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HomeMy WebLinkAbout2010-06-24 Housing PACKET Ashland Housing Commission Regular Meeting Agenda th Thursday June 24 2010: 4:30 – 6:30pm Community Development Building - 51 Winburn Way 1. (4:30) Approval of Minutes (5 min) th May 27 2010 2. (4:35) Public Forum (5 min) 3. (4:40) New Member introduction (5 min) 4. (4:45) Sub-committee Reports (10 min) Subcommittee Reports Liaison Reports Finance (none) Council (Navickas) Education (none) Parks Commission(Hauck) Land Use (none) School Board(Frost) Planning Commission(Benjamin) SOU Staff(Linda Reid) 5.(4.55)HAJC-Clay Street Update(30 min) Jason Elzy-HAJC Brandon Goldman-Senior Planner 6.(5:25)Discussion: Process for developing sub-committees(15 min) 7.(5:40) Discussion: Annual Goal setting (20 min) 8. (6:00)Fair Housing: Draft Ordinance Update and Discussion (15 min) nd 9.(6:15)July 22 2010 MeetingAgenda Items (10 min) Commissioner items suggested(5 min) Quorum Check – Commissioners not available to attend upcoming regular meetings should declare their expected absence. 10.(6.25)Upcoming Events and Meetings (5 min) None Next Housing Commission Regular Meeting nd 4:30-6:30 PM; Thursday July 22 2010 Community Development Building 11. (6:30) Adjournment In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Community Development office at 541-488-5305 (TTY phone is 1-800-735-2900). Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting(28 CFR 35.102-35.104 ADA Title 1). ASHLAND HOUSING COMMISSION MINUTES May 27, 2010 CALL TO ORDER Chair Steve Hauck called the meeting to order at 4:30 p.m. at the Community Development and Engineering Services Building located at 51 Winburn Way, Ashland, OR 97520. Commissioners Present:Council Liaison Nikki PonsEric Navickas Nick Frost Aaron Benjamin Staff Present: Steve HauckLinda Reid, Housing Specialist Richard BillinCarolyn Schwendener, Account Clerk Regina Ayars Commissioners Absent: Jody Waters APPROVAL OF MINUTES Minutes from the March 25, 2010 meeting were approved as presented. Chair Hauck requested to move the Public Forum to the end of tonight’s meeting in order to accommodate Ashland resident, Cate Hartzel, who could not be present until later in the evening. The Commissioners agreed to the change. Commissioners welcomed new member Nikki Pons. Pons said she has been in Ashland since the year 2000, coming originally from Oklahoma. She attended SOU and has a Bachelor’s degree in sociology. Pons is very excited about serving on the Commission and is eager to learn new things. Hauck informed the Commission that new member Jody Waters had a prior commitment and was not able to attend tonight’s meeting. REPORTS AND UPDATES Subcommittee Report Finance – None Education – None Land Use – None Liaison Reports Council – Navickas reported that the Council had a special meeting May 26th to deliberate on the Croman Mill Master Plan. The meeting has been continued to the June 1, 2010 regular Council meeting date. Navickas anticipates some changes as it moves forward. Parks –Hauck acknowledged that the Parks department is moving forward with the Clay Street project. School Board – At their April meeting the School Board discussed the properties they have outside the Old Mill Village which they use for student housing. Planning – Benjamin reported that the June 8, 2010 Planning Commission meeting experienced quite a heated discussion regarding the satellite towers at the Ashland Cinemas Complex located at 1644 Ashland Street. Those who testified were adamantly against it for various reasons. No decision was made. th Staff – Reid reminded the Commissioners that Project Homeless Connect will be taking place on June 25at the Medford Armory from 8:00 am to 4:00 pm. This event welcomes the homeless population into the community. The City of Ashland is working with the City of Medford and the Fair Housing Council to put on Fair Housing trainings. A Training is being planned for June 29, 2010 at the Medford City Council Chambers with two more trainings planned for October of this year. Reid recently attended a conference called “The Professionals Serving Veterans” Reid commented it was very informative and they anticipate seeing a lot of veterans returning to our community. Reid acknowledged that the City received more Community Development Block Grant funds this year then prior years. $224,545.00; more money then they expected. Eighty-eight million dollars will be coming to the State of Oregon from the US Treasury Department in the form of TARP funds, stated Reid. The program is called the Hardest Hit Housing Market Program. This money is given out to states that are the most economically distressed and have unemployment rates of over 12%. The money will be coming to Oregon Housing and Community Services. The Mayor has submitted a letter to OHCS advocating that the majority (over 50% or more) of the funding be allocated to the counties which have unemployment rates of over 12%. A resolution will be going to the council in June. 2010 CDBG ANNUAL ACTION PLAN PUBLIC HEARING Hauck opened the public hearing. th On April 20 the City Council allocated the funds for two proposals. Funding for Saint Vincent DePaul Home Visitation Program for emergency rental and utility assistance in the amount of $30,000. $110,861 to Ashland Supportive Housing-Respite Home rehabilitation of an existing housing unit to be used as