@the horizon

Community Developments - May 6, 2013

A daily roundup of news affecting housing and  communities

By Allison Charette

 

• The FHFA announced this morning that Fannie Mae and Freddie Mac will limit any future mortgage acquisitions to those that meet “qualified mortgage” (QM) requirements starting in 2014, despite the GSEs’ and FHA’s statutory exemption. (FHFA, May 6)


• FEMA has announced the release of five Recovery Advisories (RAs) pertaining to communities still recovering from Hurricane Sandy. These documents, written by the FEMA Mitigation Assessment Team (MAT), are meant to help buildings prevent any further flood damage. (HUD, May 3)


• Enterprise’s President and CEO, Terri Ludwig, wrote in the Huffington Post last week about the “hidden housing crisis” of Indian Reservations across the country. There are currently 90,000 homeless or under-housed people every night on reservations, and one in four Natives live in poverty – nearly twice the national average. Unfortunately, existing programs meant to mitigate this crisis have had their budgets cut.  (Huffington Post, May 2)


• The April employment number (released by the US Bureau of Labor Statistics) show that 165,000 jobs were created, bringing unemployment down 0.1 percent to 7.5 percent. Additionally, March’s job numbers were revised from the disappointing 88,000 up to 138,000. (Businessweek, May 3)


• Reports on the viability of the FHFA multifamily portfolio find that the government guarantees are necessary for the business to have any value to Fannie Mae and Freddie Mac. If the businesses were to be sold, the US Treasury and the taxpayer would not experience a high return. These implications must be considered with any affordable housing reform. (FHFA, May 3)


• A real estate company, Doorsteps, has developed an info-graphic showing demographic and financial information on first-time homebuyers using National Association of Realtors’ (NAR) data. According to the data, first-time buyers have an average income of $61,800 and represent 39 percent of all homebuyers. To pay for their first homes, buyers are most likely to reduce luxury and entertainment spending. (NAR, April 30)

 

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. 

Community Developments - May 1, 2013

A daily roundup of news affecting housing and  communities

By Allison Charette

 

• President Obama is expected to nominate Representative Mel Watt (D-NC) to be director of the FHFA, which oversees Fannie Mae and Freddie Mac, according to a statement by Rep. Elijah Cummings. If confirmed, Rep. Watt would replace Acting Director Ed DeMarco. Rep. Watt is on record as a supporter for principal reductions to address underwater mortgages, which DeMarco has not allowed the GSEs to undertake. (Bloomberg, May 1) Enterprise urges the Senate to act quickly in confirmimg Rep. Watt. 

• Since Hurricane Sandy hit six months ago, hundreds of affected New York City residents have been living in subsidized hotels. With such assistance coming to an end and without enough public and low-income housing available, many are facing homelessness. (NPR, April 29)


• The FHFA has issued a progress report on its Common Securitization Infrastructure being created for residential mortgage-backed securities. (FHFA, April 30) This platform would exist outside of Fannie and Freddie and is meant to eventually replace the GSEs. (DS news, April 29)


• Last Wednesday, Enterprise was awarded $50 million in New Markets Tax Credit (NMTC) allocation from the US Treasury Department’s Community Development Financial Institutions Fund. Enterprise is one of 85 awardees for the $3.5 billion NMTC program. Enterprise will use its allocation to complement and expand upon Enterprise’s housing work in low-income communities by financing high-impact projects that improve quality of life by creating quality jobs and delivering essential services and retail goods, including healthcare, education and healthy food options. (Enterprise Community Partners, April 24)


• The February 2013 Standard & Poor/Case-Shiller Home Indicesreveal an 8.5 percent and 9.3 percent increase in the 10- and 20-city composites respectively. These consistent home price increases are taken as an encouraging sign for economic recovery despite weak showings in the Midwest. (DS news, April 30)

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. 

Community Developments - April 29, 2013

A daily roundup of news affecting housing and  communities

By Allison Charette

 

• As reported in last Friday’s edition of Community Developments, Congress voted last week to shift Transportation Department Funds in order to pay air traffic controllers fully. While sequestration impacts on the FAA have been dealt with, Congress has not taken action on cuts affecting housing assistance programs, Head Start, and unemployment benefits which affect our country’s most vulnerable populations. (Off the Charts Blog: CBPP, April 26)


• New Jersey’s $1.83 billion action plan was approved by HUD today to help families and communities recover from Hurricane Sandy. The plan allocates over $1 billion to housing programs, $200 million to economic recovery programs, and $225 million for infrastructure and public service programs. (HUD, April 29).
  
