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| Committee Submits Strategy for Closing Home Ownership Gap by 2015 Commissioner Sten Announces Over $1 Million for Homeownership Programs On August 18 at Portland City Council and on August 19 at a CDN Public Forum, members of Home Ownership Advisory Committee (HOAC) of the regional Housing and Community Development Commission (HCDC) presented strategies to close the homeownership gap between white households and households of color in Portland by 2015. The Portland City Council asked HOAC to report back on short- and long-term strategies to increase minority homeownership after HOAC’s January 21, 2004 annual report on Homeownership in the City of Portland which highlighted the disparity in homeownership rates between Whites and people of color in Portland. According to the 2000 census, White homeownership rates exceeded those of African-Americans, Native Americans and Hispanics by over 20 percentage points. A discrepancy also exists between Asian Americans and White Americans, though that gap is under 5%. Examination of 2000 Census and Home Mortgage Disclosure Act (HMDA) data demonstrates that although the homeownership gap can partially attributed to income inequities between White Americans, African Americans, Asian Americans, Hispanic Americans and Native Americans, the homeownership gap remains significant even within income brackets. Factors contributing to the homeownership gap cited in the HOAC report include: (1) higher loan denial rates for people of color (2) Inadequate information about homeownership opportunities in communities of color (3) A "confidence gap" relating to homeownership between white households and households of color (4) Higher instance of poor credit history among people of color (5) Lower average incomes among people of color (6) An overall lack of homes affordable for ownership at lower income levels After several months of work by committee members, city staff and other leaders in the banking and community development communities, HOAC prepared several strategies that, when implemented, should have a significant impact on reducing and, perhaps, eliminating the gap by the year 2015. Short-term strategies include: * Aggressively market the City of Portland’s commitment to minority homeownership. * Create an environment that supports closing the minority homeownership gap by having the City work with community and housing partners. * Enlist the assistance of the City and housing partners to create core working committees to further explore issues and to design solutions by income tier for each minority group. * This will foster meaningful debate and discussion about the most feasible ways to address issue(s). * Capitalize on existing studies and initiatives to further explore issues and design solutions. * Examine the mortgage loan process from beginning to end to identify and prioritize the major obstacles to lending and create new solutions to address the obstacles. * Create and distribute a comprehensive resource directory, available in both print and electronic formats, for people interested in buying a home in Portland. Establish one number that residents can call and one website that residents can search to get information on topics relating to home buying, predatory lending, housing counseling and education services, grants, etc. * Increase the reach and success rate of homebuyer education services by expanding education options: employer based education programs, home study, web-based learning, and homebuyer education provided by community and faith-based organizations. Long-Term strategies include: * Identify additional resources to create and expand homebuyer assistance and home buyer education programs, pre-purchase and post-purchase education and counseling, individual development accounts, subsidies for down payment, grants, etc. * Work with businesses to initiate Employer Assisted Housing Programs to provide home buyer education and down payment assistance for employees. * Work with community-based, faith-based, and neighborhood groups to promote homeownership to constituents. * Work with schools to provide financial education with emphasis on financial literacy and financial management so that families and next generation residents are well prepared for homeownership. * Create more incentives for potential buyers complete a Home Buyers Education program, for example, points added to credit score. * Develop new housing for affordable homeownership opportunities. * Inventory and evaluate existing homeownership programs; land trust, lease purchase, etc. * Expand Homeownership Coaching model to work with potential borrowers through the home-buying process. * Fair Housing education in home buying process. * Provide support and post purchase home buyer education to new homeowners including foreclosure prevention and predatory lending. * Review and improve marketing methods used to reach underserved markets including the creation of a citywide Homeownership Awareness & Marketing Campaign. * Develop a marketing campaign to address predatory lending. To read the complete HOAC report on "Strategies to Increase Minority Homeownership Rates," click here: HOAC_Report.pdf Commissioner Sten Announces Over $1 Million for Homeownership Programs In response to the homeownership gap, Commissioner Erik Sten announced the allocation of over $1 million from the City in FY 04-05 to Homeownership Programs. The funding used in the following manner: 1. $868,000 in Financial Assistance. BHCD will issue an RFP this fall for First-time Homebuyer Financial Assistance, with emphasis on targeting minority homebuyers. Funds available are $468,000 American Dream Down-payment Initiative (ADDI) plus $400,000 CDBG financial assistance and program delivery. 