a respite home for peoples with disabilities. The Council did not approve using the rest of the funds for the CDBG Recovery Act Energy Efficiency and Weatherization Program but instead decided to allocate the remaining money to ADA improvements within the City. Having no public input Hauck closed the public hearing. Billin/Ayars m/s to approve the 2010 CDBG Annual Action Plan as presented. Roll call: Billin, Ayars, Frost, Hauck, Benjamin and Pons all voted yes. Motion passed unanimously. REVIEW AND DISCUSSION OF NEW BOARDS AND COMMISSIONS RULES Reid said the new rules went into effect in March of this year. She highlighted some of the changes that will affect the Commission. Any member who has two or more unexcused absences in a six month period shall be considered inactive and the position vacant. A meeting of greater than one-half of the sitting members constitutes a quorum. Council Liaisons are not voting members. The Commissioners discussed the situation with Frost who has missed two meetings in a six month period consequently, under the new rules he would be inactive. Frost apologized for missing meetings and explained his absentees were due to family health issues. City staff made a recommendation that the Housing Commission forward a report to the Mayor and the City Council requesting that due to Commissioner Frost’s continued interest in serving on the Commission; the Housing Commission recommends that Commissioner Frost is reappointed to his vacant seat. Billin/Pons m/s that a letter be drafted and forwarded to the Mayor regarding the reappointment of Frost. Voice Vote: All ayes, motion passed. Audience member, Rosemary Lazzari shared interest in becoming a Housing Commissioner. 2 SUBCOMMITTEE DISCUSSION Ayars proposed that due to a lack of active participation this might be an appropriate time to eliminate the standing sub-committees and go to Ad-Hoc Committees as needed. The Commissioners agreed that this was a good idea. Ayars/Billin m/s that the Housing Commission dissolves the three standing Sub-Committee, Land Use, Finance and Education and initiates the establishment of Ad-Hoc Committees as needed. Roll Call: Ayars, Billin, Frost, Hauck, Benjamin and Pons all voted yes. Motion Passed unanimously. PUBLIC FORUM Cate Hartzel and Rosemary Lazzari, board members on the Housing Authority of Jackson County were present to speak. Hartzel brought a story she had written regarding the Snowberry Brook affordable Housing project in Ashland that HAJC are developing. Hartzel requested that the Housing Commissioners write a letter to the City Council requesting the remainder of the Community Development and Engineering Fees be waived. Hartzel does not believe that HAJC should have to return to the Council to request those fees waived rather the City should initiate it on their own. th Reid said the Housing Authority is scheduled to come to the July 19 meeting to ask about the fees. The Commissioners would like to discuss this issue before making the recommendation. Put this on next month’s agenda. Reid will invite Brandon Goldman to next month’s meeting to discuss the IGA. th JUNE 24 2010 MEETING AGENDA ITEMS Discussion of lack of Studio Apartments in the Community Annual goal setting Ad-Hoc Committee procedures Snowberry Brook Comm-Dev Fees Next Housing Commission Regular Meeting th 4:30-6:30 PM Thursday June 24, 2010 Community Development Building ADJOURNMENT - The meeting was adjourned at 6:00 p.m. Respectfully submitted by Carolyn Schwendener, Account Clerk 3 Housing Commission Annual Goals 2009 The following goals and associated priority rankings were identified by the Housing Commission on March 28, 2009 in an effort to forward to the City Council specific items for consideration in establishing the Council goals for the coming year. Priority Goal points Examine the feasibility of incentives to create workforce housing 11 Develop an RFP for vertical housing above city owned site (demonstration “green” project) 10 Preservation of vulnerable properties 9 Student Fair Housing Ordinance-Create a student housing sub-committee 9 Given (must be completed) Complete 2010-2015 Consolidated Plan-Create ad-hoc sub-committee Complete Housing Trust Fund funding source(s) Develop RFP for 1.2 Acre parcel on Clay Street Areas of Interest Encourage the development of a Transfer of Development Rights program 7 Homeless support and prevention 6 Coordinate with other city entities to promote housing in Transportation Oriented Districts 5 (TOD) Create a Rental Registry Program 2 Identify land to be rezoned for multi-family housing 1 Create a greater incentive to develop workforce/affordable housing using density bonus. (no dots) The numerical value to the left of each identified goal above was derived through a selection process where commissioners had three colored dots to apply to their top three priority uses. Red: first priority = 3 pts Green: second priority = 2 pts Yellow: third priority = 1 pt. AN ORDINANCE AMENDING CHAPTER 10.110 OF THE ASHLAND MUNNICIPAL CODE REGARDING FAIR HOUSING Annotated to show deletions and additions to the code sections being modified. Deletions are bold lined through and additions are in bold underline. CHAPTER 10.110 FAIR HOUSING SECTIONs: 10.110.010 Declaration of policy. 10.110.020 Definitions. 10.110.030 Unlawful practices. 10.110.040 Exemptions. 10.110.050 Procedures. 