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HOUSING BOND BILL MAKES PROGRESS

CEDAC’s project staff parlays its extensive knowledge of real estate development and financing gathered over our 40 year history to help the Commonwealth of Massachusetts address the housing needs of its most vulnerable populations. The state legislature is currently considering a $1.7 billion Housing Bond Bill that will help the Commonwealth maintain its commitment to these communities. The last such legislation was passed nearly five years ago, and because of it, we have been able to produce more supportive housing units and upgrade child care facilities across Massachusetts.

On February 13th, I had the opportunity to testify in front of the Senate Committee on Bonding, Capital Expenditures and State Assets to discuss the bond bill. The committee chairman, John Keenan of Quincy, expressed strong support for affordable housing development programs, especially those serving elderly and disabled persons. Secretary of Housing and Economic Development Jay Ash and Undersecretary Chrystal Kornegay, in her final public appearance prior to her starting her new job as the Executive Director of MassHousing, also testified on the critical importance of this bond bill in carrying out the priorities established in the Baker-Polito Administration’s five year capital plan.  This capital plan provided an 18% increase in capital funding for affordable housing production and preservation programs.

I focused my testimony on the capital programs that the Department of Housing and Community Development (DHCD) uses to create supportive housing, all of which are included in this Housing Bond Bill, and which allow those requiring supportive services to live independently in community based settings. Those capital programs are the Housing Innovations Fund (HIF), the Facilities Consolidation Fund (FCF), and the Community Based Housing (CBH) program. In addition, CEDAC also manages the Home Modification Loan Program (HMLP) in collaboration with the Massachusetts Rehabilitation Commission and DHCD and the Early Education and Out of School Time (EEOST) Capital Fund in collaboration with our affiliate, Children’s Investment Fund and the Massachusetts Department of Early Education and Care (EEC).

HIF, the oldest of these capital programs, was established in 1987. Over the past thirty years, DHCD and CEDAC have committed $257 million to produce 13,643 units through the HIF program, to meet the housing needs of homeless families and individuals, victims of domestic violence, individuals living with HIV/ AIDS, elders, disabled veterans, and single working adults. Since the passage of the last Housing Bond Bill, we have created 1,352 units using HIF resources.

In the early 1990’s, the Commonwealth initiated the Facilities Consolidation Initiative, which closed institutional facilities and hospitals serving clients of the Departments of Mental Health (DMH) and Developmental Services (DDS) to provide more humane care. FCF provides for the development of a network of community-based residential facilities to house clients of these two agencies. Since 1993, DHCD and CEDAC have financed 2,461 units with $143.8 million of FCF funding, and since 2014, we have produced 318 units. Ninety percent of these units serve extremely-low and very low-income residents of Massachusetts.

The newest of the three capital bond-funded loan programs CEDAC manages is the Community-Based Housing (CBH) program. CBH is designed to provide integrated housing opportunities for elderly or disabled residents of the Commonwealth who are not clients of DMH or DDS, and face institutionalization. In total DHCD and CEDAC have allocated $50.7 million to produce 354 fully accessible units for disabled persons, 289 of which were built in the past four years.

The bond bill will also reauthorize funding for the Home Modification Loan Program and the Early Education and Out of School Time Capital Fund. HMLP provides low- or no-interest loans to qualified homeowners seeking to make access modifications to their homes, such as ramps, lifts, widened doorways, bathroom and kitchen modifications. HMLP has provided 2,742 total loans (565 of which were to elders) in the amount of $62.7 million since the beginning of the program. Since 2014, we have provided $18 million in 791 HMLP loans to help families with disabled family members take care of their loved ones in their homes. EEOST is a new program authorized in the 2013 bond legislation that offers grants to non-profits building new or renovated early education or out of school time facilities. To date, $15.2 million in EEOST funding has supported 21 child care facility projects throughout Massachusetts.

It is also worth noting that the proposed bond bill extends the state housing tax credit program through 2025 at an annual level of $20 million.  There is also a proposal to increase the annual amount of that program to $25 million, with the additional $5 million targeted to affordable housing preservation.  Given the reduced impact of the federal tax credit due to the tax reform recently passed at the federal level, this state tax credit is more important than ever as a way to produce and preserve affordable housing.

The recent public hearing was a good opportunity to highlight why Massachusetts remains a national leader in affordable housing production and preservation and community development. Based on a question from Chairman Keenan, I had the chance to discuss the important role that CEDAC’s expiring use database plays in preserving affordable housing units in Massachusetts. The database has been in existence for more than 30 years and in the past few years, has formed the basis of the Commonwealth’s “early warning” system for affordable units that are at risk of being converted to market housing.

Additionally, we heard a moving story from Steve Farrell of Metro Housing/Boston regarding the importance of HMLP. Metro Housing is one of the six regional non-profit provider agencies who work directly with loan applicants. Farrell told a moving story about an 8 year old boy named Ivan, who is disabled and whose family benefitted from the Home Modification Loan Program. Unable to walk or talk, Ivan is also blind. According to Farrell, Ivan’s parents built a wheelchair ramp, an accessible bedroom and a bathroom that can accommodate Ivan’s wheelchair through a low interest loan from HMLP. These modifications are allowing Ivan to live at home with his family. Ivan and his family are a clear demonstration of how the Housing Bond Bill – through programs like HMLP – directly helps Massachusetts residents and communities.

It’s clear that legislators, the Baker-Polito Administration, and the community understand the importance of the Housing Bond Bill to providing safe, affordable housing for families and individuals who are in the most need. CEDAC is honored that we continue to work with our dedicated partners at the state and local level and play our part in strengthening neighborhoods across the state.

Categories: CEDAC, Housing

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