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READER

August 16, 2011 Vol. XXXVI No. 17

Above: New York Mortgage Coalition helps thousands of homeseekers become homebuyers using financial education as the first tool to help create and sustain affordable home ownership. See page 3

Working toWards fairer Quality residential Mortgage standards

As the conversation over Qualified Residential Mortgages (QRM) develops, proposals that threaten to cut low-and moderate-income borrowers from homeownership through QRM, could once again, give rise to harmful predatory lenders. Qualified Residential Mortgages (QRM) could very well set the standard for the vast majority of the mortgage market. Thus, non-QRM loans will either not be available or will be much costly to the average homebuyer and result in the further destabilization of neighborhoods. QRM contd on p2

Inside:
Feature: p 2 Jobs p 5 Grants: p 11

Working Towards Fairer QRM Standards

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 promoted responsible lending and reigned in abusive practices by financial firms. In Dodd-Frank, federal agencies introduced QRMs. As proposed, banks are required to maintain a 5% hold on all mortgage backed securities - with the exception of QRMs. Qualified Residential Mortgages already include FHA and vA loans, but additional exemptions are being considered. The current proposal is to give QRM exemption for mortgages with a 20% down payment and high liquidity. While we commend federal regulators for prohibiting banks from engaging in reckless home purchase products and practices, proposed QRM requirements do more harm than good. According to National Community Reinvestment Coalition (NCRC), prime conventional lending has plunged for all borrowers, most particularly for minorities and low-and moderate-income borrowers (lMI). Restrictive QRM standards will further reduce lending, resulting in prolonged economic recovery as the country is reeling from the great recession. The QRM proposal will further shut out large numbers of modest and middle-income families from homeownership. because high down payment requirements are one criteria in QRMs, homeownershipespecially in high cost cities like New Yorkwill be out of reach for all but the wealthiest borrowers. ANHD believes regulators must reconsider these steep down payment requirements and adopt more reasonable rates of 3%-5% to avoid even further reductions in mortgage lending. As FDIC Chair Sheila bair recently stated to Congress, non-traditional loans and abusive features like the adjustable rate drove the economic crisis, not a low down payment. More than half of the subprime exotic loans securitized in 2006 and 2007 ended up in default. Increasing down payment requirements to 20%, or even 10%, not a solution to safeguarding the home buying process, but is in every way a rising barrier to moderate- and middle-income families otherwise ready and willing to buy homes. Already, banks have significantly reduced home purchase lending to lMI borrowers in good standing. As the soon to be released ANHD State of bank Reinvestment: 2011 report states, banks reduced the number of loans to lMI borrowers by over 70% in 2009. While banks are likely to defend this as a function of the foreclosure crisis and the risks associated with lending to lMI homebuyers, it has been widely documented that first-time homebuyers who have completed pre-purchase counseling have miniscule default rates. There is a model already in place for serving lowincome households in a sustainable and reasonable fashion. The New York Mortgage Coalition (NYMC), a sister organization to ANHD, assists first time homebuyers through pre-purchase counseling and financial education to help households meet the necessary criteria for home purchasing. Ken Inadomi, executive Director of NYMC, says, It is important to point out that because of mandatory or comprehensive pre-purchase counseling, these are incredibly safe loans. In fact, the foreclosure rate on the 5,000+ loans originated through NYMC is less than 1%. According to NYMC, there is no correlation between Area Median Income (AMI) and down payments. In fact, NYMC found that prospective homebuyers who put down a higher down payment are likely receiving subsidies and secondary mortgages which are not considered a down payment for QRM ruling. The majority of borrowers instead decide to purchase more expensive homes with more modest down payments, stimulating the economy. Furthermore, not only will the costs of QRMs be troublesome for the average home buyer, high payment-to-income (PTI) and debt-to-income (DTI) ratio requirements, further exacerbate the problem and are an over-reaction to the foreclosure crisis. NYMC has found that changing DTI requirements from 41% to 36% will disqualify 30% of NYMC borrowers from homeownership. This onerous requirement would affect borrowers across the board, from below 50% AMI to over 100% AMI. ANHD and NYMC recently participated in a focus group with the New York Federal Reserve, who were interested in hearing from advocates and practitioners who serve low-and moderate-income homebuyers. ANHD and NYMC want to stress that QRM should be regulation that restricts banks from making risky securities and must hold banks accountable, while protecting consumers of all income levels. It is our hope that QRM regulation will ultimately match FHA guidelines on down payments and debtto-income ratios; require banks to verify income; restrict exotic lending products such as subprime, and adjustable rate mortgages (ARM); and include an educational component that assists first time home buyers with pre-purchase counseling.

