Activists push affordable-housing bill

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Thursday, April 6, 2006 E-mail this | Print page

Activists push affordable-housing bill

Fund would gain nearly $8 million

By Deborah Yetter

dyetter@...

The Courier-Journal

Kentucky

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After her marriage broke up and she lost her home, Terry Tudor tried

to fix up a dilapidated farmhouse a relative provided in Madison

County.

She painted over mold stains and duct-taped holes in rotted

floorboards. She covered a damaged ceiling with tin and tried to fix

leaky windows.

But she was still ashamed.

" I didn't want anybody in that home, " said Tudor, a school

secretary.

A newly built Habitat for Humanity house last year dramatically

improved life for Tudor, 51, and her daughter, 15.

That's why Tudor is promoting House Bill 338, which would create

additional money for the Affordable Housing Trust Fund, a state

program that provides money to groups to build or rehabilitate

housing for low-income residents.

Tudor spoke recently at a rally in fort that also was attended

by about a half-dozen Roman Catholic nuns who work with the poor;

they were all urging lawmakers not to let HB 338 die.

Sponsored by Rep. Jim Wayne, D-Louisville, the bill would raise

about $6 million per year by adding a $10 fee to closing costs on a

mortgage. It also would add about $1.5 million per year from a

portion of delinquent taxes the state collects.

Housing activists believe the $10 fee wouldn't be burdensome for

homebuyers, but some in the industry would rather have the cost of

affordable housing spread around.

The bill passed the House and is pending in the Senate, which is

scheduled to reconvene for three days starting Monday.

Senate Majority Leader Dan , R-Springfield, said the Senate is

trying to work something out with the House on the bill.

" There are still discussions and negotiations about how we could

provide improved, permanent funding for affordable housing, " he

said.

Wayne also has attached the measure to the unrelated Senate Bill 43

in hopes of giving it another chance if his bill doesn't clear the

Senate.

He thinks some version could still pass if lawmakers have the will.

" It's a human-needs issue, " he said. " People have no place to live. "

Rep. Siler, R-burg, a co-sponsor, said some

lawmakers are wary about raising closing costs.

" My personal feeling is that no one's going to be hurt with the

fee, " he said.

Siler said he likes the program because churches and nonprofit

groups such as Habitat for Humanity often provide free labor to

build or rehabilitate dwellings, and use money from the trust fund

to buy land or materials.

" It leverages money, and it uses the faith-based community, " he

said.

'Getting picked to death'

The Kentucky Association of Realtors supports more money for the

housing fund but doesn't think it should come from a $10 fee on

deeds and mortgages, said Creglow, director of government

affairs for the group.

The association believes lawmakers should put more money from the

general fund into the program. " The cost should be shared by all

citizens " instead of just those buying a home, Creglow said.

The association supports the other provision of HB 338: raising

revenue for the housing fund from a portion of delinquent taxes the

state collects.

Sharon Stubblefield, a real estate agent in Madison, said she and

others support housing efforts and volunteering. She said she isn't

sure how she feels about the $10 fee.

" In theory, it sounds good, " she said.

But Stubblefield said she worries about adding even a small amount

to closing costs, which already can be expensive for homebuyers.

" We're kind of getting picked to death, " she said.

A fair fee?

Advocates say programs such as Habitat for Humanity promote

responsible homeownership. People who get Habitat homes must help

build them and take out a mortgage on them.

Tudor helped frame, roof and paint her three-bedroom home. Now she's

paying for it.

" I am so proud that I'm paying for my house, " she said.

Supporters of the bill say the $10 fee at closing -- added to the

cost of recording a deed or mortgage -- would barely be noticed.

" I think it's a small price to pay for something that's going to do

such much good, " said Sister Joetta Venneman with the Sisters of

Charity of Nazareth in County. " Anyone who's working with the

poor realizes the need for it. "

The housing problem

More than 600,000 of Kentucky's 4.1 million people live in poverty,

and the state needs at least 130,000 more homes for low-income

families, according to the Kentucky Housing Corp., which administers

the housing trust fund.

About 30,000 of those families are living in homes deemed

substandard with inadequate plumbing or kitchen facilities,

according to the housing corporation, a state agency that oversees

housing development and promotes homeownership.

Some people remain at shelters or rely on other assistance programs

because they can't afford the rent on an apartment, advocates say.

" It's one thing to get people off the street, but it's another thing

to get them housed, " said , a therapist with St. Jude

Women's Recovery Center in Louisville, which provides shelter and

treatment to homeless women with drug and alcohol problems.

a , 34, of Louisville, successfully completed the St.

Jude drug and alcohol program, has a job and is waiting to find an

apartment she can afford for herself and her daughter, 8, who now

lives with relatives.

" It's just really hard trying to work a minimum-wage job and find

housing, " said , who works 30 hours a week as a waitress.

also spoke at the March 22 rally to urge support for HB 338.

" I think if this bill went into effect, there would be more

opportunities for people, " she said.

Reporter Deborah Yetter can be reached at (502) 582-4228.