10.110.060 Enforcement and Administration 10.110.070 Authority of City Attorney to Adopt Rules 10.110.080 Other remedies. 10.110.090 Penalties. 10.110.100 Severability of invalid provisions. SECTION 10.110.010 Declaration of policy. It is hereby declared to be the policy of Ashland, Oregon, in the exercise of its policy power for the public safety, public health, and general welfare to assure equal opportunity to all persons to live in decent housing facilities regardless of race, color, religion, sex, sexual orientation, gender identity, national origin,source of income, or familial status and, to that end, to prohibit discrimination in housing by any persons. (Ord 2746, 1994) SECTION 10.110.020 Definitions. When used herein: A. "Real property" includes buildings, structures, lands, tenements, leaseholds, cooperatives and condominiums. B. "Discrimination" or "discriminatory housing practice" means any difference in treatment based upon race, color, religion, sex, sexual orientation, national origin, disability or familial status; or any act that is unlawful under this ordinance. (Ord. 2713, 1993) C. "Person" includes individuals, children, firms, associations, joint adventures, partnerships, estates, trusts, business trusts, syndicates, fiduciaries, corporations and all other groups or combinations. D. "Owner" includes a lessee, sublessee, co-tenant, assignee managing agent or other person having the right of ownership or possession, or the right to sell, rent or lease any housing accommodation. E. "Financial Institution" includes any person, as defined herein, engaged in the business of lending money or guaranteeing losses. F. "Housing accommodation" or "Dwelling" means any building, mobile home or trailer, structure, or portion thereof which is occupied as, or designed, or intended for occupancy, as, a residence by one or more families, and any vacant land which is offered for sale or lease for the construction or location thereon of any such building, mobile home or trailer, structure, or portion thereof or any real property, as defined herein, used or intended to be used for any of the purposes set forth in this subsection. G. "Open Market" means the market which is informed of the availability for sale, purchase, rental or lease of any housing accommodation, whether informed through a real estate broker or by advertising by publication, signs or by any other advertising methods directed to the public or any portion thereof, indicating that the property is available for sale, purchase, rental or lease. H. "Older Person" A person of age fifty-five (55) or older. I. "Familial Status" The presence or absence of children within a household unit, under eighteen (18) years of age.Means the relationship between one or more individuals who have not attained 18 years of age and who are domiciled with; A parent or another person having legal custody of the individual, or the designee of the parent or other person having such custody, with the written permission of the parent or other person. “Familial Status” also includes any individual, regardless of age or domicile, who is pregnant or is in the process of securing legal custody of an individual who has not attained 18 years of age. J. "Disability" means a physical or mental impairment which substantially limits one or more major life activities. "Disability" includes having a record of such an impairment or being regarded as having such an impairment K. "Sexual orientation" means attraction to or selection of a sexual partner according to gender. "Sexual orientation" includes having a history of that attraction or selection, or being identified with that attraction or selection. "Sexual orientation" is limited to heterosexuality, homosexuality, and bisexuality. L. “Source of Income” the means by which a person supports himself or herself and his or her dependents, including but not limited to money and property from any occupation, profession or activity, from any contract, settlement or agreement, from federal or state payments, court ordered payments, gifts, bequests, annuities, life insurance policies, and compensation for illness or injury, but excluding any money or property derived in a manner made illegal or criminal by any law, statute or ordinance. M. “Gender Identity” a person’s actual or perceived sex, including a person’s identity, appearance, expression or behavior, whether or not that identity, appearance, expression or behavior is different from that traditionally associated with the person’s sex at birth. N. “Fair Housing Officer” the City Attorney or designee will act as the designated Fair Housing Officer. SECTION 10.110.030 Unlawful practices. In connection with any of the transactions set forth in this section which affect any housing accommodation in the open market, or in connection with any public sale, rental or lease of any housing accommodation, it shall be unlawful within the City of Ashland for a person, owner, financial institution, real estate broker or real estate salesman, or any representative of the above, to: A. Refuse to sell, rent or lease, or deny to or withhold any housing accommodation from a person because of race, color, religion, national origin, disability, sex, sexual orientation, gender identity, source of income or familial status; or B. To discriminate against a person in the terms, conditions or privileges of the sale, rental or lease of any housing