Mercer Alliance To End Homelessness

A Point to Ponder - Where Should the Housing Be?

mstevens — Sun, 30 Aug 2009 22:05:17 +0000

Op-Ed piece argues for immigrant concentrations in cities. What do you think? Mercer Alliance favors housing low income families in the suburbs - where the jobs are.

State’s housing rules ignore needs of immigrants

FRANK D. TINARI and KRISTIN K. KUCSMA • August 30, 2009

In 1983, New Jersey responded to what it perceived to be a problem, namely segregation, by creating the Council on Affordable HousingHYPERLINK \l “” for the creation of low- and moderate-income housing. The problem is that COAH’s policies make no distinction between institutionalized segregation and organic segregation, the latter being largely voluntary self-selection by immigrants.

COAH’s policy has been to disperse affordable-housing units throughout our cities and suburbs. The idea was that access to affordable housing would better match employees with available jobs and that racial and ethnic segregation would be reduced. Unfortunately, COAH’s mandates run counter to the organic development of immigrant communities.

Ethnic enclaves or networks have existed in America for centuries.

Each wave of immigrants has followed a similar pattern: Immigrants sharing the same language, culture and religion form a community in an urban area. Then, established immigrants guide new arrivals in finding living accommodations, immigrants help each other find jobs and access to credit, and community members provide support to one another in social and legal matters.

These networks reduce substantially the stresses and shocks of living within a broader culture that is foreign and intimidating to many immigrants. In addition, ethnic enclaves allow immigrants to invest in and build up valuable social networks, to bond among similar people, and to further of norms of reciprocity.

New Jersey’s housing rules completely ignore the special needs of immigrants. By providing incentives to move into housing outside of their ethnic communities, COAH’s rules work against immigrants’ access to the benefits derived from ethnic enclaves. Given this failure to serve immigrant communities, the state could, nevertheless, effectively address issues of perceived discrimination against immigrants and provide individuals with access to affordable housing and employment.

A different approach is needed to provide access to jobs and accommodate the yearnings of immigrants, many of whom are low-wage earners, as follows.

It is well known that investment in education is the best long-run insurance that low-income persons will have a chance at bettering themselves economically. It is also known that there are substantial economies of scale both in the provision of housing and in delivering educational services. For example, urban areas more readily provide efficient, less costly services for residents of multi-unit housing than do suburbs and, other things being equal, specialized learning teams are more effectively deployed in school systems where there are concentrations of students who would need special services such as language training.

Unfortunately, the Abbott District school-funding program appears to be much less effective than promised. Educational investment in urban areas needs to be maintained but also re-directed to more promising avenues such as charter schools and vouchers.

Also, we should invest in additional mass transportation. By providing easier access to jobs via jitneys, mini-buses and the like, low-income workers would be able to better access available jobs while allowing them to remain in their supportive communities. Efficient, affordable mass transit has, for a long time, been an alternative method of linking an individual’s residence and place of employment. Rail and transit services are experiencing a renaissance thanks to continuing concerns about the environmentHYPERLINK \l “” and highway congestion.

We also must increase investment in enforcing anti-discrimination policies in housing, banking and education. Enhanced enforcement will strengthen immigrants’ access to resources, thereby improving their long-term economic prospects.

Additionally, we should revisit urban housing regulations, especially those that force low-income families into larger, more expensive housing units, thereby reducing their ability to save and invest in their future. Housing standards that may be too restrictive for first-generation immigrants could be relaxed. Such standards impose the values of native and middle- to upper-income homeowners on immigrants who may desire to sacrifice housing comfort. It is not unusual, for example, to find several family members sharing rooms that would not pass muster under many municipal housing codes. Immigrants are prevented from making such self-sacrifices because one-size-fits-all housing requirements do not reflect their willingness to give up current living standards for a better future.

These policies would go a long way toward providing immigrants with greater job access while at the same time preserving the social value of ethnic enclaves.

Frank Tinari, the former mayor of Florham Park, is professor emeritus at Seton Hall University and a principal economist of the Tinari Economics Group in Livingston. Kristin Kucsma is an economist at TEG.