  HUD also approved New York State’s $1.7 billion investment plan, $838 million of which will be put toward housing programs and $415 million will be used in economic revitalization programs. (National Mortgage News, April 26)

• Large investors are currently dominating the distressed housing market, but current homeowners and first-time homebuyers make up the majority of activity in the non-distressed market. According to March’s HousingPulse survey, investors only make up 13 percent of the non-distressed housing market while current homeowners and first-time homebuyers represent 50 percent and 37 percent of the market respectively. (DSNews, April 26)


• The White House Council on Strong Cities, Strong Communities (SC2) has released a report detailing the impacts of the initiative on communities and potential innovations for the future. The year-old initiative uses federal-local collaboration to increase government efficiency and implement sustainable economic plans. These partnerships are meant to use federal dollars to support struggling communities and help them recover. (White House Blog, April 25)


• Representatives Fincher (R-TN), Thompson (D-MS), and Miller (R-CA) introduced the Preserving Access to Manufactured Housing Act earlier today in an effort to ensure the availability of financing for manufactured homes (particularly in rural areas). The bill would amend Dodd-Frank and the Consumer Protection Act by changing the criteria of home loans classified as “high cost.” (Housing Wire, April 29)


• A recent study by the Urban Institute has found that the racial wealth gap in this country has worsened since the Great Recession. Wealth accumulation can mean better education and job prospects, and financial stability. This analysis shows that wealth accumulation of white households is six times that of Hispanic and African-American households. (New York Times, April 28)

 

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. 

Enterprise's Resiliency Speaker Series: Exploring the Long-term Recovery Challenges & Opportunities for Multifamily Affordable Housing Infrastructure

Updated 5.23.13

by the Enterprise New York Team 

ABOUT THIS SERIES:

Enterprise’s New York City Office is hosting a series of panel presentations exploring the long-term recovery challenges and opportunities for the multifamily affordable housing infrastructure in New York City and the surrounding region in the aftermath of Hurricane Sandy. Over 62,000 public and affordable housing units were within the storm surge area across the tri-state region, representing about 13 percent of the total public and affordable units. The series is part of Enterprise’s ongoing efforts to support Hurricane Sandy recovery and rebuilding and strengthening the resilience of affordable housing for the most vulnerable residents.

WHO SHOULD ATTEND:

All facility managers, plant operators, developers and property owners are welcome to the Resiliency Speakers Series.

SESSION 1: “Cogeneration & Resiliency:  A Technological Savior or Regulatory Nightmare?”

On March 28th, our panel of experts discussed the benefits and challenges of installing cogeneration in multifamily affordable housing as part of a resilience retrofit strategy in the aftermath of Hurricane Sandy.  

SESSION 2: “Flooded Boilers: Preparation, Response, Recovery and Considerations for Resiliency"

On May 3rd, representatives from the Lower East Side People’s Mutual Housing Association (LESMPHA) will discussed how they repaired and restored heating and hot water service to hundreds of affected building units throughout the Lower East Side in the aftermath of Hurricane Sandy. In addition to highlighting lessons learned, they discussed best practices on boiler design, operation and maintenance for multi-family buildings. 

SESSION 3: “Indoor Air Quality: The Mold That Sandy Left Behind"

Extensive mold contamination can have a devastating impact on health and safety conditions in buildings. On June 6th, our presenter will cover best practices of mold identification, abatement and recovery, targeting the specific needs of the affordable multifamily housing community in the context of long-term rehabilitation strategy in the aftermath of Hurricane Sandy. Click here for more details about the workshop and presenter.

Contact Laurie J. Schoeman with any questions on the Resiliency Speaker Series.

For a Resilient Rockaway (Far ROC) Competition

by the Enterprise New York Team

Enterprise and its partners the New York City Department of Housing Preservation and Development (HPD), the development team of L+M Development Partners, The Bluestone Organization, and Triangle Equities, and the American Institute of Architects New York Chapter (AIA New York) launched a new  design competition on Tuesday to promote resilient and sustainable development in the Rockaways. The two-phase “For a Resilient Rockaway” (Far ROC) is calling teams of architects, planners and other design professionals to propose innovative building solutions for developing the 80+ acre Arverne East site into a comprehensive new mixed-use, mixed-income, sustainable and storm-resilient community that will meet the new physical and regulatory challenges of waterfront development while maintaining the balance between innovation and affordability.