2. $224,000 to community-based organizations promoting minority homeownership to continue successful programs such as Portland Housing Center’s education and counseling and the African American Alliance for Homeownership pilot. Explore further expansion of successful models. -- $ 24, 000 for Minority Homebuyer Fairs -- $120,000 for education, counseling, and coaching -- $ 80,000 for land acquisition 3. Focus homebuyer assistance on specific projects such as New Columbia, Portland Community Land trust sites, CDC single-family development, Multnomah County tax-foreclosed lots, and "buyer initiated" loan pools. 4. Use HOAC recommendations to guide design of City’s homeownership assistance program. 5. Where geographic targeting is used (New Columbia, HAP Scattered Sites) use the Residency Credits developed in the Anti-displacement Pilot project to help long-time neighborhood residents access the resources. Reducing Homeownership Gap a Priority for CDN Members Following the HOAC presentation at the August 19 CDN Public Forum, representatives from CDN Voting Member organizations outlined current programs that increase access to homeownership for households of color. The Portland Housing Center helped 120 families of color achieve homeownership last year (click here for full story). HOST sold over half of the 99 homes at Charleston Place to households of color. 97% of Charleston Place residents are first time home buyers. Hacienda CDC’s Community Credit Union provides better financing options for lower income families that could potentially become home buyers. ROSE CDC has spearheaded the Lents Homeownership Initiative, which both provides homeownership education and is developing affordable homes for purchase with the goal of 50 first-time homebuyers in the Lents Urban Renewal District by 2005. Lents Homeownership Initiative will address homebuyer programs, marketing, neighborhood improvements and supports for current homeowners. REACH CDI is developing 5-6 affordable three bedroom affordable home ownership units, in addition to the 24 homeownership units the have currently developed. Sabin CDC’s Lease to Own Program allows large families the option to purchase affordable homes with adequate space for the families needs. 26 families have completed the program, with 5 currently enrolled. Peninsula CDC and Portland Community Land Trust are partnering to develop 8 affordable homes in St. Johns and the Kenton Neighborhood. PCDC is also developing 5 home ownership units at the Killingsworth Station Project PCRI is launching a program to move 100 families currently living in PCRI’s affordable rental housing to become homeowners within three years (click here for full story). To find more about these CDN Voting Members, click on their highlighted names. CDN Annual Awards Banquet at Oregon Zoo September 29 Come celebrate community development and the accomplishments of CDN member organizations at the 2004 Annual Awards Banquet Wednesday, September 29, 2004, at the Oregon Zoo. The Awards Banquet will feature the presentation of CDN industry awards, as well as a keynote address from Larry Wallack on effective communications and messaging strategies to raise the profile of affordable housing. Wallack, Dean of Portland State University’s College of Urban and Public Affairs Portland State University, facilitated a think tank comprised of 30 housing and poverty advocates from across Oregon intent on developing media and messaging strategies to create greater public support for publicly funded affordable housing. Wallack brings a wealth of experience with successful public health messaging campaigns, including efforts to reduce gun shops and liquor stores in Oakland and anti-smoking ordinances in California. Each year CDN acknowledges outstanding achievement in community development with the presentation of industry awards. The award categories are Property and Asset Management Best Practices, the Golden Hammer, the People’s Program, the Gilman Award for Exemplary Acheivement, the Industry Partner and the Gretchen Miller Kafoury Award for "Lifetime Achievement." The awards will be presented by the Banquet Master of Ceremonies Gretchen Kafoury and Director of Portland’s Bureau of Housing and Community Development Will White. For a list of past award recipients and description of award criteria, click here: http://www.cdnportland.org/awards.html#Awards_History Over 350 people attended last year’s Awards banquet, so the time to reserve your seat is now. Dinner reservations are $50 each. Organizations may purchase a full table of 10 for $500 and will be listed as a table sponsor in Banquet materials. Individual and table reservations must be received by September 13, 2004. To make a reservation, please call Karen at (503) 335-9884 or email karen at karen@cdnportland.org CDN would like to extend many thanks to our Rooftop Sponsor, Washington Mutual Foundation, whose generous annual contributions make the banquet successful. Organizations interested in becoming Banquet sponsors should contact Karen before September 1 to be included in the program. HUD Cuts Hit Home: HAP May Face Reductions to Tenant-Based Section 8 Due to the US Department of Housing and Urban Developments (HUD)’s April 22, 2004 policy decision that it would no longer reimburse local housing authorities based on actual current voucher costs, the Housing Authority of Portland may have to cut the tenant-based Section 8 voucher program for FY2004. HAP currently has a $500,000 budget shortfall for the program. Pending a current appeal filed with HUD to raise its voucher reimbursement rate, HAP will be faced with the horrible choice of whether to reduce the total number of vouchers or to raise rents for voucher holders. HAP plans to hold a Community Forum on the Section 8 cuts in September. At the