Housing Trust Fund Project NEWSA Special Project of the Center for Community Change

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Affordable Housing Trust Fund Task ForceProposes Housing Trust Fund for Baltimore

Oakland, California Passes New LinkageOrdinance and Creates a Housing Trust Fund ........................... 3

San Diego Association of Governments DevelopsRegional Housing Trust Fund Strategy .................................... 5

National Housing Trust Fund Legislation Bill Introducedin 2003 Congress ..............................................................6

Vermont Housing and Conservation Board CelebratesFifteenth Year ..................................................................... 8

Kentucky Affordable Housing Trust Fund Buildson Commitment of Lottery Funds.........................................10

National Association of Home Builders ReleasesNew Report on Housing and Economic Recovery ................... 11

SPRING

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The Baltimore AffordableHousing Trust Fund TaskForce has presented a pro-

posal to the City of Baltimore,Maryland to create a housing trustfund. The Task Force is a collabo-rative effort of fifteen organizationsthat have been meeting over the lastyear to prepare the proposal.

The Task Force decided that a hous-ing trust fund was necessary in Bal-timore to address its growing hous-

ing needs. With a high poverty rateand entry-level jobs moving outsidecity limits, decent rental housing isinaccessible to many low-incomefamilies in Baltimore. To afford amarket rate two-bedroom apart-ment, a household must make$12.23 per hour in the City. Balti-more is home to 42,481 vacant unitsand there is nearly as much vacantland (9%) as park land (10%). Pov-erty is more concentrated and ra-cial segregation more widespread in

Baltimore Affordable Housing Trust Fund Task Force

ACORNBon Secours’ Operation Reach Out South West

Center for Poverty SolutionsChesapeake Habitat for Humanity

Citizens Planning & Housing AssociationDruid Heights Community Development Corporation

Empower Baltimore Management CorporationGovans Ecumenical Development Corporation

Harlem Park Community Development CorporationMaryland Center for Community Development

Patterson Park Community Development CorporationPeople’s Homesteading Group

Save A NeighborhoodTri-Churches Housing

University of Maryland, Baltimore School of Law

ENDORSE THENATIONAL HOUSING

TRUST FUND CAMPAIGNSEE PAGE 6.

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News is publ ished quarterly by the

Housing Trust Fund Project, a special

project of the Center for Community

Change. The Center for Community

Change is a national nonprofit which

helps low-income people build power-

ful, effective organizations through

which they can change their communi-

ties and public policies for the better.

The Housing Trust Fund Project operates

as a clearinghouse of information on

housing trust funds throughout the coun-

try and provides technical assistance to

organizations and agencies working to

create and implement these funds.

Publications are funded by a grant from

the Ahmanson Foundation. For more in-

formation or to request technical assis-

tance, please contact:

Mary BrooksHousing Trust Fund Project1113 Cougar CourtFrazier Park, CA 93225Tel:661-245-0318Fax:661-245-2518e-mail:Mbrooks@communitychange.org

FUNDINGPublications are funded by agrant from the AhmansonFoundation.

Baltimore than nearly anywhere inthe nation. Some 17,000 familieslanguish on waiting lists for Section8 certificates. In the first ninemonths of 2003, 15% of inspectionsfound code violations in Baltimore’shousing supply.

Building on a concept paper pre-pared through the University ofMaryland School of Social Work,the group began to meet early in2002. It has developed a mailinglist of more than 50 different organ-izations and met with various ex-perts and advisors as they developedtheir proposal.

The proposal is seeking to developa $5-10 million annual housing trustfund for the City of Baltimore. TheFund would be used to increase af-fordable housing choices and re-build Baltimore’s neighborhoodsthrough flexible gap financing forhousing development and neigh-borhood revitalization.

Recipients would be allowed onlyto use the funds to for projects thatare already leveraging funds from avariety of sources. Agencies coulduse the funds for capital costs, de-veloper fees, pre-development, andfor operations (up to 5%). Somehousing-related nonprofit capacity-building will also be eligible. Re-cipients may include private for-profit developers, community de-velopment corporations, other non-profit developers, and community-based groups that have 501(c)(3) sta-tus.

