Commonwealth Housing Task Force

Transcription

1 Commonwealth Housing Task Force Quarterly Summary of Progress as of Note: in order to reduce the size of these reports, we have condensed the description of regular ongoing activities. For background, please visit and click on Quarterly Updates. The Appendix follows at the end of this quarter s report. During the first Quarter of 2009, the Commonwealth Housing Task Force focused its efforts on: 1. The implementation of Chapter 40R, including outreach to cities and towns to provide information about the program; 2. The call for an increase in state funding for affordability; 3. Responding to urgent issues such as the foreclosure crisis, the collapse of the lowincome housing tax credit market, and the need for economic stimulus and recovery; 4. Strategic planning for new initiatives of the Task Force, including helping to develop strategies to deal with the foreclosure crisis, assuring that the benefits of new construction under 40R and other state programs are available to the widest range of households and businesses, work with the new committee to focus on public housing, work with the Urban Land Institute on a new initiative on workforce housing, and with CHAPA on a new initiative on supportive housing, and work with the Patrick administration on proposed changes to state zoning laws. 5. An expansion in participation in the Task Force itself, including a focus on diversity; and 6. Seeking further financial support for the work of CHTF. Barry Bluestone, Eleanor White, and Ted Carman, working through the (newlyrenamed) Dukakis Center for Urban and Regional Policy at Northeastern University, have carried out the staff work in coordination with active subcommittees and Boston Foundation staff. Implementing Smart Growth Zoning: Increasing Interest from Municipalities and Local Groups Chapters 40R and 40S have now been on the books for two and a half years. The programs have resulted in the passage of Chapter 40R smart growth zoning districts in 26 municipalities with expanding interest in many more. Approved 40R Districts are demonstrating the substantial opportunities for innovative planning built into the program, and as these Districts gain increasing attention, other cities and towns are recognizing the opportunity that 40R provides for both housing and economic development, as well as neighborhood revitalization. The Dukakis Center for Urban and Regional Policy 339 Holmes Hall, Northeastern University Boston, MA

2 Page 2 The current housing market in Massachusetts, like much of the rest of the nation, is stressed, with sales of homes down sharply and prices weakening. In such a market, it is not surprising that new home construction has fallen off dramatically. Nonetheless, communities across Massachusetts continued to explore the adoption of Chapter 40R smart growth zoning districts during this period. As was the original intent of Chapter 40R, these districts and the expedited as-of-right permitting process they offer will make it possible to increase production rapidly once the economy and housing market strengthen, thus providing the opportunity for housing supply to keep up with demand when market conditions warrant. Other states have also taken notice of the results that 40R has produced. Similar overlay Incentive Housing Zones enabling legislation was approved in Connecticut in June 2007, and on December 15, 2008 a Smart Housing Incentives Act bill was filed in the New Jersey legislature with bipartisan support. Commonwealth Housing Task Force staff contributed substantively to both states initiatives, building on the success of 40R in Massachusetts. In Connecticut alone, as of this writing, 48 communities have applied for state grant funding to pursue Incentive Housing Zone districts under the new legislation, and several specific proposals are moving forward locally. Since 2006, in Massachusetts the towns of Belmont, Grafton, Lunenburg, Norwood, North Reading, Plymouth, Dartmouth, Lakeville, Natick, Amesbury, Kingston, Lynnfield, North Andover, Reading, Bridgewater, Easton, Westfield, and the cities of Boston, Brockton, Chelsea, Haverhill, Holyoke, Lawrence, Lowell, Northampton, and Pittsfield have all successfully had Chapter 40R applications approved by DHCD and have passed Chapter 40R districts. Among them, these 26 localities have provided zoning as-of-right for over 9,000 units of housing, at least 20 percent of which will be affordable to households earning less than 80% of the area median income. Within the 40R Districts, more than 1,300 building permits have already been issued. An additional 330 residential units have received Plan Approval from the permit granting authority, but have not yet applied for building permits due to other permitting (MEPA) and market conditions. Many more municipalities are actively exploring 40R. In addition to those having passed districts, three additional localities, Easthampton, Marblehead, and Sharon, are actively seeking 40R Letters of Eligibility from DHCD. These communities represent the potential for more than 500 additional housing units. An additional 8 localities have applied for or received state Priority Development Fund planning grants to pursue 40R zoning, including: Amesbury (a second district), Andover, Chicopee, Fitchburg, Hopedale, Medway, Reading (a second district), and West Newbury. We are aware of interest in Chapter 40R in more than 11 other cities and towns, including: Attleboro, Bolton, Concord, Holden, Nantucket, New Bedford, Northbridge, Somerville, Walpole, Waltham, and Weymouth. Many other cities and towns and local groups have expressed preliminary interest in the program. In addition, we believe that