Funding For Affordable Housing Cut in Half

mstevens — Sun, 30 Aug 2009 21:28:30 +0000

Past Funders of Affordable Housing Are Losing Money And No Longer Need Tax Credits

Money for developing low-cost rentals dries up as recession eliminates biggest investors

J.w. Elphinstone August 28th, 2009

Financial crisis cripples new affordable housing

For thousands of low-income renters nationwide — but especially in rural towns and small cities — the recession is hitting home in an unexpected way.

Nationwide, funding to build low-cost apartments has dropped by more than half in two years to $4 billion. Hundreds of projects can’t get off the ground because the federal tax credits that help offset development costs are currently worthless to traditional investors.

Georgia, for example, typically funds about 30 projects a year using up to $20 million in federal tax credits. So far, only nine deals have closed for 2008 and none this year. In Savannah, one project was halted mid-development because of a financing gap.

“Everything is totally upside down from two years ago,” says Laurel Hart, director of Georgia’s office of affordable housing.

What’s going on?

For more than two decades, the government subsidized the development of low-income apartments with a special tax credit. Every year, the government divvied up these tax credits among the states. Then, local housing authorities reviewed applications from developers and parceled out the credits, which were sold to investors to raise money for construction.

The largest investors in these credits were Fannie Mae, Freddie Mac and the banking industry. The problem is these companies have been losing billions, so there’s no value in a tax credit to offset profits.

After the government seized Fannie and Freddie last year, they exited the market completely, taking away about 40 percent of the funding for low-income housing. National banks, meanwhile, have slashed their dollars and are focusing only on areas they must invest in to comply with federal community reinvestment laws, like New York and Los Angeles.

Regions like the South and Midwest lack that incentive and dozens of projects have been stalled.

In Georgia, Hart says she wants to use the federal money to finance projects that help alleviate the state’s foreclosure problems. It could be used to redevelop foreclosed hotels or condo projects and convert them to affordable housing, she says. Or, create low-cost rental homes out of half-finished subdivisions that defunct home builders have abandoned.

Developer Alco Properties Inc. is applying for a federal grant to upgrade 244 apartment units in Nashville, Tenn. They desperately need a new roof, windows and kitchen appliances. Three-quarters of the residents make less than 30 percent of the area’s median income and depend on government assistance to meet rent.

“If we’re not able to preserve that housing and subsidy, it goes away,” says Alco’s senior vice president Robert Hyde.

The federal government knows there is a crisis. In May, the Treasury department said it will channel $5 billion in stimulus money to buy unsold tax credits for affordable housing projects approved in 2008. Developers who hold tax credits they can’t sell can exchange them for government grants at rate of 85 cents on the $1.

Bureaucracy has held up the money, but even when it starts flowing it won’t come close to meeting the growing need for affordable housing.

Census data show about 3 million affordable apartments were destroyed, converted to for-sale condos or upgraded to higher-priced rentals during the last six years. At the same time, more than half of all renters are spending at least 30 percent of their before-tax income on housing, up from 40 percent in 2000.

The waiting lists for affordable housing assistance are so long in places like San Diego, Orlando, Fla., and South Bend, Ind., the local housing authorities have stopped taking applications.

“These are single mothers with two children who work at Walmart,” says Brian Coffee, head of the tax credit program for Regions Bank in Birmingham, Ala. “This program provides housing for them.”

There are so many applications from developers for tax credits that only one in four receive them, says Ronnie Thielen, president of the Affordable Housing Tax Coalition.

Thielen’s coalition is lobbying Congress to extend Treasury’s credit exchange program to cover projects approved for 2010. It is also proposing to allow the credit to be carried back five years, instead of just using it on future taxable income. The aim is to attract more types of investors, like insurance, manufacturing and technology companies, so the program doesn’t depend solely on the financial industry.

“The need is overwhelming,” Thielen says, “but we’ve been forgotten.”

You can e-mail J.W. Elphinstone at jelphinstone(at)ap.org.