Eligible activities will include af-fordable rental and homeownerprojects, including:

• Projects that address needs allalong the housing continuum, in-cluding: homeownership, rentalunits, service-linked permanentrental, transitional housing, andemergency shelters;

• Rehabilitation projects or newconstruction;

• Projects that seek to trans-form deeply challenged neighbor-hoods as well as projects that arebuilding true neighborhood wealthin more stable areas; and

• Neighborhood revitalizationprojects.

The Affordable Housing TrustFund Task Force completed exten-sive legal and budget research todetermine the revenue sources thatcould sustain the Housing TrustFund at the proposed level of $5-10 million a year. The most sig-nificant criteria used in their analy-sis, includes: a close relationship tohousing, an ability to generate a sig-nificant revenue stream, not dis-couraging continued market suc-cess, control at the Baltimore citylevel, and ease of administration.

BALTIMORE continued from page 1

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Homes on both sides of Stricker Street havebeen rehabilitated by Sandtown Habitat--anonprofit organization in West Baltimore.

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Oakland, California Passes New Linkage OrdinanceOakland, California Passes New Linkage OrdinanceOakland, California Passes New Linkage OrdinanceOakland, California Passes New Linkage OrdinanceOakland, California Passes New Linkage Ordinanceand Creates Housing Tand Creates Housing Tand Creates Housing Tand Creates Housing Tand Creates Housing Trust Fundrust Fundrust Fundrust Fundrust Fund

The City of Oakland, Cali-fornia has passed a linkageordinance creating a new

housing trust fund for this City inthe San Francisco Bay. The ordi-nance was passed in the summer of2002 following the recommenda-tion of a Task Force, established inJuly 2000. Among the recommen-dations was consideration of estab-lishing linkage fees. The linkageordinance would assess fees on newnon-residential development in or-der to mitigate the impact of in-creased demand for affordablehousing caused by such develop-ment.

Subsequently, the City Council con-tracted for a nexus study to demon-strate the relationship between non-residential development and thedemand for affordable housing, asrequired by California law. Thestudy was completed in the fall of2001. The study documented thenexus analysis, performed an eco-nomic impact analysis, and esti-mated potential revenues from ahousing linkage fee.

The City is responding to a severeshortage of affordable housing. Themedian rent for an available two-

bedroom rental unit is nearly$1,500. A household would needan income of $60,000 to afford suchan apartment without spendingmore than the 30% of their income.Development costs throughout theBay Area are extremely high and itis not unusual for costs to exceed$200,000 per unit for apartmentswith modest amenities. The gapbetween these development costsand the rents that are affordable tolower income households is sub-

stantial. Affordable housing cannotbe developed without significantpublic investment.

The study documented that withprojects in the pipeline in Oakland,a linkage fee could generate $5.8million to $28.7 million by impos-ing a linkage fee of $2.00 to $20.00per square foot. The nexus studydemonstrated that even at levels of$8.00 to 10.00 per square foot, alinkage fee would have relativelysmall effects on development.However, the City Council recom-mended a lesser fee, because ofother impact fees under consider-ation, including an open space feeand a traffic mitigation fee.

The linkage ordinance passed by theOakland City Council places a jobs/

Las Bougainvilleas Senior Housing was developed on 37th Avenue in Oakland by the SpanishSpeaking Unity Council . The Unity Council helps build the assets of families and low-income

communities through a comprehensive program of sustainable physical, economic and socialdevelopment. Through its residential and community programs, the Unity Council provides a

number of high quality services for more than 250 seniors living throughout the neighborhood.

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The Association of Bay Area Governments, through its RegionalHousing Needs Allocation, estimates that based on anticipatedeconomic growth, the City will experience demand for 3,207 newhousing units affordable to low and very low income householdsbetween 1999 and 2006.

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housing impact fee on new officeand warehouse/distribution spacedevelopment. The impact fee is$4.00 per square foot after the first25,000 square feet of development.The ordinance takes effect on July1, 2005. The impact fee will be as-sessed at the time a building permitis issued. Payment will occur inthree installments: 25% prior to theissuance of a building permit; 50%at the issuance of a Temporary Cer-tificate of Occupancy (TCO); and25% eighteen months from the dateof the TCO.