3 Page 3 many developers both nonprofit and for-profit will be exploring the use of Chapter 40R in partnership with localities once the economy begins to revive. 40R continues to be regularly featured in conferences and seminars for real estate professionals, including sessions sponsored by the Urban Land Institute, the Ford Foundation, the Northeast Association of Realtors, the Massachusetts Association of Planning Directors, the UMass Citizen Planner Training Collaborative, the New England Chapter of the Congress for New Urbanism, the Commonwealth of Massachusetts, the LaWare Forum, Fitchburg State College, and the Real Estate Bar Association. It is also noteworthy that, with only two exceptions, every proposed 40R district that has been brought to a vote has received the required approval of 2/3 of the local governing body. This includes votes in smaller communities such as Lynnfield and Kingston in which 40R bylaws allowing significant growth were approved at Town Meetings with the largest attendance on record. We attribute this to the positive nature of the collaborative local process required to develop the 40R plan and most particularly the local municipality s right to develop their own design standards. It appears that because so much input and cooperation is required locally to develop the district proposal, by the time the question is put to a vote, most stakeholders in the city or town have contributed ideas to the plan and are supportive of the concept. To obtain a better understanding of the factors that lead communities to adopt 40R, Barry Bluestone has been directing the doctoral dissertation of one of his Northeastern University Ph.D. students, Tej Kumar Karki, who is using both statistical evidence and interview data to test various hypotheses about community support or opposition to 40R. Data has been collected on all 26 communities that have adopted 40R and four adjoining non-adopters for each of these, producing a total data set covering 130 communities. Karki is studying such community factors as household income, racial composition, property tax rates, and Prop 2 ½ override activity. In addition, under Bluestone s direction he has carried out dozens of interviews with town managers, developers, and other interested parties. Karki is presently analyzing all of his data and should have a report on his findings by late summer. This research may be helpful in targeting future activity regarding setting priorities in encouraging communities to consider 40R. We also ask that you please let CHTF staff know where you have heard of particular interest in learning more about Chapters 40R and 40S (or where you believe that Chapter 40R would be especially beneficial to a city or town), and we will respond with outreach to those localities. Just send a message to ewhite@housingpartnersinc.com and we will follow up with the locality to offer support as may be needed. It will be helpful if you include the name of a contact person in the city or town with phone number and address, but if you cannot provide that, just send the name of the city or town. The following table prepared by Ted Carman and Angus Jennings compares zoning adoption to date to the projections included in the original Commonwealth

4 Page 4 Housing Task Force report in October 2003, Building on Our Heritage, adjusted forward to account for the time lapse between the adoption of 40R in June 2004 and 40S in November 2005: Year of Program Calendar Year Total Units Projected to be Zoned in 2003 Report Total Units Zoned (Actual for 2006 and 2007 and Projected thereafter) , , 800 6, , plus over 2000 additional units under consideration , 927? , 767? It is important to note that, because more than a dozen of the named cities and towns have not projected potential housing units and are therefore carried as zero in our database, the expected number of zoned units has the potential to increase, perhaps dramatically, in Year 4 and beyond. It is also true, however, that the weakened economy may have an impact on the degree to which communities will focus on this program in the year ahead, and their resources to do so will depend in part on the availability of state planning funds available through the Priority Development Fund grants. We understand that the PDF technical assistance grant funds are exhausted and we will be advocating for additional funding for this purpose. In this time of fiscal stress, these funds often represent the only way that communities can find the resources to plan for smart growth. Please refer to the map below showing the distribution of these localities throughout the Commonwealth. We are particularly gratified that interest is being expressed by cities and towns of all sizes and types. As Smart Growth Zoning is increasingly highlighted at various planning, development and real estate conferences and seminars, and in trade publications, we expect this interest to grow.

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6 Page 6 Our conversations with Regional Planning Agencies and others who regularly provide technical assistance to municipalities indicate that many more of them are now expressing interest in 40R. Unfortunately, we are also aware of a number of localities that, after careful consideration of 40R adoption, decided against pursuing a 40R District because of local leaders concern about the long-term stability of the funding source for 40R and 40S. This issue, which is under discussion in many cities and towns, must be satisfactorily resolved to enable smart growth zoning to realize its promise. We are working with the legislative leaders to assure that a stable funding source is available to support the program s continued success in the future (see discussion below). Implementation of Chapter 40S: the School Cost Insurance Policy, Funding for both Chapters 40R and 40S, and a Proposed Technical Amendment to 40R Previous quarterly reports have described in detail the provisions of Chapter 40S and the efforts to assure a reliable long-term source of funding for both Chapters 40R and 40S. Please refer to and click on Quarterly Updates to review that discussion. The following table outlines the current funding sources and obligations for Chapter 40R. Status of Chapter 40R Payments and Obligations Smart Growth Housing Trust Fund Sources Status as of December 31, 2008 Initial Funds from sale of Surplus State Land 3,349,370 Appropriations - Transfers October, ,000,000 Sales of Surplus Property, ,000 Transfers per appropriations, July, ,000,000 Total Sources 25,427,370 Uses Payments and commitments to Communities 10,411,000 Balance in Fund 15,016,370 The sale of the Somerset Building (located on Beacon Hill) from the Commonwealth of Massachusetts to Suffolk University was completed in early March,

