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Announcements

NAHMA June Conference Will Focus on Tax Credits and Housing Policy

Managers and owners of affordable multifamily housing will gather in Vail, Colorado, June 21-24, 2008 to consider the impact of recent and proposed federal housing policies and to examine the status and key issues related to the Low Income Housing Tax Credit program.

The summer conference is one of three annual events hosted by the National Affordable Housing Management Association (NAHMA) for its members, who are also affiliated with Affordable Housing Management Associations (AHMAs) around the country. The conferences afford NAHMA and AHMA members and guests the opportunity to share best practices, understand regulatory issues and meet with officials from federal and other agencies that affect the industry.

Key events include:

1) Tax Credit Symposium, Monday, June 23
Session Topics:
Hot Compliance Issues
The Pros/Cons and Benefits/Challenges of Managing a Diverse Portfolio
Tax Credit Public Policy Issues—Legislation and Regulations

2) HUD Regulatory Forum, Monday, June 23

3) Senior Housing Issues, Tuesday June 24

4) TRACS and Contract Administration Issues, Tuesday June 24

NAHMA’s committees and task forces also will meet to discuss progress on a number of fronts, including multifamily housing preservation, fair housing and rural housing.

Online meeting registration is fast and easy. For a copy of the preliminary meeting agenda or to register for the conference, click on the link below, or call 703-683-8630.


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Headlines

Association News

NAHMA Announces Grandfather Opportunity for its Certified Professional of Occupancy (CPO) Credential
How the SHCM Exam was Developed
SHCM Supported by Alliance of Three National Associations
General Colin Powell to Speak at 2008 NAA Education Conference & Exposition
NAHMA Topics to be Discussed at 2008 NAA Education Conference & Exposition

Industry News


"Dodd Introduces Sec. 8 Voucher Reform Bill"
"Affordable Housing and Housing Vouchers"
"Amendment Would Help Rural Residents Get Low-Income Housing"
"State LIHTC Funds Prepare for Tough Year"
"Critics Say New Green Rating Hurts Affordable Housing"
"Affordable Housing Initiatives Clear House Floor"
"Feingold Steps Up Call for National Affordable Housing Trust Fund"
"Industry Leaders Plan National Proposal for Next U.S. President to Increase Quality, Quantity of Nation's Affordable Housing"
"SJC Won't Rule on Affordable Housing Law"
"Tax-Relief Accord Reached"
"Loan Crisis May Cut Affordable Housing"
"Credit Crunch Hits Funds for Affordable Housing Projects in Washington"
"Program May Add Tax Break for Future Affordable Housing"
"Low-Income City Housing Project Receives $8.4 Million Boost"
"Trust Fund Proposed for Creating Affordable Housing in Richmond"


Association News

NAHMA Announces Grandfather Opportunity for its Certified Professional of Occupancy (CPO) Credential

NAHMA is offering a unique and limited opportunity for grandfathering into its Certified Professional of Occupancy (CPO) credential program. Specifically, persons who hold a national affordable occupancy designation that is comparable to the NAHMA Certified Professional of Occupancy (CPO) designation may have this designation grandfathered into the CPO program through December 31, 2008. The CPO is NAHMA’s designation developed especially for management professionals involved with properties operated under the 4350.3 Occupancy Handbook of the Department of Housing and Urban Development (HUD). The CPO course is the only comprehensive program covering the entire HUD Handbook 4350.3, including the latest revisions. Topics covered range from eligibility criteria, standards, tenant selection and screening, to non-discrimination, allowances, adjusted income, certifying tenants and annual recertification. After completing the two and one-half days of interactive instruction, participants in CPO courses have mastered using the HUD Handbook effectively, and then must pass a rigorous one-half day exam to become certified CPOs. The CPO is a requirement for NAHMA’s NAHP® certification program. A CPO Grandfather application is posted at the NAHMA Website at the link provided here. click for web site | Return to Headlines

How the SHCM Exam was Developed

Development of the SHCM exam was based on an exacting process established for national certification programs to ensure the exam is a reliable and pyschometrically valid testing tool for its subject matter. NAHMA retained a well-respected third-party consultant to assist in this process. For a full report on how the SHCM exam was developed, please click below. The test questions on the SHCM exam are reviewed and updated on an annual basis using this same exacting process. click for web site | Return to Headlines

