*Correction to recorded webinar
During the webinar, we discussed Housing Trust Fund budget language requiring the Department of Commerce to prioritize loan deferment for projects serving extremely low income households (earning 30% of the area median income). The Governor vetoed that language when he signed the budget bill. Here is his veto message:
Governor’s veto message:
Section 1029(5), page 17, Department of Commerce, 2019-21 Housing Trust Fund Program
I commend the Legislature for the capital budget appropriation of $175 million for the Housing Trust Fund program. This vital funding will help preserve and build affordable units to address our state's housing crisis. I share the concern that some projects serving those most in need lack sufficient funding streams to support long-term operations and services. However, Section 1029(5) directs Commerce to prioritize loan deferment for nearly all projects funded by the Housing Trust Fund. This proviso does not recognize that most of these projects serve a mix of households, including many that pay rent. Loan repayments from developers who receive rental income are reinvested in future Housing Trust Fund projects. I am directing the department to work with stakeholders and legislators to develop a fair and transparent policy for loan repayments, with the goal of ensuring the long-term viability of the state's affordable housing investments. For these reasons, I have vetoed Section 1029(5).