The devastating impact of Hurricane Sandy on low-lying communities in the greater New York area emphasized the need for thoughtful and critical consideration of how cities should approach the future development of their flood-prone areas. As such, Far ROC’s winning design concepts may serve to guide long-term planning and development strategies both in New York City and other densely populated seaside communities.

Recent news coverage of the Far ROC competition includes:

• Wall Street Journal - Sandy Rebuild Is Put in Play
• Crain’s New York Business - City hopes to outdo Holland in Far Rockaway
• Curbed New York - Competition Launched to Develop Stalled Rockaway Site
• The Associated Press - Design contest set for NYC-owned Rockaways site
• NY1 - Developers Hold Contest For Ideas To Rebuild Arverne East
• Architectural Record - NYC Competition Aims to Create Post-Hurricane Model for Coastal Development

Phase I submissions are due June 14, 2013. For more information, please visit www.FarROC.com. 

Enterprise launches Resiliency Learning Collaborative

updated 5.7.13

by the Enterprise New York Team 

Enterprise launched its Hurricane Sandy Recovery and Rebuilding Program to help organizations impacted by Hurricane Sandy to improve the resiliency of their organization and affordable housing portfolio from future crises. Enterprise selected 12 affordable housing organizations from the region to develop best practices for disaster preparedness and long-term resilience. Over the next two years, Enterprise will support the 12 organizations in developing a comprehensive disaster preparedness and response plan for their organization and housing portfolio. We will provide technical support as they assess their housing portfolio’s vulnerability to future crises, explore innovative resilient retrofit options, and identify potential financing mechanisms to implement the recommendations.  At the same time, we will work together as the collaborative to identify shared goals and challenges, and translate them into lessons and guidelines of benefit to all affordable housing organizations. Click here for more details.

The organizations selected to participate are:

• Asian Americans for Equality, Inc
• Bailey House, Inc.
• CAMBA Housing Ventures, Inc.
• Carroll Gardens Association, Inc.
• Community Investment Strategies, Inc.
• Fifth Avenue Committee, Inc.
• Jewish Association Serving the Aging 
• Jersey City Housing Authority
• Lower East Side Peoples Mutual Housing Assoc., Inc.
• Lott Community Development Corporation
• Services for the UnderServed
• Triple C. Housing, Inc.

Community Developments - April 10, 2013

A daily roundup of news affecting housing and  communities

By Allison Charette

• At 11:15 am, the Obama Administration will release its budget for Fiscal Year 2014 on the White House Office of Management and Budget website. Early reports indicate that the budget will include new revenues, cuts to entitlement programs and a replacement for the sequester. Stay tuned to the @theHorizon blog and the @E_HousingPolicy twitter account for updates and analysis of the impact of the budget on housing and community development programs.


• Unemployment rates were lower in February than a year earlier in 287 of the 372 metropolitan areas, higher in 69 areas, and unchanged in 16 areas, the U.S. Bureau of Labor Statistics reported today. Three hundred three metropolitan areas had over-the-year increases in nonfarm payroll employment, 58 had decreases, and 11 had no change. The national unemployment rate in February was 8.1 percent, not seasonally adjusted, down from 8.7 percent a year earlier. (Bureau of Labor Statistics, April 10)

• In the aftermath of Hurricane Sandy, many servicers delayed mortgage payments for those households affected. Unfortunately, banks backed by Fannie and Freddie are asking for their owed payments in-full due to GSE mortgage regulations. Governor Cuomo’s Department of Financial Services sent letters to Fannie and Freddie Monday demanding changes to the “restrictive” guidelines that are hurting citizens still recovering from the storm. (New York Daily News, April 9)


• A new report by Moody’s Investors Service suggests that sequestration cuts will likely have a long-term impact on the affordable housing industry. Any reduction in federal employment levels will create economic distress, harming those who depend on single and multifamily mortgage programs. As a result, delinquency and foreclosure rates may not decrease as expected. (Housing Wire, April 10)


• According to a report released by the IRS’s Low Income Taxpayer Clinic (LITC) Program Office, the LITC program helped taxpayers secure $3.2 million in tax refunds and eliminate $16.5 million in tax liabilities, penalties, and interest during the first half of 2012. This program provides free legal services to low-income taxpayers experiencing difficulties with the IRS, such as an audit or collection issue. (IRS, April 8)

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. 

