Margert in the News

$120 Million Added to New York State HEAP Program
The Full Story

On September 30th, President Bush signed into law HR 2638, the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, which provides funding for the Departments of Veterans Affairs, Homeland Security, and Defense as well as funding authority to keep the rest of the government operating through March 6, 2009. Of the $5.1 billion for LIHEAP, $4.509 billion flows through the regular block grant program and $590 million will be released at the direction of the President as emergency contingency funds. The legislation allows states to increase eligibility requirements up to 150 percent of poverty or 75 percent of state median income (the current eligibility ceiling is 150 percent of poverty or 60 percent of state median income).

Of the $5.1 billion, New York State is slated to receive $476,376,332. New York received a total of $357.8M in federal LIHEAP funding for the 2007-08 HEAP season, including "formula" funding and discretionary funding releases. New York's share of the $1.98 billion in federal formula funds was $248 million. In planning only for a federal allocation of $1.7 billion, OTDA's Plan for 2008-09 only assumed receipt of approximately $212 million, or $145.8 million less than received last year.

The federal LIHEAP statute, 42 U.S.C. § 8624(c)(2), requires public participation and an opportunity to comment on any substantial revision of the state HEAP plan. The infusion of increased funds this year -- well over $100 million -- necessarily will lead to a substantial revision of the plan originally submitted, which was designed to distribute a much lower total level of benefits. The recently approved New York State HEAP Plan for 2008-09 includes some language addressing what will happen if additional funding is made available during the heating season. The Office of Temporary and Disability Assistance (“OTDA”) may:

• Issue additional regular and/or emergency benefits;
• increase the regular and/or emergency benefit amounts;
• Provide a supplemental benefit to any household receiving a regular HEAP benefit during the most recent/current program year; and/or
• Implement additional outreach and referral activities.

View the full story on the PULP (The Public Utility Law Project of New York) Blog

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"Hope for Homeowners" Program Announced
The Full Story

Housing & Urban Development Documents and Publications
October 1, 2008
 

WASHINGTON - The Bush Administration today unveiled additional mortgage assistance for homeowners at risk of foreclosure. The HOPE for Homeowners program will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD's Federal Housing Administration (FHA).

"For families struggling to keep up with their mortgage payments, this program will be another resource to refinance into a loan they can afford," said HUD Secretary Steve Preston. "FHA remains a safe and affordable alternative to the high-priced mortgage loans that threaten homeowners' ability to retain their homes. We strongly encourage borrowers to work with their lenders to determine if HOPE for Homeowners is the right program for them."

The HOPE for Homeowners program was authorized by the Economic and Housing Recovery Act of 2008. Since the President signed this vital legislation into law on July 30, 2008, the HOPE for Homeowners Board of Directors has worked diligently to develop and implement the program as directed by Congress. The Board was charged with establishing underwriting standards to ensure borrowers, after any write-down in principal, have a reasonable ability to repay their new FHA-insured mortgage.

The HOPE for Homeowners program begins today [October 1, 2008] and ends September 30, 2011. The program is available only to owner occupants and will offer 30-year fixed rate mortgages - so the borrower's last payment will be the same as the first payment. In many cases, to avoid what would be an even costlier foreclosure, banks will have to write down the existing mortgage to 90 percent of the new appraised value of the home.

Borrower Eligibility:

Borrowers are encouraged to contact their lender to determine eligibility, but may be eligible if, among other factors:

The home is their primary residence, and they have no ownership interest in any other residential property, such as second homes. Their existing mortgage was originated on or before January 1, 2008, and they have made at least six payments. They are not able to pay their existing mortgage without help. As of March 2008, their total monthly mortgage payments due were more than 31 percent of their gross monthly income. They certify they have not been convicted of fraud in the past 10 years, intentionally defaulted on debts, and did not knowingly or willingly provide material false information to obtain their existing mortgage(s).

View full story on KnowledgePlex

Read more about HOPE for Homeowners at www.hud.gov/hopeforhomeowners.

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City's Affordable Housing Plan Faces Credit Crunch
The Full Story

By Robert Gearty and Tina Moore
DAILY NEWS STAFF WRITERS

Tuesday, October 14th 2008, 11:14 AM

Mayor Bloomberg's campaign to build 165,000 units of desperately needed affordable housing appears to be running into the same economic maelstrom that brought down Wall Street.

A $240 million fund that was a key element of the mayor's housing plan relies on some of the country's most troubled banks and securities firms, records show.

The New York City Acquisition Fund's partners include Washington Mutual, Wachovia and Fannie Mae, strongly suggesting it may become a casualty of the still-evolving credit meltdown.

That would be bad news because the city has a shortage of 100,000 to 300,000 units of affordable housing, the Pratt Center for Community Development says.

It could get worse. Economic downturns bring an increased need for affordable housing, center director Brad Lander said.

"You don't have to worry, 'Is there a market for my project?'" Lander said. "The worry is, 'Is there financing for my project?'"

About 25% of the city's renters pay more than half their monthly income in rent, the Pratt Center said.

