California Helps Preserve Affordability of More Than 600 Homes

LOS ANGELES July 12^th, 2023 – California is investing $159.9 million to keep 638 homes affordable for up to 55 more years rather than risk having them convert into market-rate units.

The awards are part of the state’s Portfolio Reinvestment Program managed by the state Department of Housing and Community Development. The program looks to extend affordability agreements by extending loan maturity dates, provide new low-interest long-term loans for rehabilitation of housing, and offer forgivable loans to support short-term operating subsidies.

In the latest funding round, awardees include:

San Francisco County:

• Mission Housing Development Corp. received $12,950,076 to preserve 49 units at Dunleavy Plaza   
• Chinatown Community Development Center received $9,821,259 to preserve 82 units at Clayton Hotel and $9,976,420 to preserve 41 units at St. Claire Residence.

Los Angeles County:

• Abode Communities received $26,248,920 to preserve 144 units at Centennial  
• 5169 Hollywood Boulevard received $11,217,661 to preserve 44 units at Kingswood Apartments 

Santa Cruz County:

• Eden Housing received $12,075,450 to preserve 45 units at Sparks Way Commons in Alameda County. The nonprofit also received $5,719,492 to preserve 21 units at Hope Villa Esperanza.  A third award of $19,421,950 will preserve 76 units at the Vista Verde Apartments  

Kern County:

• Golden Empire Affordable Housing received $2,996,989 to preserve 16 units at Park Real Apartments

Sonoma County:

• Community Support Network received $396,103 to preserve six units at DeTurk.   

San Joaquin County:

• Lutheran Social Services of Northern California received $4,520,577 to aid in the rehabilitation of three projects to preserve 24 units
• The John Stewart Co. received $44,621,770 to preserve 90 units at The Sequoia in Sacramento.

Since 2022, $315.3 million has been awarded to preserve 1,364 affordable homes, ensuring housing for nearly 27,000 people over the life of the developments’ affordability agreements, according to state officials.

WASHINGTON March 22nd, 2023 – The White House budget proposal seeks a major increase to the low-income housing tax credit (LIHTC) program.

The fiscal 2024 plan calls for a $28 billion expansion in LIHTCs over 10 years as well as lowering the 50% bond test to 25%.

Under the Biden administration proposal, each state would receive $4.25 per capita in new potential credits for allocation, with a small state minimum of $4,901,620 in 2024. For 2025, the amounts would increase to $4.88 and $5,632,880. For 2026 and subsequent years, the amounts would be the same as the prior year and indexed for inflation.

The latest budget plan also calls for lowering the bond test, a move that’s been a priority for many LIHTC advocates. Under the budget plan, a building would be eligible to earn LIHTCs on the basis of 25% private-activity bond financing of the building and land. This change from 50% would apply to buildings placed in service in taxable years beginning after Dec. 31, 2023.

In addition, President Joe Biden is proposing to repeal the qualified contract provision from the date of enactment. It also seeks to repeal the “right of first refusal” safe harbor and replace it with a purchase option, saying “LIHTC investors have imposed hurdles to the use of ROFRs that allow LIHTC projects to be too easily converted to market-rate housing.”

The overall $6.8 trillion budget request includes $73.3 billion in discretionary budget authority for the Department of Housing and Urban Development (HUD), a $1.1 billion increase from the 2023 enacted level.

“This budget takes an end-to-end approach in a very complex housing ecosystem, from homelessness to homeownership, from economic development to disaster recovery,” said Adrianne Todman, HUD deputy secretary. “It relies on all of our partnerships across the country to help the people.”

Denise Muha, executive director of the National Leased Housing Association (NLHA), expressed strong support for the budget plan, noting “the administration has recognized the significant housing challenges facing low- and middle-income families and developed a comprehensive proposal that hits all of the high notes. NLHA is particularly excited about efforts to expand access to rental assistance through increasing the supply of housing vouchers and, for the first time in decades, adding to the stock of project-based rental assistance.”

While some observers say the budget faces a challenge in the Republican-controlled House, other pundits disagree.

The U.S. Department of Housing and Urban Development (HUD) announced on 10/9 that Brian Montgomery has been nominated to serve as Deputy Secretary of HUD.

Montgomery, who is also the Assistant Secretary for Housing and Federal Housing Commissioner, would manage the day-to-day operations of the agency and assist the Secretary in leading HUD’s 8,000 employees.

“Once again, I am tremendously honored to be called upon by President Trump and Secretary Carson to serve this Department and the American people,” said Montgomery. “Service to our fellow Americans is the cornerstone of our Department and I look forward to continuing to help fulfill HUD’s critical role.”

