HousingMinnesota Bulletin - Volume 4, Issue 2 1-27-05

[HousingMN Communications]

HousingMinnesota

Homes for All by 2012!

 

The Bulletin
January 27, 2005
Volume 4, Issue 2

Distributed bi-weekly, this bulletin contains news, announcements,
legislative updates, publications and upcoming events. We hope you'll
find it helpful in keeping you abreast of important developments. Don't
hesitate to contact us with items to include in future issues.  The
Bulletin is also available on MHP's website at
http://www.mhponline.org/Bulletin/Bulletin.htm.         

* * * * * * * * * * * * * * * * * * * * * * * * * * * * *
News/Announcements


>From the Capitol:  Pawlenty Budget Sends Mixed Signals on Housing In
2004 Minnesota Housing Finance Agency unveiled the administration's five
strategic goals to meet Minnesota's housing needs.  They included: 1)
ending long-term homelessness, 2) increase homeownership for underserved
populations, 3) preserve existing affordable housing, 4) increase
housing choices for low- and moderate-income workers to support economic
vitality, and 5) MHFA should be viewed as a housing resource of choice.
While these strategic goals hold out the promise of real progress on
each of these fronts under the Pawlenty administration, Pawlenty's
budget undermines his own stated objectives in some of these areas and
sends mixed signals on his commitment to meet Minnesotans' housing
needs.  Pawlenty demonstrates his commitment to securing a good funding
start for the state plan to end long-term homelessness, but it is
unfortunate that he does this by undermining other crucial areas of the
housing continuum.


 

Pawlenty cuts and redirects significant resources from MHFA's base
budget.  The overall cut to MHFA is 19.5 percent for a total of $15
million in cuts.  $10 million of the cut is redirected from the
Challenge program to Department of Human Services to help fund
supportive housing services as part of the administration's plan to end
long-term homelessness.  Additionally, $4 million is redirected from the
cuts listed below to the Housing Trust Fund and is earmarked for the
efforts to end long-term homelessness.  Cuts to MHFA housing programs
include:

 

*	Economic Development and Housing Challenge Fund-cut by $13
million (60 percent)  This program funds the construction and rehab of
rental and homeownership opportunities for low- and moderate-income
workers.  The annual median household income of people served by the
Challenge fund is $28,974.  At current funding levels, there are 5
requests for funding for every project that gets funded.  

*	Affordable Rental Assistance Program for Preservation
(PARIF)-cut by $1.5 million (8 percent)  This program is critical in the
movement to preserve existing affordable rental housing that is at risk
of being lost as a resource to the state and the thousands of very
low-income and elderly households that live in the units.  The annual
median household income of people served by the PARIF program is $8,320.
As many as 150 affordable units could be lost if this cut is passed. 

 

*	Rehabilitation Loan Program-cut by $2.6 million (33 percent)
The Rehab Loan program provides deferred loans for low-income households
to make needed repairs on their homes.  The annual median household
income of people served by this program is $11,592.  The agency
estimates that 132 fewer households will access these important loans
that help keep people in their homes and assists with the preservation
of existing housing stock. 

 

*	Housing Assistance Fund-cut by $1.7 million (100 percent cut for
the 06-07 biennium which continues a zeroing out of this program that
occurred for the 04-05 biennium)  The HAF program helps first time
homebuyers with downpayment assistance and entry costs.  This program is
a primary resource for the agency's efforts to increase homeownership in
underserved communities.  The annual median household income for the HAF
program is $30,996.  The agency estimates that with this cut 327 fewer
families will be helped into homeownership. 

*	Nonprofit Capacity Building Program-cut by $110,000 (18 percent)
This program provides important support, training resources and funding
for networking across the state among affordable housing nonprofits.
Nonprofits facilitate a lion's share of the affordable housing
development and rehab across the state.  This significant cut will
undermine the important infrastructure necessary to make progress toward
Minnesota's affordable housing goals.


*         Renter's Credit-Cut by $30.8 million in 07 and beyond.
Advocates had been informed months ago that the Department of Revenue
was considering a cut to the renter's credit.  The Governor's budget
does include a significant cut to the credit totaling $30.8 million in
the second year of the biennium.  The cut is accomplished by changing
the percentage on which the credit is based.  Under current law, it is
assumed that 19 percent of a typical tenant's rent goes toward property
taxes and is used as a theoretical basis for calculating the credit.
Pawlenty would reduce the percentage to 16 percent in 2007 and to 15
percent in 2008 and beyond for a further reduction in the years beyond
the 06-07 biennium.  This means that for the out years there would
likely be more than a $60 million reduction to credits paid out to
low-income renters for the 08-09 biennium.


 

Full information on Governor Pawlenty's 06-07 budget may be found at the
Department of Finance web site at:  http://www.finance.state.mn.us/. 

 

(Rachel Callanan, Minnesota Coalition for the Homeless policy advocate
and former HousingMinnesota policy director, will contribute bi-weekly
updates from the Capitol.  She may be reached at
callanan at mnhomelesscoalition.org.)

