STATE HOUSING TRUST FUNDS WHERE ARE WE TODAY Mary E. Brooks Housing Trust Fund Project Center for Community Change 1113 Cougar Court Frazier Park, CA 93225 661-245-0318 mbrooks@communitychange.org www.communitychange.org/ourprojects/htf
Housing Trust Funds Securing dedicated sources of public revenue. Committing that revenue to support critical housing needs. advancing how we fund affordable housing
Today there are nearly 700 housing trust funds
There are 40 states with housing trust funds Housing Trust Funds collect a combined total of nearly $1 billion a year to support affordable housing.
State Housing Trust Fund Advances in 2009 10 Oregon commits document recording fee = $15 million/year. New Jersey passes county homeless legislation with doc recording fees. Wisconsin passes tax increment financing enabling legislation for localities. Arkansas creates state housing trust fund. Louisiana creates housing trust fund revenue source committee. Texas adds $10 million to state housing trust fund. Illinois puts $134 million for housing in capital budget. New York introduces a housing investment fund bill. Maine wins $30 million housing bond. Washington increases document recording fee for homeless funds and adds $34 million to meet affordable housing needs in the state. Maryland passes $2 million housing bond for the state housing trust fund. Massachusetts introduces bill to strengthen Community Preservation Act. Delaware wins a supplemental appropriation of $4.5 million. California releases $16.275 million to match local housing trust funds. Pennsylvania passes new state housing trust fund.
State Housing Trust Fund Annual Revenue Reported for 2010
State Housing Trust Funds and the Economy From our 2009 Survey, between FY2007 and FY2009: Funds increased for twelve state housing trust funds. Funds were relatively stable for another twenty state housing trust funds. Funds decreased for eleven state housing trust funds.
States Commit Public Revenue Sources Real estate transfer tax Florida, Hawaii, Illinois, Iowa, Maine, Nebraska, Nevada, New Jersey, South Carolina, Vermont Interest from escrow accounts Connecticut, Maryland, Minnesota, Washington, Wisconsin Document recording fees Delaware, Illinois, Kentucky, Missouri, Ohio, Oregon, Washington Tobacco tax Indiana Capital budget funds Washington Interest from Unclaimed, Unnamed Property Fund Arizona Bond and fee revenues Kansas, Nevada, New Hampshire
State Enabling Legislation Options: (1) Matching or distributing funds to encourage local housing trust funds: California, Florida, and Iowa. (2) Legislation enabling creation of local housing trust funds with funding option: Indiana, Missouri, New Jersey, Pennsylvania and Wisconsin. (3) Legislation expressly allowing the creation of local housing trust funds: Arizona and South Carolina. (4) Other: Massachusetts and Washington.
Housing is Good for the Economy The Center for Housing Policy has captured research showing that affordable housing development not only provides needed housing, but also drives local economic growth [www.nhc.org] An Indiana study concluded that $20 million invested by the state fund has leveraged more than $90 million in other funds, generated 1,600 new jobs, resulting in $52 million in new wages, and has created nearly $83 million in income for other industries. Colorado documented that an investment of $26.5 million would produce: More than 3,200 new jobs each year. More than $334 million of economic activity each year. Formerly rent-burdened households will have an average of $2,460 of annual income per household to spend. New economic activity will generate more than $26 million of annual tax revenues.
Housing is Good for Communities Education: Higher school-mobility rates affect the entire system and cause the most harm to children whose families have low incomes. Housing instability can have a direct impact on a child s education. Frequent moves can have a negative effect on school achievement. Another rent increase. Another new neighborhood. Another year behind in school. Housing Minnesota www.housingminnesota.org Health: Pest infestation is known to cause asthma. Substandard electrical problems are a danger to children. Lead poisoning leads to a decrease in IQs. Children living in inadequate housing have increased hospitalizations and respiratory infections.
National Housing Trust Fund After years of hard work, challenges, and setbacks, advocates across the country celebrated the creation of a National Housing Trust Fund with passage of the Housing and Economic Recovery Act of 2008. The passage of NHTF legislation is a major victory for working families and individuals, seniors, people with disabilities and others who cannot afford a safe, stable place to call home. This is the first new federal housing production program since the HOME program was created in 1990 and the first new production program specifically targeted to extremely low income households since the Section 8 program was created in 1974.
The National Housing Trust Fund All funds go to States. The Governor is to identify an entity to receive funds from the National Housing Trust Fund. Eligible state designees are: The state housing authority or state housing finance agency. Housing or community development entities. Tribally designated housing entities. Any other qualified state entity. Funds will be allocated by formula. Minimum $3 million.
How NHTF Funds Can Be Spent 90% of the funds must be used for the production, preservation, rehabilitation, or operation of rental housing. Up to 10% can be used for homeownership activities for first time homebuyers. No less than 75% must benefit extremely low income households or households with incomes below the poverty line. HUD has issued draft program regulations and formula regulations. Visit: http://www.hud.gov/offices/cpd/ affordablehousing/programs/home/ htf.cfm
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