Superstorm Sandy’s Impact On Affordable Housing

by the Enterprise New York Team

Updated 3.7.13

We are excited to share a great set of maps and data analysis that summarize Superstorm Sandy’s impact on homes in the New York region. 

New Jersey

New York & Long Island

Tri-State Area    

We’ve updated our Sandy impact maps to incorporate newly available data on FEMA registrants. Read our latest summary analyses of demographic information from FEMA registrations.

Our key findings include:

• Of all registrants, 43% reported household incomes less than $30,000 per year, indicating a significant need among lower income households.
• Of all renter registrants, 68% were low income (with annual incomes less than $30k). Of all homeowner registrants, 24% were low-income.
• Of renter registrants, 55% with damage evaluations sustained either “major” or “substantial” damage to their property.
• The number of homeowners assessed with uninsured damage is 60% higher in New York State than in New Jersey.
• In the areas where New York City FEMA registrants are located, 46% of renters are white, 37% are black or Asian, and 29% are Hispanic.

We expect to update these maps periodically as new information becomes available.  We welcome your suggestions on additional information that could be helpful to you.

Please continue to share your experiences and stories about rebuilding post-Sandy with us. 

 

RFP for Hurricane Sandy Recovery and Rebuilding Program Announced

by the New York Enterprise Team

Enterprise is pleased to announce the Request for Proposals for participants in the Hurricane Sandy Recovery and Rebuilding Program.  Over the next two years, Enterprise will work with affordable housing operators to develop individual disaster preparedness and response plans, establish a crisis response network, and triage capital retrofits for their physical housing stock. 

We strongly encourage you to respond to this RFP.  Proposals are due on March 22nd, 2013.  Enterprise will hold a pre-submission Q&A session on March 13th at 11am.  Please address all questions to ezeldin@enterprisecommunity.org or 212-284-7126.

RPF documents:

• Download Resiliency Grantee RFP
• Download 2013 RFP_App Material1
• Download Partners Production Tracker

Statement on Sequestration's Impact on Housing the Most Vulnerable People

By Ali Solis, SVP of Public Policy & Corporate Affairs

@E_HousingPolicy

Today marks the official start of “sequestration,” mandatory 5 percent cuts to virtually all federal government programs. Sequestration will have a disproportionately painful effect on low-income people, in particular vulnerable families with children and seniors, who are served by the affordable housing and community development industry. While the full effect of sequestration across all industries will not be known for several weeks, according to HUD Secretary Shaun Donovan’s recent testimony at the Senate Appropriations Committee’s hearing on The Impacts of Sequestration, the cuts will be devastating to communities and residents nationwide. Just a few of those consequences include:

• 100,000 formerly homeless people, including veterans, could lose their current housing or emergency shelter programs, putting them at substantial risk of becoming homeless again.
• 2,100 affordable apartment homes will not be built or rehabilitated by state and local communities that receive funding under the HOME Investment Partnerships program. These cuts will have an even broader negative impact on local economies because every dollar of HOME funding is leveraged with almost $4 of other governmental or private investment to build or rehabilitate affordable homes. This will mean fewer local architectural, design, engineering, landscaping, construction and related industry jobs.
• 125,000 individuals and families, including seniors and people with disabilities, could lose their Housing Choice Vouchers (HCV) and become at risk of becoming homeless. HCV provides crucial assistance to families and individuals in renting privately-owned apartments by providing gap subsidies for their monthly rent.
• 500,000 people registered for FEMA assistance in the wake of Hurricane Sandy, 43 percent of whom make less than $30,000 per year. A 5 percent cut to the $50.5 billion in relief provided by the Sandy supplemental bill could significantly hurt people with little means to recover from the storm.

We strongly encourage Congress to act to reverse these senseless cuts. Further deficit reduction efforts should be balanced between a mix of revenues and responsible spending cuts. Enterprise, together with the Campaign for Housing and Community Development Funding, urges Congress and the Obama Administration to support sensible principles in all deficit reform efforts. 

Since opportunity begins at home, the necessary foundation of progress and opportunity on so many other issues, from education to the economy and health, cutting effective programs that fund affordable housing and community development will have devastating consequences on the prosperity of all people living in America.