accommodation, or in the furnishing of facilities of services in connection therewith; or C. To represent to a person that any housing accommodation is not available for inspection, sale, rental or lease when in fact it is so available, or to refuse to permit a person to inspect any housing accommodation on the open market because of race, color, religion, or national origin, disability, sex, sexual orientation, gender identity, source of income, or familial status; or D. To make, publish, print, circulate, post or mail, or cause to be made, published, printed, circulated, posted or mailed, any notice, statement or advertisement, or to announce a policy, or to sign or to use a form of application for the sale, rental, lease or financing of any housing accommodation, or to make a record of inquiry in connection with the prospective sale, rental, lease or financing of any housing accommodation, which indicates any discrimination or any intent to make a discrimination. E. To retaliate or discriminate in any manner against a person because that person has opposed a practice declared unlawful by this article, or because that person has filed a complaint, testified, assisted or participated in any manner in any investigation, proceeding, hearing or conference under this ordinance; or F. Inquire into the sexual orientation of a purchaser, renter, or lessee, or prospective purchaser, renter or lessee. (Ord 2746, 1994) G. A refusal to permit, at the expense of the handicapped person, reasonable modifications of existing premises occupied or to be occupied by such person if such modifications may be necessary to afford such person full enjoyment of the premises, except that, in the case of a rental, the landlord may where it is reasonable to do so condition permission for a modification on the renter agreeing to restore the interior of the premises to the condition that existed before the modification, reasonable wear and tear excepted. SECTION 10.110.040 Exemptions. A. This ordinance shall not apply to: 1. A religious organization, association, or society or any nonprofit institution or organization operating, supervised, or controlled by or in conjunction with a religious organization, association, or society, which limits the sale, rental, or occupancy, of dwellings which it owns or operates for other than commercial purposes to persons of the same religion, or which gives preference to such persons, unless membership in such a religion is restricted on account of race, color, sex, sexual orientation, national origin, disability or familial status. 2. A private club not in fact open to the public, which as an incident to its primary purpose or purposes, provides lodgings which it owns or operates for other than a commercial purpose, and which limits the rental or occupancy of such lodgings to its members or gives preference to its members. 3. Rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than two (2) families living independently of each other, if the owner actually maintains and occupies one of such living quarters as a personal residence.The leasing or renting of a room or rooms within an individual living unit which is owned by the lessor as his or her primary residence. B. The requirements of this ordinance on prohibition of discrimination on the basis of familial status shall not apply to: 1. Dwellings provided under any State or Federal program specifically designed to assist older persons, or to dwellings in bona fide retirement communities designed and operated for older persons or dwellings otherwise intended and operated exclusively for older persons, equipped with facilities specifically designed for the physical and social needs of such persons. 2. Applicability of reasonable local, State, or Federal restrictions regarding the maximum number of occupants permitted to occupy a dwelling unit. 3. Any housing provided, owned or operated by the State or Federal Government. 4. Any housing unit of less than four hundred (400) square feet gross floor area. C. The prohibitions in section 10.011.020 against discrimination on the basis of sexual orientation and gender identity do not apply to; 1. To the leasing or renting of a room or rooms within an individual living unit which is occupied by the lessor as his or her residence. 2. To the leasing or renting of a room or rooms within individual units where one of the units is owner occupied; 3. To space within a church, temple, synagogue, religious school, or other facility used primarily for religious purposes. D. The prohibitions in section 10.011.020 against discriminating on the basis of source of income do not prohibit: 1. Inquiry into and verification of a source or amount of income; 2. Inquiry into, evaluation of, and decisions based on the amount, stability, security or creditworthiness of any source of income; 3. Screening prospective purchasers and tenants on bases not specifically prohibited by this chapter or state or federal law; 4. Refusal to contract with a governmental agency under 42 U.S.C. 1437f(a) “Section 8”. E. The prohibitions in section 10.011.020 against discriminating on the basis of gender identity don not prohibit: 1. Health or athletic clubs or other entities that operate gender-specific facilities involving public nudity such as showers and locker rooms, from requiring an individual to document their gender or transitional status. Such documentation