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Housing Call: June 25, 2024

NCHC Organizational Updates

Early bird registration for the 2024 NC Affordable Housing Conference is now open! The NC Housing Coalition presents the NC Affordable Housing Conference along with our partners at the North Carolina Housing Finance Agency Centrant Community Capital. Each year, this conference features informative and timely breakout sessions including an inspiring opening session. A broad range of breakout sessions include topics for all affordable housing professionals including tax credits, home ownership, housing counseling, nonprofits and more. The conference will take place September 5-6 at the Raleigh Convention Center. Get our best rate by registering before close of business on August 9 and check out the agenda to see what we have in store for our attendees. Information about hotels, speakers, sponsors and more can all be found on our website.

Our Keynote Speaker is NC Central University men’s basketball coach Lavelle Moton, who is working through his company Raleigh Raised Development to create affordable housing in the Southeast Raleigh neighborhood where he grew up.

 

Federal Updates

The U.S. House Committee on Appropriations’ Subcommittee on Transportation, Housing and Urban Development (THUD) is expected to release its draft FY 2025 spending bills for HUD programs this week.

  • They are scheduled to review the proposal on June 27
  • Consider the bill on July 10
  • Vote the week of July 29 before Congress breaks for August recess

What we know so far:

  • At the end of May, the Committee approved topline spending allocations that would slash funding for THUD programs by 10% in the coming fiscal year. It is still unclear how funding will be distributed between HUD and U.S. Department of Transportation programs.
  • Anticipated deep cuts.
  • The Senate Committee on Appropriations subcommittees are still waiting on their topline funding allocations, however they have already voted to increase funding substantially for the Department of Defense which would mean deep cuts, a new budget agreement, and or repealing the spending caps.

Main takeaway – Funding for HUD’s programs must increase every year to at least maintain the number of people and communities currently served. Cuts to programs and any reduction in assistance puts people at risk of housing insecurity, eviction, and in worst cases, homelessness.

Johnson v. Grants Pass Supreme Court decision is expected to be announced later this week.

Funding Opportunities

  • HUD releases NOFO – FY24 Eviction Protection Grant Program
  • Request for Proposals: The National Reentry Housing Incubator (Housing Incubator) is a new funding opportunity for community-based organizations and faith-based institutions seeking to implement or enhance a reentry housing program to support a safe and successful transition for people reentering the community after incarceration. Organizations selected for this initiative will receive up to $140,000 in funding along with training and technical assistance to develop evidence-based, effective, and sustainable reentry housing solutions. Applications are due July 19, 2024. Learn more

 

Check out the National Tenants Bill of Rights and share it with your networks!

The National Low Income Housing Coalition, National Housing Law Project, and Tenant Union Federation released today a comprehensive National Tenants Bill of Rights to shift the balance of power between tenants and landlords, redress long-standing racial and social inequities, and advance housing justice.

The National Tenants Bill of Rights sets out seven essential rights that follow a tenant’s experience from applying for housing and signing a lease to living in their home,  This is a great policy tool that can be used to help craft policies to protect tenants at all levels of government

You can learn more about the National Tenants Bill of Rights here and  endorse it here.

Feedback Opportunity with the Federal Housing Finance Agency

 FHFA requesting input on the application for the Federal Home Loan Bank affordable housing program or AHP funding. Comments will be accepted until August 19, 2024.

 

State Updates

State Legislative Updates

 

Main source of disagreement is how and whether or not the surplus is spent or placed in reserve.

 

House Version of the FY24-25 Budget Senate Version of the FY24-25 Budget
Changes to Housing Funding:

●      Decrease Housing Reserve appropriation (created last year for passthrough to NCHFA’s WHLP) for 2024-25 from $45M NR to $10M NR,

●      $1.1M increase to HCCBG (aging adults home repair and improvements)

●      $35M NR Dare County funds returned from FY22-23. This is being reverted to the HTF

 

●      Leftover ERA 2 money: $58.6M NR re-allocated as follows:

○      $35M to WHLP to replace previous budget’s $35M appropriation from Housing Reserve to WHLP

○      $23.6M to state HTF, use must comply with ERA2

 

Technical changes

●      Increases NCHFA bond & construction loan debt limit from $3B to $12B

●      Clarifies that info obtained by NCHFA for the purposes of housing survivors of domestic violence, sexual abuse, and human trafficking are not public records.

