North Carolina North Carolina Housing Issues and PolicyHousing Issues and Policy

Chris Estes Chris Estes NC Housing CoalitionNC Housing Coalition

2010 Annual NC Affordable Housing Conference

NC Housing Coalition

Purpose and Mission• Our mission is to lead a campaign for housing

that ensures working families, people in crisis, seniors and persons with disabilities may live with dignity and opportunity.

• We work to increase investment in quality affordable homes so that working families and individuals, persons with disabilities, people in crisis, and fixed-income seniors may live with opportunity and dignity.

NC Housing Coalition

• Resource and information referral• Clearinghouse for best practices, research,

and data • Technical Assistance and Training

– Foreclosure Prevention– Fair Housing– Carolina Homeless Information Network (CHIN)

• Local, state, and federal advocacy• Join Us and Become a Member!

What We Mean by “Affordable Housing”

• Accompanied by some sort of subsidy that provides oversight for long-term affordability and quality.

• Affordable housing is defined as housing that costs the household no more than 30% of its income. Will be higher for homeowners.

• In NC more than 2 million people live substandard housing or housing that is not affordable.

Housing Data – North Carolina

• 54,000 NC foreclosures in 2008, 60,000 for 2009. 70,000 expected in 2010. Nationally we are only 1/3 of the way through.

• NC Households must earn $13.80/hour to afford 2 bedroom FMR unit - $12.30 in non- metro counties. Renter wage is $12/$9 respectively.

• FMR costs have risen 27% since 2000.• 2010 SSI $674 per month = $8,088 year

30% = $202 for rent and utilitiesCenter for Responsible Lending, 2009;

NLIHC Out of Reach Report 2009

Housing as a “HUB”

Housing is an Asset

• The home is the single largest component of household wealth and can be a fundamental asset for millions of Americans.

• Access to affordable rental housing is essential for those who are not ready or able to buy a home.

• For owners and renters – safe, quality affordable housing provides physical and financial security.

• Stability is one of biggest and least appreciated aspects of good affordable housing at all levels.

• Asset-Building does not replace income supports.

• Asset policies don’t just build wealth but create a platform for economic success.– Examples: Financial Literacy, health care, or

housing vouchers.

• Some things are barriers to asset-building or actually strip assets or prevent wealth creation.

Asset-Building Continuum

Housing Issues• Create a sustainable mortgage market• Develop is more integrated sustainable patterns:

Mixed UseMixed IncomeTransit-OrientedOpen Space/Water Management

• More sustainable housing design-Energy & Community

• Understanding location in planning – particularly in the South.

Policy Work 2010

NC Housing Trust Fund – Preserved $10M recurring Funding

Although North Carolina faced an $800 million budget shortfall this year, there were no cuts in recurring funding for the North Carolina Housing Trust Fund. 

State funding was cut for the NC Home Protection Program in anticipation of the $159 million the state will be receiving in federal “Hardest Hit Funds” for foreclosure prevention. 

Much of this federal funding, which will be administered by the NC Housing Finance Agency, will be used toward an expanded version of the Home Protection Program.    

Policy Work 2010

NC Homeowner and Homebuyer Protection Act (SB 1015) This bill, Sponsored by Sen. Josh Stein, prohibits foreclosure rescue scams in which a homeowner is persuaded to sell property for less than fifty percent of its fair market value to avoid foreclosure. It also adds needed consumer protections for “rent to own” transactions and contracts for deeds.  It requires that such contracts be in writing, include specified minimum contents, be recorded, and give purchasers under the contract notice of and the right to cure any default, among other stipulations.

These scams and unscrupulous real estate transactions have been used to exploit and manipulate families struggling to pay a home loan or families who are having trouble obtaining a loan to purchase a home. 

Policy Work 2010

State Foreclosure Prevention Program (SB 1216)Sponsored by Sen. Dan Blue, this bill extends and expands the State Foreclosure Prevention Program that is administered by the Commissioner of Banks office.

Since its creation in 2008, the program has connected thousands of North Carolinians facing foreclosure with HUD-certified housing counselors and helped over 4,000 people avoid foreclosure. 

The program will now be extended until 2013 and opened to all types of home loans, not just subprime. The program will be funded by a fee on foreclosure filings.  The funds will support the administration of the program by the Commissioner of Banks, housing counselors, and nonprofit legal services. Any unused funds will be added to the NC Housing Trust Fund.

Policy Work 2010

NC Sustainable Communities Taskforce The NC Sustainable Communities Task Force will bring together leaders from the Departments of Commerce, Environment and Natural Resources, Transportation, Administration, Health and Human services, and the NC Housing Finance Agency to focus on developing and sustaining healthy, safe, affordable and walkable communities accessible to all North Carolinians. 

This interagency collaboration will increase North Carolina’s competitiveness in receiving federal moneys for sustainable development. This Task Force will also foster regional collaborations and will help local governments invest more efficiently in affordable places where people can live, work and play. The taskforce will begin in 2011.

Policy Work 2010

•National Housing Trust Fund$1 Billion + $650 M in project-based vouchersPassed the House but no movement in the Senate – still working on getting it passed before the end of the session

•Transforming Rental Assistance•LIHTC Reform – Carryback, 9%, 4% exchange.•Other Local Work:

Support for Local AdvocacyLocal Development CodesLocal Inclusionary IncentivesFair Housing/NIMBY ChallengesHousing Counseling FundingLand Trust Conference

Chris EstesExecutive Director

NC Housing Coalitioncestes@nchousing.org

919.827.4496