Housing Programs Hit Hard in FY2008 and 2009 State Budget
The Governor’s proposed Supplemental Budget for fiscal year 2008 and fiscal year 2009 Budget includes significant cuts to housing programs:
The Governor proposes eliminating the entire $7.5 million appropriated in the FY 08 budget for the Neighborhood Opportunities Program (NOP), and the FY 09 budget proposal fails to provide any funding for NOP.
Rhode Island Housing has been asked to transfer $26 million to the General Fund.
The Governor’s proposed budget places a $20 million cap on the Historic Structures Tax Credit for tax year 2007. It also would establish limits of $40 million each tax year thereafter and sunset the use of credits in 2017.
If enacted these proposals would have catastrophic implications for Rhode Island’s economy and families. There is no doubt about it: as goes the housing market, so goes the economy. The crisis in the housing market is implicated in both the looming national recession and in Rhode Island’s fiscal challenges. But proposals to address Rhode Island’s budget crisis by cutting housing programs is the WRONG way to solve Rhode Island’s economic woes, and will worsen an economy already on the brink.
Consider reaching out to lawmakers and making these points:
The proposed cuts hurt an economy already on the brink.
In a housing market already reeling, the Governor’s proposal would mean higher interest rates for first-time homebuyers, further depressing the housing market and locking many renters out of ownership.
Housing is an economic generator. Stopping construction and redevelopment projects in communities across the state will mean job losses and economic hardship for those contracted to build affordable housing.
Affordable rents are key to self-sufficiency. Those who can’t afford decent apartments will be forced to move out of state or risk homelessness, challenging already overburdened service providers.
The state budget proposal risks worsening the state housing crisis – pulling the rug out from under families at risk.
The zeroing out of the NOP program, a $7.5 million cut, eliminates funding for more than 71 units of housing currently being developed for families, the elderly and those with disabilities.
The budget proposal to cut $26 million from Rhode Island Housing hurts first time home buyers and families at risk of foreclosure.
The cuts to the historic tax credit mean fewer rehabbed houses and mills turned into housing working families can afford.
The proposed budget cuts ignore the will of Rhode Island citizens, who have made housing a priority.
Last November, Rhode Islanders voted in record numbers for the state to address the affordable housing crisis. These cuts ignore the pleas of Rhode Islanders to help low-wage workers, seniors, and young families just starting out.
HousingWorks RI names new Executive Director
HousingWorks RI is pleased to welcome Nellie M. Gorbea as executive director. "Nellie brings an impressive background in policy, communications, and community work," said Manny Vales, senior vice president of Sovereign Bank and co-chair of the twelve member Hiring Committee. "We knew she would be able to hit the ground running."
Nellie has 20 years of experience in the private, non-profit and public sectors. She most recently served as Director of Administration and Deputy Secretary of State for Secretary of State Matt Brown. Her public sector career includes work as Economic Advisor to the Governor of Puerto Rico, where she oversaw the implementation of the Governor's Housing Redevelopment Program "Nuevo Hogar Seguro."
Many may remember Nellie from her time as the Rhode Island Foundation's Program Officer for Economic and Community Development or as President of the RI Latino Political Action Committee. Earlier in her career she worked in public finance in Boston at the former Fleet Securities. Nellie has an undergraduate degree from Princeton University's Woodrow Wilson School for Public and International Affairs and a master in public administration from Columbia University.
"Affordable homes and healthy communities are essential to Rhode Island's economic well-being and quality of life," said Nellie. "I look forward to working with HousingWorks RI's members and partners during these tough times to make sure that every Rhode Islander can afford a quality home."