 

There is work being done to include these policy changes in another bill so that these functions are not held up in budget negotiations.

 

  

 

 

Main Difference related to Housing

 

Instead of re-allocating the ERA 2 money for two purposes – the Senate version proposes that the full $58.6M in leftover non-recurring funds be allocated to the Housing Trust Fund to be used for “eligible programs administered by the Housing Finance Agency…. Projects under this section (11.1, Part XI. General Government) shall comply with the United States Department of Treasury’s Emergency Rental Assistance Guidelines and these funds are hereby appropriated for that purpose.”

 

 

Senate passed their own budget proposal yesterday – June 24, 2024. They were working late into the evening.

 

 

 

Additional Bills We are Keeping an eye on

Senate Bill 630 – It’s set to appear on the floor today if it moves past Senate rules.

This proposes a constitutional amendment that would lower the cap on income tax rates to 5 percent. If it is approved and goes to ballot in November here are some concerns

  • Property taxes are rising consistently across our state because local governments are left to fill the gaps left by low income tax rates at the state level. This would ensure continued rises. Some counties rely on state revenue for more than one-tenth of their annual budget, this would hit them extremely hard.
  • This could also impact the borrowing costs for the state in building more affordable housing units because revenue limits are connected with credit downgrades.
  • Limiting another source of revenue.
  • Tax load is likely to increase for middle and low-income taxpayers disproportionate with those more wealthy

 

Local Community Updates

The city of Greensboro recently voted to move forward with purchasing the former Summit Executive Center Apartment Complex with Community Development Block Grant funds. Once a development partner is identified, the City plans to redevelop the property into 25 units of affordable housing.

  • High Point officials propose day center for those facing homelessness | FOX8 WGHP The City of High Point recently awarded a $217K contract to Oakwood Community Development Corporation for the renovation of a 10,000 sq. ft. church building that will be converted into a day center for people experiencing homelessness. Renovations are expected to begin next month and are expected to take 3-4 months. The day center will provide case management services, showers, clean clothes, computer/mail/phone services, and meals. There are currently no other day centers in High Point, although the city is in the beginning phases of working with another nonprofit to open a second day center at some point in the next 18-24 months.
  • Wilmington council trims tax rate hike ahead of budget passage, rejects anti-camping ordinance | Port City Daily Wilmington City Council voted 2-5 against an anti-camping ordinance that sought to criminalize sleeping on city property. Last year, New Hanover County Commissioners enacted an ordinance prohibiting sleeping on county property, which mainly targeted people sleeping on county-owned property downtown Wilmington.

 

Events

  • [webinar] All Hands on Deck: Mobilizing a Broader Network of Advocates. | NLIHC, The Alliance, & the Center on Budget and Policy Priorities (CBPP), June 25, 2 p.m. Register here
    • This webinar, moderated by Alliance CEO Ann Oliva, features a diverse range of advocates who will discuss innovative strategies to build bigger coalitions, engage persuadable lawmakers, and push back against harmful counter-narratives about homelessness.

The City’s Housing and Neighborhood Services Department will host its annual Affordable Lending Fair on Saturday, June 29, at the MLK Center (401 South 8th Street) from 11 a.m. to 2 p.m. This event aims to provide valuable resources, information, and support to residents seeking affordable lending options. The fair will feature representatives from local banks dedicated to offering affordable lending options. Attendees will have the opportunity to explore various lending options, including low-interest loans, first-time homebuyer programs, and down payment assistance. The event is free and no registration is required.

 

Reports and Resources 

 

In the News

Recommended read

Housing Call: June 18, 2024

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