Affordable Housing
Representative Sánchez has been a long-standing proponent for affordable housing and has worked for years to preserve affordable housing and to protect vulnerable populations living in publicly assisted housing.
Public Housing Innovation Program
In collaboration with a number of housing authorities and organizations, Sánchez filed legislation during the 2009-2010 legislative session to revitalize state public housing and to preserve units by providing greater flexibility to housing authorities.
The law grants local housing authorities the ability to maximize resources available for the rehabilitation and maintenance of public housing, reduce and streamline public housing authority regulatory requirements, and encourage innovative designs to secure the long-term preservation of this precious public resource. It would also maintain tenant protections and provide for tenant participation in the development of innovative policies regarding evictions, leases, grievances, relocation, and right of return.
Low-Income Housing Tax Credits (LIHTC)
The LIHTC program awards state tax credits to investors that meet strict affordability requirements. The program allows developers to finance part of the development cost with equity invested by corporations and individuals, thereby reducing the amount of debt financing and helping to keep rents low. To date, the extension and expansion of the Massachusetts LIHTC program has created over 5,000 homes of which 3,500 are affordable.
As part of the state’s economic development bill, Massachusetts LIHTC investors will no longer be required to have received a federal LIHTC—an antiquated requirement that limits the pool of eligible investors and adds unnecessary legal costs. Housing development jump-starts economic growth and increases employment, which is why housing development is a part of the Commonwealth’s economic recovery efforts.
Preserving Publicly-Assisted Affordable Housing
During the 2009-2010 legislative session, Sánchez successfully advocated with his colleagues in passing An Act Preserving Publicly-Assisted Affordable Housing which will protect tenants and preserve affordability of 90,000 state government-assisted housing units in the Commonwealth, many of which are at risk of being converted to market rates and are occupied by senior citizens and individuals with disabilities.
Sánchez amended An Act Clarifying the Use of Certain State Tax Credits (attached to An Act Preserving Publicly-Assisted Affordable Housing) to extend the opportunity for investments and tax credits, which provides more affordable housing in the Commonwealth. Investors interested in supporting affordable housing can now have more than 10 years of LIHTCs, encouraging the development of low-income housing.
The new law allows state and localities the option to purchase affordable housing units prior to being offered on the open market. In addition, it protects tenants of affordable housing by requiring tenants to be given 24 months notice prior to affordability termination. It also imposes three-year limits on rent increases and eviction prevention measures in terminated buildings.
Foreclosure
As the Commonwealth tackles the foreclosure crises, Sánchez strongly supports protecting tenants from the ramifications of foreclosure.
Stabilizing Neighborhoods
During the 2009-2010 legislative session, Sánchez supported the passage of a law that protects tenants in foreclosed properties and helps lenders and homeowners avoid foreclosure. It institutes measures to help keep residents in their homes, providing a degree of stability to the families adversely impacted by the Commonwealth’s foreclosure crisis.
By protecting tenants and promoting negotiations between homeowners and lenders, economic hardships for many families will be avoided. The right to cure period is extended from 90 days to 150 days maximum (granted once every three years), allowing lenders and homeowners a window to work out a new payment plan to avoid foreclosure. A new local property tax exemption is established for charitable organizations that acquire a foreclosed property with plans to create low and moderate income affordable housing on the property. This law will help keep families in their homes and take reasonable steps to hold accountable those persons that committed fraudulent acts that led to much of the turmoil homeowners are now facing.