The Department of Housing and Community Development strengthens cities, towns, and neighborhoods to enhance the quality of life for Massachusetts's residents. Through its four divisions, the Department provides technical assistance and financial resources to promote affordable housing opportunities, the economic vitality of communities, and sound municipal management.

The Division of Community Services administers programs that promote economic growth, revitalize neighborhoods, and assist local officials with municipal management and planning. The Division of Public Housing and Rental Assistance provides affordable housing opportunities through the operation of approximately 85,000 public housing units and the provision of 25,000 rental assistance vouchers. The Division of Private Housing administers programs that support the development of affordable rental housing through tax-credit allocations and other financial incentives. The Division of Neighborhood Services manages community-based energy assistance, anti-poverty, and conservation programs.

Objectives

The Department will continue to maintain and promote affordable rental and homeownership opportunities. By integrating state capital funds with private and federal resources, the Department will develop strategies for revitalizing and strengthening neighborhoods through the development of safe, decent, and affordable housing. In Fiscal Year 1999, the Department will:

• expand the service coordinator program to provide housing assistance to an additional 1,700 elderly residents residing in pubic housing;
• increase the number of disabled individuals served by the Transitional Rental Assistance program; and
• increase the value of project-based and mobile vouchers to more accurately reflect market rates.

Budget Recommendations

The Fiscal Year 1999 funding recommendation will allow the Department to continue providing the same level of services as provided in Fiscal Year 1998 and achieve the objectives outlined above. The $1.1 million increase in Housing Subsidies (7004-9005) will provide additional assistance to preserve the Commonwealth's $4 billion in public housing assets.

Budgetary Direct Appropriations

INDIAN AFFAIRS COMMISSION
7004-0001	For the operation of the Indian affairs commission	68,140

URBAN INITIATIVE FUND
7004-0002	For the urban initiative fund, to provide grants and loans for inner-city neighborhoods	500,000
	Local Aid Fund 100%

WEST BROADWAY HOUSING AUTHORITY TENANT SERVICES
7004-0003	For payment to the Boston housing authority, for a program to provide certain tenant services for the West Broadway housing authority task force	76,000
	Local Aid Fund 100%

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT ADMINISTRATION
7004-0099	For the operation of the department of housing and community development provided, that notwithstanding the provisions of any general or special law to the contrary, the department is hereby authorized to make expenditures, which shall not be subject to appropriation, for the purposes of said department against federal grants for certain direct and indirect costs pursuant to an overhead cost allocation plan approved by the comptroller; and provided further, that not less than $10,000 shall be made available for the expenses of the state commission on manufactured housing, as established by chapter 145 of the acts of 1993, including, but not limited to, travel, postage, advertising, and printing	5,881,982

MUNICIPAL ASSISTANCE PROGRAM
7004-0200	For the municipal assistance program to provide grants, technical assistance, and training for municipal governments in the areas of planning, zoning, economic development, capital planning, and related subject areas to provide cost effective and efficient delivery of local services, including regionalization of services; provided, that such incentive grants may be utilized for the purchase of hardware and equipment; and provided further, that funds appropriated herein may be provided in advance	800,000
	Local Aid Fund 100%

LEAD PAINT ABATEMENT LOAN PROGRAM
7004-1966	For the loan program established pursuant to section 197E of chapter 111 of the General Laws, as amended, for lead abatement throughout the commonwealth; provided, that the terms and conditions of such loans shall be determined by the department of housing and community development; and provided further, that funds made available herein shall be administered by said department in consultation with the department of public health	4,500,000

NEIGHBORHOOD CRIME WATCH COMMISSION TRAINING AND PUBLICATIONS
7004-2025	For the Massachusetts neighborhood crime watch commission	118,000

COMMUNITY ECONOMIC DEVELOPMENT
7004-2027	For community economic development; provided, that contracts may be awarded to community-based organizations	1,900,000
	Local Aid Fund 100%