forum, HAP will seek input from Section 8 Voucher holders, landlords, housing advocates and other community stakeholders as to the best methods of managing the cuts. The cost cutting strategies include voucher holders paying an increased amount for their portion of the rent or the termination of an as- yet-undetermined number of voucher holders from the program. Increased rents would present a significant fiscal challenge to voucher holders, many of whom live significantly below the federal poverty level. Terminating vouchers could potentially make people homeless. HAP Executive Director Steve Rudman says that if HAP wins an appeal with HUD, however, HAP will postpone the hearing "until the fate of the fiscal year 05 budget proposal in Congress and its impact on HAP become clear." HUD will notify HAP on the outcome of the appeal by the end of August. The April 22 HUD Memo essential put a retroactive "cap" on voucher reimbursements based on the cost of vouchers under lease on August 1, 2003, adjusted for inflation. This unexpected change in the middle of a fiscal year caught many local housing authorities off-guard, without sufficient time and resources to plan for implementation of the new policy. Since April 22, housing authorities across the country have been faced with the awful decision to either terminate residents from the program or otherwise cover funding shortfalls with strategies including establishing minimum rents or cutting other housing related programs. To get involved with local efforts to develop recommendations for HAP in the vent of cuts, contact Steve Weiss at stevesoc@teleport.com To read more about the impact of the April 22nd HUD memo, click here. FDIC Seeks Comment on Changes Community Reinvestment Act HUD Proposes Fair Market Rent Reductions for Portland HUD is proposing changes for the 2005 Fair Market Rents (FMR). For Portland that would means reductions in FMR for one, two and three bedroom units. FMR is used to determine payment standard amounts to calculate maximum monthly subsidy for the Housing Choice Voucher program, to determine initial renewal rents for some expiring project-based Section 8 contracts, and to determine initial rents for housing assistance payment contracts in the Moderate Single Room Occupancy program. FMR for an area is the amount that would be needed to pay the gross rent (shelter plus utilities) of privately owned rental housing of modest nature with suitable amenities based on the 40th percentile recent mover FMR estimates. Housing authorities then may offer subsidies in the range of 90%-110% of the area FMR. Proposed changes for the Portland Metro Statistical Area 2004-05 http://www.huduser.org/datasets/fmr.html
A partial explanation for the reductions in Portland FMR’s is that the 2005 FMR’s are the first to use Office of Management and Budget (OMB) area definitions and 2000 Census data. The utilization of OMB areas is significant because Skamania County in Washington state was added to the Portland Metro Statistical Area. Formerly, Portland Metro Statistical Area included the Oregon counties of Multnomah, Clackamas, Columbia, Washington, and Yamhill, and Clark County, Washington. The utilization of 2000 census data is significant because the use of new decennial census data triggers a "rebenchmarking" that often leads to significant variation of FMRs from previous years. While both Portland and Salem proposed fair market rents are declining, rents in some rural areas of Oregon are increasing significantly because of rebenchmarking to the 2000 Census. The proposed changes would take effect on October 1, 2004. Potential impacts of 2005 FMR Changes The impact of 2005 HUD appropriations legislation on reimbursements or payment standards cannot be predicted, particularly since it appears likely that HUD may be operating under a continuing resolution for some time after October 1, 2004. Further, because a tenant does not experience the impact of FMR change until one year after their annual re-certification (unless the tenant moves with the voucher after October 1), the impact on individual voucher holders is difficult to evaluate. That said, here are two general concerns: (1) When FMR goes down, it is harder for tenants to find voucher eligble units that meet FMR without requiring the tenant to pay above 30% of their income. Potentially there could also be an increase in the voucher turnback rate for tenants unable to assume an increased rent burden. (2) For tenants already in a unit that rents for a rate that exceeds the combined FMR determined level of subsidy and 30% of their income, tenants could be forced to relocate or to assume an increased rent burden. Appeals and 2005 Appropriations Impacts: Housing Authorities do have the ability to appeal specific FMR’s. Potential questions for CDCs: 1. What plans local housing authorities have to submit information requesting revisions to the proposed Fair Market rents, 2. Any plans that local housing authorities may be considering to their payment standards once the 2005 Fair Market rents go into effect, 3. Clarification of the timing and impact that changes to payment standards will have on the housing authorities existing voucher tenants. HUD is taking comments on the Proposed FMRs through September 7, 2004. Address comments to Office of the General Counsel, Rules Docket Clerk, Room 10276, Department of Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 20410-001. Comments must include the reference docket number FR-4937-N-01. Staff from the City of Portland’s Bureau of Housing and Community Development are also collecting comments on the FMR changes, in order to catalogue the local impact. Please contact Antoinette Pietka (apietka@ci.portland.or.us) or Beth Kaye (bkaye@ci.portland.or.us) with you comments. To find out