can include but is not limited to a court order, letter from a physician, birth certificate, passport, or driver’s license. SECTION 10.110.050 Procedures. Any person aggrieved by an unlawful practice prohibited by this ordinance may file a complaint with the Fair Housing Officer no more than sixty (60) daysone year after the alleged unlawful practice occurred. The Fair Housing Officer or a duly authorized representative shall investigate each complaint and attempt to resolve each complaint. Failure to achieve a resolution acceptable to both parties and compliance with this ordinance shall cause the Fair Housing Officer to forward the complaint and findings to appropriate state and federal officials. The Fair Housing Officer may also file a complaint with the Ashland Municipal Court as provided in Section 10.110.070. SECTION 10.110.060 Enforcement and Administration A. Enforcement of all or any part of this Chapter shall be governed by the procedures established in ORS Chapter 659A. Rules and proceedures adopted by the City Attorney pursuant to Section 10.110.050 of this Chapter may also be used to implement enforcement and administration of this Chapter. B. Any person claiming to be aggrieved by conduct constituting an unlawful practice pursuant to ORS Chapter 659A may file a complaint with the commissioner as provided in ORS 659A.820, ORS 659A.890 or, subject to ORS 659A.870, ORS 659A.885. C. The Commissioner may proceed to investigate and enforce complaint as provided in ORS659A.800 to 659A.860. D. Any order issued by the Commissioner of the Bureau of Labor and Industries under Chapter 10.110 shall be deemed as one issued by a municipal judge and shall be fully enforceable by the City. E. Any person claiming to be aggrieved by an unlawful discriminatory act under the provisions of this code shall have a cause of action in any court of competent jurisdiction for damages and such other remedies as may be appropriate. Election of remedies and other procedural issues relating to the interplay between administrative proceedings and private rights of action shall be handled as provided for in ORS 659A.870. 659A.885 and 659A.890. The court may grant such relief as it deems appropriate, including but not limited to such relief as is provided in ORS 659A.885. SECTION 10.110.070 Authority of City Attorney to adopt rules. A. The City Attorney is hereby authorized to adopt rules, procedures and forms to assist in the implementation of the provisions of this Chapter. B. Any rule adopted pursuant to this Section shall require a public review process. Not less than ten nor more than thirty days before such public review process, notice shall be given by publication in a newspaper of general circulation. Such notice shall include the place, time and purpose of the public review process and the location at which copies of the full text of the proposed rules may be obtained. C. During the public review, a designee of the City Attorney shall hear testimony or receive written comment concerning the proposed rules. The City Attorney shall review the recommendation of his or her designee, taking into consideration the comments received during the public review process, and shall either adopt the proposal, modify or reject it. If a substantial modification is made, additional public review shall be conducted, but no additional notice shall be required if such additional review is announced at the hearing at which the original comments are received. D. Unless otherwise stated, all rules shall be effective upon adoption by the City Attorney and shall be filed in the office of the City Recorder. E. Notwithstanding paragraphs B and C of this Section, an interim rule may be adopted without prior notice upon a finding that failure to act promptly will result in serious prejudice to the public interest or the interest of the affected parties. The finding shall state the specific reasons for such prejudice. Any rule adopted pursuant to this paragraph shall be effective for a period of not longer than 180 days. SECTION 10.110.060SECTION 10.110.080 Other remedies. Nothing herein contained shall prevent any person from exercising any right or seeking any remedy to which such person might otherwise be entitled or from filing a complaint with any appropriate governmental agency. SECTION 10.110.070SECTION 10.110.090 Penalties. Any person violating or causing the violation of any provision of this ordinance has committed an infraction, and, upon conviction thereof, is punishable as prescribed in Section 1.08.020 of the Ashland Municipal Code. Such person is guilty of a separate violation for each and every day the violation continues. SECTION 10.110.080 SECTION 10.110.100 Severability of invalid provisions. In case any one or more of the sections, subsections, clauses, or provisions of this ordinance, or the application of such sections, subsections, clauses or provisions to any situations, circumstances, or person, shall for any reason be held to be unconstitutional or invalid, such unconstitutionality or invalidity shall not affect any other sections or provisions of this ordinance or the application of such sections, subsections, clauses or provisions to any other situation, circumstance or person, and it is intended that this ordinance shall be constructed and applied as if such had not been included in this ordinance. (Ord. 2527, 1989; Ord. 2713, 