HOME OWNERSHIP OPPORTUNITY AFFORDABLE HOUSING PROGRAM
7004-2475	For the home ownership opportunity affordable housing program; provided, that all sums appropriated herein shall be used to write down interest rates on soft second mortgage loans, so called, for low and moderate-income first-time home buyers; and provided further, that the total payment obligations of home ownership opportunity affordable housing program contracts shall not exceed $15,000,000	3,000,000

HOUSING SERVICES TO LOW-INCOME TENANTS IN PRIVATE HOUSING
7004-3036	For housing services to provide assistance through community-based organizations to low-income tenants in privately-owned housing, and to landlords to maintain such housing	265,000

TRANSITIONAL HOUSING FOR DOMESTIC VIOLENCE
7004-3040	For a short term transitional housing program for victims of domestic violence; provided, that said program shall include housing subsidies and stabilization services	800,000

SERVICE COORDINATORS PROGRAM
7004-4314	For a service coordinators program established by the department of housing and community development to assist tenants residing in housing developed pursuant to sections 39 and 40 of chapter 121B of the General Laws to meet tenancy requirements in order to maintain and enhance the quality of life in said housing	750,000

RENTAL HOUSING DEVELOPMENT ACTION LOAN PROGRAM
7004-8878	For the private rental housing development action loan program; provided, that notwithstanding the provisions of any general or special law to the contrary, no new commitments, contracts, or renegotiations of existing contracts shall be entered into during fiscal year 1999 or any subsequent fiscal year	2,366,653

SUBSIDIES TO HOUSING AUTHORITIES
7004-9005	For subsidies to housing authorities and nonprofit organizations for deficiencies caused by certain reduced rentals in housing for the elderly, handicapped, veterans, and relocated persons pursuant to the provisions of sections 32 and 40 of chapter 121B of the General Laws; provided, that notwithstanding the provisions of any general or special law to the contrary, all housing authorities operating elderly public housing are authorized and directed to offer first preference for elderly public housing units which are vacant as of the effective date of this act, and thereafter, to those persons 60 years of age or older on June 30, 1995, then receiving rental assistance from the Massachusetts rental voucher program; provided further, that the department of housing and community development shall enforce compliance by local housing authorities with said provisions, and is hereby authorized to take such actions as it deems necessary, including requiring regular, current reports by housing authorities and non-profit organizations operating such public housing, to ensure compliance in a timely and equitable manner; provided further, that said department may expend funds appropriated herein for deficiencies caused by certain reduced rentals which may be anticipated in the operation of housing authorities for the first quarter of the subsequent fiscal year; provided further, that no monies shall be expended from this item for the purpose of reimbursing the debt service reserve and capital reserve included in the budgets of housing authorities; provided further, that no funds shall be expended from this item for the compensation of state employees; provided further, that the amount appropriated herein shall be deemed to meet any and all obligations pursuant to said sections 32 and 40; provided further, that any new reduced rental units developed in fiscal year 1999 eligible for subsidies pursuant to this item shall not result in an annualized rate of spending in fiscal year 2000 which exceeds the amount appropriated herein; and provided further, that the department of housing and community development shall work with local housing authorities to conduct a study to determine methods of collaboration and consolidation of local housing authorities` administrative functions, and shall submit a plan for said collaboration and consolidation to the house and senate committees on ways and means and the secretary of administration and finance not later than November 1, 1998	28,868,523
	Local Aid Fund 100%

