The Oregon Story
Presentation at Assets and Opportunity InstituteSeptember 24, 2009
Janet ByrdExecutive Director, Neighborhood Partnerships
Or, how we won a document recording fee in 2009
Legislative Victories
YES in 2005YES in 2007YES in 2008 Special sessionYES in 2009
• Increased priority and visibility• Developed champions• Increased spending and dedicated revenues
Document Recording Fee
• House Bill 2436 passed February 2009
• Increases the existing state document recording fee by $15
• New revenues dedicated to affordable housing uses (2009‐2011 revenues, $15.6 million)
– 70 % multi‐family development—all possible uses, including land banking, large grants,
– 6% capacity building
– 10% emergency housing account
– 14% homeownership—construction and downpayment assistance
Total 2003 Total 2009
↑ “Corpus” of Housing Trust Fund—interest funds “Trust Fund Grants”
Cut to $13 million Cuts restored, now stable at $15 million
↑ “Public Purpose Charge” on utility bills — (“Trust Fund Grants”)
$5 million per biennium
$5.6 million per biennium
↑ Document Recording Fee Revenue— 2005 and 2007, some General Fund to Homeownership— General Fund to Emergency Housing Account has been level at $5.5 million for several sessions
• No doc fee revenue to housing
• $800,000 for homeownership, $5.5 million EHA
• Doc fee $15.6 million this biennium, will increase to $30 million• EHA from General Fund now $4 million
↑ Lottery Secured Bonds for preservation grants—new source in 2007
None $19.4 million
Direct Expenditures on Affordable Housing
Oregon Tax Revenue Expenditures on Affordable Housing
Total 2003 Total 2009
↑ Oregon Affordable Housing Tax Credit
State tax credit to banks which reduce interest on permanent loans in order to reduce tenant rent payments
Expanded in 2007 to allow loans to preserve rent subsidized properties and manufactured home parks
Cap at $11 million Cap at $17 million
The Bleak Beginning
2003 Legislative session worst in years
• Funding Decreased•Affordable Housing at the bottom of everyone’s priority list
•Advocates worked at cross‐purposes
Focus on Values
Late 2003 • Neighborhood Partnerships convened “Talking About Housing” work group
• Clarified common mission and passion
• Developed “Housing Messages that Work” and trained in media advocacy
• Values‐based messages bonded allies
Early 2004 –Coalition Building
Core group launched the Housing Alliance• Non‐profit members only—Local governments, non‐profit developers, housing authorities, anti‐poverty advocates, tenant advocates
• Loose coalition—not a legal entity
• Modified consensus decision making
Dues allowed us to hire a lobbyist • Chose someone who brought us strong ties to Republican leadership
Coalition Building
• Defined Ten Year Goals– Raise profile of housing in the Legislature
– Develop a cadre of bi‐partisan champions
– Win dedicated revenues –• increase direct revenues to $100 million a biennium, and
• support policy changes that benefit low‐income residents or create affordable housing opportunities
Proposal
• Funding proposals built on existing law and administrative processes
• State Housing Finance Agency already consolidates all funding into two competitive rounds
• State Housing Finance Agency generally well regarded• Priorities exist in statute for expenditures• We had two existing strong tools
– small Housing Trust Fund with some dedicated revenue from utility public purpose charges and
– a unique tax credit for banks that reduces permanent financing costs (Oregon Affordable Housing Tax Credit)
Proposal
• In 2005, asked for $5 million additional into Housing Trust Fund grant pool
• In 2007 and 2009, asked for Document Recording Fee to create dedicated revenue stream
Campaign Foundations
• Values Based Messages– Use of values builds passion among legislators and our allies
– Message trainings and “formula” make grass roots mobilization easier
• Cultivating champions – Developing ongoing relationships with legislators who know affordable housing issues in their districts
Campaign Foundations
• Messages and Theme– Use the frame of “opportunity” as umbrella
• $100 Million Housing Opportunity Agenda
• “Housing Opportunity Bill”
– Message trainings and “formula” make grass roots mobilization easier
– Easily modified materials, theme and logo for materials and communiqués
Campaign Foundations
• Fertilize the Grass Roots– Localized materials to support advocates in their communities
• Most valuable—housing needs by county
– Trainings across the state on use of values based messages
– Coordinate and support team visits to legislators• Briefings, packets, agendas and role‐plays
– Monthly conference calls during session to stay in touch
Campaign Foundations
• Coordinate the “Insider” Game– Team of experts share the burden of tracking key legislation
– Coordinate with housing agency on issues we agree on
– Weekly meetings during session of all allied lobbyists and capital junkies
– Team approach building on strength of partners and existing relationships
Campaign Highlights
• Committee hearings during the interim in 2006
• Skit to illustrate complexities of development
• Huge turnouts statewide of varied groups of allies—schools, service providers, food banks
• Lobby Days—2005, 2007, 2009• Constituent visits to almost every legislator
• Endorsements • Almost hit goal of 500 for 2007
Managing Setbacks
• Document Recording Fee Bill failed by 3 votes at the end of the 2007 session
• Got caught in the end of session politics and anti‐tax pressures
• Change in Republican leadership in last weeks of session voided our agreement that they wouldn’t lock the caucus
Managing Setbacks
• Regrouped during interim • Won interim victories in short session in 2008, kept momentum going
• Maintained grass roots efforts and cultivation
• Secured active engagement of Oregon Association of Realtors, Oregon Bankers Association, and Oregon Home Builders Association. In return, we agreed to maintain request at $15 and oppose any additional recording fees
• Came back blazing in 2009—passed bill in seven weeks
Managing Opposition
• Our strategy was to focus on building support, momentum, and powerful allies
• Active opposition came from• Counties, concerned about revenue needs
• County clerks, who must process the documents
• Anti‐tax legislators
• Passive and quiet opposition came from others who pay recording fees
• Collection agents, some financial interests
Next Steps
• Hearings statewide on implementation begin Sept 21st
• Will work with state to report on uses and impact
• Increase General Fund for housing? Maintain commitment of lottery funds? Membership meets October 5th to discuss next steps to move us closer to $100 million
Questions & Discussion
Janet ByrdExecutive Director
Neighborhood Partnershipsjbyrd@neighborhoodpartnerships.orgwww.neighborhoodpartnerships.orgwww.oregonhousingalliance.org