A HUD News Release says Montgomery was nominated for these roles in September 2017 and he is the first man to serve as the head of the Federal Housing Administration twice and under three different Administrations.

“Brian brings tremendous experience to our team and has been a strong voice in the effort to reform the Nation’s housing finance system,” said HUD Secretary Dr. Ben Carson. “As Federal Housing Commissioner, Brian made certain FHA remains a stable and reliable resource for first-time and minority homebuyers, and other underserved borrowers while protecting the interests of taxpayers. Brian is a key member of our team and I look forward to having him confirmed as our Deputy Secretary.”

 As Federal Housing Commissioner, Montgomery is responsible for the management of FHA’s more than $1.4 trillion mortgage insurance portfolio. He also heads HUD’s project-based Section 8 rental assistance housing program, the Officer of Housing Counseling, and HUD’s Manufactured Housing Program.

“The Manufactured Housing Institute applauds the nomination of Brian Montgomery for Deputy Secretary of HUD. His leadership and vision during two tours at HUD demonstrates his commitment to solving our nation’s affordable housing supply challenges through solutions that support innovative housing methods,” said Lesli Gooch, Vice President, Government Affairs for the Manufactured Housing Institute.

John Smaby, President of the National Association of Realtors, said Montgomery has demonstrated “consistent support for American consumers,” while capitalizing on the role the FHA plays in addressing affordability and facilitating homeownership in the U.S.

“His vision of modernizing the critical infrastructure of the FHA is essential to successfully serving all Americans with affordable and responsible mortgage financing while protecting both borrowers and taxpayers from avoidable risk,” said David M. Dworkin, President and CEO of National Housing Conference. “He will be a valuable voice within the administration and in the housing community as a whole.”

Montgomery served in the Executive Office of the President as the Assistant Deputy to President Bush and Cabinet Secretary from January 2003 until April 2005. He led the White House’s internal working group to monitor all facets of the Space Shuttle Columbia accident investigation, for which he was awarded the NASA Exceptional Service Medal.

He served as Deputy Assistant to the President and Director of Advance from January 2001 until January 2003.

President Donald J. Trump is Tearing Down Red Tape in Order to Build More Affordable Housing

We’re lifting up forgotten communities, creating exciting new opportunities, and helping every American find their path to the American Dream. President Donald J. Trump

President Donald J. Trump

BREAKING GROUND ON AFFORDABLE HOUSING: President Donald J. Trump is working to eliminate barriers that are holding back affordable housing development.

• President Trump is signing an executive order to establish a White House Council on Eliminating Barriers to Affordable Housing Development.
  • The council will consist of members from across 8 Federal agencies and will be chaired by Secretary of Housing and Urban Development (HUD) Ben Carson.
• This new council will engage with State, local, and tribal leaders to identify and remove obstacles that impede the development of new affordable housing.
• The Council will look at the affect Federal, State, and local regulations are having on the costs of developing affordable housing and the economy.
  • At the President’s direction, the Council will take action to reduce Federal regulatory barriersto affordable housing development.
  • The Council will support State and local efforts to reduce regulatory barriers.
  • The Council will recommend ways to reduce statutory, regulatory, and administrative burdens at all levels of government that hinder affordable housing development.
• Creating this Council will streamline interagency processes and deliver results even faster.

CUTTING EXCESSIVE COSTS TO SPUR CONSTRUCTION: Regulations are creating excessive costs that are holding back the development of needed affordable housing.

• Many of the markets with the most severe shortages in affordable housing have the most restrictive State and local regulatory barriers to development.
• More than 25% of the cost of a new home is the direct result of Federal, State, and local regulations, with the price tag even reaching up to 42% for some new multifamily construction.
• Costly regulations have contributed to a shortage of affordable homes.
  • Census Bureau data shows that from 2010 to 2016, only seven homes were built for every 10 households formed.
• High housing prices are a primary determinant of homelessness, and research has directly linked more stringent housing market regulation to higher homelessness rates

HELPING AMERICANS FIND A HOME: President Trump is building on efforts his Administration has taken to lift up all Americans and make it easier for them to find a home.

• Earlier this year, President Trump signed a memorandum to initiate needed reforms to our housing finance system.
  • President Trump is working to improve Americans’ access to sustainable home mortgages.
  • The Trump Administration is committed to enabling Americans to access Federal housing programs that help them finance the purchase of their first home.
• In 2018, HUD launched a campaign to encourage more landlords to participate in the Housing Voucher Program, the country’s largest rental subsidy program.