As an alternative to paying all or partof the linkage fee, a developer mayelect to produce affordable housing.Any applicant electing this in-lieuoption must demonstrate that it willconstruct or cause to be constructednew affordable housing units in ac-cordance with a formula, that states:

OAKLAND continued from page 3

number of gross square feet in thedevelopment project devoted to of-fice or warehouse/distribution usesminus 25,000 square feet x .00004= number of affordable housingunits. The applicant must secure aCertificate of Occupancy for all af-fordable housing units no later thaneighteen months from the issuanceof the Certificate of Occupancy forthe development project.

The ordinance also requires theCity Manager to establish an Af-fordable Housing Trust Fund intowhich the linkage fees are to beplaced. The Fund is to provide as-sistance in developing affordablehousing throughout the City ofOakland. Funds are to be used toincrease, improve and preserve thesupply of affordable housing, withpriority given to housing for verylow income households.

Eligible uses include assistance withstaff costs or other administrativecosts attributable to a specific af-fordable housing project, equityparticipation in affordable housingprojects, loans and grants (includ-ing pre-development loans orgrants) to affordable housingprojects, or other public/privatepartnership arrangements. Fundsmay support rental housing, owneroccupied housing, limited equitycooperatives, mutual housing devel-opments, or other types of afford-able housing projects.

The Affordable Housing TrustFund will be administered by theCity Manager. All allocations offunds from the Affordable HousingTrust Fund must be approved by theCity Council. An annual reportshowing impact fees imposed, rev-enues collected, funds committed,expenditures made, and any deci-sions made as to requests for reduc-tions or exemptions is to be pre-sented by the City Manager to theCity Council. The City Managerwill develop rules and regulationsgoverning the implementation ofthe ordinance.

Contact: Sean Heron, East Bay Housing Organizations, 538 Ninth

Street, Suite 200, Oakland, CA 94607 (510-663-3830).

Oakland Community Housing, Inc. developed the Villas at Jingletown on 29th Avenue and 10thStreet in Oakland. Oakland Community Housing, Inc. has been developing and managing qual-ity affordable housing for low-income families, elderly, disabled and other special needs populationsin Oakland and the East Bay since 1973.

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San Diego Association of Governments DevelopsSan Diego Association of Governments DevelopsSan Diego Association of Governments DevelopsSan Diego Association of Governments DevelopsSan Diego Association of Governments DevelopsRegional Housing TRegional Housing TRegional Housing TRegional Housing TRegional Housing Trust Fund Strategyrust Fund Strategyrust Fund Strategyrust Fund Strategyrust Fund Strategy

The San Diego Associationof Governments(SANDAG) recently

formed a Trust Fund WorkingGroup, made up of interested mem-bers of their Regional Housing TaskForce, to work on expanding the useof housing trust funds in the SanDiego region. The challenge comesfrom SANDAG’s report, “Solvingthe San Diego Region’s HousingCrisis,” which identifies the grow-ing challenge of providing afford-able housing, who is affected by theneed, and how the region got into asituation so severe. Among a set ofrecommendations to create fundingsources and incentives for housingand smart growth is creating hous-ing trust funds.

Late last year, SANDAG’s RegionalHousing Task Force held a work-shop on housing trust funds withrepresentatives from other Califor-nia communities with experience increating housing trust funds. Asfollow-up to the workshop, a Hous-ing Trust Fund Working Group wasformed to discuss trust fund strate-gies for the region. The WorkingGroup reported on trust funds andprovided plans to the SANDAGBoard of Directors in its report earlythis year.

The Working Group discussed sev-eral options for increasing the useof housing trust funds in the SanDiego region:

1. Increase the number of lo-cal housing trust funds: One op-tion would be to encourage localjurisdictions to start their own hous-

ing trust funds and provide themwith technical assistance in devel-oping and administering thesefunds. This strategy could greatlyincrease the amount of funding foraffordable housing development inthe San Diego region.

2. Form multi-jurisdictionaltrust funds: Another option wouldbe to explore multi-jurisdictionaltrust funds encompassing a city and

San Diego Region Housing Costs vs. Household Income

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county or more than one city. Thisstrategy could provide more oppor-tunities for potential revenue andfor leveraging available resources,as well as reducing administrativecosts for smaller cities.

3. Form a regional housingtrust fund: The third option of cre-ating a regional housing trust fundwould reduce competition amongcities and could potentially increaserevenues.