There’s Always Room For More Affordable Housing

mstevens — Sun, 30 Aug 2009 21:15:39 +0000

Even a Fully-Compliant Town Has to Accept Additional Affordable Housing

Nonprofit wins appeal to build low-income houses

By Maya Rao

Inquirer Staff Writer

Eastampton already had more affordable housing units than required under New Jersey law.

By that reckoning, the township land-use board last year denied a request by the nonprofit Homes of Hope for an exception to build two multifamily duplexes in a neighborhood zoned for single-family homes.

But a three-judge appeals panel yesterday ruled that a town can’t turn away low-income development even after it has fulfilled its state requirement, noting that affordable housing promotes the general welfare and warrants the type of exception sought by Homes of Hope.

The decision upheld a 2008 trial court ruling in Burlington County, where the precedent was set for the state’s affordable housing regulations.

Municipal obligations to provide affordable housing, which originated from court decisions involving Mount Laurel in the 1970s and ’80s, are being contested across New Jersey. The most recent mandate by the state, issued last year, calls for 115,000 units to be built over the next decade.

The affordable-housing advocates involved in the Eastampton case said that figure should be considered a minimum.

Homes of Hope president Kent Pipes said the ruling sent a “strong message” that towns would not get relief from the courts even after meeting their affordable-housing obligations under the state’s Fair Share Housing Act.

“Even when a town has done what” the state Council on Affordable Housing “says it has to do,” Pipes said, “somebody who wants to build affordable housing has the right to build more.”

The courts have long held that affordable housing serves the general welfare and is an “inherently beneficial use,” similar to hospitals and schools.

Homes of Hope proposed constructing two units on each side of an existing four-unit building not previously designated as low-income housing. The organization wanted to deed-restrict all eight units as affordable housing.

To obtain a variance to build there, the Burlington County nonprofit’s proposal had to meet two requirements under New Jersey law: It had to improve the general welfare, and it could not negatively impact the public good or the intent of the zoning.

Homes of Hope argued that its proposal was an “inherently beneficial use,” but Eastampton countered that affordable housing no longer fell under that favorable status in the township. The municipality cited a determination by the state that a 100-unit low-income family rental development had provided Eastampton 21 units more than it needed to meet its affordable-housing obligation for the period of 1999 to 2014.

Homes of Hope sued the township in February 2008, less than a week after the land-use board denied its request.

In a Superior Court decision last year, Judge John Sweeney noted that the court rulings that spurred the state’s affordable housing regulations did not intend for each town only to meet the needs of the homeless within its own boundaries, but rather to contribute to the needs of the entire state.

Eastampton appealed, and arguments were heard in April. Chris Norman, an attorney for the township, said yesterday that he was not sure if Eastampton would appeal the ruling.

Norman said the decision undercut a message by the state that once towns meet their affordable-housing obligations, they would control their own destiny.

“It’s sort of like ‘no good deed goes unpunished,’ ” he said.

The decision was “extremely important,” said lawyer Carl Bisgaier, who represents the Cherry Hill-based Fair Share Housing Center and argued before the appeals court in favor of Homes of Hope.

“It puts to bed an effort that’s been going on throughout the state to undermine the statutory means by which a lot of affordable housing has been provided in the state, and that is through the use variance method,” he said.

Princeton Affordable Housing is Full Up

mstevens — Sun, 30 Aug 2009 20:58:02 +0000

Long wait lists for affordable housing in the Princetons.

Princeton Borough affordable-housing project to open soon

Wednesday, August 19, 2009

Krystal Knapp

SPECIAL TO THE TIMES

PRINCETON BOROUGH — A new affordable-housing project in the borough is on track to be ready for occupancy by the end of September.

Groundbreaking for the five-unit project was in October last year. The new development at 100 Leigh Ave. replaces a former affordable-housing complex owned by the borough that fell into disrepair.

The complex includes a very low-income, one-bedroom unit for $365 per month, three two-bedroom low-income units for $781, and one three-bedroom unit for $895 per month. The apartments range in size from 886 square feet to 1,486 square feet and come with assigned parking. First floor apartments are wheelchair accessible.