LOW-INCOME RENTAL ASSISTANCE
7004-9024	For a program of rental assistance for families and elderly persons of low income through mobile and project-based vouchers; provided, that notwithstanding the provisions of any general or special law to the contrary, said rental assistance in the form of mobile vouchers, so called, shall be paid only to those eligible households currently holding mobile vouchers, so called, that held, or were lawfully entitled to hold, chapter 707 certificates, so called, as of October 31, 1992, pursuant to the chapter 707 program, so called, to those households currently holding mobile vouchers, so called, that held, or were lawfully entitled to hold state housing vouchers, so called, as of October 31, 1992, pursuant to a program of housing assistance consistent with the program requirements established by the federal government for the program authorized by Public Law 98-181, Section 207, and, subject to the approval of the department of housing and community development, in emergency situations to those eligible households currently occupying project-based units, so called, the leases of which have expired due to the non-renewal of project-based rental assistance contracts; provided further, that there shall be no further payments made under said chapter 707 program, so called, or under said program of housing assistance consistent with the requirements established by the federal government for the program authorized by Public Law 98-181, Section 207, which state program was known as the state housing voucher program, so called; provided further, that rental assistance shall only be paid pursuant to a program to be known as the Massachusetts rental voucher program, as such program may hereafter be amended by the department; provided further, that the income of households participating in said program shall in no event exceed 200 per cent of the federally-established poverty level; provided further, that any household in which a participant in the Massachusetts rental voucher program or member of a participant`s household shall fail to provide his or her social security number for use in verifying the household`s income and eligibility shall no longer be eligible for a voucher or to receive benefits pursuant said program; provided further, that the director of said department may require, as a condition of continued eligibility for a voucher and voucher payments, disclosure of social security numbers by participants in the Massachusetts rental voucher program and members of participants` households for use in verification of income with other agencies, departments, and executive offices in the commonwealth; provided further, that said vouchers shall be in varying dollar amounts and set by said director based on considerations including, but not limited to, family size and composition, family income levels, and geographic location; provided further, that notwithstanding the provisions of any general or special law to the contrary, the use of rent surveys shall not be required in determining the amounts of such mobile vouchers, so called, or such project-based vouchers, so called; provided further, that any household which is proven to have caused intentional damages to its rental unit in an amount exceeding two months` rent during any one-year lease period shall be terminated from the program; provided further, that notwithstanding the provisions of any general or special law to the contrary, a mobile voucher the use of which is or has been discontinued shall not be reassigned at any time; provided further, that an allowance not to exceed $25 per voucher per month shall be determined and paid by said department for administration of the rental assistance program; provided further, that said costs of administration shall not exceed 6 per cent of the appropriation provided herein; provided further, that said 6 per cent shall include, but not be limited to, all expenditures which may be made by said director to conduct or otherwise contract for rental voucher program inspections; provided further, that under no circumstances shall subsidies be reduced in order to accommodate the cost of said inspections; provided further, that notwithstanding the provisions of any general or special law to the contrary, there shall be no maximum percentage applicable to the amount of income paid for rent by each household holding a mobile voucher, so called, or project-based voucher, so called, but each household shall pay at least 30 per cent of income as rent; provided further, that said department shall establish the amounts of the mobile vouchers, so called, and the project-based vouchers, so called, so that the appropriation herein is not exceeded by payments for rental assistance and administration; provided further, that said department shall not enter into commitments which would cause spending on the programs funded herein to exceed the appropriation set forth herein; provided further, that the amount of a rental assistance voucher payment for an eligible household shall not exceed the rent less the household`s minimum rent obligation; provided further, that the word "rent" as used in this item shall mean payments to the landlord or owner of a dwelling unit pursuant to a lease or other agreement for a tenant`s occupancy of the dwelling unit, but shall not include payments made by the tenant separately for the cost of heat, cooking fuel, and electricity; provided further, that upon vacancy of project-based dwelling units, households holding mobile vouchers, so called, shall have priority for occupancy of said project-based dwelling units; provided further, that said department may impose certain obligations for each participant in the Massachusetts rental voucher program through a 12 month contract which shall be executed by the participant and the department; provided further, that such obligations may include, but need not be limited to, job training, counseling, household budgeting, and education, to the extent that appropriate programs, as defined in regulations promulgated by said department, are available; provided further, that each participant shall be required to undertake and meet any such obligation as a condition for continued eligibility in said program; provided further, that for continued eligibility each participant shall execute any such 12 month contract on or before September 1, 1998 if his or her annual eligibility recertification date occurs between June 30, 1998 and September 1, 1999, and otherwise on or before his or her annual eligibility recertification date; provided further, that any participant who is over the age of 60 years or who is handicapped may be exempted from any obligations unsuitable under his or her particular circumstances; provided further, that said department shall submit an annual report to the budget director, the secretary of administration and finance, and the house and senate committees on ways and means detailing expenditures from this item, and the number of outstanding rental vouchers and the number and types of units leased under the programs funded by this item	41,172,368

