Pretty Good budget news in a Dismal State Budget Year

Budget bills were introduced over the weekend based on an agreement between leadership, the “three men in a room”. The legislature is expected to vote on the bill this coming week. Of course, Senate Democrats still need to keep their slim majority together for the vote or there is a possibility the budget as it is written won’t pass.

Rural Advocates continue to play a significant role in the housing budget. Because of your efforts, the Preservation Program and Rural Rent once again remain more or less intact. If the budget passes as written, the Rural Preservation program will

Looking for a Budget Update?

It’s “crunch time” for the New York State Budget with efforts underway to complete it before the April 1 deadline. What can we report? The NYS Budget deficit has now grown to $16.2 Billion dollars. A significant gap to close The Governor is playing tough with the State announcing a layoff of 6% of the State work force if there is no effort to negotiate less generous benefits for new hires in a new State Tier as outlined in the Governor’s proposed budget Although we know that both the Senate and Assembly are working on the budget, there are no open meetings and less ability  to share any information at all.

We have heard that the legislature is considering some budget restorations and RPC/NPC looks “good”, but that no new programs are being considered. Although we are hopeful, we really can’t say with certainty if this means partial restoration or full restoration to last years funding. We are less hopeful about an increase in capital funds this year but certainly see the need for one to provide not only housing but true economic stimulus resulting in local trade and jobs.

We are hopeful that there will be an adequate allocation of Rental Assistance to support a new funding round of new construction of RD 515.

State Rental Assistance Essential to RD 515

In early April there will be a notice of solicitation for applications for the RD 515 new construction program. NY always competed extremely well because it provided State Rental Assistance to leverage these funds. A State Allocation of Project Based Section 8 is not considered State Rental Assistance. Will NY have new Rental Assistance Units to use with this new 515 funding or will the federal money go to other States for the first time ever? With a timely budget and an allocation for State Rental Assistance, it is possible to leverage these federal rental housing funds for new units in rural NY.

Not ready for RPC Cuts

http://www.pressrepublican.com/0100_news/local_story_074223337.html

For a story on the North Country RPCs and their impact on their communities

Espada, Lopez and VanAmerongen featured

Governor Patterson has proposed cuts to affordable housing programs.  His budget cuts must be approved by the Senate and the Assembly.   Are there any comments you have to offer  as the Senate and Assembly prepare their budgets?  Do you have a question for the New York State Senate or New York State Assembly  Housing Chair?  Discussion for the DHCR Commissioner?  Plan to attend the NYS Rural Advocates Meeting in Albany, March 9 and10! Click on the agenda on the top of this page for more information

Ready for housing Cuts? See you in Albany

Join the NYS Rural Advocates on March 9th and 10th in Albany to inform  State  leadership about the housing needs of your community. Governor Patterson has cut the RPC and NPC Program. Can you weather this cut? The DHCR is cutting back on the Rural Rental Assistance Program. Can your tenants pay more rent?

More stimulus updates

Info about the stimulus package as well as information on a pledge by the new HUD Secretary to fund a national housing trust fund can be found in the 2-13 issue of the National Low Income Housing Coalition’s Memo to Members http://www.nlihc.org/pubs/issue.cfm

Additionally, the National Rural Housing Coalition notes that  Rural Homeownership Loans will be increased by $1 billion, Guaranteed Homeownership loans by $10.4 billion, Rural Water and Sewer loans by $2.8 billion grants by $963 billion and Rural Business Enterprise Grants by $20 million, rural community facilities by $1.5 billion

EPA

Local clean and drinking water infrastructure improvements –+ $6 billion

CDFI Fund

Financial and Technical Assistance –+$100 million

New Markets Tax Credits — + $3 billion

Details on how the funds can be used to support very low income persons are found here  http://www.nyscaaonline.org/FirstPageNewsArticles/2009/ConfEconRecoveryChart21709.pdf

Stimulus Bill to Help NY Housing

We have been given the following estimates

• $5 billion nationwide for the Weatherization Assistance Program to help make the homes of low income households more energy efficient. DHCR will receive and administer about $404 million of this total;

• $2.25 billion nationally for the HOME and Low Income Housing Tax Credit programs. These funds will help fill financing gaps caused by the economic downturn and get stalled housing development projects moving.  In New York, DHCR will receive approximately $245 million;

• $1 billion nationwide for the Community Development Block Grant program for community and economic development projects including housing and services for those hit hard by tough economic times. This will mean $13 million for DHCR-administered funding for New York State, and approximately $90 million that will be distributed directly to local municipalities in the State;

• $2 billion nationally for the Neighborhood Stabilization Program to redevelop abandoned and foreclosed homes.  This will mean about $49 million for New York — $27 million to our sister agency, NYHomes, and (assuming the prior distribution formula remains in place) $22 million to six direct grantees;

• $1.5 billion nation-wide for homeless prevention activities. Using the Emergency Shelter Grant formula, this will bring a total of $142 million for the state and local governments. New York State’s program, which is administered by the Office of Temporary Disabilities and Assistance (OTDA) will receive approximately $29.8 million;

• The stimulus bill also includes $4 billion for much-needed capital repairs to public housing across the nation, and $2 billion for the country’s Section 8 project-based rental assistance program, with $250 million of that amount going toward energy retrofitting and green housing. These funds will be administered by the federal Department of Housing and Urban Development (HUD) and will greatly benefit both public and assisted housing in New York State.

A sigh of relief for RPCs FOR NOW

Preservation Programs were spared for now in the deficit reduction package for New York. Legislators did NOT go along with the Governor’s Proposal to cut the Preservation program in an effort to balance the New York State budget.

Anticipating that the program would be reduced as recommended, contract payments were actually cut. Now that the state budget stands through March 31, with only the six percent cut that the legislature did agree to in August, processing for payments  due to  preservation companies will begin this week for about  $9,100

Cuts considered this week

The Governor has proposed reducing  funding for Neighborhood and Rural Preservation Programs for the individual 2008-09 contracts by 25 percent of remaining payments. (2008-09 Savings: $2 million; 2009-10 Savings: $2 million) The legislature must agree to this, as they did in August when the program suffered its first cut. So this cut being considered is the second cut to existing contracts. Contact your legislator TODAY- ask them to STAND UP against the cuts when considered this week for passage! Ask them to contact their leaders and tell them NOT  to agree to  cut the essential affordable housing delivery network!