Renters must meet income guidelines for affordable housing based on the number of people in the household. For example, the maximum income for a four person household in one of the two-bedroom units would be $44,125, according to the borough’s website.

“The apartments are looking terrific,” Princeton Community Housing executive director Sandra Persichetti told the borough council at a recent meeting where she gave an update on PCH and affordable housing issues in the Princetons. “Wouldn’t it be nice to find more pockets of land to put building like this on, and replicate the success of this project?”

“It really has gone very well from start to finish,” said Borough Administrator Robert Bruschi of the partnership between the borough, Princeton University and PCH. Councilman David Goldfarb added that the borough should learn from past experience with the apartments that were formerly on the site.

“The facts are, the borough owned that property, the borough allowed it to go into disrepair, the borough spent money only to be wasted, and the complex had unoccupied units for a long time,” Goldfarb said. “Once PCH got involved, things were taken care of within a year. We need to learn from the past, understand what happened and not repeat the same mistakes.”

Elm Court, an 88-unit complex in the borough for seniors that is run by PCH is at full occupancy, Persichetti said, and is currently being renovated. Harriet Bryan House for seniors is also fully leased. The average income at Elm Court is $12,000 per year and the average income at Harriet Bryan is $10,000.

The one problem at the two sites, which are adjacent to each other on Elm Road, is that there is no public transportation available. With a grant from Tyco, PCH has hired a van and driver, but the service is not sufficient for all the seniors’ needs. Persichetti suggested the borough consider having the free shuttle in town make a stop there.

PCH’s other developments in the township, Griggs Farm and Princeton Community Village (PCV), are fully leased and PCV is currently being renovated.

The tough economy has meant two things for her housing service, Persichetti said. The waiting lists for apartments have become longer and more people are overdue paying their rent.

The waiting list at Griggs and PCV, which offer numerous units suitable for families, can be as long as three or four years, while the wait time for a senior unit is 15 or 16 months.

Residents who are unable to eventually pay their rent are eventually evicted, though Persichetti said PCH tries to work out a payment plan whenever possible. PCH has a tight budget and can’t let people there live rent free.

“It is a difficult time,” she said. “If people can’t pay we eventually have to start eviction procedures. There are other people waiting in line who would be paying the rent. It is really a “catch-22.’ It all speaks to the fact that there is not enough affordable housing.”

Officials asked if a central location has been created where residents can get information about all of the affordable housing opportunities in the two Princetons, as well as a single application. Better coordination and a “one-stop-shopping” location for residents to visit or call were recommendations made by a consultant about two years ago.

Persichetti said because various agencies have their own application requirements, a single application for affordable housing is not feasible, but that representatives from PCH, the borough, the township and the Princeton Housing Authority meet each quarter to better coordinate efforts and improve communication.

A centrally staffed location would require funding, Persichetti said. Councilwoman Barbara Trelstad suggested that something could possibly be set up at the Princeton Public Library

New Jersey’s Affordable Housing Policies Evaluated

mstevens — Sun, 30 Aug 2009 20:12:12 +0000

Think tank study shows New Jersy’s policies slowed house price escalation and promoted rental and multifamily growth.

Supporting Rational Evaluation over Preconception by Facilitating Comprehensive Quantification

Evaluation of smart growth policies finds modest gains for states in fight against sprawlBy CostBenefit on Aug 5, 2009 | In U.S., Preservation & Open Space, Sprawl & Smart Growth, Regulatory Analysis, Research Institute NGO NonProfit, Costs and Benefits | Send feedback »

Link: http://atlincolnhouse.typepad.com/pressroom/2009/05/first-major-evaluation-of-smart-growth-policies-finds-modest-gains-for-states-in-fight-against-spraw.html

States with smart growth policies achieved success in areas such as protecting open space and expanding transportation choices, but no state was able to make gains in all the major objectives of smart growth, according to a new report by the Lincoln Institute of Land Policy.

Smart Growth Policies: An Evaluation of Programs and Outcomes, … analyzes how four states with statewide smart growth programs — Florida, Maryland, New Jersey, and Oregon — performed in promoting compact development, protecting undeveloped land, providing a variety of transportation options, maintaining affordable housing, and achieving positive fiscal impacts.