7 Page It is anticipated that the Trust Fund will receive an additional amount of approximately $8,000,000 from the sale proceeds. That will increase the amounts available in the Trust Fund to approximately $23,000,000. As reported previously, identical legislation was filed by Rep. Kevin Honan in the House (House 160) and Senator Harriette Chandler (Senate 132) in previous legislative sessions to provide for a continuing and reliable source of funding of the Smart Growth Housing Trust Fund (please refer to The bills are similar to the legislative proposal included in the CHTF Quarterly Report of They were referred to the Committee on Community Development and Small Business. We are very grateful to Rep. Honan and Sen. Chandler for their strong and effective leadership on this legislative effort. Although the legislative process on these bills was not completed in the last session, passage of these bills would play a major part in instilling confidence in cities and towns about the 40R/S program, and we have been working to continue to pursue them. We have also had discussions with legislative and administration officials about the desirability of a technical amendment to Chapter 40R. In the final stages of passing Chapter 40R, a provision was added to the bill requiring DHCD to recapture incentive payments made to localities if construction had not begun in a 40R Smart Growth Zoning District within 3 years of the initial bonus payment having been received by the locality. This provision runs contrary to one of the fundamental tenets of CHTF s zoning proposal that led to 40R: that the goal is to create land zoned as-of-right for multifamily and single-family housing in smart growth locations, and further, to create an excess of zoned land for these purposes. Construction will then happen when the market responds to that zoning opportunity, which may be within 3 years, or may be much longer. The existing clawback provision has served as a disincentive to the passage of 40R, especially when the market softens, as in the current situation. Further, in the current economic downturn, the lack of construction in a 40R district is rarely the fault of the city or town, and we do not believe that they should be punished for something far beyond their control. We have suggested that deleting this provision would not only remove that disincentive to localities, it would also make the program administratively easier for DHCD. Senator Harriette Chandler has filed a bill in the current session to correct this situation, and we are very grateful to her and her staff. Funding for Affordability The CHTF, under the auspices of the Strategic Planning Committee led by Robert Beal, and in close cooperation with CHAPA, continues to focus on advocacy for significant increases in state funding to support housing affordable to households at 80 percent of median income and below. The CHTF continues to be in contact with legislative staff and the new Administration to underscore our commitment to housing affordability, especially for increases in funding for state public housing, the affordable housing trust fund, and the Massachusetts Rental Voucher Program. We will continue to

8 Page 8 develop recommendations for priority funding initiatives, and will assist where we can be helpful with Op-Ed articles, letters to legislators, and other forms of advocacy. The Commonwealth s budgetary difficulties have dominated much of the legislature s attention on Beacon Hill. There is a projected budget gap of over $4 billion when comparing the FY 09 appropriation to FY 10. The Governor s budget proposal uses a package of cuts, federal stimulus funding, rainy day funding, and targeted tax/fee increases to close the deficit. While spending is minimized across all agencies in the budget, House One prioritizes affordable housing due to the ripple effect that housing instability has on the economy and on people s lives. CHAPA and the CHTF have prioritized the Massachusetts Rental Voucher Program and the Public Housing Operating Subsidy, and have supported the Governor s maintenance funding request of $35.8 million for MRVP and $71.2 million for state-assisted public housing operating subsidy. An appropriation of less than $35.8 million for MRVP will result in families being removed from the program and put at risk of homelessness. Declines in public housing support will take us back to the pattern of underfunding of property maintenance that has resulted in a deteriorated public housing stock and fewer units available for occupancy. The CHTF will reach out to Speaker DeLeo and Ways and Means Chairman Murphy to indicate our support for these programs, and encourage CHTF members to do the same. Bills filed in January for the Session have been referred to committees for consideration. The CHTF is tracking several bills to potentially support, including legislation to promote innovative strategies in public housing filed by Rep. Sanchez and Sen. Chandler ( --see comments about this bill in the section of this report about the Public Housing Committee), legislation to coordinate new supportive housing filed by Rep. Honan and Sen. Jehlen ( and legislation to dedicate energy efficiency funding for improvements in affordable rental housing filed by Rep. Honan and Sen. Tucker ( The latter two bills can be found in Appendices III and IV of this Report. Members interested in supporting or learning more about these proposals should contact Eleanor White at ewhite@housingpartnersinc.com or Sean Caron at scaron@chapa.org. The Executive Office of Administration and Finance also released its tax exempt bond plan in February. The 2009 plan allocates $498.5 million (54% of the 2009 cap) to housing, up $103.5 million from the 2008 plan. Of that, $348.5 million (38% of the cap) is for affordable rental housing, an increase of $53.5 million from the 2008 plan, including $110 million for projects financed by MassDevelopment, $192 million for projects financed by MassHousing, and $46.5 million for state public housing capital improvements. It also allocates $150 million (16% of the cap) for MassHousing