1993) Housing in the NEWS Ashland Housing Commission Packet For Immediate Release June 9, 2010 Contacts: Rick Crager, 503-986-2005, rick.crager@state.or.us Lisa Joyce, 503-986-0951, lisa.joyce@state.or.us Oregon Homeless Population Increases Again Salem – Oregon Housing and Community Services (OHCS) once again reports that Oregon homelessness is on the rise. Unemployment tops the list of reasons for the increase. And, in 2010, children now comprise 31 percent of the state’s homeless population. The number of homeless families with children increased 33 percent from the previous year. During a one-night count, OHCS’s partners identified 19,207 people experiencing homelessness in January 2010, up from 17,122 people in 2009. In addition, between the 2009 and 2010 count, there was a 21 percent increase in number of people counted on the street. Most concerning, the number of children counted as homeless increased 36 percent to 5,866 children. “When homelessness touches children, it affects their entire lives,” said Rick Crager, OHCS deputy director. “Responding to this crisis requires a thoughtful response that is focused on preventing long- term costs. Children deserve to grow up safe and healthy and to achieve their potential.” Multnomah County conducts its street count in odd-numbered years; therefore, it is safe to assume the 2010 count understates the extent of homelessness in Oregon. Despite this, the number of people identified as homeless increased 12 percent over 2009. “In ordinary times, we would expect the number of people counted to fall without the Portland street count,” said Crager. “These numbers are proof that the economic conditions of the state, driven primarily by unemployment, have brought unprecedented levels of homelessness.” More than one-third of households counted – 4,296 households – attributed their homelessness to unemployment. For the first time, community partners collected information about the length of time that individuals experienced homelessness. The population counted had been homeless on average for 12 months. 66 percent of the people counted had been homeless for six months or less. 77 percent of children have been homeless for six months or less. 14 percent of children have been homeless for more than a year. 4 percent of children have been homeless for more than two years. Seniors (70+) have been homeless on average for 41 months. Page 1 of 2 “It’s really troubling to see the 72 percent increase in homeless families with children in Clackamas County,” said Brenda Durbin, director of Clackamas County Social Services. “Cuts to the Oregon Housing and Community Services and Department of Human Services budgets will further impact our ability to serve these vulnerable families.” For data of the One-Night Homeless Count, visit: By County (under the 2010 County Reports section): http://www.ohcs.oregon.gov/OHCS/CSS_2010_One_Night_Shelter_Counts.shtml The Statewide Report: http://www.ohcs.oregon.gov/OHCS/CRD/CSS/docs/onsc_reports/2010/state_report/10_State_Wide_Co unt.pdf To find your local Community Action Agency, visit www.caporegon.org/members.htm. Page 2 of 2 Ax may fall on tax break for mortgages -TheHill.comPage 1of 4 Tuesday, June 08, 2010 Search TheHill.com Advanced Search Options » Home/NewsNews by SubjectBusiness & LobbyingOpinionCapital LivingSpecial ReportsJobsThe Washington Scene Congress BlogPundits BlogBlog Briefing RoomTwitterRoomHillicon ValleyE2-WireBallot BoxOn TheMoney GO TO THE HILL HOME » Ax may fall on tax break for mortgages By Walter Alarkon -06/08/10 06:00 AM ET Enter Email The popular tax break for mortgage interest, once considered Home untouchable, is falling under the scrutiny of policymakers and Senate economic experts seeking ways to close huge deficits. House Although Congress last year rejected the White House’s proposed cut to the Administration Campaign amount wealthier taxpayers can deduct for home mortgage interest payments, Business & the administration included it again in its 2010 budget — saying it could save Lobbying $208 billion over the next decade. BLOGS Congress Blog And now that sentiment has Pundits Blog turned against all the federal Blog Briefing red ink — and cost-cutting is Room in vogue — Democrats on Twitter Room MOST POPULAR STORIES Hillicon Valley President Barack Obama’s Most ViewedEmailedDiscussed E2-Wire financial commission are Ballot Box considering the wisdom of Obama calls long-time journalist's comments On The Money permanent taxbreaks such as 'offensive,' but praises career BUSINESS & Helen Thomas quits after Israel remarks the mortgage deduction and LOBBYING Ax may fall on tax break for mortgages corporate deferral. Calling K Street Insiders Reid, Pelosi head for climate clash them “tax entitlements,” NEWS BY SUBJECT Pelosi heckled at liberal activist conference senior Democratic lawmakers Defense & have argued they should be Homeland Security on the table for reform just like traditional entitlement programs Medicare, Home/News »Most Viewed RSSFeed » Energy & Social Security and Medicaid. Environment Finance & MORE ADMINISTRATION HEADLINES The new spotlight on the mortgage deduction and other tax expenditures comes Economy Presidential scholars see recent White House job as the Obama administration and Congress consider ways to reduce deficits the Technology offers as nothing new Congressional Budget Office (CBO) expects will