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feature

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feature

fannie Mae Housing Survey Shows 64% Pessimistic on uS economy

bRIeFS

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u.S. Home Builder Sentiment Stagnant in august u.S. homebuilder sentiment remained stuck at historic lows in August, as a glut of distressed homes, tight credit, and economic uncertainty kept new buyers out of the market, the National Association of Home builders said on Monday. http://www.reuters.com/article/2011/08/15/us-usaeconomy-iduSTRe77A2bR20110815 Manhattans Distressed real estate assets Shrink Since 2008, $30.6 billion of assets in Manhattan have been in foreclosure, bankruptcy or in the process of having its loans modified. The figure now stands at $15.2 billion, and a third of that amount is tied to one apartment complex, Stuyvesant Town/Peter Cooper village. http://www.crainsnewyork.com/article/20110814/ReAl_ eSTATe/308149980 City Seeks to redevelop Staten Islands St. George Waterfront The city is issuing a request for expressions of interest (RFeI) as it seeks to redevelop two parcels of land on Staten Islands St. George waterfront, according to a statement released by the city today. http://therealdeal.com/newyork/articles/city-seeks-toredevelop-staten-island-s-st-george-waterfront FBI: Mortgage Fraud Still Prevalent, Elusive Mortgage fraud remains widespread in the depressed housing market, with perpetrators motivated by high profits and little risk of getting caught, the FbI said Friday. http://www.crainsnewyork.com/article/20110812/ FRee/110819958

Fannie Maes (FNMA) second-quarter national housing survey reveals that 64% of American homeowners and renters say the economy is on the wrong track, the most pessimistic view since the surveys inception in the first quarter of 2010. http://online.wsj.com/article/bT-Co-20110815-709016. html Gaps in Housing Program Leave tough Choices for People with HIV In March, the administration announced that it was halving the amount of money it will pay to brokers working with HASA clients and will no longer provide cash security deposits to landlords who rent to their clients. Instead it will issue vouchers the building owners can use to request compensation for any damage. According to a study by Shubert botein Policy Associates, 95 percent of HASA clients indicated these new policies as obstacles to securing affordable housing. http://www.gothamgazette.com/article/ Housing/20110815/10/3584 More Homeowners Refinancing into Shorter Loans: Survey u.S. homebuilder sentiment remained stuck at historic lows in August, as a glut of distressed homes, tight credit, and economic More homeowners prefer to pay off their mortgages sooner as interest rates have stayed near rock-bottom and weak labor conditions have caused them to reduce their debt loads, a survey showed on Monday. http://www.reuters.com/article/2011/08/15/us-usamortgages-freddiemac-iduSTRe77e44020110815

ANHD members accomplish big things in housing. Help us tell these stories.

Share your ideas with the reader

Since our first issue more than 30 plus years ago, The ANHD Inc Reader has featured compelling stories of successes and challenges facing NYCs affordable housing movement. Help us to continue giving our movement a voice. Suggest a story idea, submit an article, or initiate a feature on your organization. Send your email to david.k@anhdinc.org

the READER
Residents call for NY Com munity Ban
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April 12, 2011 Volume XXXVI Number

Milk Ru

k to end

Last Thursda y, tenants Bronx held of 735 Bryant a press conferen Ave ce to demand in the action. The goal was and physical to bring attention to the neglect that for years. has plagued disinvestment their building Residents were joined Ruben Diaz by Bronx Borough Presiden Quinn, as and City Council Speaker t well as neighbor Christine buildings s from surround as ing Community they collectively called Bank to put on New York an end to the serial Unfortunately, neglect. York Commun this is not an isolated ity Bank, Above 735 Bryant which holds incident for New Ruben (l-r) Bronx Borough as well as the Diaz, 735 Bryant President 33 other buildings mortgage on Association President Avenue City Council Gennet Tenant (including Speaker Quinn Riley and press conference. during the Inset:
contd on p3

