October 23, 2019 By: Good News Network
In June, Wells Fargo announced a new philanthropic strategy that will address the key issues of housing affordability and small business revitalization with one billion dollars in grants and support.
The bank that serves one in three households in the United States said it is committing $1 billion over the next six years to support nonprofits and private entities that demonstrate ability to create positive outcomes in homelessness, available and affordable rentals, transitional housing and home ownership.
Last year, the Wells Fargo Foundation donated $444 million to more than 11,000 nonprofits to help address economic and social needs in underserved communities—and yesterday it announced $9 million in grants to more than 60 nonprofits, such as Habitat For Humanity and Covenant House, in support of housing affordability solutions. (See the full list below)
Bringing more than 30 years of experience in public and private philanthropy, Brandee McHale stepped in to take over the helm at the Foundation in August, after being the head of Corporate Citizenship at Citigroup. and president of the Citi Foundation, and previously working at the Ford Foundation.
To address challenges in construction, financing, and support services for low- and moderate-income families, the elderly and the homeless, Wells Fargo hopes to ease the cost burden for housing across the country, “from Alaska to Florida.”..............Read More
Thursday, October 24, 2019
Facebook announces $1 billion investment package to bolster affordable housing
October 23, 2019 By: Kate Bradshaw/Almanac
Facebook, the social media behemoth headquartered in Menlo Park, announced Tuesday, Oct. 22, that it plans to invest $1 billion over the next decade toward affordable housing in California and elsewhere, including some existing commitments.
In an announcement posted on the company's newsroom website, Facebook's Chief Financial Officer David Wehner stated that the funds will go toward creating up to 20,000 new housing units "to help essential workers such as teachers, nurses and first responders live closer to the communities that rely on them."
These job types typically represent what policymakers refer to as the so-called "missing middle," or middle-income earners who don't qualify for existing subsidy programs but are increasingly not earning enough to live in the Bay Area.
Wehner announced a new $250 million investment from Facebook for a partnership with the state of California aimed at developing mixed-income housing on excess state-owned land "in communities where housing is scarce."
(This refers to areas where affordable housing and a housing supply are scarce compared with the demand, not necessarily rural areas where there is a low housing supply overall, a Facebook spokesperson confirmed via email.)
As part of the press release, Gov. Gavin Newsom said, “State government cannot solve housing affordability alone, we need others to join Facebook in stepping up – progress requires partnership with the private sector and philanthropy to change the status quo and address the cost crisis our state is facing. Public-private partnerships around excess land is an important component in moving us forward.”.....................Read More
Facebook, the social media behemoth headquartered in Menlo Park, announced Tuesday, Oct. 22, that it plans to invest $1 billion over the next decade toward affordable housing in California and elsewhere, including some existing commitments.
Facebook has temporarily subsidized rent for 22 local teacher households, including that of Konstance Kirkendoll, a teacher at Beechwood Elementary School in Belle Haven, as part of an ongoing pilot program. Last week, the company announced a $25 million commitment toward housing for those teacher and others in San Mateo and Santa Clara counties, just one of a number of major investment commitments toward affordable housing Facebook announced Oct. 22. (Photo by Michelle Le | 2016.)
These job types typically represent what policymakers refer to as the so-called "missing middle," or middle-income earners who don't qualify for existing subsidy programs but are increasingly not earning enough to live in the Bay Area.
Wehner announced a new $250 million investment from Facebook for a partnership with the state of California aimed at developing mixed-income housing on excess state-owned land "in communities where housing is scarce."
(This refers to areas where affordable housing and a housing supply are scarce compared with the demand, not necessarily rural areas where there is a low housing supply overall, a Facebook spokesperson confirmed via email.)
Tuesday, October 8, 2019
How Lenders are Supporting Affordable Housing Construction
October 7, 2019 By: Kelsi Maree Borland
Demand for affordable housing is growing across the country, including in emerging markets like Denver. However, capital is catching on to the need for affordable housing, both on new development projects and LIHTC-backed rehab projects. This capital has been an important aspect of bringing more affordable housing to markets suffering from a housing shortage.
“Investors such as banks and insurance companies are realizing that there is incredible value in LIHTC-backed rehab projects,” Anand Kannan, leader of the preservation and development teams at Community Preservation Partners, tells GlobeSt.com. “In addition to offsetting tax burdens and providing a yield that is competitive to market-rate investments, an affordable housing investment comes with significantly lower risk of vacancy.”
It isn’t only the financial benefits, but capital is also attracted to social impact benefits of affordable housing. “Investors also enjoy the derivative impact of deploying capital with a purpose, which generates value in the form of PR and employee productivity,” says Kannan. “The rehab model, particularly, supports intangible value through environmental sustainability because no property is cleaner than the one that’s already built. All of this ROI adds up to an enticing proposition for those in charge of capital investments.”.........Read More
Capital is recognizing the need and opportunity in affordable housing development and LIHTC-backed rehab projects.
