Reports - Mississippi Renewal

THE GOVERNOR’S COMMISSION REPORT | 67ensure that public resources benefitthose most in need, a percentage of subsidyfunds should be dedicated to assistvery low-income residents, particularlyrenters seeking to become homeowners.Responsibility for this recommendationshould rest in part with the state,with an entity such as Enterprise Corporationof the Delta (possibly actingthrough the new CDE described inthe recommendation “New StatewideCommunity Development Entity” toallocate the funds), and with HUD,which provides them. This can be initiatedin the near term, and should continueuntil affordable housing needswithin the Katrina-affected region aremet. Little cost is associated with thisrecommendation; rather, it represents aredirection of existing funds.Recommendation 18: LIHTC HurricaneDesignation. Currently, lowincomehousing tax credits (LIHTC)developers who focus their affordablehousing activities on communities withhigh poverty rates receive a credit thatis 30 percent higher than for activity inother areas. Hence, most LIHTC developmentoccurs in areas of high poverty,because the higher credit allows developersto make rental rates more affordablethan in its absence. By expandingthe higher credit to all areas affected bythe hurricane, as designated by FEMA,the LIHTC program would create incentivesto build affordable housingin economically diverse communities– not solely in areas of high povertyconcentration. 5 A percentage of units inall LIHTC projects should be dedicatedto very low-income families. HUDadministers the LIHTC program andmust make a policy revision to affectthis plan. The state should lobby HUDto consider this policy change. Effortsto encourage HUD to adopt this recommendationshould commence immediately.Given the bureaucratic natureof large federal agencies, however,it might take six months to a year forHUD to make the necessary programmaticchanges. There is little cost associatedwith this recommendation; rather,it represents a redirection of existingfunds.Recommendation 19: Section 8Voucher Opportunities. Using FEMApayments combined with HUD rentalvouchers and other subsidy funds, HurricaneKatrina has provided an opportunityfor Section 8 voucher holders tobecome homeowners. Steps should betaken by local housing authorities, actingin concert with “New StatewideCommunity Development Entity,” toexplain the process of qualifying for amortgage loan to their voucher holders.Those who qualify would be able topurchase a home with a minimal downpayment and in many cases could own ahome for the same monthly cost as theirrental payment. The Mississippi HomeCorporation has agreements in placewith eight public housing authoritiesto provide homebuyer preparation servicesto their Section 8 voucher holderswho want to use a Section 8 voucher topurchase a new home. HUD recentlyfunded the Mississippi Home Corporationto continue this program for FY2006. The “New Statewide CommunityDevelopment Entity” (CDE), actingin cooperation with HUD, shoulddevelop an initiative that would supportthis effort. The proposed outreach centersto be supported by the statewideCDE should have staff capable of workingwith low-income residents to poolresources and make them viable homepurchasers, and FEMA-supported casemanagement counselors should also beknowledgeable and capable of offering“I’m currentlyliving in theupstairs portion ofmy house due to 31/2 feet ofwater. I’ve justcome back fromthe forum atGautier at thejunior college,and it waswonderful andexciting to hearwhat all was goingto be done inour community.”– Alice Baker, Pascagoula