What's in the 2009 American Recovery and Reinvestment Act of 2009, What some housing advocates are proposing for Illinois

Presented by Hyde Park-Kenwood Community Conference and its website hydepark.org.

Affordable Housing Information home. CECD home. CECD Website.

Highlights of H.R.1, the American Recovery and Reinvestment Act of 2009

By Enterprise Community Partners Inc. public Policy Office, 10 G St. NE, Suite s450, Washington, DC 20002, www.enterprisecommunity.org


Summary by Barbara Sard, Director of Housing Policy - Center on Budget and Policy Priorities 2-13-09.

617-566-1154. Low Income Housing Provisions of Recovery Legislation

The final agreement between the conferees on the American Recovery and Reinvestment Act was filed February 12. The text is available at www.rules.house. gov. [The House and Senate approved and the legislation was signed by the President.]

The final bill was estimated to cost $787 billion, $30 less than the House bill and about $50 billion less than the Senate bill. yet the bill provides $2 billion more for HUD programs than the Senate-passed bill (but $2.7 billion less than the House-passed version of the bill). We have updated the chart at http:/www.chpp.org/2-3-09hous-prac.pdf with the funding levels in the final bill. The major changes from the Senate bill are the restoration of $2 billion for Neighborhood Stabilization grants (the House bill provided $4.2 billion), the inclusion of the House-proposed $1 billion for CDBG formula grants, and the reduction of public housing capital funds from the $5 billion level in both bills to $4 billion ($3 billion to be distributed by formula and $1 billion through a competition). The final bill retains $1.5 billion for homelessness prevention grants to be allocated through the ESG formula. CBPP estimates of the ESG funding each ste will receive are available at http://www.cbpp.org/1-22-09budes.pdf.)

To respond to the sharp reduction in the funding yielded by Low Income Housing Tax Credits, the conference agreement includes $2.25 billion of HOME funds to "fill the gap" on projects awarded LIHTCs (no funding provided for unrestricted HOME formula grants), and adopts the House-proposed exchange provision. (The exchange provision is explained in our paper available at http://www.cbpp.org/2-2-09hous.htm). The provision allows exchange only of unsold 9% credits from prior years and 40 percent of the 9% credits for 2009, and not 4% credits. The final bill does not include the provision in the Senate bill to "accelerate" the amount of the credit taxpayers can claim in the first three years, or the Senate Finance "credit carryback" provision.

The bill includes an important provision to protect renters (including section 8 voucher holders) in foreclosed properties acquired or rehabilitated with Neighborhood Stabilization funds newly made available or appropriated last year (unless the funds were committed before the bill was signed). Recipients of NSP funds must not discriminate against Section 8 voucher holders. We will post additional information about this provision shortly.

Some of the tax cuts added in the Senate bill were trimmed sharply to make way to restore components of the bill that were priorities for the Administration, such as additional funding for schools and additional benefits for the unemployed.

The final bill does not include the $15,000 homebuyer credit contained in the Senate bill. Instead, it includes provisions modifying the original homebuyer credit approve last July (increasing the credit from $7,500 to $8,000 and extending it to homes purchased before December 1, 2009) and waives the requirement that the credit be paid back if buyers retain the home as their principal residence for at least 3 years.

Congress is [expected in the week of February 22] to approve the delayed 2009 appropriations fill for HUD and most other agencies....

Here is this organization's chart of Low-income stimulus provisions, in pfd.

 

 

About the Homeowner Affordability and Stability Plan - Executive Summary

The deep contraction in the economy and in the housing market has created devastating consequences for homeowners and communities throughout the country.
Millions of responsible families who make their monthly payments and fulfill their obligations have seen their property values fall, and are now unable to refinance at lower mortgage rates.
Millions of workers have lost their jobs or had their hours cut back, are now struggling to stay current on their mortgage payments - with nearly 6 million households facing possible foreclosure.
Neighborhoods are struggling, as each foreclosed home reduces nearby property values by as much as 9 percent.

The Homeowner Affordability and Stability Plan is part of the President's broad, comprehensive strategy to get the economy back on track. The plan will help up to 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure. In doing so, the plan not only helps responsible homeowners on the verge of defaulting, but prevents neighborhoods and communities from being pulled over the edge to, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs. The key components of the Homeowner Affordability and Stability Plan are:

1. Refinancing for Up to 4 to 5 Million Responsible Homeowners to Make Their Mortgages More Affordable

2. A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners

3. Supporting Low Mortgage Rates by Strengthening Confidence in Fannie Mae and Freddie Mac


1. Affordability: Provide Access to Low-Cost Refinancing fro Responsible Homeowners suffering From Falling Home Prices.-

2. Stability: Created a $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners

3. Supporting low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac
Funds and preferred stock purchase agreements, increasing allowable fortfolios, supporting state housing finance agencies, not TARP money.

 

Illinois Housing Roundtable 2009 State Affordable Housing Initiatives

Protections for Renters in Foreclosed Buildings- HB 3863/SB 2230 sp. Will Burns.
Additional notice to renters in bldg. foreclosure has been filed or completed. That rent be accepted and properties be maintained for health and safety. Additional protections and time for renters including notification within two days.

Enhanced Municipal Authority to Address Foreclosures including notice to authority, authorization for land banks and recoup of costs (liens with priority). HB 1195/SB 1409

Fair Housing for Seniors- HB 3607. Amends the Illinois Assisted Living and Shared Housing Act to comply with the Fair Housing Act and the Illinois Human Rights Act.

Non-Profit Rental of Condos and Townhouses- HB 821 (protect right of nonprofits to do so)

Permissive Authority to Create Dedicated Funding Stream for County Affordable Housing Trusts Fund- SB 1398. $5 recording surcharge on real estate related documents.

Housing Opportunity Tax Incentive Expansion- HB 2470.
Encourages landlords to participate in the federal Housing Choice Voucher (Section 8) Program (via voucher conversion and expanding "opportunity areas."

Energy Assistance/Rental Housing Support Program- HB 2632/SB 1629. Tenant and landlords in Illinois Rental Housing Support Programs eligibility for winter heating assistance

Affordable Housing in the Capital Budget- $100 million over 5 years proposed

Homeless Service Provider Funding- $12.4 million vs current $9.1 for Emergency Food and Shelter Program.

Supportive Housing Service- $3 million

More information in http://www.ilga.gov, http://www.HousingMatters.net (Housing Action Illinois).