Public Policy & Advocacy
Public Policy
State:
LEGISLATIVE UPDATE FROM SPECIAL SESSION ON PROPERTY TAXES (from FHC)
The Florida Community Land Trust Institute, a collaboration between 1000 Friends of Florida and the Florida Housing Coalition, is pleased to announce that the Florida Legislature has evidenced substantial support for community land trusts by responding to the ad valorem tax challenge in effectively using the community land trust vehicle.
On June 14 th, 2007, the special session on property tax relief brought with it the passage of what had started out in the general session as HB 1151, filed by Representative Keith Fitzgerald addressing community land trust ad valorem taxes ( Florida Statute, Section 193.017).
HB 1 (2007 B) provides statutory direction to property appraisers to use the restriction on the resale price contained in the recorded ground lease when determining the value of the house and it exempts the value of the land owned by the community land trust . The new statute also defines community land trusts- to be a 501 (3)(c ) organization and has as one of its purposes the acquisition of land to be held in perpetuity for the primary purpose of providing affordable homeownership.
Section 196.1978 which addresses exemption from property taxes, extends ad valorem tax exemption to “land that is owned by an exempt entity and that is subject to a 99 year or longer ground lease for the purpose of providing affordable homeownership”.
Other significant affordable housing property tax legislation:
HB 1 also created Section 193.803 to address how workforce rental and affordable rental housing is to be appraised. The new section makes clear that workforce and affordable rental housing is to be assessed based on the net income generated from the rental development. It sets forth a process for using a Department of Revenue form to annually file for classification as affordable rental housing and defines what housing qualifies (which is basically all rental housing that has received government subsidy and is subject to a land use restriction agreement).
To view the entire 59 page bill, Click Here
Federal:
FLACDC in partnership with other statewide coalitions for community development also follows national policy issues of interest to our industry. The FY2008 Federal Budget recommends cuts to a number of programs that CDCs use to revitalize and redevelop their communities. Many of these programs provide direct funding to city and/or county governments which is then disbursed locally, often to CDCs.
We ask that you familiarize yourself with the information provided. When you contact your Congressional Representatives and Senators, explain to them how the proposed cuts to these programs will hurt your community and their constituents. We will do our best to provide timely updates on some of these programs and we may periodically contact you directly asking for a letter or phone call on a specific issue.
Capitol Hill
FY08 Begins with Most Programs Funded at FY07 Levels , under the continuing resolution that had been approved on September 26 to provide operating funds beyond October 1, through November 16, in lieu of completion of any of the 12 appropriations bills. H.R. Res. 52 is available at http://thomas.loc.gov/home/approp/app08.html. The White House has threatened to veto any bill that would spend more than the Administration had proposed in its budget request.
Trust Fund Bill Passes House by a vote of 264 to 148, on October 10. The National Affordable Housing Trust Fund Act (H.R. 2895), authored by House Financial Services Chairman Barney Frank (D-MA) and now co-sponsored by 103 representatives, would establish dedicated sources of funding--the government-sponsored enterprises, the Federal Housing Administration, and others--for the production, preservation, and rehabilitation of 1.5 million affordable homes in 10 years. Initial allocations would be between $800 million and $1 billion annually directly to states and local communities. After a seven-year campaign to create such a fund, this is the farthest along such legislation has made it through Congress, and the Senate is expected to introduce a similar bill in the next few weeks, although with less enthusiasm than the House.
Foreclosure Crisis Update. On October 3, Senate Majority Leader Harry Reid (D-NV), Speaker of the House Nancy Pelosi (D-CA), Sens. Christopher Dodd (D-CT) and Charles Schumer (D-NY) and Reps. Barney Frank (D-MA) and Carolyn Maloney (D-NY) sent a letter to President Bush urging him to complete Federal Housing Administration (FHA) reform, temporarily raise the portfolio limits of government-sponsored enterprises Fannie Mae and Freddie Mac, enhance and strengthen foreclosure counseling and prevention activities, and appoint a senior official to oversee and coordinate the federal government's response to the crisis and to work with lenders and servicers to modify loans when possible. In an October 5 statement, Mr. Frank made clear that he would support only a 6-month portfolio limit increase, within the amount limits of comprehensive GSE regulatory reform legislation. Sen. Hillary Rodham Clinton (D-NY) introduced the American Home Ownership Preservation Act of 2007 (S. 2114), which would enhance disclosure requirements, require registration of all mortgage brokers, ban prepayment penalties, and authorize $1 billion for state and local trust funds to supplement affordable housing efforts.
McKinney-Vento Reauthorization Hearings Held in House on October 4 and 11 (scheduled) by the Financial Services Subcommittee on Housing and Community Opportunity. The Homelessness Emergency Assistance and Rapid Transition to Housing Act of 2007 ([H.R. 840], introduced on February 6 by Rep. Julia Carson [D-IN]) and its Senate companion bill, the Community Partnership to End Homelessness Act of 2007 ([S. 1518], introduced on May 24 by Sens. Jack Reed [D-RI] and Wayne Allard [R-CO] and reported out of committee on September 19) would consolidate HUD's Continuum of Care Programs into a single program to reduce competition and administrative costs, increase the authorization for these programs, and expand HUD's definition of homelessness--an important point of debate at the first hearing, at which Reed and Allard testified, as did Connecticut State Senator John McKinney, son of the late congressman for whom the bill is named. Witnesses and committee members agreed on the urgent need for the reauthorization. Report forthcoming on the second hearing.
Treasury Awards $4B in New Market Tax Credits , through its Community Development Financial Institutions (CDFI) Fund, to recipients looking to serve low-income communities in 45 states, DC, and Puerto Rico. About 10 percent goes to 11 organizations to redevelop the hurricane-ravaged Gulf Coast region, but the largest recipient is Local Initiatives Support Corp. (LISC), which will use its $133 million to serve real estate markets in California, Louisiana, Mississippi, New York, Ohio, Pennsylvania, and Virginia. Banc of America CDE, LLC, will use its $130 million in California, Florida, Massachusetts, New York, North Carolina, Texas, and Washington state. For more info on these October 5 awards: CDFI, (202) 622-6355.
Housing Counseling Regs Issued by HUD with several changes to the proposed version from December 23, 2004. See Federal Register, 9/28/07, pp. 55637-54 or http://www.hudclips.org. Contact Ruth Roman, HUD, (202) 708-0317.
Fair Market Rents Published for FY08 , on October 1. HUD uses the FMRs in a variety of affordable housing programs, including Housing Choice Vouchers. This fiscal year's FMRs are the first to be calculated using data from the American Community Survey. See Federal Register, 10/1/07, pp. 55939-56000 or http://www.huduser.org/datasets/fmr.html. Contact HUD User, (800) 245-2691.
Eleven Large Mortgage Servicers Raise 'Hope Now' Against Foreclosure. The partnership, which accounts for 60 percent of outstanding mortgages, has put together an aggressive plan to reach more homeowners and help them find a way to stay in their homes, as announced on October 10 by Treasury Secretary Henry M. Paulson, who referred to President Bush's August 31 announcement of a foreclosure prevention initiative. The initiative has bipartisan support, he noted. Website: http://www.hopenow.com.
Disaster Toolkit Addresses Preparation and Recovery, Plus Fair Housing Issues. Published by HUD's Office of Fair Housing and Equal Opportunity, available for free at http://www.hud.gov/offices/fheo/library/index.cfm.
'Rural America at a Glance,' 2007 Edition. Providing data on social and economic conditions in rural areas, USDA Economic Research Service publication is available for free at http://www.ers.usda.gov/Publications/EIB31/
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