9 Page 9 mortgages for first-time homebuyers and to refinance mortgages for income eligible homeowners. On March 16, 2009, in New Bedford, CHAPA, Congressman Frank, Governor Patrick, in collaboration with a broad-based advisory committee including many CHTF members, announced the formation of a foreclosed properties clearinghouse to facilitate the disposition of REO (Real Estate Owned) properties to non-profits, municipalities, owner-occupants, and responsible private investors. This will be done in coordination with the major lenders and servicers that own and manage foreclosed properties in Massachusetts. The Interagency Council on Housing and Homelessness (ICHH) continues to be interested in knowing of vacant rental units in tax credit buildings where additional subsidies would allow the Department of Transitional Assistance (DTA) to permanently place tenants who are at risk of homelessness. Any CHTF members who know of the availability of units for this purpose are encouraged to contact Eleanor White at ewhite@housingpartnersinc.com. On the federal side of housing, HUD has been very active in the Obama Administration s first few months. The American Recovery and Reinvestment Act included several provisions to fund affordable housing, and HUD has already announced approximately $340 million in formula-based funding for Massachusetts. These funds include capital funds for federally-assisted public housing, homelessness prevention funds, and funds to fill financing gaps in low income housing tax credit projects that received allocations but do not have investors. HUD is anticipated to release additional guidance on these programs in the next several weeks, and has begun to devise a plan for releasing the competitive funds. In support of the argument for increasing housing supply to assure greater housing affordability in the Commonwealth, Barry Bluestone along with his colleagues Mary Huff Stevenson of UMass Boston and Russell Williams of Wheaton College have carried out a new analysis of the impact of housing costs on net domestic migration rates and employment growth. The new study, which covers 347 metro areas across the country, relies on more current data than earlier studies and controls for such factors as metro area crime rates and climate. The results of this research are reported in a paper entitled Are the High Fliers Pricing Themselves out of the Market: The Impact of Housing Cost on Domestic Migration Rates in U.S. Metropolitan Areas prepared for the Urban Affairs Association Meetings held in Chicago in March of this year. The findings from this study are quite remarkable and confirm more than ever the extremely adverse impact of high housing costs on migration and employment growth in the 35 metro areas with the highest housing costs. With the Boston metro area ranked #6 in terms of housing costs nationwide (and #1 in terms of total cost of living), it was not surprising to find that between 2000 and 2006 it suffered a 6 percent net outmigration rate and a 2 percent loss in jobs. Moreover, based on this new analysis, the outmigration occurs after controlling for job opportunity. Essentially, high housing costs discourage job growth

10 Page 10 and both lower job growth and high housing costs discourage in-migration and encourage out-migration. New Legislation on Supportive Housing and Energy Efficiency CHTF staff has been working closely with CHAPA on a piece of legislation, referenced above, that would encourage the close coordination of housing and services at the state level, and assure the allocation of capital funding, service funding and rental assistance in a coordinated fashion for those of very low income and the disabled. Supportive housing is usually defined as subsidized housing which includes a significant component of social services to enhance residents ability to live independently and successfully carry out the responsibilities of tenancy. The bill (House 1222) was filed in January, 2009 by Rep. Kevin Honan and Sen. Pat Jehlen, and is included in this Report as Appendix III. Similarly, included as Appendix IV is legislation to dedicate energy efficiency funding for improvements in affordable rental housing filed by Rep. Honan and Sen. Tucker. We would appreciate receiving your comments and concerns on these pieces of legislation. The recommendation of CHTF staff is that CHTF support these bills, but we will of course await comments from the membership before transmitting any indication of CHTF support. Retooling the Federal Low-Income Housing Tax Credit In addition to the need for subsidy funding for affordability, most affordable housing developments are feasible only with the sale of Federal and State Low-Income Housing Tax Credits to generate equity capital. Although the state credits can be utilized by individual taxpayers through a process known as certificating, as of now the Federal credits are not useful to individuals. In this time of severe economic distress, with many previous corporate investors in credits not enjoying profits to shelter (such as financial institutions, once the primary market for the credits), literally hundreds of affordable housing proposals nationally are unable to close their financing for lack of buyers for the credits. CHTF staff with CHAPA, the Boston Foundation, and many others has carried out detailed discussion with housing experts locally and with the Congressional Financial Services and Ways and Means committees as well as advisors to the incoming Administration, to review suggested amendments to the tax credit statute. We are very pleased to report that the American Recovery and Reinvestment Act (ARRA, sometimes referred to as the Stimulus Bill ), passed by the Congress and signed by President Obama in February, 2009, includes several critical provisions enabling states to exchange a portion of their Federal Low-Income Housing Tax Credits for cash, as well as providing resources in the HOME program as a gap-filling