more, click links below: HUD Proposed FMR FY 2005 Preamble: FMRPreamble.pdf HUD Proposed FMR FY 2005: 2005ProposedFMRs.pdf Center on Budget and Policy Priorities analysis: http://www.cbpp.org/fmr.htm National Low Income Housing Coalition analysis: http://www.nlihc.org/2005fmrs/ Two Portland Area CDC Directors Chosen for Harvard Program Sheila Greenlaw-Fink, Executive Director of Community Partners for Affordable Housing in Tigard and Nick Sauvie, Executive Director of ROSE Community Development in Portland, were two of the 41 individuals selected to participate in a prestigious and highly-selective training program offered by the NeighborWorks® Advanced Practitioner Program through Harvard University. Achieving Excellence is an educational program for seasoned executive directors in community development organizations that focus on housing, community revitalization or economic development. At the beginning of their tenure in the program, participants select specific and significant challenges facing their organizations, for which solutions would not only dramatically change how their organizations do business, but also provide momentum for change across the field of community development. The 18-month program includes three formal sessions at Harvard University's Hauser Center for Nonprofit Organizations as well as intensive mentoring and coaching by Douglas K. Smith, a renowned expert on performance, learning, innovation and change. The first session took place August 1-6. The remaining sessions are scheduled for February and October 2005. Between sessions, participants receive ongoing consulting, coaching support and collaboration with peers to sharpen their abilities. This is the only comprehensive, intensive training of its kind. The program is subsidized by Neighborhood Reinvestment Corporation, the Fannie Mae Foundation and other sponsors. In addition, a generous grant from the Enterprise Foundation covered a portion of Fink and Sauvie's expenses related to this program "I am honored to have been chosen to participate in this challenging program," said Greenlaw-Fink. "I look forward to honing my skills, strengthening my organization and sharing lessons with the broader community development field," added Sauvie. Community Partners for Affordable Housing, Inc. (CPAH) is a non-profit community development corporation serving Southeastern Washington County and Southwest Portland. With an existing portfolio of 143 units, CPAH provides safe and healthy housing along with support and skill building activities for individuals and families of modest means. ROSE Community Development builds community and strengthens neighborhood economies that revitalize Outer Southeast Portland. ROSE has developed 261 affordable housing units since 1992 and also supports child care, economic development and other neighborhood improvements in Portland's Lents, Brentwood-Darlington, Foster-Powell and Mt. Scott-Arleta neighborhoods. PCRI Duplex Selected for 2004 Build It Green! Home Tour PCRI 's new construction green duplex will be on this year's city wide Build It Green! Home Tour. Organized by the City of Portland Office of Sustainable Development, the Build It Green! Home Tour features 20 homes in the Portland Metro area that demonstrate the latest in green building practices, from creative use of environmentally-friendly materials to rainwater harvesting and renewable energy resources. The PCRI duplex, part of a new five-unit project on two sites, has been in development since 2001. Construction started in April, 2004 and will finish at the end of September. The duplex has one two-bed/1.5 bath and one 3-bed/1.5 bath units. Each unit has its own parking pad and yard space. The address is 74 NE Russet/7527 NE Rodney and is located at the corner of NE Russet and NE Rodney, one block north of NE Lombard in the Piedmont Neighborhood. The units will rent to families earning 60% and under area median income. Green features: -native landscape plants -recycled content decking -plantation grown hardwood cabinets -recycled content fiberglass batt insulation -vinyl windows with double-paned low "e" glass -recycled content PETO nylon carpet -natural linoleum resilient flooring -insulated fiberglass exterior doors -low VOC paints -recycled content drywall -low-flow commodes and shower heads -high efficiency direct vent gas water heaters -gas-powered hydronic closed loop space heating with zonal control - "turbonics" -low sone exhaust fans - 110cfm in baths -energy efficient appliances and light fixtures PCRI, the owner, developer, project manager of the duplex, worked in conjunction with Oregon Construction Co. LLC, Salmon Street Architectural LLC, and EM/ZED Design LLC. The project was funded by the Portland Development Commission, US Bank Commercial Real Estate, Oregon Housing and Community Services, City of Portland Bureau of Housing and Community Development, The Collins Foundation, The Enterprise Foundation, US Bank Foundation, NW natural, Key Foundation, City of Portland’s Office of Sustainable Development and Metro Regional Services. The 3rd Annual Build It Green! Home Tour and Information Fair takes place on Saturday, September 18 from 11 am to 5 pm and followed by the Information Fair from 5 pm to 8 pm. Tickets are $15 adults; $10 students and bicyclists (includes a Tri-Met pass); free for children under 14. Visit http://www.green-rated.org to preview this year's homes, learn more about the Build It Green! 2004 Home Tour and Information Fair, and register online with your credit card. Elders in Action Ombudsman Available to Metro Seniors, People with Disabilities New Resource to Help Build Your Nonprofit's Fund Raising Capacity First Annual Phil Dreyer Award for Direct Democracy Seeks Nominations |
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