That's why Bloomberg made pressing for more affordable housing units a top priority.

The city's goal also is hampered by a growing city budget deficit that's squeezed housing capital spending - and the credit crunch, which could hurt the acquisition fund.

Founded in 2006 to create or preserve 30,000 affordable housing units over a decade, the fund has loaned $69 million toward 1,734 affordable units so far.

City housing officials insist the fund is safe because investors were locked in to provide funding through the summer of 2010.

Developers with low-interest loans to buy property are likely to have a hard time getting construction financing as the credit squeeze tightens, experts said.

"There are fewer firms and the firms that remain at least right now seem to be very reluctant to undertake new financing," city Independent Budget Office Director George Sweeting said.

That's exactly what Alan Bell's real estate firm, Hudson Cos., found in Brooklyn.

The acquisition fund provided a $2.47million loan to close a deal last week on land for a 137-unit project in East New York.

"I still have to build the buildings," Bell said. "If I was going for a construction loan today, I think it would be a problem."

He was planning to close on construction financing in June for the development at 1478 Dumont Ave. and hopes things will improve by then. "This is unlike anything I've seen in my lifetime," Bell said.

The nonprofit New Destiny Housing Corp. bought a lot near Yankee Stadium in the Bronx with about $2 million in acquisition fund money in June. It plans to erect an eight-story, 41-unit building at 1070 Anderson Ave. that would be set aside for families of four earning as little as $23,050.

Carol Corden, New Destiny's executive director, said the value of low-income housing tax credits that financial institutions get for investing in affordable housing has declined about 18% - and might not improve.

"It is hard to predict what the situation will be," she said.

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Margert Wins "Special Projects" Grant to Address Unmet Energy Needs
The Full Story

HeatSmartNY, New Statewide Public Education Outreach Campaign, will Include Website, Hotline, Workshops and Public Service Announcements
 

Governor David A. Paterson today launched a new statewide, multi-agency public information education campaign. Called HeatSmartNY, the campaign will provide New Yorkers facing skyrocketing home heating costs with the tools and assistance they need to get through this coming winter. Eight New York State agencies and authorities have collaborated to address this vital issue and bring relief to New York's most at-risk residents.

At Lifelong Senior Center in Ithaca, Tompkins County, Governor Paterson was joined by Congressman Maurice Hinchey, State Senator George Winner and Assemblywoman Barbara Lifton in unveiling the new campaign, which will include a website (www.HeatSmartNY.org), a hotline number (877-NY-SMART), public service announcements and a series of 630 statewide workshops to provide consumers with easy, do-it-yourself tips to lower heating bills, as well as information about New York's heating-related programs.

"While we remain focused on reducing spending to address the economic downturn, we must at the same time be mindful that for many New York families, this is going to be an especially harsh and difficult winter," said Governor Paterson. "New Yorkers should not be endangered by falling temperatures and rising heating costs. That is why I have directed these agencies to implement collaborative and coordinated outreach and ensure that New Yorkers have as much information as possible about heating-related programs and ways to reduce home heating costs."

Additionally, Governor Paterson announced the award of $104,800 in a federal grant to Tompkins Community Action for the installation of energy efficiency measures in 22 households in the county. The grant, awarded by the Division of Housing and Community Renewal, is one of 26 provided to weatherization agencies across New York totaling $3.5 million. The grants will enable these agencies to address unmet energy efficiency needs in their communities.

View full story

View Margert's Award Abstract

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Avoid Foreclosure with Free Home Maintenance Workshops
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On Monday, October 13, 2008, Margert Community Corporation re-opened registration for its popular Home Maintenance Training and Repair Program.  The winter session is expected to run for eight consecutive weeks, on Wednesday evenings, between 6:30 and 8:00 pm, beginning on October 29, 2008.

Margert's Home Maintenance workshops generally consist of eight 90 minutes sessions, are free of charge, and intended to assist first time homebuyers with the after-purchase maintenance of their home investment.

The Housing Partnership Development Corporation, one of the nation’s largest producers of affordable housing, is sponsoring this innovative home maintenance training and repair program for low and moderate income homeowners in southeast Queens. 

The program was developed as an integral component to Margert's post-purchase housing counseling activities, and is considered an important tool in preventing mortgage default and/or foreclosure.  

The Winter curriculum is expected to run follows:

Week 1: Tool Basics and Introduction to Drywall
Week 2: Drywall (cont.) and Electricity - Safety Tips, Repair
             and New Installations
Week 3: Drywall (cont.) and Ceramic Tiling
Week 4: Ceramic Tiling (cont.)
Week 5: Hanging Objects on Walls and Ceilings and Molding
Week 6: Plumbing - Fixtures - Repairs and Energy Efficiency
Week 7: Painting - Preparation through Final Coat
Week 8: Wall papering, Graduation Celebration! 

These classes offer a genuine hands-on learning experience, and space is limited.  To enroll, please call Margert Community Corporation, at 718-471-3724.

Email registrations are now being accepted.

Support for Margert's Home Maintenance Training and Repair Program is provided by New York City Council discretionary funding administered through NYC HPD.

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