Director's Message
October 23, 2009

To:       Employees and Partners of Oregon Housing and Community Services

From:   Victor Merced

Re:       Director’s Bulletin

• OHCS Studying Administration's Plan to Stimulate
  Home Purchases
  
  
• Counties Invited to 10-Year Plan Training…and More
  
  
• Benton and Umatilla County Groups Help Homeless
  
  
• Hearing: Nov. 23 for Housing Opportunity Bill
  
  
• Successful Medford Home Preservation Event Draws 250
  
  
• We’re Back

OHCS Studying Administration's Plan to Stimulate Home Purchases
Oregon Housing and Community Services is analyzing the effect of the Obama administration’s plan to help state housing finance agencies, such as OHCS, expand lending and help stabilize the housing market.
While we have expected this announcement for many weeks, much work lies ahead to determine its efficacy.

The administration unveiled the long-awaited program early this week. At its core, the GSEs, government sponsored enterprises Fannie Mae and Freddie Mac, would buy the states’ housing bonds to boost purchase of affordable homes and finance affordable rental housing.

Click to review news releases from the participating federal agencies and from the National Council of State Housing Agencies.

As hopeful as we are, we just do not know if this plan will bring about the desired outcomes. The initiative includes a restriction that could limit future bond issuances. In addition, market rate interest is so low now that this government-supported plan may not be able to drive OHCS rates low enough to compete in the market.

The program has two parts:

• Providing for GSEs Fannie and Freddie to buy the states’ housing bonds to fund home loans and finance rental housing at affordable rates, as noted above.
• Creating a temporary liquidity program to improve access by housing finance agencies to credit sources for their existing bonds.

The administration says the program will help support low mortgage rates and expand resources for low- and middle-income borrowers buying homes or renting residential multifamily units.

The initiative is part of the administration’s Making Home Affordable program and will operate under HERA, the Housing and Economic Recovery Act of 2008.

The administration intends to use the new plan to boost home sales. Home sales and prices have plunged and foreclosures have soared across the nation.

Counties Invited to 10-Year Plan Training…and More
Oregon’s Ending Homelessness Advisory Council (EHAC) is sponsoring a day of training and mentorship to help counties develop their 10-year plans to end homelessness.

The Local 10-Year Plan Forum and Training will be held Thursday, Nov. 19, in Corvallis at the LaSells Stewart Conference Center.

Eleven of Oregon’s 36 counties have completed their 10-year plans. Another six are getting close. Still, much work lies ahead for more than half of Oregon’s counties. EHAC strongly urges leaders from counties and housing and service organizations to attend.

The U.S. Census Bureau is a major sponsor of the upcoming forum, and will actively promote its message of outreach aimed at counting every individual in the country.

This planning event is followed by a day of basic training, on Friday, Nov. 20, also at the LaSells Stewart Conference Center. This training will focus on how local organizations can develop and operate permanent supportive housing, central to many local 10-year plans.

Benton and Umatilla County Groups Help Homeless
Oregon’s homeless problem is huge, as we all know, the highest per-capita in the nation. And the problem cuts across the urban-rural divide.

Of the state’s 17,122 homeless citizens counted last January, 4,262, or 25 percent, were in the state’s rural counties.

That’s why it’s particularly heartwarming to highlight the work being done in Umatilla County this coming Saturday (Oct. 24) by Community Action Program East Central Oregon.

Please see my comments in The East Oregonian. CAPECO is hosting, with the support of the Umatilla County Commission, a free event (link to flyer) targeting homeless men, woman and families.

Benton County and Community Services Consortium are holding a similar event in Corvallis from 9 a.m. to 2 p.m. on Friday, Oct 23, at the First Christian Church, 660 SW Madison Ave.

Public Hearing: Nov. 23 for Housing Opportunity Bill
The next step in the implementation of the Housing Opportunity Bill, House Bill 2436, is the public hearing, to be held Monday, Nov. 23, from 2 to 3 p.m., in room 124B of the North Mall Office Building, 725 Summer St. NE, Salem.

Five forums have been held around the state, allowing citizen input on HB 2436, passed by the Oregon Legislature earlier this year. Find the notes from the meetings – in Roseburg, Bend, Pendleton, Portland and Salem – here.

The bill increased the real estate document recording fee by $15. The new revenue is dedicated to affordable housing in the state. Early next year, it will begin coming to Oregon Housing and Community Services, which will administer the money as prescribed by the Legislature.

After hearing from partners across the state, OHCS is writing administrative rules to carry out the Legislature’s mandate. Partners can provide testimony on the rules at the Nov. 23 hearing or in writing by Dec. 21.

The Housing Opportunity Bill is estimated to bring some $15 million to OHCS for affordable housing during the current biennium, ending in June 2011, and more than $26 million in the next two-year funding period.

Successful Medford Home Preservation Event Draws 250
About 250 homeowners, including some 75 scheduled attendees with loan documents in hand, sought help at last Saturday’s Home Preservation Event in Medford.

Punctuating the occasion, U.S. Senator Jeff Merkley, an affordable housing expert, appeared. Homeowners took the opportunity to inform him of the housing finance challenges they face in today’s perilous market.

People from across Southern Oregon came for help from nonprofit counselors, loan servicers, a Legal Aid attorney, along with representatives of federal and state agencies who staffed the event.

Citizens sought guidance from counselors approved by the U.S. Department of Housing and Urban Development. They came to negotiate loan modifications from lenders, represented by Bank of America, Chase and Wells Fargo.

The event also provided workshops on housing scams and short sales.
Organizers pronounced the gathering a great success.

We’re Back
The furlough last Friday, Oct. 16, came off without a hitch. We were back at work on Monday. We hope you were not inconvenienced.

All state employees must take 10 unpaid furlough days during the current two-year budget period. The furlough applies to most offices and buildings of state government.

The next state closure day is Friday, Nov. 27, the day after Thanksgiving.
For information that includes a list of agencies that will be closed and open, click here.

Hard work has made it easy. That is my secret. That is why I win.
          ~ Nadia Comaneci

Victor Merced, Director
Phone 503.986.2005
Email: victor.merced@hcs.state.or.us
www.ohcs.oregon.gov

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