SHCM Supported by Alliance of Three National Associations

The SHCM certification is designed by management professionals for management professionals to ensure they have attained the knowledge, experience and competence required to excel in the housing credit property management industry. As experienced affordable housing management professionals know, the LIHTC program is the primary production tool for creating new affordable housing properties across every state in the country, and it is also the most important tool for rehabilitating and preserving the nation's existing stock of aging affordable housing. To maximize their careers, management professionals in the affordable housing industry must be able to demonstrate their experience and expertise in mastering the complex requirements of the LIHTC program. Earning your SHCM enables you to do just that. The SHCM is offered through an alliance of the National Affordable Housing Management Association (NAHMA), the National Apartment Association (NAA) and the American Association of Homes and Services for the Aging (AAHSA). For more details on this unique strategic alliance of three national associations, please click below. click for web site | Return to Headlines

General Colin Powell to Speak at 2008 NAA Education Conference & Exposition

The National Apartment Association (NAA) is pleased to announce that Gen. Colin Powell, USA (Ret.) will present the Opening Keynote Session "Leadership: Take Charge" on Thursday, June 26. In addition to this keynote session, NAA will offer more than 50 education sessions divided into nine education tracks including: Executive, Development & Rehab, Marketing & Leasing, Human Resources, Independent/Small Owner, Specialty Housing, Personal Development, Wild Card! and Shared Interest Roundtables. The 2008 NAA Education Conference & Exposition is being held at the Gaylord Palms Resort & Convention Center from June 26-28, 2008 in Orlando, Fla. Visit the NAA Meetings page for the complete schedule www.naahq.org/meetings/.
click for web site | Return to Headlines

NAHMA Topics to be Discussed at 2008 NAA Education Conference & Exposition

NAHMA Key HUD Issues Update
Moderator: Kris Cook, CAE, NAHMA
Panelists: Rick Graham, Acorn Analytics
Karen Newsome, WinnResidential
Michelle Norris, National Church Residences
In this update three key topics will be covered: 1) “Surviving Late Housing Assistance Payments by HUD” – in 2007, HUD was sometimes months late in making its contract payments to thousands of project-based section 8 properties across the country. Our speaker will give practical advice on how to make ends meet and still take care of your properties during such a funding crisis. 2) “Top 10 Ways to be Prepared for your next HUD REAC Inspection” – with so much at stake with your HUD REAC inspections, you’ll want to hear our expert’s advice on how to be fully prepared and earn your highest scores. 3) “Navigating Challenges in the HUD Active Partner Performance System (APPS/2530)” – this HUD program can be a compliance challenge, particularly if your HUD property includes a tax credit partner. Learn practical advice on how to navigate this important program.

Specialty Housing NAHMA Legislative/Regulatory Update
Kris Cook, CAE, NAHMA
Michelle Norris, National Church Residences
This session will focus on key federal legislative and regulatory issues facing providers of multifamily affordable housing. Topics discussed will include the Low Income Tax Credit program, HUD advocacy issues, and real-world impacts on communities, management companies and owners.
click for web site | Return to Headlines

Industry News

"Dodd Introduces Sec. 8 Voucher Reform Bill"
Affordable Housing Finance (05/08) Jacobs, Barry G.

U.S. Senate Banking Committee Chair Christopher Dodd (D-Conn.) introduced S. 2684, which would reform the Section 8 voucher program to reduce administrative burdens and help families "achieve self-sufficiency." The bill revises funding allocation formulas, inspection requirements, rent and income calculations, and terms of enhanced vouchers. Additionally, the bill provides funding for 20,000 incremental vouchers per year between fiscal years 2009 and 2013, and it establishes project-based preservation vouchers as an alternative to enhanced vouchers. For public housing authorities (PHAs), the bill allows them to retain reserves up to 12.5 percent of their annual allocation at the end of 2008, 7.5 percent at the end of 2009, and 5 percent at the end of the remaining years. Voucher units will be subjected to inspections every two years, and if units fail to pass inspections, violations must be corrected within 30 days. If violations are not corrected, PHAs would abate assistance for up to 120 days, which could be used to remedy any life-threatening situations. After the abatement period, if violations are not remedied, the Sec. 8 contract is terminated. Those families with fixed incomes would no longer face recertification yearly, but every three years. Low-income families' threshold for the program would be raised to either the national poverty level or 30 percent of the area median income, whichever is higher. Project-based vouchers could account for 25 percent of PHAs tenant-based voucher funding, or up to 30 percent if homeless aid is necessary.
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"Affordable Housing and Housing Vouchers"
CQ Congressional Testimony (04/16/08)