11 Page 11 resource. Both provisions should play a major role in allowing capital to flow again into affordable housing development projects. This will provide not only new housing, but also major economic stimulus in construction jobs, construction materials, furnishings, and long-term property/asset management jobs. We are grateful to our Congressional delegation and particularly Congressman Barney Frank, Chair of the Financial Services Committee for pushing this legislation and to Governor Patrick for supporting it. We also would like to recognize the thoughtful and concentrated work on the part of UnderSecretary Tina Brooks and her staff in analyzing the effects of the new statute and making extraordinary efforts to assure that as many stuck projects in Massachusetts as possible are able to begin construction soon. Streamlining the Administrative Process for Applying for Chapter 40R Approval We have had discussions with DHCD about ways to make it easier for cities and towns to apply for and receive approval of Chapter 40R districts. MassHousing s Priority Development Fund has provided planning money for localities that do not have sufficient staff capacity to carry out the design of a Chapter 40R district, and that PDF funding has proven to be extremely valuable. However, the amount available for technical assistance has proven to be inadequate for those 40R planning efforts that involve more than one parcel, owner and potential project. To the extent that CHTF has sufficient resources to support this effort, CHTF staff will continue to assist cities and towns pro bono in applying for these technical assistance funds on a first come, first served basis. We have reported previously that at the end of November, 2008, DHCD notified consulting firms of their approval --as a result of a comprehensive Request for Proposals at the state level--as prequalified consultants now on a DHCD list to provide technical assistance to cities and towns for local planning and zoning activities, particularly those for the Gateway Cities Plus program. Once pre-qualified, consultants can be selected by cities and towns for various types of planning activities without the municipality having to go through the lengthy, expensive, and labor-intensive process of preparing and issuing a Request for Qualifications and then completing what is often a lengthy review process. As of now, cities and towns will have access to a wide range of consulting expertise without the expense and time involved in a lengthy RFP process. We are grateful to DHCD staff for the effort they have put into this, and for their responsiveness to recommendations by CHTF and others in this matter. We have asked that DHCD consider utilizing this list for the Chapter 40R planning process as well. Spreading the Word about Chapter 40R Barry Bluestone, Eleanor White, Ted Carman and Angus Jennings continue to implement a plan for outreach to planning officials, local elected officials, affordable housing advocates, realtors and others to assure widespread education about the benefits of Chapter 40R. Please visit the Boston Foundation/CHTF website, and consult previous Quarterly Reports for a detailed description of this ongoing activity.

12 Page 12 We encourage you to regularly visit this website, and we welcome all comments and suggestions for improvement. The website serves as the central repository for documents, status reports and resource material on the Task Force itself, Chapter 40R, Chapter 40S, press coverage, and related matters. CURP staff, led by Barry Bluestone,, is responsible along with Tim Gassert at the Boston Foundation for updating the CHTF website on a regular basis. New Initiatives While the passage and implementation of Chapters 40R and 40S have been significant accomplishments, they were only the first initiatives of CHTF. Much work continues and is being initiated on other fronts. (See also the discussion above about Low-Income Housing Tax Credits.) Foreclosures Members of CHTF have participated in meetings, discussions and forums related to the subprime lending/foreclosure crisis facing the state. On several occasions over the past year, the CHTF staff--working with Cathy Minehan (Former CEO and President of the Boston Federal Reserve Bank) and Bonnie Heudorfer (co-author of previous Greater Boston Housing Report Cards)--hosted meetings at Northeastern University to consider action that could be taken to deal with concentrated foreclosures in low income neighborhoods; these foreclosures are seriously undermining community viability. The focus has been on developing new mortgage instruments to foster liquidity in the market, and new mechanisms to accelerate the movement of foreclosed properties from lenders/servicers into new ownership. Refer to previous Quarterly Reports for a description of the participants. The most important recent development was the completion by Barry Bluestone and his colleagues at the Center for Urban and Regional Policy at Northeastern (now the Dukakis Center) of the Greater Boston Housing Report Card 2007/2008, which was completed and presented in October. This report detailed the Foreclosure Crisis facing Greater Boston and suggested the need for a number of policies to deal with the immediate crisis. We believe that CHTF has added significant value to the discussion, especially with regard to the effect upon neighborhoods and localities when large numbers of homes are foreclosed and vacated at the same time. We stand ready to lend strong support with the Administration and Legislature as programmatic responses are developed. In a related effort, the work of the Foreclosed Properties Task Force convened by CHAPA, ULI and MACDC officially concluded at its meeting in September, CHTF was well-represented on this important working group, whose efforts were focused on returning properties to productive uses post-foreclosure, and whose broad-based membership included representatives from cities and towns across the Commonwealth, as well as representatives of public sector lenders.

