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MortgagePoint September 2023

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Page 85 of 99

MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 84 J O U R N A L September 2023 Act to lower the cost of building new homes, support housing revitalization, and make the dream of homeownership attainable and affordable for our families in rural America." The Neighborhood Homes Investment Act establishes a federal tax credit that devel- opers can claim to construct new housing or substantially rehabilitate existing homes in rural communities. This tax credit seeks to close the "value gap"—which occurs when the cost to build a home exceeds the price at which it is expected to sell—by covering up to 35% of development expenses for new construction. "The United States is experiencing an affordable housing crisis and my community of Western New York is not immune," Rep. Higgins said. "Older communities like Buffa- lo and Niagara Falls have aging homes with good bones, but the high cost to rehab these properties, compared to their value, causes them to fall into disrepair. As a result, neigh- borhoods are plagued by blighted homes and vacant lots. I am proud to join my colleagues in leading the bipartisan Neighborhood Homes Investment Act, which closes the value gap these neighborhoods face with a tax credit that encourages investments in single family homes and leads to community revitalization. For the families whose dreams of homeownership feel unattainable, this legislation can be a gamechanger." The Neighborhood Homes Coalition estimates that this legislation would spur $125 billion in total construction and development activity, support 861,000 jobs in construction and adjacent industries, generate $56 billion in wages, and produce $26 billion in federal and $12 billion in state and local tax revenues. "It is vital that we, as a country, make equitable investments in our housing infrastructure—both for the stability of our economy and the well-being of families and communities across the country," said Chris- topher Tyson, President of the National Com- munity Stabilization Trust. "Neighborhood Homes encourages private investments in communities that would not otherwise have access to this kind of capital, creating new op- portunities for families to put down roots in their own homes, strengthen their communi- ties, and build wealth for the future." HUD ANNOUNCES EXPANSION OF ITS MOVING TO WORK DEMONSTRATION PROGRAM T he U.S. Department of Housing and Urban Development (HUD) has published PIH NOTICE 2023-20, seeking applications for the Overall Impact of Moving to Work Flexibility and Adminis- trative Efficiencies Cohort of the Moving to Work (MTW) Demonstration Program. PIH NOTICE 2023-20 outlines the process by which public housing agencies (PHAs) with 1,000 or fewer combined units of public housing and Housing Choice Voucher (HCV) units will be selected for the MTW Expansion. The new cohort will test the over- all effects of MTW flexibility on a PHA and the residents it serves, with a particular focus on administrative efficiencies. "Giving Housing Authorities flexibilities to care for their vulnerable populations under the Moving to Work Demonstration has led to excellent results for low-income families," HUD Secretary Marcia L. Fudge said. "Today, we are pleased to invite additional Housing Authorities to join the program and replicate the successes we've seen across the country." First authorized by Congress in 1996, MTW is a demonstration that provides PHAs with the opportunity to redefine how they operate by giving them flexibility to try "outside the box" ideas that address local community needs in innovative ways. MTW allows PHAs the flexibility to create customized solutions to their community's specific challenges. With the addition of the 14 PHAs selected for this cohort, HUD will have added a total of 100 PHAs to the MTW Demonstration Program since January 2021. MTW PHAs are now in 39 states and the District of Columbia. "MTW reduces administrative burdens for PHAs, which creates tremendous opportunity for innovation that should deliver positive change for residents," said Richard Monocchio, Principal Deputy Assistant Secretary for Public and Indian Housing. "The power of MTW to drive policy change relies on housing author- ities with strong leadership and resident-cen- tered vision participating—and that is exactly who we are seeking with this latest notice." MTW encourages an entrepreneurial spirit to think of and create solutions in a new way. MTW agencies have directly influenced national policy for more than 25 years, paving the way for the future delivery of federally assisted housing. PHAs in the MTW demonstration have pioneered several innovative policy interven- tions that have been successful at the local level, and subsequently rolled out to the rest of the country's PHAs. Examples include requiring less frequent recertifications for those on a fixed income, increasing payment standards for the reasonable accommodation of persons with disabilities, and allowing the owners to maintain site-based waiting lists for project-based vouchers. "Giving Housing Authorities flexibilities to care for their vulnerable populations under the Moving to Work Demonstration has led to excellent results for low- income families." —Marcia L. Fudge, HUD Secretary

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