After reviewing these options, theHousing Trust Fund WorkingGroup recommended thatSANDAG work with local jurisdic-tions to determine the potential forimplementing trust funds. Thiswould allow the programs to be cus-tomized to fit individual jurisdic-tional needs. SANDAG staff wouldbegin by educating City Councilsand Boards of Supervisors through-out the region through presenta-

tions on housing trust funds. Eachof the nineteen jurisdictionsthroughout the region will be sur-veyed to answer these questions:

• Is the jurisdiction interestedin developing a trust fund?

• What is the jurisdiction’s ca-pacity to administer a housing trustfund?

• Would the jurisdiction bewilling to participate in multi-juris-

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National Housing TNational Housing TNational Housing TNational Housing TNational Housing Trust Fund Billrust Fund Billrust Fund Billrust Fund Billrust Fund Billis Introduced in the 2003 Congressis Introduced in the 2003 Congressis Introduced in the 2003 Congressis Introduced in the 2003 Congressis Introduced in the 2003 Congress

SANDAG

dictional or regional efforts?• What is the potential for

implementing a commercial linkagefee, and how much could be raisedthrough such a fee?

• Does the jurisdiction haveother potential funding sources thatcould be developed and contributedto affordable housing?

Following the initial fact findingand education phase, SANDAG willexplore how to integrate a housingtrust fund strategy into its RegionalComprehensive Plan, which is be-ing developed this year. The Hous-ing Trust Fund Working Group willpropose a specific strategy for en-couraging and expanding local,

continued from page 5

Cedar Road Apartments in Vista contains forty units ofaffordable housing for lower income residents.

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multi-jurisdictionaland/or regional trustfunds.

If the proposal is ap-proved, this strategycould be included in thehousing element of theRegional Comprehen-sive Plan. By integrat-ing the trust fund strat-egy in the Plan,SANDAG would havethe opportunity to tieincentives to the devel-opment of these inno-vative funding strategies. Addition-ally, the Plan could include meth-ods to provide credit toward meet-ing affordable housing goals tothose jurisdictions that contributefunds to assist in meeting the

region’s affordable housingneeds.

Contact: Rebecca Davis, San Diego Association of Governments,

401 B Street, Suite 800, San Diego, CA 92101-4231 (619-

595-5300) (www.sandag.org).

The National HousingTrust Fund Campaign isoff to a great start in 2003.

H.R. 1102 was introduced into theHouse on March 5, 2003 with all ofthe original co-sponsors plus somefor a total of 167 co-sponsors. Thebill would establish the National Af-fordable Housing Trust Fund in theTreasury of the United States toprovide for the development, reha-bilitation, and preservation of de-cent, safe, and affordable housingfor low-income families.

The bill would amend Title II ofthe Cranston-Gonzalez NationalAffordable Housing Act in order to:

• Fill the growing gap in thenational ability to build affordablehousing by using profits generatedby Federal housing programs tofund additional housing activities,without supplanting existing hous-ing appropriations;

• Enable rental housing to bebuilt, for families with the greatesteconomic need, in mixed-incomesettings and in areas with the great-est economic opportunities;

• Promote homeownership forlow-income families; and

• Produce, rehabilitate, and pre-serve at least 1,500,000 affordabledwelling units over the next decade.

Monies to be deposited into theNational Affordable Housing TrustFund would include: (1) the amountof the balance in the Mutual Mort-gage Insurance Fund that exceedswhat is necessary for the Fund tomaintain the capital ratio requiredunder law and (2) the amount offunds collected or received by theGovernment National MortgageAssociation that exceed what is nec-essary to pay the administrativecosts and expenses necessary to en-sure the safety and soundness ofGNMA.

The Secretary of HUD will be ableto allocate 40 percent of these re-

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sources to states and the remaining60 percent to local jurisdictions.The Secretary will establish a for-mula to allocate funds based on thefollowing factors:

• The percentage of families inthe jurisdiction that live in substan-dard housing;

• The percentage of families thatpay more than 50% of their annualincome for housing costs;

• The percentage of persons ator below the poverty line;

• The cost of developing or car-rying out housing rehabilitation;

• The percentage of the popu-lation that resides in counties hav-ing extremely low vacancy rates;

• The percentage of the hous-ing stock that is extremely old hous-ing; and

• Any other factors the Secre-tary determines to be appropriate.