The study found that no state did well in all five performance measures, although individual states succeeded in one or more of their priority policy areas. Maryland was successful in protecting natural resources through its land preservation programs and state funding for the purchase of farmland conservation easements. New Jersey’s affordable housing policies that responded to state supreme court decisions slowed house price escalation and encouraged rental and multifamily housing production. Oregon’s commitment to urban growth boundaries helped reduce development on farmland in the Willamette Valley and encouraged commuters to use transit, walk, or bike to work.

Some smart growth states failed to achieve objectives in policy areas, such as providing affordable housing in Oregon and Maryland, and promoting compact urban growth in Florida.

The study also looked at four other states without formal statewide smart growth legislation: Colorado, Indiana, Texas, and Virginia. Colorado, with no statewide smart growth program, outperformed some states with such policies by supporting local government actions to pursue effective land use planning within a regional context.
…
Although the evaluation of smart growth programs concentrates primarily on statewide performance from 1990 to the early 2000s, the findings and recommendations will be useful for formulating growth management policies in today’s context of high energy costs, historic housing market volatility, and increasing pressures to reduce greenhouse gas emissions. Many smart growth objectives are precisely the outcomes posited to address these current challenges facing state and local policy makers.

The report recommends that policy makers must articulate the means of achieving smart growth objectives and specify implementation mechanisms and not just declare objectives; use a variety of regulatory controls, market incentives, and institutional policies coordinated at the regional scale; and take account of interactions among policies and coordination across relevant agencies.

The report also concludes that the successful implementation of smart growth programs requires a credible and persistent commitment from different levels of government. In addition, improvements in measurement and collection of data, particularly related to environmental quality and public finance, are needed to better monitor program performance, and more evidence is needed about the nature of interactions among smart growth policies—particularly those related to land use, transportation, and housing affordability.

Smart Growth Policies: An Evaluation of Programs and Outcomes was designed to evaluate whether selected states achieved the stated objectives of their smart growth policies, typically spelled out in legislation. The study also referred to the widely disseminated 10 Principles of Smart Growth.

Affordable Housing Communities are Great Places to Live

mstevens — Mon, 03 Aug 2009 16:25:58 +0000

A look at Princeton Communty Village. Visit your affordable housing communities.

PRINCETON: 31 nations represented in housing complex

Thursday, July 30, 2009 6:04 PM EDT

By Lilly LeClair, Special Writer

Princeton’s Community Village, a rental complex for low- to moderate-income individuals and families, has compiled information and found it houses residents from 31 different countries. This diverse population, the most varied in the 30-year history of the housing site, happened naturally, according to Susan O’Malley, who has been its manager for 10 years.

”We pull people in from all incomes, and we tend to get a very mixed crowd,” she said. “The system works wonderfully.”

With residents spanning the globe from Germany to Ghana and Colombia to China, the cultural aspect certainly is present in this expansive housing village located off Bunn Drive in Princeton Township. Residents can and do take advantage of the newer clubhouse space for learning and cultural events.

Sara Just, board of trustees member, and chairwoman of Princeton Community Village, spoke animatedly about the premier of the English as a Second Language courses that will take place in the clubhouse this fall.

”We aren’t just about bricks and mortar. We really strive to have communities, which are very fulfilling places to live,” she said. The village recently held a successful health fair where local doctors and nurses came to the clubhouse to talk to residents on a Saturday morning — an event that was well attended by the elderly.

While the Holly House — the single high-rise building in the village — houses residents ages 65 and up, the rest of the village is considerably younger. One-third of the total 669 residents are under the age of 21.

Princeton Community Village has made education a priority, and the majority of graduating seniors go on to pursue some form of higher education. The organization also helps students get scholarships for college.

”That is always on our mind: that lots and lots of young people are living here,” Ms Just said.

Princeton Community Village recently found out it has won more scholarships than any other affordable housing site in New Jersey. These scholarships range from $500 to $2,500, and in typical form, a celebration will be held to honor students and their families in the village clubhouse.