Anand Kannan
Demand for affordable housing is growing across the country, including in emerging markets like Denver. However, capital is catching on to the need for affordable housing, both on new development projects and LIHTC-backed rehab projects. This capital has been an important aspect of bringing more affordable housing to markets suffering from a housing shortage.
“Investors such as banks and insurance companies are realizing that there is incredible value in LIHTC-backed rehab projects,” Anand Kannan, leader of the preservation and development teams at Community Preservation Partners, tells GlobeSt.com. “In addition to offsetting tax burdens and providing a yield that is competitive to market-rate investments, an affordable housing investment comes with significantly lower risk of vacancy.”
It isn’t only the financial benefits, but capital is also attracted to social impact benefits of affordable housing. “Investors also enjoy the derivative impact of deploying capital with a purpose, which generates value in the form of PR and employee productivity,” says Kannan. “The rehab model, particularly, supports intangible value through environmental sustainability because no property is cleaner than the one that’s already built. All of this ROI adds up to an enticing proposition for those in charge of capital investments.”.........Read More
Monday, September 16, 2019
Bernie Sanders lays out an ambitious plan on affordable housing
September 14, 2019 By: Chelsea Janes
LAS VEGAS — A few days after reports surfaced that President Trump is considering a crackdown on homelessness, Sen. Bernie Sanders (I-Vt.) issued an unofficial rebuttal, outlining his national housing plan in an address to a crowd of 100 at the local chapter of a plumbers and pipe fitters union.
Sanders railed against Trump’s housing policies and explained his own plan, which calls for federal investment of $2.5 trillion over the next decade and a national rent control standard. He said he will pay for the policy by establishing a wealth tax on the top one-tenth of 1 percent — or, according to his estimate, the wealthiest 175,000 families.
“Instead of expanding federal housing programs, Trump is proposing to cut them by $9.6 billion or 18 percent,” Sanders said. “Instead of working to substantially reduce the outrageously high price of housing, Trump is proposing to triple what some of the poorest senior citizens and persons with disabilities in America are paying for rent today.”
The Sanders campaign said a full outline of the plan will “be released in the coming weeks,” but Sanders did provide some details Saturday. He proposed a national rent control standard that would cap rent increases at no more 1½ times the rate of inflation or 3 percent, whichever is higher. He promised to promote legal protections for fair housing and take steps to eliminate racial discrimination in loan practices....................Read More
LAS VEGAS — A few days after reports surfaced that President Trump is considering a crackdown on homelessness, Sen. Bernie Sanders (I-Vt.) issued an unofficial rebuttal, outlining his national housing plan in an address to a crowd of 100 at the local chapter of a plumbers and pipe fitters union.
Sen. Bernie Sanders said he will pay for the policy by establishing a wealth tax on the top one-tenth of 1 percent — or, according to his estimate, the wealthiest 175,000 families. (Jason Bean/AP)
Sanders railed against Trump’s housing policies and explained his own plan, which calls for federal investment of $2.5 trillion over the next decade and a national rent control standard. He said he will pay for the policy by establishing a wealth tax on the top one-tenth of 1 percent — or, according to his estimate, the wealthiest 175,000 families.
“Instead of expanding federal housing programs, Trump is proposing to cut them by $9.6 billion or 18 percent,” Sanders said. “Instead of working to substantially reduce the outrageously high price of housing, Trump is proposing to triple what some of the poorest senior citizens and persons with disabilities in America are paying for rent today.”
The Sanders campaign said a full outline of the plan will “be released in the coming weeks,” but Sanders did provide some details Saturday. He proposed a national rent control standard that would cap rent increases at no more 1½ times the rate of inflation or 3 percent, whichever is higher. He promised to promote legal protections for fair housing and take steps to eliminate racial discrimination in loan practices....................Read More
Wednesday, September 11, 2019
Administration Releases Housing Finance Reform Proposals
September 6, 2019 By: Donna Kimura
The Trump administration has released wide-ranging plans for housing finance reform that call for replacing the statutory housing goals of Fannie Mae and Freddie Mac with a new system and giving the Federal Housing Administration (FHA) more autonomy.
Affordable housing leaders are keeping a close eye on these proposals and others outlined in two separate plans released by the Treasury Department and the Department of Housing and Urban Development (HUD).
“It’s really a road map to government-sponsored enterprise (GSE) reform rather than a blueprint,” says David Dworkin, president and CEO of the National Housing Conference. “It includes a mix of ideological red meat for conservatives and practical suggestions and concessions to moderates and liberals. There are different paths you can take. I expect the strategy is to move forward incrementally with Congress as opposed to acting unilaterally, which the administration has enormous power to do.”