Jack Murray of the Edgewood Management Corporation testified before the Committee on Senate Banking, Housing and Urban Affairs Subcommittee on Housing and Transportation, and Community Development on behalf of the National Affordable Housing Management Association (NAHMA) and the National Leased Housing Association (NLHA). Murray presented the Associations views on the Section 8 Voucher Reform Act (SEVRA). "The Section 8 program has long served as America's primary rental subsidy program and we believe it has been largely successful in achieving the goal of assuring decent, safe and affordable housing for low income families and the elderly," Murray noted. "We do not believe that the Housing Choice Voucher program is in need of a major overhaul, but are convinced that it can be improved upon with the changes outlined in the SEVRA legislation." Murray testified that the success of the voucher program is dependent on the willingness of owners/landlords to accept voucher tenants, noting that his organizations have worked over the years to convince the professional apartment owners to participate in the voucher program, but there are impediments. "Renting to a voucher holder should not cost a landlord more than it does to rent to an unsubsidized tenant, but often it does due to duplicative inspection standards," Murray stated. "Before a Section 8 voucher holder can rent a specific apartment, the administering agency must first inspect the unit to confirm that it complies with HUD- prescribed Housing Quality Standards (HQS). Such unit-by-unit inspections cause intolerable leasing delays and do not necessarily satisfy HUD's objective of protecting residents since many of these properties are already inspected under other Federal programs." NAHMA and NLHA strongly support SEVRA's provisions that address current redundancy in federal inspection requirements by permitting housing agencies to approve lease-ups of apartments that have been recently inspected under FHA, HOME or the Low Income Housing Tax Credit (LIHTC) program. While NAHMA and NLHA support SEVRA's giving housing agencies the discretion to inspect apartments occupied by ongoing voucher residents every other year instead of annually, they recommend that small apartment properties that are generally not professionally managed be inspected every year. Murray also indicated that NAHMA and NLHA are pleased that SEVRA allows HUD to better serve persons with limited English proficiency by providing technical assistance to recipients of Federal funds. Murray concluded his testimony by noting that more than "2 million families are assisted with vouchers, but unfortunately for every successful voucher applicant there are many others who will continue to live in substandard housing and/or pay an inordinate amount of their income for rent. SEVRA is an important bill because it recognizes the necessity of the Section 8 voucher program in meeting the needs of low income renters."
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"Amendment Would Help Rural Residents Get Low-Income Housing"
Examiner.com (04/09/08) Hananel, Sam

U.S. Rep. Kenny Hulshof (R-Mo.) has proposed an amendment to the Housing Assistance Tax Act that would make it easier for people who live in rural areas to obtain low-income housing. According to the provision, rural households would be able to use median gross income or a national median income level--whichever is greater--for nonmetropolitan areas in order to qualify for a low-income tax credit. Currently, income tests of an area's median gross income are used to determine whether a building qualifies for a low-income tax credit. "In some of our rural communities, residents cannot qualify for this housing and are faced with a dilemma of moving away or living in substandard housing," says Hulshof. The amendment will lead to more housing development in Missouri's rural areas, adds Pete Ramsel, executive director of the Missouri Housing Development Commission.
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"State LIHTC Funds Prepare for Tough Year"
Affordable Housing Finance (05/08) Kimura, Donna