 


Significant Cuts and Shifts in HUD Programs Planned On January 14, a
<http://www.washingtonpost.com/> Washington Post article by Jonathan
Weisman, titled "Bush Plans Sharp Cuts in HUD Community Efforts"
reported the Bush administration's plans to disburse HUD community
development programs to other federal agencies. Key pieces of the
proposal include:


*	The Community Development Block Grant Program (CDBG) is facing
as much as a 50% budget cut.
*	CDBG, Brownfields Economic Development and Empowerment
Zones/Renewal Communities Programs would be moved to the Depaprtment of
Commerce.
*	Youthbuild USA, a program that teaches teens construction
skills, would be moved to the Labor Department.
*	The Rural Housing & Economic Development program would likely be
eliminated.
*	$260 million earmarked by lawmakers for economic development
projects would be eliminated.

The President's FY2006 budget proposal will officially be sent to
Congress on February 7. (Minneapolis Consortium for Community Developers
Housing Update 1/20/05)

 


Mayors Kelly and Rybak Sign Covenant to End Chronic Homelessness At the
winter meeting of the U.S. Conference of Mayors, 39 Mayors from across
the U.S., including St. Paul Mayor Randy Kelly and Minneapolis Mayor
R.T. Rybak, joined in signing a covenant of partnership to end chronic
homelessness, in conjunction with the United States Interagency Council
on Homelessness.  "As a group of cities varying in size and geography we
will explore and implement strategies that will create a visible,
measurable, and quantifiable reduction of chronic homelessness on our
streets and in our shelters with the intent of ending this national
disgrace," the covenant stated.   For more information on the Covenant
of Partnership, go to:
<http://www.ich.gov/newsletter/archive/01-21-05_e-newsletter.htm>
http://www.ich.gov/newsletter/archive/01-21-05_e-newsletter.htm
(Alliance to End Homelessness Newsletter 1/24/05)


 


Housing Assistance Council Announces New Green Fund With support from
the Home Depot Foundation, HAC has created the HAC/Home Depot Foundation
Green Fund, a competitive grants program that will make awards of
$10,000 to $20,000 to local rural housing nonprofits to support green
building/healthy homes techniques and practices in their housing
development activities. Applications are available at
http://www.ruralhome.org <http://www.ruralhome.org/>  and are due March
15, 2005. For more information, contact Carolyn Branton, HAC,
404-892-4824,  <mailto:carolyn at ruralhome.org> carolyn at ruralhome.org.
(Housing Assistance Council News 1/26/05)


 


Greater Minnesota Housing Fund Announces 2005 Acquisition Cost Limits To
promote lower building costs and to encourage local participation in
projects, the Greater Minnesota Housing Fund (GMHF) has developed an
acquisition cost limit (ACL) for single-family homes receiving GMHF
interim and/or homebuyer gap financing. To allow larger families with
children adequate living space, GMHF allows a higher ACL to finish more
space for those families. In addition to the standard ACL, a "high cost"
limit has been created to provide greater flexibility in areas with
rapidly rising development costs.   For a copy of the limits, go to:
http://www.gmhf.com/Home/policies_and_forms/2005-ACL-Limits.pdf. 

 

Minnesota Awarded $22 Million in HUD Continuum of Care and Emergency
Shelter Grants The competitive programs provide funding for transitional
and permanent housing and supportive services.  The Emergency Shelter
Grant provides homeless prevention and emergency assistance. For a list
of the recipients go to:
http://www.hud.gov/offices/cpd/homeless/budget/2004/mn/totals.xls. 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Reading

Foster Youth: HHS Actions Could Improve Coordination of Services and
Monitoring of States' Independent Living Programs The report surveyed
independent living coordinators in all 50 states and the District of
Columbia on the development and implementation of their fiscal year 2003
Chafee Independent Living Programs for youth in foster care.  According
to the Government Accountability Office report, youth stated that
locating safe and stable housing after leaving foster care was one of
their primary concerns.  Forty-six states reported using Chafee funds to
offer a range of housing supports including rent assistance, group
housing, supervised apartment sites and unsupervised apartment sites
with case manager visits.  Less than half of states reported using HUD
or state housing authority resources for former foster youth.  State
officials consistently reported difficulties meeting the housing needs
of youth because of a lack of employment history, lack of or poor credit
history, no co-signer, lack of rental housing in rural areas, lack of
available affordable housing or insufficient housing subsidies. For the
complete report go to  <http://www.gao.gov/new.items/d0525.pdf>
http://www.gao.gov/new.items/d0525.pdf. 

