To reform the housing choice voucher program under section 8 of the United States Housing Act of 1937

• STATUS: Approved by Committee on Financial Services 7/23. Pending House floor vote, expected the week of October 19, 2009.

• Advocacy Talking Points

• BILL TEXT: Click here to access a copy of the draft version.

H.R.3766/S.1731: TARP for Main Street

• TITLE: To use amounts made available under the Troubled Assets Relief Program of the Secretary of the Treasury for relief for homeowners and neighborhoods.

• STATUS: Pending committee markup.

• NLIHC Comparison of House & Senate versions
• Advocacy Talking Points

• BILL TEXT: Click here to access a copy of the bill text.

H.R.2454: American Clean Energy and Security Act of 2009

• TITLE: To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.

• STATUS: Passed House, read in Senate 7/7.

• Advocacy Talking Points

• BILL TEXT: Click here to access a copy of the House bill text.

S.1733: Clean Energy Jobs and America Power Act

• TITLE: To create clean energy jobs, promote energy independence, reduce global warming pollution, and transition to a clean energy economy.

• STATUS: Introduced 9/20/09

• BILL TEXT: not yet available

Housing Preservation and Tenant Protection Act of 2009

• TITLE: To prevent the loss of affordable housing dwelling units in the United States.

• STATUS: Financial Services Committee hearing 7/15.

• BILL TEXT: Click here to access a copy of the draft version.

• SUMMARY: Click here to access a copy of the LISC Summary.

PENDING LEGISLATION FOR REFERENCE:

Public Housing Dispostion

• TITLE: To amend section 18 of the United States Housing Act of 1937 to revise the requirements relating to demolition and disposition of public housing, and for other purposes.

• STATUS: Pending introduction, expected after the August recess.

• BILL TEXT: Click here to access a copy of the draft version.

• FACT SHEET: Click here to access a legislative summary prepared by the National Housing Law Project

ECONOMIC RECOVERY

Acting with impressive speed, HUD announced the release of more than $10 billion of the $13.6 billion in affordable housing stimulus funds from the $787 billion American Recovery and Reinvestment Act of 2009 signed into law by President Obama.

The $10 billion includes:

• $2.25 in HOME Tax Credit Assistance Program Funds, of which California will receive $325 million (14.5% of the total) to assist Low Income Housing Tax Credit properties (9% and 4%) which have not been able to find adequate private investment.

• $3 billion in Public Housing Capital Funding, of which $118 million (3.95% of the total) will go to California Public Housing Authorities for immediate improvements to public housing.

• $1.5 million in Homeless Prevention Funds (through the Emergency Shelter Grant program), of which California will receive $189 million or 12.67%.

• $1 billion in CDBG Funds, of which California entitlement jurisdictions will receive $123 million (12.58%) to use for a variety of purposes including but not limited to investments in the creation and preservation of affordable homes.

• $2 billion for Renewing Section 8 Contracts to stabilize the renewal funding process and re-assure private owners of the federal governments continuing commitment to this program, which supports the operation of 130,000 affordable homes in California alone. 

• STIMULUS FUNDING FOR CALIFORNIA:

ARRA Weatherization Funding Announcement (pdf)

Tax Credit Assistance Program (HOME) Funds (pdf)

Public Housing Capitol Funding (pdf)

Homeless Prevention Activities Funds (pdf)

Community Development Block Grant Funds (pdf)

• RESOURCES TO TRACK THE SPENDING:

HUD information related to the American Recovery and Reinvestment Act of 2009 (Recovery Act)

White House Website for current information, data, and tracking information for the American Recovery and Reinvestment Act of 2009 (Recovery Act)

• TEXT OF ECONOMIC RECOVERY LEGISLATION: (as signed by President Obama on February 18, 2009)  

American Recovery & Reinvestment Act of 2009 (pdf)

How Do I Get Involved?

• Sign up for the FPP email newsletter, Federal Policy Project Update.
• Attend the next Federal Housing Policy Summit.

To learn more, contact CHPC Housing Policy Manager, Marilyn Wacks, at mwacks@chpc.net or 415-433-6804 x13.

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