The National Housing Council's Open House Blog reports on the House Financial Services Committee hearing today in which HUD staff testified about the HOME program and Washington Post's article on the "stalled and delayed" projects.
Interestingly, HUD notes that they only identified 108 projects delayed, rather than the 700 the Washington Post claimed. Futhermore, they noted that Washington Post has refused to share data on which of the 28,000 developments they believe make up the 700 stalled developments.
While the media has a proper role as watchdog, the media has to be willing to back up their allegations, particularly ones as splashy as this.
Friday, June 3, 2011
Housing Funding Availability from Federal Home Loan Bank of Chicago
Even banks need banks, and in the field of home loans, the bank's banker is the local Federal Home Loan Bank (FHLB). Each FHLB is required to "do some good," not just lend to local banks. Two ways that the FHLB serves communities are through the Community Investment Program (CIP) and the Affordable Housing Program (AHP). AHP is funded with ten percent of the local FHLB's profit.
Of the 12 FHLBs, the Federal Home Loan Bank of Chicago (FHLBC) serves Illinois and Wisconsin. FHLBC recently announced the availability of $23 million for their AHP program. Interested organizations should go to to FHLBC's calendar for the traning opportunities. The AHP funds typically fund homebuyer grants and rental housing development.
Incidentally, they also fund a DownPayment Plus program which in Wisconsin is operated by the Wisconsin Partnership for Housing Development.
As you can see from this comparison, there is a significant increase from 2010 to 2011. The AHP program went from $4.6 million to $23 million, with the maximum subsidy per project also increasing from $300,000 to $750,000. This increased amount should improve the ability of Low-Income Housing Tax Credit developers to attract investment and also cover the gap between what the tax credit funds and the actual cost of the project. The DownPayment Plus program also saw a large increase from $1.7 million to $11.6 million.
Side Note: Charles M. Hill, Sr., FHLBC's first Community Investment Officer when the AHP program was created, is the inspiration behind the annual Charles M. Hill, Sr. Award at the A Home For Everyone Conference. The current Community Investment Officer, Eldridge Edgecombe, is retiring after almost a decade in that position. Both Mr. Hill and Mr. Edgecombe reportedly will make an appearance at the conference, so if you see either of them (You are going, right?), please thank them for their years of involvement with affordable housing. FHLBC has announced that Mr. Edgecombe's replacement will be Sam Nicita, currently a Senior Vice President at the Bank.
Of the 12 FHLBs, the Federal Home Loan Bank of Chicago (FHLBC) serves Illinois and Wisconsin. FHLBC recently announced the availability of $23 million for their AHP program. Interested organizations should go to to FHLBC's calendar for the traning opportunities. The AHP funds typically fund homebuyer grants and rental housing development.
Incidentally, they also fund a DownPayment Plus program which in Wisconsin is operated by the Wisconsin Partnership for Housing Development.
As you can see from this comparison, there is a significant increase from 2010 to 2011. The AHP program went from $4.6 million to $23 million, with the maximum subsidy per project also increasing from $300,000 to $750,000. This increased amount should improve the ability of Low-Income Housing Tax Credit developers to attract investment and also cover the gap between what the tax credit funds and the actual cost of the project. The DownPayment Plus program also saw a large increase from $1.7 million to $11.6 million.
Side Note: Charles M. Hill, Sr., FHLBC's first Community Investment Officer when the AHP program was created, is the inspiration behind the annual Charles M. Hill, Sr. Award at the A Home For Everyone Conference. The current Community Investment Officer, Eldridge Edgecombe, is retiring after almost a decade in that position. Both Mr. Hill and Mr. Edgecombe reportedly will make an appearance at the conference, so if you see either of them (You are going, right?), please thank them for their years of involvement with affordable housing. FHLBC has announced that Mr. Edgecombe's replacement will be Sam Nicita, currently a Senior Vice President at the Bank.
Updated Fair Housing Guide
The Bazelon Center on Mental Health Law has an updated guide on Fair Housing and how it affects people with disabilities. Check it out. Order the booklet or download a free pdf copy.
Bazelon is a good resource on legal issues affecting people with mental illness.
Bazelon is a good resource on legal issues affecting people with mental illness.
Thursday, June 2, 2011
HUD Announces Income Limits For Programs
The new 2011 Income Limits are up on HUD's website, effective May 31, 2011.
Remember that income limits are based on the median, not the average, income in the area. In short, you start with every household lined up from the poorest to the richest, and then you count 'em off from both ends until you find the household exactly in the middle. Or you can find the actual answer here. That's the median income.
Then they figure the various income percentages of that median household, adjusted for household size, area, etc. Then they tinker with it some more. But that's the basic idea of how they find the income limits under which people can qualify for various housing programs. HUD's 2011 Briefing Material states that "There are currently several legislated income limit standards (e.g., 30%, 50%, 60%, 65%, 80%, 95%, 100%, 115%, 125%) that were intended to have progressive relationships." The briefing material goes into a complicated explanation of the different standards, how the numbers are calculated and adjusted, etc.
When housing programs are discussed, those are the terminology used.
Here's a long list of what the various income limits are for housing-related programs, not just HUD's. From Page 13-16 of the briefing material. As you can see from the descriptions below, the housing assistance does not necessarily go to those who need it the most, people with the lowest income.
Remember that income limits are based on the median, not the average, income in the area. In short, you start with every household lined up from the poorest to the richest, and then you count 'em off from both ends until you find the household exactly in the middle. Or you can find the actual answer here. That's the median income.
Then they figure the various income percentages of that median household, adjusted for household size, area, etc. Then they tinker with it some more. But that's the basic idea of how they find the income limits under which people can qualify for various housing programs. HUD's 2011 Briefing Material states that "There are currently several legislated income limit standards (e.g., 30%, 50%, 60%, 65%, 80%, 95%, 100%, 115%, 125%) that were intended to have progressive relationships." The briefing material goes into a complicated explanation of the different standards, how the numbers are calculated and adjusted, etc.
When housing programs are discussed, those are the terminology used.
- Low Income (LI) means no more than 80% of Area Median Income (AMI).
- Very Low Income (VLI) means no more than 50% of AMI
- Extremely Low Income (ELI) is no more than 30% of AMI
Here's a long list of what the various income limits are for housing-related programs, not just HUD's. From Page 13-16 of the briefing material. As you can see from the descriptions below, the housing assistance does not necessarily go to those who need it the most, people with the lowest income.
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