However, some moves require congressional approval, including changing the affordable housing goals of the GSEs with a more accountable mechanism...............Read More
Affordable housing leaders raise concerns about potential changes to GSE goals and other moves.
The Trump administration has released wide-ranging plans for housing finance reform that call for replacing the statutory housing goals of Fannie Mae and Freddie Mac with a new system and giving the Federal Housing Administration (FHA) more autonomy.
“It’s really a road map to government-sponsored enterprise (GSE) reform rather than a blueprint,” says David Dworkin, president and CEO of the National Housing Conference. “It includes a mix of ideological red meat for conservatives and practical suggestions and concessions to moderates and liberals. There are different paths you can take. I expect the strategy is to move forward incrementally with Congress as opposed to acting unilaterally, which the administration has enormous power to do.”
However, some moves require congressional approval, including changing the affordable housing goals of the GSEs with a more accountable mechanism...............Read More
Wednesday, August 7, 2019
Department of Housing and Urban Development News Briefs - August 2019
August 6, 2019 By: Novogradac Journal of Tax Credits Volume 10 Issue 8
The U.S. Department of Housing and Urban Development (HUD) published a notice June 12 announcing the monthly per-unit fee rates used to determine administrative fees for each public housing agency that administers certain HUD programs. The fees involve the Housing Choice Voucher and Moderate Rehabilitation programs for calendar year 2019 (CY 2019). HUD provided two charts: one for the first 7,200 voucher units leased in CY 2019, the second for the remainder of the units. The notice is available at www.hudresourcecenter.com.
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President Donald Trump signed an executive order June 25 to establish a White House Council on eliminating Barriers to Affordable Housing Development. The group will consist of members from eight federal agencies and the chairman will be Ben Carson, secretary of the U.S. Department of Housing and Urban Development. The council is tasked with measuring how federal, state and local regulations affect affordable housing, with the goal of reducing regulatory barriers.
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The percentage of cost-burdened renters dropped slightly, but there remains a significant gap in affordable housing, according to the State of the Nation’s Housing 2019 report issued June 27 by the Joint Center for Housing Studies at Harvard University. The annual report says that 1.5 million units of housing should be built each year, which is 260,000 units more than were built in 2018. According to the report, 31.5 percent of American households spend more than 30 percent of their income for housing, the standard for being cost-burdened. It was the seventh-straight year that figure declined, but the share of renters who are cost-burned is 47.4 percent. The report highlights that the low-income housing tax credit (LIHTC) remains the primary provider of assisted rental affordable housing in the United States, having produced 2.5 million homes since 1987.
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HUD awarded $63 million to 85 Native American communities throughout the country June 18 to improve housing conditions and stimulate community development for residents. Funding was provided through HUD’s Indian Community Development Block Grant program to support a wide range of community development and affordable housing activities. Award amounts ranged from $400,000 to $2 million.................Read More
City looks to boost affordable housing by changing how it doles out $60M in tax credits
August 6, 2019 By: Fran Spielman
Mayor Lori Lightfoot’s administration is changing the rules for how the city allocates federal low-income housing tax credits to confront an affordable housing crisis that has left Chicago 120,000 units short.
Homeless advocates and their City Council allies have been pressuring Lightfoot to deliver on her campaign promise to raise Chicago’s real estate transfer tax on high-end home sales by a whopping 160% to reduce homelessness and bankroll affordable housing.
Instead, Lightfoot wants to reserve that potential windfall — as high as $150 million — for reducing Chicago’s massive budget shortfall.
The new “Qualified Application Plan” for up to $60 million in low-income-housing tax credits does not include any additional revenue to solve an affordable housing crisis that has contributed to Chicago’s shrinking population.
The rules target the money to the greatest areas of need and income while giving developers clear ground rules for the awarding of tax credits that represent roughly two-thirds of city spending on affordable housing...................Read More
The new “Qualified Application Plan” targets the greatest areas of need in the city while giving developers clear ground rules, officials said.
Housing Commissioner Marisa Novara talks to a housing advocate after Novara's confirmation hearing in June.
| Fran Spielman for the Sun-Times
Homeless advocates and their City Council allies have been pressuring Lightfoot to deliver on her campaign promise to raise Chicago’s real estate transfer tax on high-end home sales by a whopping 160% to reduce homelessness and bankroll affordable housing.
Instead, Lightfoot wants to reserve that potential windfall — as high as $150 million — for reducing Chicago’s massive budget shortfall.
The new “Qualified Application Plan” for up to $60 million in low-income-housing tax credits does not include any additional revenue to solve an affordable housing crisis that has contributed to Chicago’s shrinking population.
The rules target the money to the greatest areas of need and income while giving developers clear ground rules for the awarding of tax credits that represent roughly two-thirds of city spending on affordable housing...................Read More
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