A stroll through the Princeton Community Village grounds finds children of all ages present as well, taking full advantage of the open wide streets (each named after a different tree) and the green spaces that abound.

During the academic year, Princeton Young Achievers runs an after-school program onsite. The program, held five days a week, was created in the early 1990s from a teacher at Riverside Elementary School where Princeton Community Housing students attend.

The village also contains refugees, including a family from Thailand who is sponsored by the Princeton Baptist Church. One member of the family recently started working at McCaffrey’s supermarket in the Princeton Shopping Center.

It is not uncommon for town businesses and organizations to chip in [mrh: chip in to do what?: ].

”The town is very supportive and is helping it to thrive,” Ms. Just said.

Through local and state support, the site is also in the process of a $6 million rehabilitation project that will include re-siding buildings and re-paving streets, parking areas and sidewalks.

The management team, including Ms. O’Malley and Assistant Manager Mary Maybury, also are considering holding a yard sale for the entire village. They claim to know every family, and they pay special attention to their beloved residents.

”(The residents) have become my extended family,” Ms. O’Malley said.

During the holidays, care is given to make sure everyone has a turkey or ham, and the management duo especially enjoys surprising residents with donated gift cards from local retailers.

Princeton Community Village is under the umbrella of Princeton Community Housing, a nonprofit organization that runs a total of four affordable housing sites. It is the largest provider of low- and moderate-income housing in Princeton. The application process includes a credit and criminal check. Rent is set based on qualifying income, however, once a resident is accepted and remains in good standing, it can go up or down, salary-wise. This makes for a very diverse income level within the Princeton Community Village.

There is an 18-month-long waiting list for a three-bedroom apartment and a two-year waiting list for a one-bedroom apartment — down from a four-year wait in 2008.

The 31-country representation of Princeton Community Village is unique according to Ms. Just.

”The residents really look out for each other,” she said. “It’s a tight-knit community in a lovely bucolic setting.”

Contributions to the program may be sent to Princeton Community Housing at 245 Nassau Street, Princeton, NJ 08540.

$61 Million Awarded to New Jersey For Affordable Housing

mstevens — Mon, 03 Aug 2009 16:07:17 +0000

2009 Economic Recovery Act provides money for construction of affordable housing. See if your town qualifies.

Lautenberg Announces $61 Million to Increase Affordable Housing In New Jersey

July 7, 2009

by New Jersey RealEstateRama

Category: News || Housing & Development, Laws & Taxes | No Comments

WASHINGTON, DC - July 6, 2009 - (RealEstateRama) – Sen. Frank R. Lautenberg (D-NJ) today announced New Jersey will receive $61,243,670 in funding to jump start affordable rental housing developments and create construction-related jobs in the state. The money is being distributed by the U.S. Department of Housing and Urban Development (HUD) through the Tax Credit Assistance Program (TCAP), which received funding under the Economic Recovery Law signed by President Obama in February. TCAP is a grant program that provides capital investment funding for stalled low income housing tax credit developments.

“In these tough economic times, we need to do all we can to create jobs and increase affordable housing in New Jersey,” Sen. Lautenberg said. “These funds will put people to work and help ensure families across our state have a place to call home.”

The current economic and financial crises present significant challenges for the construction industry, particularly residential construction. One of the by-products of this crisis has been the freezing of investments in the low income housing tax credit (LIHTC) market. These tax credits create an incentive for investors to provide capital to developers to build multi-family rental housing for moderate and low-income families across New Jersey and the country. Since the contraction of the credit market, and as traditional investors remain on the sidelines, the value of tax credits has plummeted. Consequently, as many as 1,000 projects (containing nearly 150,000 units of housing) are on hold across America.

In response, the Recovery Act provides $2.25 billion for TCAP, a grant program to provide capital investments in these stalled LIHTC developments. HUD is awarding these TCAP grants by formula to 26 state housing credit agencies to complete construction of qualified housing projects that will ultimately provide affordable housing to an estimated 35,000 households nationwide.