average nearly $1 trillion over All News by Orszag asks agencies to trim Subject the next decade. HelenThomas quits after Israel remarks OPINION More Administration Headlines » A.B. Stoddard Administration News RSS feed » Policymakers seeking savings have tried to cap the mortgage interest deduction Brent Budowsky before — and failed. Five years ago, a bipartisan tax reform commission created Lanny Davis by President George W. Bush proposed ending the mortgage tax break. But the John Del Cecato commission’s plan stalled in Congress, partly because of popular support for the Ben Goddard mortgage deduction. David Hill Cheri Jacobus Obama’s proposal, which would cut thededuction rate for itemized expenses for David Keene those making more than $250,000 to the rate paid by the middle class, was Mark Mellman BRIEFING ROOM panned last year by members of both parties. They worried about its effect, Dick Morris during a recession, on charitable deductions and the housing market. Obama to make fourth Gulf trip next week Markos Moulitsas with two-day visit (Kos) DAY'S END ROUNDUP The White House says it was included in the president’s budget proposal again Editorials Saints to raffle off Super Bowl ring for oil spill this year because it remains a good idea. Letters response Op-Eds More Briefing Room » “The proposal will correct inequities in our tax code that allow millionaires to CAPITAL LIVING benefit from higher itemized tax deductions than middle-class families enjoy,” CONGRESS BLOG said Meg Reilly, spokeswoman for the Office of Management and Budget Obamacare is bad policy, no matter how he http://thehill.com/homenews/administration/101883-axe-may-fall-on-tax-break-for-mortgages6/8/2010 Ax may fall on tax break for mortgages -TheHill.comPage 2of 4 Gossip: In the Know spins it (Rep. Michelle Bachmann) (OMB). It is time to make the BP pledge a binding Cover Stories commitment (Sen. Byron Dorgan) Food & Drink Although the backers of the mortgage interest tax break defend it as a key Just the facts Announcements incentive for people to own rather than rent their homes, some say that’s not so. More Congress Blog » All Capital Living A Brookings-Urban Tax Policy Center study found that the mortgage interest SOCIAL PUNDITS BLOG tax break costs more than $100 billion annually but does little to encourage the Washington Scene middle class and less wealthy to buy homes. Rebranding the GOP and closing the gender gap VIDEO Cycle of nature HillTube “I’m not sure that we need to subsidize homeownership at all through the tax Two articles RESOURCES system,” said Eric Toder, the study’s lead author. Mobile Site More Pundits Blog » iPhone A bipartisan tax reform proposal this year by Sens. Judd Gregg (R-N.H.) and TWITTER ROOM Lawmaker Ratings Ron Wyden (D-Ore.) would lower base tax rates and eliminate a host of tax Judge orders Blagojevich not to tweet in court White Papers expenditures, but not the mortgage deduction. Gregg and Wyden said they left Republican live-tweets rebuttal to Obama Classifieds it out because they wanted a “politically viable vehicle,” conceding that ending speech Order Reprints Van Hollen latest Dem leader to join Twitter the mortgage break would mean less support for their plan from other Last 6 Issues lawmakers. More Twitter Room » Outside Links HILLICON VALLEY RSS Feeds Toder maintains that federal budget and deficit projections have prompted a CONTACT US shift in the political environment, and in Congress’s willingness to take on what Free Press wants harsher punishments for Advertise FCC lobbyists were once considered hallowed tax breaks. C&A veep: Twitter "embedding" itself in Reach Us policymakers' lives Submitting Letters “The kinds of things people are discussing in public are way beyond what they Clyburn: "No flash cuts" in USF transition Subscriptions were talking about a couple years ago,” he said. More Hillicon Valley » 2 For instance, the costliest tax expenditure — the exemption on employer-based E-WIRE health benefits — was indirectly reduced as part of the Democrats’ health Interior issues new oil-and-gas drilling safety reform law. To pay for the expansion of health insurance and to nudge the requirements Obama to make fourth Gulf trip next week health industry to keep down costs, Democrats enacted a new tax on high-cost BP pledges funding for new wildlife fund healthcare plans. 2 MoreE-Wire » The employer-based health benefits exemption will cost slightly more than $1 BALLOT BOX trillion over the next five years, according to OMB. The second most costly tax Vitter, Melancon trade shots over drilling halt break was the mortgage deduction, which would cost $638 billion. Other big- Schwarzenegger's first ballot is rejected ticket tax expenditures were the exemptions for 401(k) contributions, capital Primary primer gains and corporate overseas earnings known as deferral. More Ballot Box » Ending all of those permanent tax breaks would be one way of reining in debt, ON THE MONEY according to a report by former CBO Director Rudy Penner and other CBC urges Menendez against moving rum tax economists at the National Academy of Sciences. The other way to stop a rise in bill the real debt level without cutting Medicare, Social Security and Medicaid BP pledges funding for new wildlife fund Dorgan calls on BP to pay $10 billion into a would be to increase all base tax rates and introduce a new value-added tax, recovery