Residents NYCBs portfolio of nearby buildings express thoughts under

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employment opportunity

Certified Teacher
Certified Teacher bASICS/Promesa Systems, Inc. Soon To be Known As Acacia network a Community Development Corporation in business over 28 years seeks a qualified Certified Teacher specializing in early Childhood education. requirements Permanent or Initial Certificate 3+ years teaching experience in early childhood setting or passed NYSTCe exam Masters in early Childhood education Knowledgeable with ACS and DoHMH guidelines, regulations and policies benefits: Immediate hire Great compensation and benefits opportunity to work for a solid stable company. To Apply: For immediate consideration please send resumes to nmessina@promesa.org or fax to 347-6493078. M/F eoe

more JOBS on page 12

Grants
7(J) Management and technical assistance Services
Small business Administration is expecting to fund nine non-profits under its $2.1 million grant named 7(J) Management and Technical Assistance Services. The lowest grant amount is$310,000 and its ceiling is more than twice that, $310,000. Deadline to apply for this grant is September 15, 2011. one of the SbA Administrators major strategic goals is to strengthen the Agencys entrepreneurial education; counseling and training resources to support the needs of existing businesses by successfully focusing on core program resources and ensuring these resources are aligned with the needs of high-growth small businesses. Consistent with that direction, bDs organizational strategic goal is to coordinate internal and external resources to maximize: 1) the availability of training services and products, and 2) the effectiveness with which training solutions are provided to meet business development needs. This 7(j)M-TAS is specifically tailored to enhance SbAs efforts to advocate for small business concerns in the federal procurement marketplace while at the same time seeking to strengthen small businesses, and specifically, 8(a) and other 7(j) eligible firms, and help them expand by increasing opportunities for them to participate in the federal procurement arena. Questions about this program announcement should be directed to the office of business Development at 7jgrants@sba.gov [mailto:7jgrants@sba.gov]. link: http://www.sba.gov/7jm-tas

more GrantS on page 12

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employment opportunity

Director of real estate Development

aPPLy OnLIne

Project Manager
Neighborhood Restore HDFC (NR) and Restored Homes HDFC (RH), two related non-profit housing development corporations are looking for a PRoJeCT MANAGeR who can manage a portfolio of sites and oversee property management and development activities for those sites. Specific responsibilities include: oversee the property managers in activities including development and approval of annual budgets and building stabilization plans, review monthly financial positions, coordinate emergency repairs, and facilitate productive tenant relations, in addition to working with HPD, private funding institutions, and other City agencies to assist developers to complete scopes of work and financing options, rehabilitation plans, tenant communication and construction loan closing. Qualified applicants to this position would possess a masters degree in planning, real estate finance, business administration or comparable field and a minimum of 4 years of work experience in the areas of housing or community development, property management, or planning is required. Work experience with the City of New York and familiarity with NYC neighborhoods and a valid drivers license is preferred. Please email resume to: humanresources@neighborhoodrestore.com. Neighborhood Restore is an equal opportunity employer.

aPPLy OnLIne

Bldg Manager trainee

Clinton Housing Development Company (CHDC) is a non-profit organization that develops, manages and owns affordable housing in Manhattan. CHDC is looking for a building Manager Trainee who is interested in affordable housing and community development. The building Manager is responsible for managing the day-to-day management of buildings as assigned. each building manager is assigned certain buildings for which s/he is the primary contact person. building Managers are active on-call during the week and on assigned weekends and holidays on a rotational basis. responsibilities Process building maintenance and repair projects and requests for assigned buildings; Monitor complaint log daily, process all requests, and concerns as necessary; Review and approve all bills and invoices for assigned buildings; ensure that regular maintenance procedures occur, including but not limited to fuel delivery and extermination for all CHDC buildings; Produce weekly reports for departmental open tasks. Minimum Qualifications Computer literacy including MS office; excellent administrative and organizational skills; Strong written and oral communication skills; Ability to juggle multiple tasks; Ability to work within timeframes; Spanish speaking a plus. Salary range $33,000 - $38,000 (resident) $35,000 - $40,000 (non-resident)