New Jersey Ranks 21st in Foreclosure Filings

mstevens — Mon, 03 Aug 2009 15:59:23 +0000

Foreclosed properties are good candidates for affordable housing. Recommend this to your town. Foreclosure filings are available by zip code at RealtyTrac.com (but notice that the “total” includes nearby zips).

U.S. foreclosure filings rise as unemployment takes a toll

By Alan J. Heavens

INQUIRER REAL ESTATE WRITER

Foreclosure filings across the country increased 9 percent in the first six months of 2009 compared with the same period in 2008. One in every 84 U.S. homes had a filing during that time, according to RealtyTrac of Irvine, Calif., which tracks foreclosures nationwide.

Filings continued to be concentrated in the Southwest and Florida and in Midwest states dependent on the auto industry, where unemployment has been rising.

Pennsylvania ranked 31st among the 50 states in number of filings (one in 230 homes), and New Jersey was 21st (one in 146 homes), RealtyTrac said. In No. 1 Nevada, there was one foreclosure filing for every 16 houses.

“Pennsylvania foreclosure activity places the state well below national average for the entire period measured,” said RealtyTrac chief economist Rick Sharga. “It appears that state and city initiatives have had a positive effect on foreclosures, and that bodes well for the Pennsylvania real estate market.”

New Jersey’s foreclosure numbers have dropped over the last quarter, Sharga said, “but we believe that this is a ‘false positive,’ based more on legislative delays in foreclosure proceedings and a backlog in the court system than on any real progress.”

Rising mortgage-delinquency rates indicate unemployment is feeding the numbers.

“I would say that foreclosures as a result of loss of income are on the rise, and have been for several months,” said Ian Phillips of Pennsylvania ACORN, which works for affordable housing.

Patricia Hasson of the Consumer Credit Counseling Service of the Delaware Valley said her counselors report “seeing clients with middle and higher income coming in due to cutbacks in company benefits, having to accept lower pay to keep their job, reduction in overtime, and self-employed people whose business slowed due to economy.”

The increase in foreclosure filings because of income loss have put pressure on Pennsylvania’s Home Emergency Mortgage Assistance Program. HEMAP provides loans “to get people through a period of income loss,” said John Dodds of the Philadelphia Unemployment Project.

The program, which Dodds said has saved more than 41,000 houses so far, is now “underfunded, as the state struggles with a large budget deficit and has thus focused 80 percent of assistance to those who . . . need less risky arrears-only loans.”

New Program Benefits People Who Live Where They Work

mstevens — Mon, 03 Aug 2009 15:50:43 +0000

Lower Mortgage Rates are available for homebuyers who want to live where they work. This is a program towns could apply for. Call or write your town officials to ask for it in your town.

DCA & HMFA Welcome Orange to Live Where You Work Homebuyer Program

July 16, 2009

by New Jersey RealEstateRama

Category: News || Housing & Development | No Comments

ORANGE, NJ - July 14, 2009 - (RealEstateRama) — Orange Mayor Eldridge Hawkins Jr. today joined Department of Community Affairs (DCA) Commissioner Joseph Doria and New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Marge DellaVecchia at Reock Commons, a new condominium development at 57 South Center Street, to announce that Orange is the newest member of the Live Where You Work Program. The city is the 15th municipality to partner with the HMFA on the program.

“Live Where You Work complements Governor Corzine’s efforts at revitalizing communities because it promotes homeownership and encourages people to live closer to their jobs,” said Commissioner Doria. “Mayor Hawkins and Orange are to be commended for their commitment to the residents of this city and I encourage more municipalities to join the program.”

The Live Where You Work Program is a workforce housing initiative that provides low-interest, fixed rate mortgage loans to homebuyers purchasing homes in towns where they are employed. Other benefits include down payment and closing cost assistance for the purchase of a home within Smart Growth Areas and flexible underwriting criteria for the loan qualification process. Homes must be located in a municipality that has become a Live Where You Work partner with HMFA. The Live Where You Work initiative strives to revitalize and build sustainable communities that will provide a greener environment, access to alternative transportation and affordable housing opportunities for residents.

