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Forwarded from the USCCB
Below and attached is a note from Thom Shellabarger on the status of the Affordable Housing Trust Fund. We've asked for your help in supporting the trust fund over the years and, most recently, to urge members of the House to reject language that prohibits non-profit groups who receive Trust Fund money from certain political activities. We suffered a narrow defeat, but the battle is not over, as you will see as you read on.
Also, early next week we will update you and ask for your continued assistance on the budget as the process moves forward in Congress. We have had some modest victories but also some serious setbacks on programs that are of concern to the Catholic community.
Know that we in Social Development and World Peace and our many national Catholic partners sincerely appreciate all you do to be a voice for poor children and families at home and abroad.
Dan Misleh
Director of Diocesan Relations
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>From Thom Shellabarger:
I want to take a moment to give you an update on the Affordable Housing Fund and thank you for your efforts in support of this provision.
Last Wednesday, Oct. 26, the House of Representatives voted 331-90 in support of H.R. 1461, the Federal Housing Finance Reform Act of 2005. Besides establishing new oversight regulations for Fannie Mae and Freddie Mac, the bill requires these organizations to dedicate a percent of their after-tax income to a new Affordable Housing Fund.
The Fund is expected to provide up to $1 billion per year and could be used for the following purposes:
* Production, preservation and rehabilitation of rental housing for extremely low and very low income families
* Production, preservation and rehabilitation of housing for homeownership, including down payment assistance, closing cost assistance and assistance for interest rate buy-downs
* Leveraged grants for the development, preservation, rehabilitation or purchase of affordable housing that meets underserved needs for affordable housing, and for community and economic development activities in economically underserved areas.
* For the first two years, the assets would be targeted to areas affected by Hurricane Katrina. For the next three years, the fund could be used for affordable housing anywhere in the country.
After five years, authorization for the Fund would expire unless it is extended by Congress.
Unfortunately, Catholic organizations or groups-and most other nonprofits-are not eligible to apply for the money. The legislation requires non-profit organizations to have affordable housing as their primary objective in order to apply for funds. Also, non-profit organizations that have engaged in any federal election activity, including voter registration, or are affiliated with an organization that engages in any federal election activity would be prohibited from receiving grants. Non-profit organizations could not engage in these activities for a period starting 12 months before applying for a grant and ending when all grant funds are expended. The provision does not apply to for-profit organizations.
There were two (unsuccessful) attempts to strike the offensive language from the bill. The first vote on "the Manager's Amendment" was the closest: 209-206 with 19 Members not voting. Thirteen Republicans and 1 Independent join all but one of the voting Democrats in this attempt to change the offensive language. (Roll Call Vote 541 http://clerk.house.gov/evs/2005/roll541.xml )
The second vote on "the motion to recommit with instructions" wasn't as close: 200-220. Again 13 Members did not vote, 3 Republicans, and 1Independent joined 196 Democrats in this loss. (Roll Call Vote 546 http://clerk.house.gov/evs/2005/roll546.xml ) The closeness of these votes reflects the enormous work you and other advocates did to educate members on the issue. This vote by the full House is not the end of the debate. The Senate version of this legislation (S. 190) which has passed through Committee does not contain the Affordable Housing Fund and is not scheduled to go to Senate floor for debate. We will alert you if and when the Senate begins to debate the issue.
In the meantime, please continue to communicate your concern for affordable housing, the role of non-profits and Church organizations in providing families with decent homes, and the need for us to work together to meet our common responsibility for housing.
Thanks again for your help!
Thom Shellabarger
202-541-3189
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