NACEDA Applauds New Anti-Foreclosure Legislation, Funding Levels Should Target Neediest Communities (see Housing Stimulus Package story under Capitol Hill).

Enterprise Inviting Network Members to Apply for Annual Jim Rouse Award 2008. An award of $10,000 (in unrestricted funds) plus other forms of recognition will go to an Enterprise Network member who develops and provides quality affordable housing and demonstrates a strong record of strategic planning and community building as well as excellent resident and community services. Due date: April 18. Application and more information online.

NeighborWorks Awards $130M for Foreclosure Mitigation Counseling. The 130 state and local housing stakeholders will use the money in an effort to bring counseling to troubled homeowners.

NeighborWorks Training Institute Featuring Foreclosure Crisis Symposium: May 5-9 in Cincinnati. The weeklong institute will include "Weathering the Storm: Stabilizing Communities in the Wake of Foreclosure" (HO907 Symposium) as well as more than 80 community development courses ranging from green building and affordable housing to neighborhood revitalization and homeownership education. Register online; by March 24 saves $50 off registration fee. Call (800) 438-5547 with any questions.

South Florida LISC Helps Preserve Affordable Housing in Miami, working with HUD and local residents who wanted to keep their "oasis." Many of them gathered in Overtown's Town Park Village community center on Feb. 14 to celebrate HUD's recent decision to convert a 147-unit co-op into affordable homes. The complex had sustained considerable roof damage from Hurricane Wilma in October 2005, leading to a lapse in insurance, inability to pay for the fixtures, and possible HUD takeover after failed inspections, until the Local Initiatives Support Corporation stepped in. South Florida LISC was able to perform the needed repairs despite a gas explosion in one of the buildings in August 2007.

LISC's 'Getting It Done: New Tools for Communities': March 26-27 in Chicago. Sponsored by LISC Chicago, LISC Sustainable Communities, the MacArthur Foundation, and State Farm, the conference will feature workshops in the following topic areas: Community Engagement; Deal-Making; Communications; Leveraging Resources; Planning; Leading and Managing; Building Community Spirit Through Playing and Creating; Measuring and Evaluating; as well as roundtable discussions and neighborhood tours. For more info, visit the conference website or call (312) 408-2580 ext. 25.

NACEDA Summit to Feature Foreclosure Prevention Panel. NACEDA's experts will examine both the national picture and what states, with the input from CDCs, are doing to solve this crisis. On the State level, both legislative achievements and remediation efforts will be discussed. So mark the date--March 31-April 2--for NACEDA's Second Annual Capacity Building and Policy Summit, Washington, DC at the DoubleTree Hotel. NACEDA group rate of $189 per night is available. Hotel deadline is March 5th, after that the rate increases to $325 per night. Call (202) 232-7000 to reserve room--mention NACEDA Summit to receive discounted rate. (Book early to ensure a room and the rate.)

Housing Stimulus Package Introduced by Senate Majority Leader Harry Reid (D-NV) on Feb. 13. S. 2636 includes the Foreclosure Prevention Act of 2008, the Helping Families Save Their Homes in Bankruptcy Act of 2008, and the Mortgage Disclosure Improvement Act of 2008. Appropriations provisions would include $200 million for the Neighborhood Reinvestment Corporation to step up its counseling and mitigation activities; a $10 billion Housing Bond cap increase as reported by the Senate Finance Committee; and $4 billion in Community Development Block Grant (CDBG) funds to address the effects of the mortgage crisis, waiving existing CDBG income targeting requirements to allow eligibility for households up to 120% of the area median income (AMI). The proposed legislation would authorize housing finance agencies to issue mortgage revenue bonds for refinancing of subprime loans; amend the bankruptcy code to allow courts to modify mortgage debt for certain borrowers; and amend the Truth in Lending Act to establish disclosure requirements governing certain extensions of credit secured by the homeowner. The lending industry reportedly opposes the bankruptcy proposal in particular. NACEDA issued a statement calling for stronger targeting toward low-income areas, while praising the bill overall as "a needed step to help both low-income communities disproportionately affected by foreclosures and neighboring communities that are also affected," as stated by NACEDA Policy Committee Co-Chair Terry Chelikowsky. NACEDA and seven other groups reiterated these points in a letter to Senators, but did not endorse the proposal on bankruptcy. The National Low Income Housing Coalition, in a letter to Sen. Reid, suggested adjustments to the income targeting as well as ways to ensure that funds are used as intended.

