THE AFFORDABLE HOUSING BULLETIN

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Housing
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June 14, 2005

In this issue:
In Delaware
* Brookview Residents Organization in Formation

Elsewhere
* Troubling Increase in Ratio of Housing Costs to Income Among Working Families
* Affordable Housing Fund Gathers Steam and Attracts Attention. Special Thanks to Congressman Castle! Advocacy Opportunity
* States Raise Minimum Wage as Federal Minimum Fails to Bring Working Families Out of Poverty

Brookview Residents Organization in Formation
Facing displacement once their property is sold, the residents of Brookview Apartments are forming a resident council. Current redevelopment plans for the Claymont area would replace the rental units with more expensive houses. Many, if not most, of the current residents would not be able to afford the new homes. The League of Women Voters is helping oversee the process of nominations and election of officers. Once formally organized, the tenant council plans to be an more active voice in the development process, both examining the details of the redevelopment process and addressing the proposed relocation. To date there has been no plan proposed by developers or county government to deal with the problem of relocating families from the 633 units.
Tina Riley, Tenant Organizer
Delaware Housing Coalition
manymansions@housingforall.org

Troubling Increase in Ratio of Housing Costs to Income Among Working Families
("Number Of America's Working Families Spending More Than Half Their Income On Housing Grows 76 Percent, New Study Finds: Compelling Data Also Reveals 6 Out of 10 Immigrant Working Families With Critical Housing Needs are Hispanic - One-Third are Hispanic Families From Mexico," Center for Housing Policy, April 29, 2005)

A study funded by Freddie Mac and conducted by the Center for Housing Policy, the research affiliate of the National Housing Conference, has found a disturbing increase in the number of working families which spend more than half their income on housing. Between 1997 and 2003 the number of such increased from 2.4 million to 4.2 million, or by 76 percent. These numbers not only reflect renters, but also homeowners. One of every eight-or 14.1 million families-paid more than half of their income for housing or lived in physically dilapidated conditions. Most are working families. Homeowners are more likely than renters to face such conditions.
FRAC News Digest
Issue 21, May 27, 2005
www.frac.org

Affordable Housing Fund Gathers Steam and Attracts Attention. Special Thanks to Congressman Castle! Advocacy Opportunity.
Reports from Capitol Hill indicate that considerable bipartisan support for the Affordable Housing Fund in H.R. 1461, the Federal Housing Finance Reform Act of 2005, is holding, despite efforts by conservative Members of Congress to delete the provision. The bill was voted out the House Financial Services Committee on May 25 on 65-5 vote. The Affordable Housing Fund would be established with 5% of Fannie Mae’s and Freddie Mac’s after-tax profits in order to produce, preserve, and rehabilitate rental housing that is affordable for extremely low and very low income families and more home ownership more accessible for these families. The bill is now expected to come to the House floor for a vote after the July 4th recess.

Special Thanks to Congressman Castle
We are grateful to Representative Michael Castle in the Financial Services Committee for his support of HR1461 and especially for retention of the affordable housing fund component of that bill.

A letter to House Majority Leader Tom DeLay (R-TX), authored by Representative Mike Pence (R-NC) and being circulated for signatures, asks Mr. DeLay to not allow the bill to go the House floor for a vote if it contains the Affordable Housing Fund. The letter says that this kind of provision would "work against the free market principles that have made our nation’s housing market one of the most accessible in the world." The letter’s author also is concerned that "the money from this fund could be used to finance third party advocacy groups that have agendas far beyond simply increasing affordable housing for low-income Americans - agendas that are antagonistic to the free market principles that we value."

Representative Richard Baker (R-LA) has requested that the Congressional Budget Office (CBO) review H.R. 1461 to determine if it "scores," meaning it has implications for the federal budget. Representatives Mike Oxley (R-OH) and Barney Frank (D-MA), Chair and Ranking Member of the House Financial Services Committee respectively, have sent a letter the Director of CBO stating the Affordable Housing Fund in H.R. 1641 is structured similarly to the Affordable Housing Program (AHP) of the Federal Home Loan Banks. AHP are not considered federal funds, and Mr. Oxley and Mr. Frank assert that these new funds are not federal funds either.

Advocacy Opportunity
Low income housing advocates are communicating with all Members of the House about the merits of the proposed Affordable Housing Fund. Bishop Nicholas DiMarzio of Brooklyn and the Chairman of the Domestic Policy Committee of the United States Conference of Bishops, sent a letter to every House Member on June 10, urging passage of the Affordable Housing Fund and pointing out that "this bill presents Congress with a genuine opportunity to make the shelter needs of extremely low income families a national priority."

In the Senate, the Banking, Housing, and Urban Affairs Committee is expected to mark-up its version of the GSE bill in late June. The Senate legislation is still being drafted, but low income advocates fully expect a provision similar to the Affordable Housing Fund in H.R. 1641 to be in the Senate bill. NLIHC and National Housing Trust Fund campaign partners are urging that the entire fund be deeply targeted to extremely low income families.

The National Low Income Housing Coalition and the National Housing Trust Fund Campaign are encouraging endorsers, supporters, and members to use the July 4th Congressional recess, when Senators and Representatives will be in their districts, to educate their elected officials about the need for affordable housing, the successes of the affordable housing sector, and how the Affordable Housing Fund will benefit their constituents.
National Low Income Housing Coalition.
Craig Stevens, NLIHC,
craig@nlihc.org
Delaware Housing Coalition
Gina Miserendino, DHC, grassroots@housingforall.org

States Raise Minimum Wage as Federal Minimum Fails to Bring Working Families Out of Poverty
This year, five states have raised their minimum wage above the federal minimum of $5.15 an hour, joining eleven states that had already taken such legislative action. Since a family with one full-time worker earning the federal minimum wage will earn $10,712, not even enough to meet the federal poverty threshold for a family of two of $12,830, some states have taken the initiative. The Center for Policy Alternatives notes that the new states bring the number of Americans who will be covered by state minimum wage laws at or above $6 per hour up to 43 percent by fall of 2005. In addition to the new states, this year Minnesota, New Jersey, New York, Oregon, Vermont and Washington increased their state minimum wages that were already above the federal level. ("States give minimum wage earners a boost," Stateline, 5/17/05)
FRAC News Digest
Issue 22, June 6, 2005
www.frac.org


 

 

 

TO CONTACT DELAWARE'S CONGRESSIONAL REPRESENTATIVES:

Senator Joseph R. Biden, Jr. senator@biden.senate.gov
Wilmington (573-6345)
Milford (424-8090)
DC (202/224-5042)

Senator Thomas R. Carper
carper.senate.gov/email-form.html
Dover (674-3308)
Georgetown (856-7690)
Wilmington (573-6291)
DC (202/224-2441)

Representative Michael Castle http://www.house.gov/writerep/
Wilmington (428-1902)
Dover (736-1666)
DC (202/225-4165)

 

TO CONTACT DELAWARE'S GENERAL ASSEMBLY MEMBERS:
Go to the link on this website.
Or go to the State website.

 

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