aPPLy OnLIne

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employment opportunity

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employment opportunity

Community Organizer
bridge Street Development Corporation is seeking a candidate for Community organizer. Duties and Responsibilities: Works with residents to stabilize blocks where bSDC is currently developing property. Conducts assessments of blocks where bSDC is considering real estate development to determine what issues will impact development. Works with Housing Group staff to implement plans to address issues resulting from assessments. Develops and implements neighborhood-based educational programs on issues related to homeownership. Partners with community residents in the development of block and tenant associations. Supports existing block and tenant associations. organizes new tenant and block associations. Identifies and helps develop neighborhood leadership. Attends regular community meetings, such as the 79th Precinct Council, 81st Precinct Council and Community board #3, and other Central brooklyn Precinct Councils and Community boards. Plans and coordinates Foreclosure outreach. Represents bSDC and community interests at public forums and community events. Maintains a visible presence as a member of the community. Provides grassroots marketing support to Housing Group staff, as needed. Works with the Director of economic Development to organize merchants. Prepares written reports. other duties as assigned. Qualifications/Requirements: bachelors degree. Minimum of five years experience working within the community development field, Demonstrated experience in organizing and developing resident leadership, leveraging financial and technical resources to produce tangible improvement in neighborhoods, and facilitating collaborative efforts among community leaders, non-profits and public agencies. Self-starter. Ability to work independently. Demonstrated leadership capacity and sound judgment Computer literacy with proficiency in MS office products (Word, excel, PowerPoint). excellent oral and written communication skills. . Ability to work effectively with people of various races and backgrounds. Ability to multi task. Ability to work effectively as a member of a team. To Apply: Please send cover letter and resume to:

Imelba Rodriguez Homeownership Services Manager bridge Street Development Corporation 460 Nostrand Avenue brooklyn, NY 11216 F. (718) 636-7595 irodriguez@bsdcorp.org

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is a source of strength for our people and our businesses.

At Citi, we have worked hard to create a workplace with an emphasis on inclusion, innovation and merit, rooted in our shared values and respect for our colleagues and the millions of people we serve. We aspire to be a company where the best people want to work; a company dedicated to empowering individuals and families around the world; and a company that provides opportunity for all. An Equal Opportunity Employer M/F/D/V | careers.citigroup.com
2009 Citigroup Inc. Citi and Arc Design is a registered service mark of Citigroup Inc. 571810 11/09

Diversity

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tD Charitable foundation to award $2.5 Million In Grants To Non-Profits Focusing On affordable Housing Initiatives
The TD Charitable Foundation, the charitable giving arm of TD bank, announced it will award $2.5 million in grants to support affordable housing initiatives through its sixth annual Housing for everyone grant competition. The Housing for everyone grant competition is one of the TD Charitable Foundations most widely known signature programs. The competition invites local non-profit organizations from Maine to Florida to submit proposals outlining their plans and initiatives to support and provide affordable housing initiatives in their communities. Twenty-five organizations throughout TD banks footprint from Maine to Florida will be awarded a $100,000 grant for a total grant donation of $2.5 million. This years Housing for everyone theme is building for the Future, focusing on three critical areas in affordable housing: energy efficiency, including weatherization initiatives, HvAC improvements, or implementation of alternative or renewable energy sources; Capacity building, including the expansion of programmatic efforts or staff development for organizations that provide affordable housing services for low-to-moderate-income individuals or in lowto-moderate-income communities. Infrastructure investment to expand services provided will also be considered; And new unit creation, where organizations focus their efforts on the creation of new affordable housing units that benefit low-to-moderate-income individuals or communities. organizations that wish to enter the 2011 Housing for everyone grant competition must have tax-exempt 501(c)(3) status; must develop or maintain affordable housing, or provide housing-related programs and services to low-to-moderate-income individuals or families; and serve the communities where TD bank does business. Applicant organizations must also demonstrate fiscal responsibility and the impact they have made on affordable housing efforts in their communities.