 

Report of the Re-Entry Policy Council The report states that the
shortage of affordable rental housing, including housing with supportive
services, is a serious problem for released prisoners. Recommendations
include partnerships between corrections officials and community
organizations to provide information to inmates, and increasing the
rental housing supply in low-income communities. For a copy of the
report go to: http://www.reentrypolicy.org
<http://www.reentrypolicy.org/> . (Housing Assistance Council News
1/26/05)

 

Rethinking Rental Housing:  Expanding the Ability of Rental Housing to
Serve as a Pathway to Economic and Social Opportunity  A paper from
Harvard University's Joint Center for Housing Studies concludes that
homeownership may be a good choice for many but not necessarily the best
for all, and recommends policy changes. For a copy of the report go to
http://www.jchs.harvard.edu/publications/markets/w04-11.pdf  (Housing
Assistance Council News 1/26/05)

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * 
Upcoming Events



January 27- March 27

Home Sweet Home Again: A Visual Art Presentation Focusing on Affordable
Housing Shortages, 6:30pm Opening Reception. Intermedia Arts, 2822
Lyndale Ave. S, Minneapolis. To raise awareness and consciousness
regarding affordable housing, Intermedia Arts and the Family Housing
Fund are partnering to present Home Sweet Home Again. This exhibition
stems from the successful 2000 Home Sweet Home exhibit. Home Sweet Home
Again includes more than 75 pieces of visual artwork and 28 poems by
local artists and poets on homelessness, affordable housing and the
meaning of home.  For more information about Home Sweet Home Again or
the Family Housing Fund, please contact Shawna Nelsen Tobechukwu at
612-375-9644, ext. 13 or by e-mail at shawna at fhfund.org.

 

January 30

Living Regionally:  Linking Housing, Transit, and Jobs, 3:00pm
Registration and previous training review, 3:30pm Workshop. Plymouth
Congregational Church, 1900 Nicollet Ave. & Franklin, Minneapolis.  Join
the Metropolitan Interfaith Council on Affordable Housing (MICAH) as
they continue to investigate the impact of racism on our region, our
communities and ourselves.  Information on transit, housing and the
political environment will be discussed.  Please RSVP to Jodi Nelson at
612-871-8980 x102 or jodi at micah.org.  For more information visit
www.micah.org <http://www.micah.org/> . 

 


January 31 & February 7


Affordable housing on The Mary Hanson Show Viewers in the 7-county area
can tune in at 9 p.m. to Channel 6, the Metro Cable Network (MCN),
January 31 and February 7 to learn more about affordable housing in our
community.  Part I aired January 24.  Congregations Building Community
(CBC), a coalition of 15 downtown Minneapolis congregations, partnered
with Twin Cities Habitat for Humanity to address this problem.  They
will be featured on the show as well as Stephen Seidel, Director of
Urban Programs, Habitat for Humanity International and HousingMinnesota
Steering Committee Chair.

*	January 31:  Affordable Housing, Part II -- Guests are Stephen
Seidel, Director of Urban Programs, Habitat for Humanity International;
and Marion Etzwiler, Co-chair, CBC. 
*	February 7:  Affordable Housing, Part III -- Guests are Reverend
Al Gallmon, Fellowship Missionary Baptist Church; Don Samuels,
Minneapolis City Councilman, Ward 3; and Douglas Mitchell, Associate
Pastor, Westminster Presbyterian Church.

The series will also be aired 8 p.m. on Channel 17, Minneapolis (MTN),
and 6:30 p.m. on Channel 15, St. Paul (SPNN), February 2 and 9.

 


February 8


St. Paul Housing Campaign Community Meeting,  7-9pm, Hallie Q. Brown/MLK
Center, 270 North Kent Street, St. Paul.  Join the St. Paul Housing
campaign to learn about current St. Paul housing needs and the future of
Housing 5000. The panel of speakers, including a housing advocate from
the St. Paul Housing Campaign, Susan Kimberly, Director of the
Department of Planning and Economic Development, and Kathy Lantry, Chair
of the St. Paul City Council, will share their perspectives on housing
in 2005. The St. Paul Housing Campaign members are deeply concerned
about the need for adequate housing for people of all income levels in
St. Paul. This event is free and open to the public. For more
information, contact Alyse Erman at alyse at jewishcommunityaction.org. 

 

March 10

Lobby Day at the State Capitol 9:30 a.m.-3 p.m., State Capitol. Our
annual Rally and Lobby Day at the State Capitol is your chance to meet
individually with your representatives, and to join together
collectively in the rotunda to tell Minnesota that you support Homes for
All! Please register online at http://www.housingminnesota.org/lobbyday
<http://www.housingminnesota.org/event_registration.cfm?EventID=58> .
For more information contact Tom Goldstein at (651) 649-1710 ext. 106 or
tgoldstein at mhponline.org.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

Looking for something from the last Bulletin?  

Archived issues are available online at:
http://www.mhponline.org/Bulletin/Bulletin.htm 

For more information on affordable housing, the content of this
document, or if you have news or events to include in future issues,
contact Joanna Dornfeld at  (651) 649-1710 ext. 108, email
jdornfeld at mhponline.org or see HousingMinnesota's website at
www.housingminnesota.org <http://www.housingminnesota.org/> .

-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://mapnp.Geeks.ORG/pipermail/mhp-bulletin/attachments/20050127/e056f5a2/attachment.html