THOMAS FINNERAN
Was asked for vote
Renovation and rehabilitation of thousands of public housing units has been halted because state leaders have delayed passage of a $508 million bond bill.
Meanwhile, several nonprofit groups that were promised state funding last fall to create new housing units are eagerly waiting for the bond bill money, which will allow them to proceed with projects.
This all comes as the House of Representatives last week voted to make major cuts to housing programs, most of which serve the lowest-income individuals in the state.
“This is the worst situation we’ve faced in years,” said Aaron Gornstein, executive director of Citizens’ Housing and Planning Association. “The budget cuts, on top of inaction on the housing bond bill, have threatened a lot of recent gains that had been made on housing at the state level.”
The almost 10-month delay in passing the bill has spurred a broad coalition of affordable housing and business groups to send a letter with the signatures of 80 members of the House of Representatives to House Speaker Thomas Finneran urging him to schedule a final vote on the bill soon.
“Housing production programs have ground to a halt,” said Chris Norris, assistant director of CHAPA.
The Greater Boston Chamber of Commerce is one of the groups urging passage of the bond bill, believing it will help the economy by providing construction jobs.
“The bond bill fills a very important need and provides an economic stimulus,” said Jim Klockey, vice president for public policy at the chamber.
‘Significant Challenge’
Roughly $59 million worth of construction projects have been delayed at 16 local housing authorities, including those in Chelsea and Winthrop, said Norris. Those projects would modernize or improve a total of 4,000 units.
Chelsea housing officials were in the process of seeking bids for balcony repairs at a senior apartment complex, but had to stop, and in Winthrop, roofing repairs and deleading at a family housing development couldn’t proceed.
Different versions of the bond bill, which provides money for the renovation and creation of affordable housing units, passed the House and Senate last year. A conference committee of both House and Senate leaders hashed out a compromise bill in February, but weeks later House members agreed not to vote on the bill because some lawmakers want to guarantee changes to Chapter 40B, the state’s so-called anti-snob zoning law, before releasing millions for housing programs.
Michael Gondek, executive director of the Community Economic Development Assistance Corp., said this is the longest it has taken for state leaders to approve the bond bill.
“We’ve never had this kind of delay in the 15 years we’ve been working with the Housing Innovations Fund,” said Gondek.
CEDAC relies on the Housing Innovations Fund, which is funded periodically by the bond bill. The HIF mainly provides money for the creation of housing units for very low-income individuals and families who typically also need support services, such as substance abuse treatment.
Last fall, the Department of Housing and Community Development committed money to several projects through HIF, but because the fund was tapped last year there are currently six projects, totaling $2.6 million, that have been held up.
Among the projects is a six-unit housing development in Somerville geared for teen-age mothers and low-income families that was planned by a community development corporation in Cambridge called Just-A-Start.
A supportive housing project for veterans in Worcester is also in jeopardy because the bond bill hasn’t passed. That project would provide 10 rental units and support services for Bay State veterans.
“We are still optimistic that it will pass. The speaker has said it is one of his priorities,” said Norris. “There’s still plenty of time. Obviously, the closer we get to July 31 [the end of the legislative session], the more difficult it is.”
Groups like the CHAPA and CEDAC are hoping the bill is voted on in upcoming weeks now that the House has finished the budget. Facing a $1 billion deficit, the House voted to cut approximately $25 million from the Department of Housing and Community Department – representing a 20 percent cut in the agency’s budget.
“The housing programs suffered a disproportionate impact compared to every other state agency,” said Gornstein. “Unfortunately, the cuts are going to affect the lowest-income people in the state.”
Because of the cuts, more than 9,000 households earning an average of $15,000 or less will lose rental assistance, and no new households will receive rental assistance from the state, even though thousands are on a waiting list to receive such assistance.
CHAPA leaders also are concerned about the elimination of a program that helps tenants pay back rent and keep them from being evicted. Last year, the program helped 10,000 families, said Gornstein.
The budget cuts are also likely to stymie affordable housing production because community development corporations, which create affordable housing units, are facing a 50 percent cut in their operating budgets.
Even though affordable housing advocates are hoping that the Senate restores some of the funding in its budget, Gornstein acknowledged that it will be tough given the priority to fund education and healthcare and provide local aid to cities and towns
“We’re facing a significant challenge in the Senate to restore cuts,” he said.