The awards to eligible recipientswill be the lesser of the allocationamount or four times the amountof funds provided by the recipientfrom non-Federal sources. Non-Federal sources include a portion of:low-income housing tax credits,mortgage bond revenue, tax exemptbond proceeds, CDBG, HOME,project-based voucher assistance,temporary assistance for needyfamilies, rural housing assistance,and general state revenues. Thematching contribution requirementcan be reduced for jurisdictionswhen the Secretary certifies that itis in fiscal distress or eliminatedentirely for severe fiscal distress.

Each eligible recipient that receivesfunds must use not less than 45%for rental housing affordable to ex-tremely low-income families. Noless than 30% can be used for rentalhousing for minimum wage-income

families. And not more than 25%can be used for rental housing orhomeownership assistance for low-income families. Not more than5% of the grant amount can be usedto fund operating assistance fornonprofit housing development or-ganizations.

Eligible applicants will be requiredto submit an allocation plan to beapproved by HUD. The allocationplan must contain appplication re-quirements for eligible recipients,selection and preference criteria forrecipients, forms of assistance, co-ordination with other assistance,effect the program, administrationof the program, and labor standards.

Selection and preference criteriamust include at least:

• the amount of assistance lever-aged by the applicant from otherprivate and non-Federal sources offinancing;

• the extent of local assistancethat will be provided (financial sup-port, extent to which barriers to af-fordable housing have been ad-dressed and reduced);

• the degree to which residentswill have various incomes;

• the extent to which employ-ment and other economic opportu-nities are in the area;

• the extent to which the unitswill be maintained;

• vacancy rates in the surround-ing county;

• the extent to which the per-centage of housing that is extremelyold exceeds 35%;

• accessibility to persons withdisabilities;

• proximity to public transpor-tation, job opportunities, child care,and community revitalizationprojects; and

• service in areas where the

number of families having incomesless than the poverty line is less than20%.

Funds may be used for new con-struction, acquisition, site prepara-tion and improvement, rehabilita-tion, project-based rental assistancefor not more than twelve months,and incentives to maintain existinghousing as affordable, includingcovering capital expenditures andoperating costs.

Eligible entities include public orprivate nonprofit or for-profit en-tity, unit of general local govern-ment, regional planning entity, andany other entity engaged in the de-velopment, rehabilitation, or pres-ervation of affordable housing.

The Campaign now has more than4,000 endorsers. As more Repre-sentatives sign on to the H.R. 1102introduced by Bernard Sanders (I-VT), campaigners await for a com-panion bill to be introduced in theSenate.

FOR MORE INFORMATIONAND TO ENDORSE THE CAMPAIGN,GO TO WWW.NHTF.ORG OR CALL

202-662-1530.

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The Kentucky AffordableHousing Trust Fund hascommitted more than $13

million to provide some 3,666 unitsof affordable housing throughoutthe state since it was created in 1992.Begun with marginal funding fromthe Kentucky Housing Corporationand revenues from the KentuckyDerby Day Breakfast, it grew sub-stantially with a commitment in1999 of unclaimed lottery earnings.

The Fund primarily provides no-interest home loans to householdsthat generally cannot afford downpayments and who would probablynot qualify for bank credit. Its con-solidated funding round combinesthe HOME Program, HousingCredits, Housing DevelopmentFund, Renaissance Kentucky andother KHC multi-family financeprograms with the AffordableHousing Trust Fund.

Its latest funding round providedfunds to 36 applicants in support ofmore than 680 units of affordablehousing. Recipients include: Tran-sitions, Inc.; Faith CommunityHousing Foundation; Claire Vil-lage, Limited; Greater CommunityHousing, Inc.; Cumberland RiverComprehensive Care; FrontierHousing, Inc.; Kentucky MountainHousing Development Corpora-tion, Inc.; People’s Self-Help Hous-ing, Inc.; and Green River Hous-ing Corporation, among others.

Among these is the Hazard-PerryCounty Housing Development Al-liance recently featured in an articlein the Lexington Herald Leader

Kentucky Affordable Housing TKentucky Affordable Housing TKentucky Affordable Housing TKentucky Affordable Housing TKentucky Affordable Housing Trust Fundrust Fundrust Fundrust Fundrust FundBuilds on Commitment of Lottery FundsBuilds on Commitment of Lottery FundsBuilds on Commitment of Lottery FundsBuilds on Commitment of Lottery FundsBuilds on Commitment of Lottery Funds

providing the Affordable HousingTrust Fund with invaluable presscoverage. The article begins with“Rachel Miller is a lottery winner,sort of.” It then explains that $17.5million in unclaimed lottery prizeshas been committed to the con-struction and renovation of homesfor the working poor and elderlyacross the state through the Afford-able Housing Trust Fund.

This includes, according to the ar-ticle, a $45,000 two-bedroom homethat Rachel Miller was able to pur-chase a year ago. At 69 years of age,she never thought she would be ableto the save the money needed to buya house from her Social Securityincome. Because of funds madeavailable to the Hazard-PerryCounty Housing Development Al-liance through the Kentucky Af-fordable Housing Trust Fund,people with incomes as low as$6,000 a year can qualify for loanswith monthly payments as low as

$250. Often the mortgage pay-ments are less than what a familymight be paying in rent.

In four years, the Hazard group hasbuilt or renovated 24 houses and 20apartments using the unclaimed lot-tery revenues from the trust fund.They have been able to leveragethese funds with an additional $150million.

The Affordable Housing TrustFund had approximately $6 millionin resources in Fiscal Year 2002.Administered by the KentuckyHousing Corporation, the TrustFund divides its resources to sup-port transitional housing, homebuyer assistance, homeowner reha-bilitation, and rental production/re-habilitation activities.

Contact: Faye O’Dell, Kentucky Housing Corporation, 1231

Louisville Road, Frankfort, KY 40601 (502-564-7630)

(www.kyhousing.org).

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VVVVVermont Housing and Conservation Boardermont Housing and Conservation Boardermont Housing and Conservation Boardermont Housing and Conservation Boardermont Housing and Conservation BoardCelebrates Fifteenth YCelebrates Fifteenth YCelebrates Fifteenth YCelebrates Fifteenth YCelebrates Fifteenth Year!ear!ear!ear!ear!

The Vermont Housing &Conservation Board(VHCB) is celebrating its

fifteenth year of operating the verysuccessful Housing and Conserva-tion Trust Fund. Providing supportto more than 200 towns across Ver-mont since 1987, the Board has in-vested in the construction and re-habilitation of 6,700 units of hous-ing, the conservation of more than95,000 acres of the state’s best agri-cultural land and more than 235,000acres of natural areas, woodland andrecreational lands, and contributedto the preservation of numerous his-toric sites and buildings.

The Board not only has its directimpacts to be proud of, but its in-vestments have leveraged one halfbillion dollars over the fifteen years.In a recent report, The Economic Ben-efits of Investments by the VermontHousing & Conservation Board, theBoard reported that it estimates thatfrom 1988 to 2001, VHCB hous-ing expenditures contributed to$290 million in construction activ-ity and to the creation of 10,321construction-related jobs. Much ofthe income earned from these jobswas spent locally, generating stillmore economic activity. Every dol-lar of construction activity is esti-mated to leverage nearly two dol-lars in other economic activity.

VHCB’s housing and historic pres-ervation policies have given prior-ity to projects in downtown areas.Rehabilitating downtown buildingshelps to maintain a mix of commer-cial and residential uses, makingthese areas more desirable business

locations. Reinvestment in down-town areas increases commercialactivity and tourism. The rehabili-tation of vacant and deterioratedbuildings spurs further reinvest-ment in downtown neighborhoods.Other benefits identified in the re-port, include:

• Attraction and retention ofemployers due to the proximity ofaffordable housing opportunities;

• Increased state and munici-pal revenues from taxes on wages,construction materials, and prop-erty transfers;

• Reduced infrastructure coststo municipalities by concentrateddevelopment in town centers;

• Greater local spending fromreduced housing costs for house-holds; and

• Lower health care costs fromremoval of toxic substances; betterhealth, nutrition and growth forchildren; and safer and more sup-portive environments for senior citi-zens.

In 2002, twenty housing develop-ments were funded by the VermontHousing & Conservation Boardproviding 419 homes. These de-velopments provide homeowner-ship opportunities for lower incomeVermonters, create rental housingin some of the state’s tightest hous-ing markets including a number ofupper-income communities, ac-quire and rehabilitate mobile homeparks, develop affordable assistedliving for frail elders, revitalizedowntowns, and preserve theaffordability of developments that

Through the Community Connections program, these East Montpelier School students workedwith Chore Buddies, a program of the Vermont Center for Independent Living, to stain ramps for

people with disabilities in Central Vermont. VHCB provides funds to VCIL to design and buildramps and make accessibility modifications for homes and apartments statewide.

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previously received federal funding.

The residents of Vermont, providedwith housing opportunities, have avariety of backgrounds and needs,such as low-wage workers, personswith disabilities, homeless familiesand individuals, and senior citizens.VHCB funds pay for acquisitionand rehabilitation of existing prop-erties and construction of newbuildings. VHCB investments alsoensure that the housing will remain

affordable over time to benefit bothcurrent and future Vermonters.

Of the rental apartments funded thisyear, half will be additional unitslocated in some of the state’s tight-est housing markets—Stowe,Manchester, Burlington, Quechee,Colchester, and Randolph. Someof these developments will leveragerental assistance, making thoseapartments affordable to any Ver-monter, no matter how low his orher income. Working with theChittenden Bank and FederalHome Loan Bank of Boston, theBoard has leveraged additionalfunds to make homeownership areality for more low-income Ver-monters in targeted countiesthroughout the state. VHCB alsofunded two assisted living develop-ments, among the first to use thatparticular model to create afford-able, service supported housing forfrail elders.

In addition to prioritizing new con-struction in tight housing markets,the Board continues to focus ondevelopments that help to revital-ize downtowns and village centers

and on mobile home park acquisi-tions that will improve infrastruc-ture and quality of life for the resi-dents. The Board gives priority todevelopments served by public in-frastructure that are convenientlylocated near jobs, community facili-ties, and served by public transpor-tation.

Studies continue to show thatVermont’s most serious housingneed is for rental housing for lower-income households. These house-holds must now earn more than twotimes the state minimum wage toaffordable a typical two-bedroomapartment. In one year, the incomethat a renter needs to afford a two-bedroom apartment in Vermont in-creased by eleven percent.

The Vermont Housing & Conser-vation Board makes grants and loansto non-profit organizations, hous-ing co-ops, municipalities, andqualifying state agencies. TheBoard meets and makes decisions onapplications approximately seventimes a year. All applicants are re-quired to show long-term benefit toVermonters through deed restric-tions or other mechanisms that en-sure the funds provided will have alasting effect. Housing projectsmust target Vermonters with in-comes at or below median. VHCBalso provides awards to assist withfeasibility analysis for individualprojects and provides organizationalgrants to non-profits for some of thecosts associated with developing af-fordable housing and conservationprojects.

Contact: Larry Mires, Vermont Housing and Conservation Board,

149 State Street, Montpelier, VT 05602 (802-828-3250)

(www.vhcb.org).

Maple Tree Place at Taft Corner, Williston, was developed by the Burlington Community LandTrust and Housing Vermont. Fifty apartments are contained in eight different buildings. Fifteenunits carry project-based rental assistance.

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What is heartening is the continuedwork of public agencies and privatecompanies to help solve thisaffordable housing crisis. Thesecollaborations often start with “seedmoney” from the Vermont Housing& Conservation Board, providing aninducement for private parties suchas Vermont’s banking community toinvest in, lend to, or developaffordable housing.

President, National Bank ofMiddlebury

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National Association of Home Builders ReleasesNational Association of Home Builders ReleasesNational Association of Home Builders ReleasesNational Association of Home Builders ReleasesNational Association of Home Builders ReleasesReport on Housing and EconomicReport on Housing and EconomicReport on Housing and EconomicReport on Housing and EconomicReport on Housing and Economic RecoveryRecoveryRecoveryRecoveryRecovery

H ousing: the Key to Eco-nomic Recovery is a newreport issued by the Na-

tional Association of Home Build-ers (NAHB) that provides addi-tional evidence of how importanthousing production is to localeconomies. Housing accounts forabout fourteen percent of thenation’s Gross Domestic Productand drives other closely related sec-tors of the economy, according tothe Home Builders. Housing cre-ates millions of jobs each year andgenerates billions of dollars in taxrevenue.

Housing’s performance in currenteconomic conditions can be attrib-uted to a number of factors, accord-ing to the NAHB report. In addi-tion to historically low mortgageinterest rates, new construction andhome sales have reflected strongunderlying demand for new hous-ing, low inventories of unsold unitson the market, and belief in thevalue of real estate as a long-terminvestment.

The report states that the con-struction of 1,000 single familyhomes generates: 2,448 jobs inconstruction and construction-related industries, approxi-mately $79.4 million in wages,and more than $42.5 millionin federal, state and local taxrevenues and fees. Construc-tion of 1,000 multi-familyhomes generates: 1,030jobs in construction and re-lated industries, approxi-mately $33.5 million inwages, and more than$17.8 million in federal,state and local tax rev-enues and fees.

According to the report, housing’seconomic impact doesn’t end whena home is sold and the new ownersmove in. In fact, housing contin-ues to be an economic force longafter the sale is closed. In the firsttwelve months after purchasing anewly built home, owners spend anaverage of $8,900 to furnish, deco-rate and improve their homes—

more than twice the $4,000 spentby non-movers. Buyers of existinghomes spend $7,766 during thetwelve months after purchasing thehome. Renters also spend signifi-cant amounts on furnishing theirnew apartments.

Of the $8,900 spent by new homebuyers, 77 percent is spent on homefurnishings and property alter-ations. The most common pur-chases include household decora-tions, linens, furniture and mat-tresses ... providing important salesto local businesses.

The report is available from the National Association of Home

Builders, 1201 Fifteenth Street, N.W., Washington, D.C. 20005

(202-266-08254) or at www.nahb.com.

Housing’ Housing’ Housing’ Housing’ Housing’s Economic Impact Continues Long After the Sales Economic Impact Continues Long After the Sales Economic Impact Continues Long After the Sales Economic Impact Continues Long After the Sales Economic Impact Continues Long After the Sale

Spending by New Home Buyers in the First Year After Purchase

Description Amount

Property alterations $3,194Furnishings 3,632Appliances 2,079

Total $8,905

SOURCE: NAHB, BUREAU OF LABOR STATISTICSCONSUMER EXPENDITURE SURVEY

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Housing Trust Fund Project1113 Cougar CourtFrazier Park, CA 93225

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BALTIMORE continued from page 2

The proposed Affordable HousingTrust Fund will be funded througha combination of two housing-re-lated city-level sources: the recor-dation tax and the transfer tax.

The recordation tax in Baltimorehas remained at the same level forseveral years and is among the low-est in the State of Maryland. Thecurrent rate is $2.75 per $500 of thesales price. Increasing this tax by$0.50 to $1.00 would generate $1.8million to $3.65 million a year forthe Affordable Housing Trust Fund.

The real estate transfer tax has thepotential for raising significant rev-enue from a very small increase.The current rate of 2% on the costof the property is divided between

the City (1.5%) and the state (.5%).Increasing this tax by 0.1% to 0.5%would raise $1.3 million to $6.6million a year for the AffordableHousing Trust Fund.

A community-based Board of Di-rectors will have oversight and de-cision-making authority for the Bal-timore Affordable Housing TrustFund. The Board will be fully em-powered to select projects receiv-ing funding from the Trust Fund.The Mayor will appoint one thirdof the board members with approvalfrom the City Council. The re-maining two thirds will be electedby the board each year. All mem-bers must be residents of Baltimore,have experience with and/or exper-tise in affordable housing and reflectthe changing ethnic and demo-graphic make-up of the City.

Board members will consist of com-

munity leaders and representativesfrom the following areas: founda-tions, realtors, financial institutions,not-for-profit organizations, devel-opers, and other unrestricted seats.

The Baltimore Affordable HousingTrust Fund will be staffed by theCity’s Department of Housing andCommunity Development. Up tofive percent of the funds may bespent on staffing and other admin-istrative costs of the fund.

The Affordable Housing TrustFund Board will be required to pro-vide a written annual report on theperformance of the trust fund, in-cluding a full audit on its financialstatus, to the Baltimore City Coun-cil at a public hearing .

Contact: Steve Soifer, University of Maryland, School of Social

Work, 525 West Redwood Street, Baltimore, MD 21201 (410-

706-7927).

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