STATE HOUSING ASSISTANCE FOR RENTAL PRODUCTION
7004-9027	For state housing assistance for rental production (SHARP) contracts with sponsors of rental housing projects, financed through the Massachusetts housing finance agency established pursuant to chapter 708 of the acts of 1966, in the form of a loan by the commonwealth to facilitate the construction or rehabilitation of rental housing projects pursuant to the provisions of section 7 of chapter 574 of the acts of 1983; provided, that notwithstanding the provisions of section 27 of chapter 23 B or sections 26 and 27 of chapter 29 of the General Laws to the contrary, the department of housing and community development is hereby authorized to enter into such contracts for terms not exceeding 15 years with annual payment obligations not to exceed $28,672,450; provided further, that notwithstanding the provisions of any general or special law to the contrary, no new commitments shall be entered into during fiscal year 1999 for said fiscal year or any subsequent fiscal years; and provided further, that the director of said department is hereby authorized and directed to review all amounts disbursed through this program in the five fiscal years previous to the effective date of this act and to recover all excess funds disbursed	28,672,450

TRANSITIONAL RENTAL ASSISTANCE PROGRAM
7004-9030	For the transitional rental assistance program established pursuant to chapter 179 of the acts of 1995; provided, that notwithstanding the provisions of any general or special law to the contrary, said transitional rental assistance shall be in the form of mobile vouchers, so called; provided further, that said vouchers shall be in varying dollar amounts and set by the director on considerations including, but not limited to, household size and composition, ranges of household income, and geographic location; provided further, that any household which is proven to have caused intentional damages to its rental unit in an amount exceeding two months` rent during any one year shall be terminated from the program; provided further, that said department shall pay local housing agencies administering said program an allowance not to exceed $25 per voucher per month to cover the costs of administration; provided further, that notwithstanding the provisions of any general or special law to the contrary, there shall be no maximum percentage applicable to the amount of income paid for rent by each household holding a mobile voucher, so called, but each household shall be required to pay not less than 25 per cent of its net income, as defined in regulations promulgated by said department, for units if utilities are not provided by the unit owner, or not less than 30 per cent of its income for units if utilities are provided by the unit owner; provided further, that payments for said transitional rental assistance may be provided in advance; provided further, that said department shall establish the amounts of the mobile vouchers, so called, so that the appropriation herein is not exceeded by payments for rental assistance and administration; provided further, that said department shall not enter into commitments which would cause spending on the programs funded herein to exceed the appropriation set forth herein; provided further, that the amount of a rental assistance voucher payment for an eligible household shall not exceed the rent less the household`s minimum rent obligation; provided further, that the word "rent" as used in this item shall mean payments to the landlord or owner of a dwelling unit pursuant to a lease or other agreement for a tenant`s occupancy of the dwelling unit, but shall not include payments made by the tenant separately for the cost of heat, cooking fuel, and electricity; and provided further, that said department shall submit an annual report to the budget director, the secretary of administration and finance, and the house and senate committees on ways and means detailing expenditures from this item, and the number of outstanding rental vouchers and the number and types of units leased under the programs funded by this item	3,740,697

FEDERALLY AIDED URBAN RENEWAL COMMUNITY DEVELOPMENT
7004-9101	For federally aided urban renewal community development; provided, that no new contracts shall be entered into during fiscal year 1999	95,954
	Local Aid Fund 100%

NON-FEDERALLY AIDED URBAN RENEWAL COMMUNITY DEVELOPMENT
7004-9102	For non-federally aided urban renewal community development; provided, that no new contracts shall be entered into during fiscal year 1999	138,450
	Local Aid Fund 100%