Low income housing tax credits (LIHTCs) have fallen in price by 10 percent since 2007, mainly because Fannie Mae and Freddie Mac's investments have declined. As a result, both national syndicators and state and local equity funds are determining new ways to generate capital, acknowledging that some states will be unable to reserve their full allocations of LIHTC for 2008 and that affordable housing deals will have a tough time moving forward. It remains to be seen whether prices will reach a point where projects can break ground and yields will rise to a level deemed attractive to investors. "It's not clear what the subprime effect will [be] on Community Reinvestment Act banks. I think it will be mixed," says Ohio Capital Corporation for Housing President Hal Keller, who believes developers likely will not receive over 85 cents per dollar of credit. Although state and local equity funds are faring better than national syndicators that rely heavily on Fannie Mae and Freddie Mac, some experts note that budget constraints on the local government level have made it difficult for developers to access other funding sources. Great Lakes Capital Fund is one nonprofit fund that has done well, offering its first guaranteed fund in 2007 that generated $130 million and pushed its total LIHTC equity for the year to an all-time high of $220 million. Rather than raise a single multi-investor fund in the $180 million range, Great Lakes will offer a guaranteed fund, some small multi-investor funds, and some single-investor funds this year.
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"Critics Say New Green Rating Hurts Affordable Housing"
Mlive.com (05/26/2008) Sinha, Vandana

The new green rating system, Leadership in Energy and Environmental Design in neighborhood development, or LEED-ND, puts green developers and affordable housing advocates at odds, say critics. Under the current draft of the U.S. Green Building Council (USGBC) system, developers whose payback is, at most, four points out of a possible 106 are discouraged from allocating funds toward expensive energy-efficient workforce housing. While the USGBC says it does not discourage affordable development but simply ranks green building as its main priority, critics say consumers will end up paying a high price to be green. "Personally, I think we're pushing forward with a two-tiered system: people who can afford to be sustainable and people who can't," speculates Marita Roos, an HNTB Corp. principal landscape architect based in Washington, D.C. "I don't think we want charges that only certain people can afford to be green." In many cases, construction costs force developers to sell green homes at market rates.
Return to Headlines

"Affordable Housing Initiatives Clear House Floor"
States News Service (05/08/08)

The U.S. House of Representatives advanced bipartisan legislation, H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act of 2008, to bolster the housing sector and further stimulate the economy. U.S. Rep. Phil English (R-Pa.), a senior member of the House Ways and Means Committee, authored several key provisions in the tax portion of the measure which passed the House floor on May 8 by a vote of 322 to 94. The American Housing Rescue and Foreclosure Prevention Act of 2008 eases the burden of the current housing market by providing tax incentives to first-time homebuyers and strengthening and improving the low-income housing tax credit (LIHTC) program to promote continued development of affordable housing. Specifically, H.R. 3221 assists first-time home buyers in getting into a home by providing a temporary tax credit of up to $7,500. The credit in H.R. 3221 however, is subject to recapture, meaning the taxpayer must payback the amount of the credit to the Internal Revenue Service (IRS) over a period of 15-years. The House bill also included a provision to temporarily allow municipal bonds guaranteed Federal Home Loan Bank members to be eligible for treatment as tax-exempt bonds. H.R. 3221 also includes key provisions from English' bill, H.R. 1043, the Community Restoration and Rehabilitation Act of 2007, legislation to expand the current historic rehabilitation tax credit to spur investment for affordable housing for vacant and degrading and older and historic buildings.
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"Feingold Steps Up Call for National Affordable Housing Trust Fund"
WKOW.com (Madison, Wis.) (05/07/08)

Sen. Russ Feingold (D-Wis.) is asking his Senate colleagues to back a nationwide trust fund to help establish affordable housing for families encountering steep property prices throughout the nation. The lawmaker wants the Senate Banking Committee to approve the National Affordable Housing Trust Fund Act of 2007 proposed by Sens. John Jerry (D-Mass.) and Olympia Snowe (R-Maine) as part of comprehensive housing legislation. This type of fund would provide money to develop, renovate, and protect affordable housing for low-income families in the United States. In addition, it would support existing state and regional affordable housing initiatives. Feingold's push to enact a nationwide housing trust fund stems from part of a bill he proposed in 2007 to increase the availability of affordable housing for U.S. residents. His Affordable Housing Expansion and Public Safety Act asks Congress to establish a U.S. affordable housing trust fund; sanction 100,000 new Section 8 vouchers to assist with rental payments; increase funding for the creation and rehabilitation of affordable housing; and renew a grant program to fight violent and drug-associated crime in public housing.
Return to Headlines