Private Anti-Foreclosure Initiative Announced with Treasury Support. In mid-February, Secretary Henry Paulson helped kick off Project Lifeline as part of the HOPE NOW Alliance formed last year. Six of the nation's largest mortgage servicers have agreed to contact borrowers who are 90 days delinquent to evaluate their situation and work out possible solutions, which may entail more time or refinanced loan terms. Because the lender participation is voluntary, Democrats and advocacy groups say the plan will not reach enough troubled homeowners.

Homeownership Preservation Corporation Proposal in Works. Senate Banking, Housing, and Urban Affairs Committee Chairman Christopher Dodd (D-CT) reportedly wants to create, at a cost estimated between $20 and $25 billion, such an entity to purchase and restructure mortgages in danger of foreclosure. Some Republican committee members reportedly are concerned about rewarding homeowners who had borrowed unwisely, but proponents say the plan should benefit the entire financial system by reactivating mortgage securities and enabling companies to get back into the marketplace.

Dodd Urging Senators to Support Section 8 Increase. In this latest effort to save the underfunded program, Sen. Christopher Dodd (D-CT) is circulating a letter that will go to the Budget Committee, which, he wrote, should "include in the forthcoming budget resolution advance appropriations for fiscal year 2010 of $2.8 billion for the Section 8 Project-Based Rental Assistance (PBRA) program. This advance appropriation is needed to restore full funding for this critical program and to prevent the loss of affordable housing for hundreds of thousands of low income families."

Fannie Mae/Freddie Mac Loan Limits Raised, Restriction on Capital Requirements Maintained. The Feb. 27 ruling from the Office of Federal Housing Enterprise Oversight allows Fannie Mae and Freddie Mac to begin expanding their mortgage portfolios effective March 1. The regulator said those government-sponsored enterprises must make more progress before easing the 30% capital surplus requirement as desired by the companies and advocates such as Sen. Charles Schumer (D-NY),

Frank Planning to Seek $35B to Combat Subprime Crisis. House Financial Services Committee Chairman Barney Frank (D-MA) is working on a government assistance legislative proposal calling for $15 billion to refinance distressed mortgages through the Federal Housing Administration and $20 billion for states and localities to repurchase foreclosed properties. It would also protect from lawsuits servicers who make certain loan modifications, and would expand housing counseling for troubled borrowers. Frank first laid out broad concepts for the plan in January when he announced his committee's agenda.

Asset Management Bill Stalls on House Floor. H.R. 3521, from Rep. Albio Sires (D-NJ), would make corrections to HUD's public housing transition toward asset management. Discussion was halted Feb. 26 due to a provision to prevent HUD from enforcing leasing agreements banning firearms in its projects.

Bond Insurance Discussed in Hearing on Feb. 14. The House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises focused on the causes and effects of recent bond insurer rating downgrades on municipalities and the financial services industry. Chairman Paul Kanjorski (D-PA) said the subcommittee will consider regulatory reform options such as creating a federal bond insurance corporation modeled after the Federal Deposit Insurance Corporation, and allowing the Federal Home Loan Banks to step in with letters of credit to enhance municipal bonds. New York Gov. Eliot Spitzer (D) testified that his state's insurance regulator is evaluating options in the event of major bond insurer downgrades, and accused the Office of the Comptroller of the Currency (OCC) of lax supervisory policies that helped enable the subprime crisis.

NHTF Bill Briefing Scheduled for March 3, 2:00-3:00 p.m. EST in room 538 of the Dirksen Senate Office Building. The National Affordable Housing Trust Fund Act of 2007 (S. 2523) was introduced Dec. 19 by Sens. John Kerry (D-MA) and Olympia Snowe (R-ME) and others. Discussion will revolve around why such a fund is needed and how it would be structured and financed.