URBAN REVITALIZATION AND DEVELOPMENT PROJECTS
7004-9108	For urban revitalization and development projects authorized pursuant to section 54 of chapter 121B of the General Laws; provided, that notwithstanding the provisions of section 53 or 57 of said chapter 121B to the contrary, funds may be provided to any agency of a city or town designated by the chief executive officer to act on behalf of the city or town; provided further, that no new commitments shall be entered into during fiscal year 1999	2,441,500
	Local Aid Fund 100%

INTEREST SUBSIDIES FOR PRIVATE DEVELOPMENT OF AFFORDABLE HOUSING
7004-9201	For interest subsidies for the private development of affordable housing; provided, that notwithstanding the provisions of any general or special law to the contrary, no new commitments shall be entered into during fiscal year 1999	8,200,056

Federal Grant Spending

LEAD ABATEMENT INITIATIVES
7004-0301	For the purposes of a federally funded grant entitled, Lead Abatement Initiatives	1,181,477

WEATHERIZATION ASSISTANCE FOR LOW INCOME PERSONS
7004-2030	For the purposes of a federally funded grant entitled, Weatherization Assistance for Low Income Persons	4,500,000

LOW INCOME HOME ENERGY ASSISTANCE PROGRAM
7004-2033	For the purposes of a federally funded grant entitled, Low Income Home Energy Assistance Program	50,000,000

COMMUNITY SERVICE BLOCK GRANT
7004-2034	For the purposes of a federally funded grant entitled, Community Service Block Grant	13,000,000

SMALL CITIES COMMUNITY DEVELOPMENT BLOCK GRANT
7004-3037	For the purposes of a federally funded grant entitled, Small Cities Community Development Block Grant	45,543,091

SECTION 8 SUBSTANTIAL REHABILITATION PROGRAM
7004-9009	For the purposes of a federally funded grant entitled, Section 8 Substantial Rehabilitation Program	5,365,032

SUPPORTIVE HOUSING DEMONSTRATION PROGRAM
7004-9011	For the purposes of a federally funded grant entitled, Supportive Housing Demonstration Program	1,460,804

SECTION 8 EXISTING PROGRAM
7004-9013	For the purposes of a federally funded grant entitled, Section 8 Existing Program	75,276,282

FEDERAL HOUSING VOUCHER PROGRAM
7004-9014	For the purposes of a federally funded grant entitled, Federal Housing Voucher Program	25,413,539

SECTION 8 MODERATE REHABILITATION PROGRAM
7004-9019	For the purposes of a federally funded grant entitled, Section 8 Moderate Rehabilitation Program	16,053,947

SECTION 8 NEW CONSTRUCTION PROGRAM
7004-9020	For the purposes of a federally funded grant entitled, Section 8 New Construction Program	3,978,317

HOME INVESTMENT PARTNERSHIPS
7004-9028	For the purposes of a federally funded grant entitled, Home Investment Partnerships	6,784,112

SHELTER PLUS CARE LOWELL
7004-9051	For the purposes of a federally funded grant entitled, Shelter Plus Care Lowell	45,000

SHELTER PLUS CARE BOSTON
7004-9052	For the purposes of a federally funded grant entitled, Shelter Plus Care Boston	995,999

SHELTER PLUS CARE SOUTHBRIDGE
7004-9053	For the purposes of a federally funded grant entitled, Shelter Plus Care Southbridge	165,000

SHELTER PLUS CARE NEW BEDFORD
7004-9054	For the purposes of a federally funded grant entitled, Shelter Plus Care New Bedford	50,000

Trust and Other Spending

3724-3041

EDSA REVOLVING LOAN/GRANT FUND

1,000,000

3770-6640

FEDERAL GRANT ADMINISTRATIVE FUNDS OVERHEAD ACCOUNT

680,695

3770-6700

OLD COLONY PLANNING COUNCIL FUND

74,232