13 Page 13 The Foreclosed Properties Task Force made significant progress through its five subcommittees and released a final report on its activities and accomplishments. The report is available on In addition, the Commonwealth submitted its Neighborhood Stabilization Plan to HUD in December, 2008, which outlined how it planned to use an expected $44 million in NSP funds. Since that time, allocations have been made by HUD. In addition to the statewide allocation, funds were made available to selected cities as follows (Source: HUD): MA BOSTON $4,230,191 MA BROCKTON $2,152,979 MA MASSACHUSETTS STATE PROGRAM $43,466,030 MA SPRINGFIELD $2,566,272 MA WORCESTER $2,390,858 TOTAL MASSACHUSETTS $48,689,500 As mentioned earlier in this Report, CHAPA, in collaboration with a broad-based advisory committee, has announced the start-up of a statewide foreclosed properties clearinghouse to facilitate the disposition of REO (Real Estate Owned) properties to nonprofits, municipalities, owner-occupants, and responsible private investors. This will be done in coordination with the major lenders and servicers that own and manage foreclosed properties in Massachusetts. The Expanding Opportunities Committee This committee, meeting since July of 2006, was formed to explore possible diversity initiatives, both to increase participation in CHTF by people of color and other underrepresented groups, and to assure that programs supported by CHTF will have a positive effect on social justice and equity issues. The committee is implementing an action agenda to enhance inclusiveness in housing and cities and towns throughout the state. In connection with this diversity initiative, please extend an invitation to colleagues you may know who would be interested in joining the Task Force. They can join the CHTF by sending their contact information to Eleanor White at ewhite@housingpartnersinc.com. Since the inception of the committee, we have been very pleased to have received memberships in CHTF from more than 75 people of color and from underrepresented professions. Please refer to the website, and review previous Quarterly Reports for a general description of this committee. As reported previously, a letter was sent by CHTF to then-secretary O Connell and UnderSecretary Brooks of DHCD with initial recommendations for a system to track

14 Page 14 available housing units and make that information readily available to the public. Much work has gone into this project, and we are delighted that CHAPA has now expanded its Mass Access Housing Registry website ( ) to include all affordable rental housing units throughout the state. In addition, DHCD Fair Housing regulations issued earlier this year require that state-assisted housing, both rental and homeownership, be listed on several publicly available registries. The committee also partnered with DHCD to develop a list of a broad range of resources available in Massachusetts to help individuals seeking housing and communities seeking to promote housing access. The list, which focuses on fair and affordable housing resources, was included in the Appendix to the CHTF Quarterly Report for December 31, 2008 and is also now available on DHCD s website at The committee will continue working with DHCD to promote and improve this resource. Many thanks to Margaux LeClair and Deb Goddard of DHCD for working with us to prepare this listing. We believe this will prove to be a critically-important resource for the citizens of Massachusetts. And the committee has developed an exciting program to assist municipalities that are interested in exploring ways to be welcoming of populations that historically have faced discrimination. We are grateful to Ron Marlow, Assistant Secretary for Access and Opportunity of the MA Executive Office of Administration and Finance for working with us on this initiative. The Committee is hosting a Welcoming Communities Forum on Thursday, April 30, 2009 at Boston Private Bank, 10 P.O. Square in Boston from 8:30-11AM. A copy of the event flyer is included in Appendix I to this report. It will examine ways that cities and towns can be welcoming toward households of color, those of low-income, and those including members with disabilities. The flyer includes instructions for registering for this event, but space is very limited, and we will not be able to accommodate walk-ins. The Committee expects that this event may be over-subscribed; if so, they will plan a repeat event in the near future. We want to thank the Co-Sponsors of the forum for their leadership on this topic: Commonwealth Compact, Greater Boston Chamber of Commerce, Greater Boston Real Estate Board, Massachusetts Association of Realtors, and the Massachusetts Municipal Association. In addition, we are very grateful to the Supporting Partners, all of whom have shown a commitment to diversity and equity: Beacon Communities, LLC, Citizens Housing and Planning Association, Connolly and Partners, LLC, Community Economic Development Assistance Corporation, Massachusetts Association of Community Development Corporations, Massachusetts Chapter National Association of Housing and Redevelopment Officials, Massachusetts Department of Housing and Community Development, Massachusetts Executive Office of Administration & Finance/Office of Access & Opportunity, Massachusetts Housing Investment Corporation, Massachusetts Housing Partnership, MassHousing, Metropolitan Area Planning Council, The Boston Foundation, The Winn Companies, and the Urban Land Institute.