Massachusetts Court Ruling Forbids Lender from Foreclosing Without Notifying Attorney General. In a preliminary injunction issued Feb. 25, Judge Ralph D. Gants of the Suffolk County Superior Court, ruling that subprime-resembling loans should be "presumed to be unfair," wrote that Fremont General Corp., "having helped borrowers get into this mess, now must take reasonable steps to help them get out of it." In July, the California-based company agreed to provide to Massachusetts Attorney General Martha Coakley advance notice on foreclosures. Fremont sought to foreclose on 193 loans, and Coakley objected on 119 of them (essentially those involving owner-occupied properties), prompting Fremont to terminate the agreement until now with the court decision, which it said it intends to appeal.

California Grants $8M to Expand Counseling for Homeowners At Risk of Foreclosure. Gov. Arnold Schwarzenegger (R) on Feb. 27 announced the award to California Housing Finance Agency and HUD-approved counseling groups in partnership with the Rural Community Assistance Corporation (RCAC), who will provide free services to California homeowners having trouble paying their mortgages.

California Considering CDBG Authority Change. State economic development officials may shift from grantees to themselves the authority to determine whether the grantees receive multi-year awards in distribution of Community Development Block Grant Program funding.

Iowa Property Owners Stand Up Against Eminent Domain. They converged this week on the statehouse in Des Moines to press lawmakers to add some restrictions to the state's eminent domain laws in light of fears that local authorities could seize their land for development.

New York County Landowners Stalling Project. Chemung County officials still hope not to resort to eminent domain to get control of 90 acres of farmland on which they want to attract a Fortune 100 company distribution center that could provide 700 new jobs.

New USDA Section 502 Subsidy Calculation Explained in an unnumbered Rural Development letter dated February 6, available also from USDA-RD offices.

Section 514/516 Processing Guidance Issued to USDA-RD Staff in four unnumbered letters dated February 15 and 20 to address weaknesses identified in Management Control Reviews. Contact Henry Searcy, RD, (202) 720-1753.

Census Sets County Division and Designated Place Criteria for 2010. See Federal Register, 2/8/08, pp. 7521-25 (CCDs) and 2/13/08, pp. 8269-73 (CDPs). Contact Census staff, geo.psap.list@census.gov or (301) 763-3056.

Homes for Working Families Awards 14 Companies nationwide taking the lead in employer-assisted housing (EAH). The Washington, DC, nonprofit association issued its annual Pioneer Awards Feb. 11 on Capitol Hill.

IRS Form 982, Mortgage Debt Forgiveness, Revised, intended for applicable homeowners to file with their 2007 federal income tax returns, but may not be included in tax-preparation software, the IRS warns. Visit http://www.irs.gov or call 1-800-829-1040.

• Analysis of Subprime Mortgage Servicing Performance, by the State Foreclosure Prevention Working Group, shows that many more homeowners need loss mitigation than receive assistance.

• State Strategies to Address Foreclosures, from the National Governors Association examines current and proposed state actions to address subprime and prevent predatory lending, and help families avoid foreclosure. Contact Stephanie Casey Pierce, NGA, (202) 624-5332.

• Financial Institutions and Foreclosure Intervention: Innovative Partnerships and Strategies to Better Serve Borrowers in Default, from NeighborWorks® America, describes loan servicer strategies that could spark reform in the mortgage industry.

• Foreclosure Prevention: Improving Contact with Borrowers, from the the Office of the Comptroller of the Currency, provides insights for lenders.

Housing Affordability Standards Discussed in Report. In Getting to the Heart of Housing's Fundamental Question: How Much Can a Family Afford? A Primer on Housing Affordability Standards in U.S. Housing Policy, the National Low Income Housing Coalition explores the 30% housing cost-to-income ratio (HCIR) standard, which affordable housing advocates find themselves vigorously defending despite reservations, given a lack of progress to a more rational standard.

Housing Cost Burden Getting Heavier for Low-Income Households. According to NLIHC's Housing at the Half: A Mid-Decade Progress Report from the 2005 American Community Survey, the number of severe housing cost burden-carrying households nationwide increased by 23% between 2001 and 2005, and the number of extremely low-income (ELI) renters increased the fastest of all income and tenure groups. Implications for housing policy are included as are policy recommendations.

HUD Accountants Roster: Independent public accountants proposed to perform audits for PHAs, owners of Section 8 project-based housing and HUD-financed multi-family projects, and others. Due date: April 7. See Federal Register, 2/6/08, pp. 7169-77 or http://www.regulations.gov. Contact Elizabeth Hanson, HUD, 1-888-245-4860.

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