"Industry Leaders Plan National Proposal for Next U.S. President to Increase Quality, Quantity of Nation's Affordable Housing"
Fox Business (05/16/08)

Nonprofit housing organizations and their partners gathered in Chicago on May 16 to discuss the strategies that have helped bring affordable housing to their communities, such as low-income housing tax credits and new market tax credits. During the symposium "Opening Doors to Affordable Housing: the Practitioner's Path to Scale and Sustainability," groups like Mercy Housing, the Stewards of Affordable Housing for the Future (SAHF), and the Housing Partnership Network (HPN) also discussed new opportunities that will allow them to continue to fill the critical need. The symposium will be followed by a series of forums held in Atlanta, San Francisco, Denver, and Seattle that will give local leaders an opportunity to hold the same discussion. Organizers of the symposium ultimately hope to create a national proposal on affordable housing for the next president of the United States. "The need for affordable housing has never been greater in our country and we need to implement a long-term national strategy to meet the growing demand," says Sister Lillian Murphy, CEO of Mercy Housing. "By discussing best practices and lessons learned from other nonprofit affordable housing organizations, we can make strategic recommendations to the new administration and help position housing as a key component to address economic, health, environmental and educational issues."
Return to Headlines

"SJC Won't Rule on Affordable Housing Law"
Boston Globe (05/28/08) Ellement, John R.

Massachusetts' high court has declined to get involved in the fight between area governments and the state regarding a contentious affordable housing law. In a pair of rulings announced May 22 on the law--known as Chapter 40B--the Supreme Judicial Court stated that the towns of Hingham and Wrentham have to explore every administrative action with the Massachusetts Department of Housing and Community development before requesting that the courts intervene. Attorneys for the towns said they were hoping that the court would realize the burden that Chapter 40B places on them and clarify the regulations that Massachusetts employs when determining the level of affordable housing present in every community. The affordable housing regulation allows builders to circumvent certain zoning standards to increase the number of affordable housing units. After the number of affordable housing units in a community hits 10 percent, towns can enforce zoning regulations. Both Hingham and Wrentham wanted to find out whether they complied with or surpassed the 10-percent figure after sanctioning new communities or just before giving builders approval. Hingham attorney James A. Toomey argues that towns, builders, and Massachusetts will be forced to spend additional money and time. "We are just disappointed we can't get a final answer on this so everyone knows where they stand," he said.
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"Tax-Relief Accord Reached"
New Hampshire Union Leader (05/29/08) Tracy, Paula

Members of a New Hampshire House and Senate conference committee agreed in principle to pass a bill that would set up a protocol for assessing low-income housing. Senate Bill 199 would create an equitable assessment method for affordable housing under the Low Income Housing Tax Credit Program. A spokesperson for the Northern New England Housing Investment Fund said that current practices do not offer a fair way to assess low-income properties. The bill will give taxpayers the option to be assessed under this section for 10 years as long as the property is used for low-income housing. The measure will help people in need of affordable housing because investors will be more willing to include low-income housing in developments. The affordable housing bill was attached to a House bill that would allow municipalities to assess farm structures at a lower rate, providing farmers with some tax relief.
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"Loan Crisis May Cut Affordable Housing"
Chicago Sun-Times (05/28/08) P. 46; Roeder, David

Rising foreclosures are taking a toll on affordable rental housing in Chicago, according to the Woodstock Institute, which has released a report revealing that two- to six-unit apartment buildings accounted for 35 percent of the nearly 14,000 foreclosures filed in the city in 2007. In West Garfield Park, these buildings--which provide the bulk of the city's affordable housing--made up nearly 87 percent of foreclosures; they accounted for over 70 percent of foreclosures in North Lawndale, the Lower West Side, East Garfield Park, and New City. About three-quarters or more of the city's foreclosures are tied to a dozen lenders, and the Lawyers' Committee for Better Housing identified those responsible for the most tenant evictions as Deutsche Bank, Bank of New York, Wells Fargo & Co., and LaSalle Bank. The institute is concerned about the impact that reduced affordable housing supply will have on community stability, and it notes that many renters are unaware that their landlords are in foreclosure until they lose their utility service or receive eviction notices.
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"Credit Crunch Hits Funds for Affordable Housing Projects in Washington"
Puget Sound Business Journal (Seattle) (05/16/08) Grind, Kirsten