15 Page 15 Finally, the committee has begun work to develop a system by which companies involved in construction in 40R districts and other state supported development can be recognized for diversity in their selection of subcontractors and supportive services. The subcommittee responsible for this project is researching the components that would support this recognition program. More details will follow as they are developed. All are welcome to join this committee; please send your contact information to both Barbara McDonald, committee member, at bmcdcard@aol.com and Maura Fogarty at the Boston Foundation, at Maura.Fogarty@tbf.org. Only those who have signed up for this committee will receive notices of future meetings. Comments about the agenda for the EO Committee should be addressed to Sarah Lamitie and Jacqueline Cooper, who are serving as co-chairs of the Committee. They can be reached at slamitie@bostonprivatebank.com (Sarah) and cooperjl@gis.net (Jackie) respectively. Thanks to both Jackie and Sarah for their leadership of this effort, and to Boston Private Bank for providing the venue for the Welcoming Communities Forum, as well as the regular meeting space for this committee. Review of Proposed Statutory Housing Covenants for Affordable Homeownership This past winter, the Real Estate Bar Association (REBA) asked CHTF to review a set of proposed standard and consistent statutory housing covenants to be applied to affordable homeownership units. REBA requested the support of CHTF prior to filing legislation in the new legislative session. The proposed provisions were circulated to the entire membership of CHTF in early December, 2008 for comment. The package that was circulated to the membership was attached in the Appendix to the last Quarterly Report. We have received only supportive comments on this proposed legislation and have advised the proponents that they have the support of the Commonwealth Housing Task Force. We would like to express our appreciation to those who took the time to review and comment on this proposal. The Newest CHTF Committee: Public Housing CHTF has lent strong advocacy support to the effort to significantly increase funding for state-assisted public housing development and management over the last year. Current levels of funding are higher than at any point in almost 20 years. Further, public housing programs represent the most efficient and effective means of providing housing for those at 50 percent of area median income and below, and include traditional public housing as well as demand-side voucher programs and major redevelopment efforts. This committee will be identifying programs and legislation that could benefit from CHTF support and will bring new program initiatives forward to CHTF. As previously reported, Charles Eisenberg, an affordable housing consultant with extensive experience with public housing, and Leslie Bos, Director of the DHCD Mixed- Finance Program of public housing, are the co-chairs of this newest CHTF committee.

16 Page 16 The new committee already has an experienced and engaged membership. As with all CHTF committees, membership is open to all. Charles and Leslie anticipate that meetings will be held at least quarterly (or more frequently at the request of the members), with and phone contact between meetings. We particularly invite local public housing authority staff and board members, and members of community-based nonprofit organizations, to consider participating in this committee. The first meeting of the Public Housing Committee was held on September 24, In attendance was a diverse group representing public housing authorities, public and private sector lenders, private developers, nonprofit developers, and affordable housing consultants. After introductions and a discussion about the general charge for the committee led by Co-Chair Charles Eisenberg, comments from CHTF Co-Chair Eleanor White and an update on DHCD issues from Co-Chair Leslie Bos, the Committee had a discussion concerning what subjects should receive initial attention. The following five areas were chosen: 1. How to maintain and increase the public housing operating budget subsidy and bond cap for capital improvements (both fiscal 2009 and 2010) in the current economic climate. 2. How to use the state s mixed-finance program and other HUD programs to revitalize the State-funded public housing stock, as well as increase affordable units on housing authority property without privatization. 3. Ways that housing authorities can become more efficient and effective asset managers, including an examination of opportunities for collaboration, pooling resources and other economies of scale. 4. Creative ways for private developers to partner with housing authorities, with particular attention to passing the Public Housing Innovations Bill. 5. Ways to make the public procurement process less expensive and timeconsuming for public housing, including a potential identification of potential pilot projects, etc. The second meeting of the committee was held on November 19, 2008, and we were very pleased to welcome Jim Coyle of the Boston Building Trades Council to help us think through the complexities of the filed sub-bid process. All of those present underscored the degree to which there was support for the continued requirement of the payment of Prevailing Wages on publicly-funded projects. In view of the importance of this subject to getting the most housing built for the amount of public funding available and putting as many construction workers to work as possible--the committee held its subsequent meetings on December 19, 2008 and January 27 and March 18, 2009, and

17 Page 17 membership continues to grow. A detailed description of the current committee discussions was included in the last Quarterly Report. The operating subsidy for State public housing projects currently is $66.5million. To date, recent budget cuts have not impacted this account, and we appreciate the hard work of DHCD and the Governor to protect these accounts. Meanwhile, numerous studies have indicated that the operating subsidy really needs to be $110-$115 million just to match the Federal levels. CHTF will continue to advocate vigorously for increases in this account. On the capital budget side, the Governor s list of projects for the Federal stimulus package included state public housing capital improvement projects worth $660 to $700 million. There was a general consensus on Committee that this list should be expanded to include housing authority mixed-finance projects which are unable to secure tax credit financing due to the current financial crisis, but are otherwise ready to begin construction/rehabilitation. Unfortunately, after the passage of the Federal ARRA statute, the state learned that the Federal funds cannot be used for state-funded public housing. The Patrick administration is working with the Massachusetts Congressional delegation to see if they can get relief from that restriction. Finally, the Committee requested that the Commonwealth Housing Task Force support the Public Housing Innovations Bill. This bill is intended to give more flexibility to Housing Authorities in the way they use the funds made available to them and in how they administer and manage their portfolios. It is conceived as a Pilot program for ten authorities and mirrors many of the changes in the Federal Moving to Work program. A fact sheet summarizing the provisions of the bill is included in Appendix II to this Report. As a result of the discussion at the December meeting, CHTF Co-Chair Eleanor White transmitted to the entire CHTF membership a summary of the bill, which has the support of Citizens Housing and Planning Association (CHAPA) and the Massachusetts chapter of the National Association of Housing and Renewal Officials (NAHRO), and the bill has the qualified support (subject to further review of specific provisions) by the Mass. Union of Public Housing Tenants. We have received only supportive comments from the membership, and will advise the Public Housing Committee and the proponents that this bill has the support of CHTF. The next meeting of the Public Housing Committee is scheduled for May 1, 2009 at 10AM in the Mass. Housing Partnership (MHP) boardroom,160 Federal Street (2 nd Floor) in Boston,. All are welcome to participate. CHTF members interested in signing up for this committee can reach Charles Eisenberg at or ceisenberg@comcast.net, and Leslie Bos at

