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FY2015 Operating Budget Update
On June 29, 2014, the Conference Committee released its recommendations for the FY2015 State Operating Budget. The recommended budget will be brought for a vote before the House and Senate before being sent to the Governor.
The following is an overview of the Conference Committee’s FY’15 Budget highlighting key housing issues.
Massachusetts Rental Voucher Program (MRVP) (7004-9024)
MRVP received $7.5 million in increased funding compared to FY’14. While the program’s funding remains short of its highest point of $125 million, the funding level of $65 million will help over 500 more households find safe and affordable homes. The budget also allows prior appropriations from FY’14 to be carried over to FY’15. This could mean an additional $12 million for MRVP although the program’s annual spending cannot exceed $65 million.
The Conference Committee budget requires new mobile vouchers to be distributed through existing waitlists and requires DHCD to report on their progress in implementing a new online application and waitlist by February 2015.
HomeBASE (7004-0108)
The Conference Committee recommended $26 million in funding for HomeBASE. It also increased the family benefit cap to $6,000 per year. The budget will allow DHCD to set a higher benefit limit for HomeBASE so long as the agency develops a plan for setting new limits by September 1, 2014.
Residential Assistance for Families in Transition (RAFT) (7004-9316)
The Conference Committee funded RAFT with $11 million, an increase of $1 million over FY’14. It also included language that allows families to access assistance from both HomeBASE and RAFT, up to the benefit cap that will be set for HomeBASE.
Home and Healthy for Good (7004-0104)
The Conference Committee recommended funding of $1.8 million for this Housing First program. This is a $200,000 increase over FY’14, which provides specifically for the LGBTQ young adult housing program.
Alternative Housing Voucher Program (AHVP) (7004-9030)
The Committee recommended $3.55 million for AHVP. This $100,000 increase is the program’s first increase in funding since 2010.
Mental Health Rental Subsidies (7004-9033)
The Conference Committee recommended $5.125 million for Mental Health Rental Subsidies, an increase of $1 million from FY’14.
Public Housing Operating Subsidies (7004-9005)
The Conference Committee recommended $64.04 million in funding to support state-funded public housing for extremely low-income families, elders, and people with disabilities. This is a $365,000 decrease in funding from FY’14.
Tenancy Preservation Program (7004-3045)
The Conference Committee recommended level funding for the Tenancy Preservation Program at $500,000.
Community Preservation Act Updates
The Conference Committee provided for the full $25 million transfer from the state’s end-of-year budget surplus into the CPA Trust Fund. With Trust Fund revenue from the Registries of Deeds down, this $25 million will be critical in providing a robust match to communities this year. Without these surplus funds, the distribution to communities that have adopted the Community Preservation Act would be at record low levels.
Housing Consumer Education Centers (HCECs) (7004-3036)
The Conference report cuts funding for HCECs by almost $1 million, excluding earmarks, even with demand for HCECs growing by 50% in the past two years. This cut will impact the ability of HCECs to help families and individuals facing immediate housing crises and to keep people in their homes.
For the complete budget recommendations of the Conference Committee, click here.
FY2015 Capital Budget Update
Yesterday, Governor Patrick released his eighth and final Capital Budget. The 2015-2019 Five-Year Capital Investment Plan provides $190.5 million in support for affordable housing, an increase from $179.5 million in FY’14. The budget demonstrates the commitment of the Governor and the Legislature who, in June 2013, passed the Housing Bond Bill, authorizing $1.4 billion in capital investments over the next five years to increase affordable housing production and preservation.
FY’15 Capital Budget Highlights:
- $4.1 million in increased funding for the Facilities Conservation Fund (FCF) for a total of $11.6 million. FCF helps finance community-based housing development for clients of the Department of Developmental Services and the Department of Mental Health.
- $4.4 million in increased funding for the Housing Innovations Fund (HIF) for a total of $12.4 million. HIF helps finance transitional and permanent housing for the homeless, battered women’s shelters, and supportive housing for seniors and veterans. This increased funding will help the $20.5 million in its development pipeline to proceed to construction.
- $8.175 million in increased funding for the Housing Stabilization Fund (HSF) for a total of $21.175 million. HSF funds the acquisition, preservation, and rehabilitation of affordable housing, including foreclosed and distressed properties. The program helps finance family rental, elderly housing, SROs, special needs housing, and a mix of homeownership and rental.
- $2.5 million in increased funding for the Home Modification Loan Program (HMLP) for a total of $6.5 million. HMLP helps persons with physical disabilities make home improvements to ensure they can continue to live at home.
- First time appropriations of $771,890 for a Public Housing Central Waitlist and $1,015,400 for a State Rental Voucher Management System.
For the full 2015-2019 Five-Year Capital Investment Plan, click here.
Economic Development Legislation Passes House and Senate – Funding for Brownfields, Gateway Cities, and Housing Preservation and Stabilization Trust Fund Included
Brownfields
The economic development bills passed by the House and Senate include $10 million for the Brownfields Redevelopment Fund. $10 million was also included in the Governor’s economic development proposal. The signing of an economic development bill into law would bring total funding this session to $25 million when combined with $15 million included in a supplemental budget passed earlier this year. $25 million will allow stalled projects to move forward and keep the Fund operating for two more years.
Gateway Cities
In addition to recapitalizing the Brownfields Redevelopment Fund, both bills make changes to the Housing Development Incentive Program (HDIP) to make it more flexible and responsive to market needs. HDIP was created in 2012 to expand the diversity of housing stock and promote economic development in Gateway Cities. The program consists of local-option real estate tax exemptions and state tax credits. Originally funded at $5 million, both the House and Senate increase the state income tax credits available to $10 million and remove the 50 unit per development cap.
Both proposals also fund a new Gateway Cities Transformative Development Fund at $10 million. The Fund would revitalize and support residential, commercial, and institutional development as well as promote collaborative workspaces in Gateway Cities.
Housing Preservation and Stabilization Trust Fund
The House economic development proposal includes $5 million for the Housing Preservation and Stabilization Trust Fund (HPSTF). HPSTF, created through the FY14 budget, provides DHCD with flexibility to fund new initiatives, create housing, and provide resources to respond to urgent needs. DHCD has spent its first $10 million on creating supportive housing units ($7 million), supplementing HomeBASE household assistance to help more families avoid or exit the shelter system ($2 million), and the Secure Jobs Initiative ($1 million). Without additional funding, HPSTF will be depleted.
With the legislative session ending July 31st, the Legislature has four weeks to reconcile differences between the two proposals before sending the bill to the Governor for his signature.
CHAPA thanks Senate President Therese Murray, Speaker Robert DeLeo, Senator Stephen Brewer, Chairman Brian Dempsey, Senator Gale Candaras, Chairman Joseph Wagner, Senator Benjamin Downing, Chairman Antonio Cabral, and Representative Chris Walsh for their leadership on these economic development funding priorities.
For more information, please contact Rachel Heller, Director of Public Policy, at rheller@chapa.org or (617) 742-0820. |
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