“The HMFA believes that now is a great time to buy a home and Live Where You Work is a wonderful program that can make homeownership a reality for many families,” said Marge DellaVecchia, Executive Director of the HMFA. “Participants can receive larger loans than they would otherwise be eligible for because the program understands that the money they will be saving with a shortened commute can now be invested in their mortgage.”

As a result of the city’s partnership with the HMFA, people working in Orange who are interested in buying a home in the city will be able to take advantage of Live Where You Work program incentives. Live Where You Work is administered by the HMFA, a DCA affiliate. Trenton, Jersey City, Woodbridge, Elizabeth, Atlantic City, Rahway, Morristown, Evesham, Neptune Township, Bayonne, Carteret, New Brunswick, Paterson and Glassboro are all taking part in the program.

“In a time of economic crisis, any program that eases or creates opportunities for people to purchase homes is a great thing and the Live Where You Work program accomplishes this by targeting people who work in our community,” said Mayor Hawkins. “That means more of our police officers, firefighters, teachers and other anchors of our community can now live right next door, making the community safer.”

To learn about how to get a Live Where You Work mortgage, please call 1-800-NJHOUSE. For more information about how municipalities can join Live Where You Work, please call 609-278-7478. Or, you can visit the Live Where You Work website at www.livewhereyouwork.nj.gov.

More Housing for the Low Income Disabled To Come

mstevens — Mon, 03 Aug 2009 15:30:13 +0000

Menendez introduces new bill to provide housing for the low-income disabled. Tell him you support it.

TO ENSURE HOUSING FOR THE LOW-INCOME DISABLED, MENENDEZ AND JOHANNS INTRODUCE NEW LEGISLATION

By Senator Robert Menendez

WASHINGTON – U.S. Senators Robert Menendez (D-NJ) and Mike Johanns (R-NE) – both members of the Senate Banking, Housing and Urban Affairs Committee – today introduced legislation aimed at ensuring that low-income disabled Americans have access to affordable housing options. The Frank Melville Supportive Housing Investment Act would bolster the U.S. Department of Housing and Urban Development’s program that increases the availability of affordable housing for persons with disabilities and helps provide them with rental assistance.

“It is often hard for those who are disabled to find affordable housing that allows them to live independently, and that is particularly true during these tough times,” said Menendez, who is Chairman of the Banking Subcommittee on Housing, Transportation and Community Development. “We are working to help ensure that disabled members of our communities can keep a roof over their heads and can get some relief for their personal finances. We can do this by helping to increase the availability and reduce the cost of their housing, and we look forward to working with our colleagues to get this done.”

“I take very seriously our responsibility to ensure people with disabilities have the opportunity to contribute to our communities and this legislation is an important step,” Johanns said. “In a time when many are facing difficult struggles, it is our duty to see that no one is overlooked. This legislation helps people with disabilities to find affordable paces to live, which is often key to their independence.”

The legislation would improve and expand HUD’s Section 811 program by:

• Increasing the number of available housing vouchers for people with disabilities and ensuring that vouchers continue to be used to help people with disabilities.

• Encouraging the integration of mixed-used developments into the program and allowing funds from Low Income Housing Tax Credits and the HOME program to be used.

• Extending the length of rental assistance contract terms from 20 years to 30 years for projects using Low Income Housing Tax Credits.

The bill has been endorsed by:

Consortium for Citizens with Disabilities (CCD), American Association on Intellectual and Developmental Disabilities, American Network of Community Options and Resources, Association of University Centers on Disabilities, Autism Society of America, Bazelon Center for Mental Health Law, Burton Blatt Institute, Easter Seals, Lutheran Services in America, Mental Health America, National Alliance on Mental Illness, National Association of Councils on Developmental Disabilities, National Association of County Behavioral Health and Developmental Disability Directors, National Council for Community Behavioral Healthcare, National Disability Rights Network, National Multiple Sclerosis Society, National Spinal Cord Injury Association, The Arc of the United States, United Cerebral Palsy, United Jewish Communities, and United Spinal Association.