fund which is levied on goods at each stage of production. More On The Money » Penner testified about the cost of the large tax expenditures — and the difficulty Blogs News Feed of ending them — during an April meeting of Obama’s fiscal commission. “The problem on the tax side is that you also have some really big sharks there, and I guess unlike most sharks, they’re very popular sharks,” Penner said. One commission member, Senate Majority Whip Dick Durbin (D-Ill.), noted that the mortgage deduction was among those sharks. Durbin and Rep. Jan Schakowsky (D-Ill.), also onthe commission, have pressed their colleagues to look at tax expenditures along with government spending as they try to craft a fiscal reform plan. COLUMNISTS “Durbin is asking tough questions, but hasn’t decided on the answers yet,” one Dick Morris David Keene of his aides said. “When we’re talking about a huge universe of revenue loss, he Obamanomics Debt fear thinks that tax entitlements deserve the same scrutiny as discretionary recessionpalpable spending.” Brent Budowsky Markos Moulitsas Republicans on the commission have also calledfor changes to the tax code, but The volatile Trends not in they’ve talked more about reforming tax breaks for lower- and middle-income voterGOP favor people, generally popular with Democrats. More Columnists » “Any debate about true reform of the code would have to look at tax http://thehill.com/homenews/administration/101883-axe-may-fall-on-tax-break-for-mortgages6/8/2010 Ax may fall on tax break for mortgages -TheHill.comPage 3of 4 Get latest news from The Hill direct expenditures, such as the Earned Income Tax Credit and Making Work Pay to your inbox, RSS reader and mobile devices. credit on up,” said Sage Eastman, a spokesman for Rep. Dave Camp (R-Mich.). Enter Email Address Comments (55) PAGE |1|2|3|4|> Hey guys, don't EVER look for savings in wastfullness in government spending! But PLEASE go ahead dems and cut mortgage interest, we will see you in power next … oh, NEVER. Go for it guys. JD PLUS on 06/08/2010 at 06:14 BY Mortgage Loan Modification is the only solution to save your home and stop foreclosure. Some 650,000 troubled borrowers have been put into trial loan modifications under the president's foreclosure rescue plan, the Treasury Department said Tuesday. That number represents only 20% of eligible homeowners. Mortgage Home Modification Program is the solution to save your house and stop foreclosure process Use this free tool to see if you qualify for loan modification http://bit.ly/bCkrEu BY LEOANSI on 06/08/2010 at 06:16 Without significant and long term cuts in government spending, all tax increases would simply be spent. It's fascinating they are looking for ways to increase tax revenues but significantly cutting spending would never occur to them. There are several federal agencies we could do without saving 100's of billions. Yet, the first thing they go after is your paycheck. BALONEY GUY on 06/08/2010 at 06:22 BY Cut the deduction out, we have lost all the other breaks why is this so hallowed now? BY PAULB6 on 06/08/2010 at 06:54 Baloney Guy on 06/08/2010 at 06:22. Isn't that the truth! Look what they've done with TARP repaid funds. They look at anything in the coffers as fair game to spend. They will do it with additional oil driller taxes, with banking tax .. supposed.. cushion, with anything. They will never look at their spending, which is why we may be in this non-growth period for many years. BY JD PLUS on 06/08/2010 at 07:04 All this would do is encourage them to spend even more. Democrats are such idiots. BY DRJOHN on 06/08/2010 at 07:49 Why would anybody vote Democratic ? All we hear is tax tax and more taxes. Stop the spending. They were so reckless with the waste of money spent and now they want to tax Americans who have no jobs. Brilliant. HEATHER on 06/08/2010 at 08:01 BY Democrats won't cut spending, so they figure out a way to raise revenue by going after deductions. This is to funny, they probabaly will blame this on Bush.. BY MIKE JONES on 06/08/2010 at 08:04 Cut the spending, and you won't have to worry about increasing taxes. Simple. BY CLEARTHINKER on 06/08/2010 at 08:16 When this kicks in, the top 10% income earners will be the only ones left who still own a home anyway. So what's the big deal? BY MIKE JONES on 06/08/2010 at 08:35 PAGE |1|2|3|4|> Add Comment Name (required) E-Mail (will not be published) (required) Your Comments http://thehill.com/homenews/administration/101883-axe-may-fall-on-tax-break-for-mortgages6/8/2010 Ax may fall on tax break for mortgages -TheHill.comPage 4of 4 Submit CommentClear Search TheHill.com The Hill Archives:Senate | House | Administration | Campaign | Business & Lobbying | Capital Living | Opinion View News by Subject: Defense & Homeland Security | Energy & Environment | Healthcare | Finance & Economy | Technology | Foreign Policy | Labor | Transportation & Infrastructure Home/NewsNews by SubjectBlogsBusiness & LobbyingOpinionCapital LivingSpecial ReportsJobsThe Washington Scene Home | Privacy Policy| Terms & Conditions| Contact| Advertise| RSS|Subscriptions The Hill 1625 K Street, NW Suite 900 Washington DC 20006 | 202-628-8500 tel | 202-628-8503 fax The contents of this site are © 2010 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc. http://thehill.com/homenews/administration/101883-axe-may-fall-on-tax-break-for-mortgages6/8/2010