HOUSE PANEL READIES $1.4 BIL HOUSING BOND, ROAD OUTLAY BILLS FOR FLOOR VOTES
By Matt Murphy
STATE HOUSE NEWS SERVICE
STATE HOUSE, BOSTON, JUNE 3, 2013….The House this week is poised to advance legislation that would invest $1.4 billion in housing investments over the next five years, the first of a series on long-term borrowing bills expected to surface this session in the Legislature.
A House committee also voted on Monday to advance a bill facilitating $300 million in spending on local road projects over the next year, and House Bonding, Capital Expenditures and State Assets Chairman Rep. Antonio Cabral said he expected the full House to vote on that bill as well on Wednesday, barring any last minute “hiccups.”
With the House planning a Wednesday afternoon session, the House Committee on Bonding, Capital Expenditures and State Assets voted unanimously on Monday to recommend the housing bond bill (H 3464) and a bill (H 3488) setting the terms for borrowing $300 million to support the state’s Chapter 90 local road and bridge repair program.
The Patrick administration has raised concerns about the affordability of the $300 million road program, given the uncertainty of ongoing talks about raising taxes, and last week notified municipal officials that it would release only $150 million as it awaited resolution to debate over new revenue.
Cabral said the committee considered inserting language into the terms bill to “encourage” Gov. Deval Patrick to release at least $200 million immediately for local road repairs, which would be equal to the funding approved last year. Cabral said the committee ultimately decided to recommend the bill as written and to continue to put pressure on the administration through lawmakers and local officials to release more than $150 million. “I think we’re going to get there. It’s a matter of getting the governor to understand that the funds will be there,” Cabral said.
Testifying in support of the Chapter 90 terms bill, Massachusetts Municipal Association Executive Director Geoffrey Beckwith said important local road projects and repairs will be delayed across the state and long-term costs will rise because the Patrick administration has agreed to release only half the funds authorized under a law approved unanimously by the House and Senate and signed in May by the governor.
“We’re very disappointed with this quite frankly,” Beckwith said.
Asked by Rep. Carl Sciortino whether the MMA could show a financial analysis proving the affordability of the $300 million Chapter 90 allocation, Beckwith said House and Senate Ways and Means Chairmen Rep. Brian Dempsey and Sen. Stephen Brewer, and Transportation Committee Chairmen Rep. William Straus and Sen. Thomas McGee had all testified to its affordability.
“We believe those are very strong, powerful and credible sources talking about the financial affordability of the Chapter 90 funding,” Beckwith said.
Michael Valenti, of the Massachusetts Highway Association, testified that there is $562 million in annual need to maintain the 30,000 miles of roads maintained by cities and towns. He said reducing Chapter 90 funding to $150 million would put “enormous burdens” on cities and towns by delaying repairs and requiring more costly road replacement projects in the future.
The Bonding Committee also took testimony on the housing bond bill filed by Housing Committee Co-chair Rep. Kevin Honan that would be the first long-term housing spending bill to come before the Legislature since 2008.
“This is one of the more important bills the Legislature can pass this session,” said Sen. Jamie Eldridge, the Senate co-chair of the Joint Committee on Housing.
Among the investments made by the bill is a $500 million authorization for the rehabilitation and modernization of state-assisted public housing. Housing and Community Development Undersecretary Aaron Gornstein said the bill would not create any new state-owned public housing, but would speed up the turnover of dilapidated units once they become vacant.
“There are not a lot of vacancies, but we’re trying to turn those units around quickly,” Gornstein told Rep. Paul Heroux, who asked if the bill would reduce wait times for public housing.
Cabral said the Bonding Committee made one policy change in the bill to encourage owner-occupied homeownership through the Affordable Housing Trust Fund. The amendment would require purchasers of homes with two to six units to live in the building for up to 10 years before the occupancy restriction is lifted. “We believe it will create better stability in these neighborhoods where investments are being made,” Cabral said.
The bill also includes $55 million to facilitate home modifications for the elderly and disabled to allow them to remain in their homes and stay out of nursing homes. Another $45 million is included in the proposed bill for the first time to support capital investments in early education centers that advocates said are “squeezed financially” and an important resource for low-income families.
Bob French, who runs the North Star Learning Center in New Bedford, said it is difficult for early education learning centers to generate the private financial backing necessary to build new facilities to support the learning needs of low-income children in public housing.
Sean Caron, chief of staff of Community Builders, also testified in support of the $20 million investment the bond bill would make in the Low Income Housing Tax Credit program that he said was integral to private, affordable housing development.
Caron said Community Builders, a nationwide non-profit developer, is counting on the tax credit in its plans to develop the vacant Loom Works textile mill in Worcester into 94 units of new housing with parking and green space, creating 175 jobs in Worcester.
Charles Eisenberg, a member of the Commonwealth Housing Task Force, said the $500 million investment in rehabilitating existing units is “desperately needed,” and called the low-income housing tax credit program an important tool for expanding access to affordable housing and retaining a qualified workforce.
“This is Massachusetts. We don’t have gas fields or wheat fields. We have hard working people and they can move somewhere else if they choose,” Eisenberg said.
Thomas Connolly, executive director of the state chapter of the National Association of Housing and Redevelopment Officials, said the $500 million investment in state public housing would help address a $1.8 billion backlog of necessary capital improvements.
“This governor has been a great friend to public housing. But this is a five-year authorization bill so we just hope the next administration is as supportive of public housing as this governor,” said Connolly, who has recently clashed with the Patrick administration over the governor’s plan to consolidate oversight of local public housing authorities.
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06/03/2013
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