Proposals will only be accepted online at www. TDbank.com (click on our Community) and must be submitted by 4 p.m. on Friday, September 2, 2011. Notification of awards will be made in late october 2011. new york Community trust Invites new york City Organizations to apply for neighborhood revitalization Program The New York Community Trusts Neighborhood Revitalization Program is seeking proposals for programs to help residents of New York City cope with economic hardship. The trust is especially interested in supporting programs and projects serving neighborhoods where indicators of poverty and economic hardship have remained stubbornly high, even during good economic times. These include the South bronx, Central brooklyn, Central Harlem and Washington Heights, Southeast Queens, and the north shore of Staten Island. The competition is limited to organizations located in and serving communities within the five boroughs of New York City. Applicant organizations must demonstrate in their proposal that they meet the following program criteria: at least one year of work in communitybased housing or economic development; evidence of completing a project that improved conditions in a neighborhood; strong neighborhood base, including community resident participation on the organizations board of directors; and the ability to work with other organizations and constituencies in the community, such as community boards and other nonprofits. Project funding requests should not exceed $40,000. last years Request for Proposals generated fifty-two eligible responses: one from Staten Island, twelve from Queens, four from the bronx, eighteen from Manhattan, and seventeen from brooklyn. For the complete Request for Proposals, application requirements, and information on last years grant recipients, visit the NYCT Web site. Deadline: Aug 19, 2011 http://www.nycommunitytrust.org/ GrantSeekers/RequestsforProposals/ NeighborhoodRevitalizationProgram/tabid/409/ Default.aspx

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Contract Name: Sustainable Communities regional Planning Grant Pre-application

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the dwellings must be funded with other leveraged public and private funds. SHoP homeowners must contribute a significant amount of sweat equity towards the purchase of their units. Donated volunteer labor is also required. Assisted units must be decent, safe, and sanitary nonluxury dwellings that comply with local building and safety codes and standards. These units must be sold to eligible low-income homebuyers at prices below the prevailing market price.Deadline: Sep 06, 2011 Funding Amount: estimated Total Program Funding: $26,676,540 link: http://www07.grants.gov/search/search. do?&mode=vIeW&oppId=103454 Contract Name: Fair Housing Initiative Programs Private enforcement Initiative Department of Housing and urban Development is accepting RFPs for funding under its fair Housing Initiative Programs - Private enforcement Initiative. This Initiative assists private, tax-exempt fair housing enforcement organizations in the investigation and enforcement of alleged violations of the Fair Housing Act. There are three components under this Initiative: General Component (PeI-M) (1) Multi-Year Component. eligible applicants are Fair Housing enforcement organizations (FHos) or Qualified Fair Housing organizations (QFHos) with at least one or two years experience, respectively, in complaint intake, investigation and fair housing testing. (See Chart on Section III.A. for additional and specific eligibility requirements) and (2) Mortgage Rescue Component (PeI-MRC): eligible applicants are QFHos and FHos who have the organizational capacity to combat abusive mortgage practices in their communities. PeI-MRC has the same eligibility as PeI-M with additional distinct requirements. (See chart on Section III.A. for all eligibility requirements). (3) PeI-Pb continuation from FY 2009 and FY 2010. Deadline: Aug 29, 2011 estimated Total Program Funding: $26,000,000 link: http://www07.grants.gov/search/search. do?&mode=vIeW&oppId=108493

Department of Housing and urban Development is now in the grant pre-application process for The Sustainable Communities Regional Planning Grant Program. The program supports metropolitan and multijurisdictional planning efforts that integrate housing, land use, economic and workforce development, transportation, and infrastructure investments in a manner that empowers jurisdictions to consider the interdependent challenges of: (1) economic competitiveness and revitalization; (2) social equity, inclusion, and access to opportunity; (3) energy use and climate change; and (4) public health and environmental impact. The Program places a priority on investing in partnerships, including nontraditional partnerships (e.g., arts and culture, recreation, public health, food systems, regional planning agencies and public education entities) that translate the livability Principles (Section I.C.1) into strategies that direct long-term development and reinvestment, demonstrate a commitment to addressing issues of regional significance, use data to set and monitor progress toward performance goals, and engage stakeholders and residents in meaningful decision-making roles. Deadline: Aug 25, 2011 estimated Total Program Funding: $67,000,000 link: http://www07.grants.gov/search/search. do?&mode=vIeW&oppId=109013 Contract Name: Self-Help Homeownership Opportunity Program Funds through the Department of Housing and urban Developments SHoP(Self-Help Homeownership opportunity Program) will be awarded to national and regional non-profit organizations and consortia to facilitate and encourage innovative homeownership opportunities on a national, geographically diverse basis through the provision of self-help homeownership housing programs. SHoP funds must be used for land acquisition, the installation or improvement of infrastructure, and for reasonable and necessary planning, administration and management costs. The average SHoP expenditure for the combined costs of land and infrastructure must not exceed $15,000 per dwelling unit. The construction costs of

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