18 Page 18 or Many thanks to MHP for providing the meeting space for this committee. Work with the Urban Land Institute on Workforce Housing Development Eleanor White has been representing CHTF in a series of meetings with the local chapter of the Urban Land Institute. The Boston District Council of ULI has requested funding from the ULI Terwilliger Center to support ULI Boston's leadership in creating a coalition for a regional workforce housing development partnership. The partnership would facilitate the development of a minimum of 1,500 units of housing over 5 years in Greater Boston for households at incomes ranging primarily from 60% to 120% of the area median income (AMI). The target population for the housing consists of teachers, nurses, municipal workers, and various professionals in the medical, educational and services sectors, prominent suppliers of jobs in Massachusetts. Phase 1 of the Boston ULI program would establish the locations and economic models for the developments and select an administrative model to coordinate the development among existing for-profit and non-profit developers, and Phase 2 of the program would initiate the implementation. The projects would include new construction as well as conversions of former industrial and municipal buildings and would range in size from 15 to 375 units. The initial partners with ULI are expected to be the Mass. Association of CDCs (MACDC), Metropolitan Boston Housing Partnership (MBHP), Metropolitan Area Planning Council (MAPC), and the Commonwealth Housing Task Force (CHTF), along with several municipalities in greater Boston along the Massachusetts Bay Transit Authority (MBTA) corridors. The initial focus will be on communities with approved Chapter 40R districts, although the initiative would not be limited to those areas. CHTF is pleased to be part of this effort, which includes a forum to be held on April 7 at 4PM at the Federal Reserve Bank in Boston: Rescuing the Housing Industry: HERA, TARP and the Stimulus Bill The very distinguished panel will include Nic Retsinas from the Joint Center for Housing Studies at Harvard and MIT, UnderSecretary Tina Brooks from DHCD, David Smith from Recap Advisors, and Marty Jones of Corcoran, Jennison. You must register in advance at and bring a picture ID to the event. Members of the Task Force and others are also encouraged to forward ideas for other housing initiatives where the demonstrated effectiveness of CHTF may make a difference. We have been approached by various groups interested in transportation, energy, zoning and permitting issues, as well as the spectrum of affordability concerns, and will be reviewing the degree to which we can move into new areas. Participation in the foreclosure issue, the new public housing committee, discussions about legislation

19 Page 19 expanding supportive housing and services, and our work with ULI are examples of response to such requests. Working with the State Administration Many members of CHTF have provided advice and guidance (both formally and informally) to the staff of Governor Deval Patrick. We have been encouraged by Governor Patrick s support of both 40R and 40S and the smart growth and affordable housing concepts underlying these initiatives, as well as his demonstrated support for increased funding for affordability, and his statements in support of retaining Chapter 40B. We want to congratulate Greg Bialecki on assuming the position of Secretary of Housing and Economic Development, and want to thank outgoing Secretary Dan O Connell for his steadfast commitment, energy, and unfailing good will over the last two years. We will miss Dan. Many of us have had the pleasure of working with Greg on the Zoning Reform Task Force, which he chaired as UnderSecretary for Housing and Economic Development, and continues to chair as Secretary; that Task Force is conducting a comprehensive examination of the state s zoning statutes. We look forward to working with Greg in his new capacity. He has also demonstrated that he is a good friend to housing and community development. As we reported previously, Governor Patrick has appointed CHTF Co-Chair Eleanor White as Chair of the Massachusetts Housing Finance Agency (MassHousing) Multifamily Advisory Committee to assist that important quasi-public affordable housing lender in its wide-ranging activities to increase the supply and quality of mixed-income housing in the state. In March, 2009, the Massachusetts Legislature passed a request by the Governor to carry out an Article 87 reorganization, which has the effect of shifting responsibility for the operation and oversight of shelters for the homeless from the Department of Transitional Assistance in the Executive Office of Health and Human Services to the Department of Housing and Community Development (DHCD) within the Executive Office of Housing and Economic Development. This is a significant added responsibility to the portfolio of DHCD, and CHTF stands ready to assist in any way possible. As covered in detail elsewhere in this report, we have also been working closely with staff of DHCD on initiatives relating to foreclosures, public housing, the American Recovery and Reinvestment Act, and fair housing. Expansion of the Task Force and the Search for Resources We have been gratified again this Quarter with requests from many new people to participate in the Task Force, especially those interested in diversity initiatives and public