Investors are showing less of an interest in buying tax credits from developers of low-income housing projects due to the economic slump. Companies are no longer relying on the tax credits to reduce their tax liability as their earnings decline. In Washington state, this means plans for 18 affordable housing projects offering approximately 1,000 units are in jeopardy. Tax credits can account for up to 70 percent of the funding for a housing project. Downtown Action to Save Housing (DASH) had hoped the sale of tax credits would cover $7 million of its $18 million renovation of the 104-unit Pyramid Pointe apartment complex. "If this tax credit round doesn't work for us, we won't be able to retain these units," says Dorothy Lengyel, executive director of DASH, an affordable housing developer based in Bellevue. The Washington State Housing Finance Commission is considering closing the funding gap by tapping a national pool of leftover tax credits, but the developers of another 18 projects offering 800 units say those resources should be offered to them. The commission also is considering using next year's tax credit pool as a last resort.
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"Program May Add Tax Break for Future Affordable Housing"
Charlotte Business Journal (05/19/08) Stabley, Susan

In North Carolina, the Charlotte Housing Authority recently lost an important incentive for establishing public-private ventures for affordable housing apartment communities after area officials decided the subsidy was illegal. As such, the Charlotte City Council and Mecklenburg County Commission formed a property-tax rebate initiative for 13 affordable housing developments that had been incorrectly assigned tax-exempt status. Area officials sanctioned $2.8 million under the program in the form of housing grants that pay back taxes and interest for the 13 apartment communities. In addition, officials dedicated $24 million in rebates for pending taxes. Apartments owners and government authorities have stated that the replacement subsidy was needed to avoid losing 1,563 units that help families making 60 percent or less of the region's median income. Charlotte Housing Authority Chairman David Jones noted that housing units for families with small incomes cannot be constructed without substantial property-tax relief now that joint-venture communities are no longer tax-exempt. Area officials said the rebates will not impact the budgets of local governments because Charlotte and Mecklenburg County never anticipated the tax revenue.
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"Low-Income City Housing Project Receives $8.4 Million Boost"
Rutland Herald (VT) (05/28/08) Curtis, Brent

Rutland County's $25 million affordable housing redevelopment project received a much needed $8.4 million allocation as the result of federal low income housing tax credits. The plan, six years in the making and the largest housing project in the county, has crawled along as city officials and residents brainstorm ways to raise capital. The recent funding boost results from the Vermont Housing Finance Agency's (VHFA) recent decision to award $975,000 in federal tax credits--almost half of the agency's $2.3 million annual allocation--to the development planners. These credits in turn will generate more than $8 million in private equity over a period of 10 years. The VFHA also approved a building loan for more than $9 million. "This leverages a tremendous amount to serve a lot of people in the Rutland area," said Sarah Carpenter, executive director of the VHFA. "It will help make rents affordable while leveraging a lot of private investment."
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"Trust Fund Proposed for Creating Affordable Housing in Richmond"
InRich (05/02/08)

In Virginia, Richmond City Council members are currently mulling the creation of a housing trust fund to help finance development of affordable housing citywide. Councilwoman Kathy C. Graziano recently introduced legislation to create the fund, which would issue loans and grants to developers and non-profit groups interested in creating affordable for-sale and rental units. The council has earmarked $250,000 for the fund in the current city budget, and Graziano has proposed an additional $100,000 to go into effect on July 1. The Affordable Housing Trust Fund could not only be used to assist people displaced by the elimination of public housing, it also would go a long way toward fostering the development of housing geared to a range of incomes. Those who would benefit include low-wage city workers and people with disabilities. Additionally, the proposed ordinance calls for the creation of an 11-member oversight board that would be in charge of administering the fund. Board members would include homeowners and renters, builders and developers, affordable housing advocates, property managers, and financial and legal experts.
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June 2008