Affordable Leaders on Stimulus & HASP: It’s a Start but Needs Work
From HOUSINGFINANCE.COM, By Donna Kimura: Added up, the past weeks’ signing of a stimulus package and the subsequent unveiling of plans to stabilize the topsy-turvey housing economy has had some blessings, some potential blessings in disguise, and some areas of concern and disappointment for business and community leaders in affordable housing.
Affordable Housing Finance senior editor Donna Kimura spoke with many of the affordable community’s leaders and offers this good-news-bad-news analysis of their initial reaction and expectations.
“By passing this legislation, Congress has acknowledged the need to restart stalled and stretched affordable housing development throughout the nation,” said Doris Koo, president and CEO of Enterprise Community Partners.
The enacted legislation includes an amendment to provide $2.25 billion to states through the HOME Investment Partnerships Program to help fill financing gaps in LIHTC developments. Such funding could immediately finance more than 14,000 apartment homes and nearly $2.5 billion of shovel-ready stalled developments.
Enterprise said it is disappointed that the approved legislation does not include a provision that would increase the carryback for the LIHTC, New Markets Tax Credit, and energy tax credit from one to five years for credits claimed in 2008 and 2009. The carryback provision would help keep existing investors in the LIHTC program and reassure new investors.
The legislation provides $4 billion for the public housing capital fund, with $3 billion being distributed by the capital fund formula and $1 billion through competitive grants. The bill also included $1.5 billion for homelessness prevention and rapid re-housing.
“It is terrific that long-standing problems with HUD [Department of Housing and Urban Development] programs, such as the backlog of public housing capital needs and short-term contracts for Sec. 8 property owners, were addressed in the stimulus bill,” said Sheila Crowley, president and CEO of the National Low Income Housing Coalition. “The $1.5 billion for emergency assistance to prevent homelessness will make a significant difference in the lives of hundreds of thousands of poor families. But ultimately the bill was a missed opportunity to effect real change in the affordable rental housing shortage by not funding the National Housing Trust Fund and new incremental vouchers. That is too bad.”
Kimura also speaks with or reports the statements of Judith Kennedy, president and CEO of the National Association of Affordable Housing Lenders, Sharon Price, director of policy for the National Housing Conference, Michael Rubinger, president and CEO of the Local Initiatives Support Corp., and Renee Rooker, president of the National Association of Housing and Redevelopment Officials (NAHR).
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I think that the stimulus package have helped a lot in restoring the economy. right now we can see some improvements in the economy. right now we can see some improvements in the eco,;: