Find Homeowner Assistance Fund Programs by State: Read More

NCSHA Washington Report | February 10, 2023

Published on February 10, 2023

Washington Report NCSHA

Rafael Cestero, CEO of the Community Preservation Corporation, which has financed more than 220,000 affordable apartments in New York and elsewhere, recently articulated a rising sentiment among leaders in affordable housing: “The diversity of who is building in neighborhoods is as important as what we’re building and how we’re building it.”

CPC’s $40 million investment in its ACCESS initiative has yielded 30 development projects by 24 developers of color so far. Cestero and his organization are at the forefront of an unprecedented effort by all manner of financial institutions to increase opportunities and nurture sustained growth in Black and Brown real estate organizations.

An overview by the Housing Partnership Network identified 13 targeted investment funds and capacity building programs representing more than $1 billion in commitments launched in the last few years. In many cases, funding is coming from large banks and passing through community development financial institutions. Much of it is seed capital, credit lines, and predevelopment financing — the lifeblood of project viability and business growth potential for any nascent real estate enterprise.

While much of the new investment is in apartment developers, some institutions are also funding for-sale builders of color. J.P. Morgan Chase is investing in Parity Homes, which is rehabilitating vacant homes for homeownership in West Baltimore.

Parity’s founder, Bree Jones, is bringing to a deep tradition of resident-led community development a new generation’s organizing savvy and financial chops. Her vision is nothing less than “development without displacement.”

Jones is also an advocate for policy change. Her testimony to the Maryland state legislature in 2021 that it is “overwhelming and unequivocally clear that there must be an intentional pool of capital designed to heal historic harms, and revive healthy communities across the state” helped push an “appraisal gap” subsidy program toward passage.

These and other emergent efforts and early results can only be the beginning. The Low Income Investment Fund, another leader in the movement, cites statistics showing that “only 2% of development companies are Black-led, and Black developers earn about $20,000 less in annual salaries than the industry average.”

While there’s no basis to “pigeon hole” any Black or Brown real estate firm in affordable housing, our business has inherent appeal to entrepreneurs of every background.

In fact, developers of color starting out and scaling up today have inspirations in the industry, like Columbia Residential, founded in 1991 by the late Noel Kalil, who built one of the largest affordable housing developers in the country and eventually expanded into mixed-use development. Today, Columbia Residential’s president, Carmen Chubb, is extending Kalil’s vision of “building cathedrals for God’s children.”

State HFAs are also doing more to strengthen Black and Brown developers, through their Housing Credit programs and new financial products. HFA leaders like Louisiana Housing Corporation’s Joshua Hollins are explicit about their commitment.

We’re honored Cestero, Jones, Chubb, and Hollins are among the speakers at NCSHA’s virtual symposium later this month, Toward a Racially Just Housing System. There’s still time to register.

Stockton-Williams-Washington-Report

Stockton Williams | Executive Director

State HFA Emergency Housing Assistance

In This Issue

Florida Housing Names DiNapoli Executive Director
Michael DiNapoli has been appointed executive director of the Florida Housing Finance Corporation, its Board of Directors announced earlier today. DiNapoli previously served as the director of small and minority business capital for the Florida Department of Economic Opportunity (DEO), where he oversaw key business lending programs, venture capital, and small and minority business programs. He also was responsible for the Homeowner Assistance Fund and the Emergency Bridge Loan program. In addition to his role at the agency, DiNapoli serves as chairman of the Florida Development Finance Corporation and a board member for the First Housing Development Corporation of Florida. Before joining DEO in 2017, DiNapoli was senior vice president for Citigroup, Morgan Stanley, and UBS Financial in New York.

OMB Issues Proposed Rule on Build America, Buy America
On February 9, the Office of Management and Budget issued a proposed rule and notification of proposed guidance for grants and agreements intended to support implementation of the Build America, Buy America (BABA) provisions of the Infrastructure Investment and Jobs Act, which established domestic content procurement preferences for certain infrastructure projects funded with federal assistance. Of note, the proposed rule does not purport to define the types of infrastructure to which BABA requirements would apply, which NCSHA has previously argued should exclude housing, but instead focuses on the categories and specific types of building materials that ultimately will be covered. The deadline to comment on OMB’s proposal is March 13. Please send Robert Henson any input you would like NCSHA to consider as we develop comments on the proposed rule.

Biden Calls for More Housing Investment in State of the Union Address
In his second State of the Union address, delivered Tuesday, President Joe Biden urged Congress to work together with him to solve the nation’s issues. Referencing his administration’s legislative accomplishments from last Congress, Biden urged lawmakers to “finish the job” by advancing legislation to support economic growth, including providing “more families access to affordable and quality housing.” The Inflation Reduction Act, Biden’s top domestic priority last Congress, initially included $300 billion in funding for HOME and other housing programs as well as an expansion of the Housing Credit and establishment of the Neighborhood Homes Tax Credit. These provisions were removed before the bill passed. During his speech, Biden also called on Congress to do more to help homeless veterans. A fact sheet released by the White House says the administration will propose in its fiscal year 2024 budget to triple the number of veterans who can access housing benefits. Biden also touted his administration’s efforts to remove lead pipes from 10 million homes.

Senate Banking Committee Looks at the State of Housing
During a hearing yesterday, Senate Banking Committee members from both parties expressed a desire to work together to expand the supply of available affordable housing but differed on solutions. In his opening statement, Chair Sherrod Brown (D-OH) said the committee was focusing its first hearing of the new Congress on housing because it is one of the most important issues facing families across the country. He expressed hope that he could work together with new Committee Ranking Member Tim Scott (R-SC) to identify and advance policies to increase access to affordable housing. Scott said he shared Brown’s desire to work together on affordable housing but argued efforts to support housing through federal spending have not succeeded and perhaps exacerbated the affordable housing shortage by driving up inflation. He criticized several Biden Administration policies he said would contribute to the affordable housing crisis, including its recently released Blueprint for a Renters Bill of Rights. Hearing witnesses — Chris Herbert of the Harvard Joint Center for Housing Studies, Rob Dietz of the National Association of Home Builders, and Lance George of the Housing Assistance Council — expressed support for expanding the Housing Credit and enacting the Neighborhood Homes Investment Act.

HUD Builds Awareness of Resources for Survivors of Domestic and Sexual Violence
On February 1, the Department of Housing and Urban Development (HUD) announced a number of initiatives intended to promote housing resources and protections for survivors of domestic violence, sexual assault, dating violence, and stalking. Specifically, HUD has established a Violence Against Women Act (VAWA) web portal, which consolidates a number of resources that may be of assistance to survivors and service providers. HUD also has issued a notice of funding opportunity for its Community Compass Technical Assistance and Capacity Building Program, which includes funds available for HUD grantees and other eligible stakeholders, including public housing authorities, for VAWA training and technical assistance. The deadline to apply for this funding is March 28. HUD’s announcement refers to a previously issued notice regarding its implementation of the 2022 reauthorization of VAWA on enforcement of relevant provisions by the Office of Fair Housing and Equal Opportunity, which will provide for the filing and processing of individual VAWA complaints in a manner consistent with fair housing complaints.

Looking Ahead…

Legislative and Regulatory Activities

NCSHA, State HFA, and Industry Events

  • February 22 – 23 | Yardi Executive Briefing | Austin, TX
    Stockton Williams will speak at this event.
  • February 22 – 23 | Mortgage Bankers Association’s Servicing Solutions Conference & Expo 2023 | Orlando, FL
    Rosemarie Sabatino will speak at this event.
  • February 28 | Noon – 5:45 p.m. ET | NCSHA’s Toward a Racially Just Housing System: Continuing Steps | Virtual
  • February 28 | SAHF Webinar: Tools & Approaches for Resident-Centered Outcomes Measurement in Affordable Housing
  • March 1 | Discounts End on Early Registration, Hotel Rates for NCSHA’s 2023 Legislative Conference
  • March 6 – 9 | NH&RA Annual Meeting | Bonita Springs, FL
    Stockton Williams will speak at this event.
  • March 8 – 10 | National Affordable Housing Management Association’s Biannual Top Issues in Affordable Housing Conference | Washington, DC
    Stockton Williams and Jennifer Schwartz will speak at this event.
  • March 15 | National Housing Conference’s “Solutions for Housing Communications” | Washington, DC
    Stockton Williams will speak at this event.
  • March 27 – 29 | NCSHA’s 2023 Legislative Conference | Washington, DC
  • March 30 | National Community Reinvestment Coalition Just Economy Conference 2023 | Washington, DC
    Garth Rieman will speak at this event.
  • April 12 | E&A Team’s Annual Accessibility Summit | Virtual
    Jim Tassos will speak at this event.
  • April 17 – 19 | Nebraska Investment Finance Authority’s 2023 Annual Conference | Lincoln, NE
    Jennifer Schwartz will speak at this event.
  • April 25 – 27 | Affordable Housing Investors Council’s 2023 Spring Meeting | Baltimore, MD
    Stockton Williams will speak at this event.

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