Special Alerts-STATE-2012

 SALT ISSUES 

Virginia House and Senate Approve 2013-14 Budget-- Create Housing Trust Fund The Virginia House and Senate voted last week to approve the $85 billion biennial budget for the state after weeks of stalemate. The final vote in the Senate came on a 21-19 vote with Senator Charles Colgan (D-Prince William) joining 20 Republican Senators to deliver the 21 notes needed for passage. Senator Colgan had voted against the budget the previous day but after a "change of heart", provided the winning margin.

The House also adopted the budget. The budget now goes to the Governor who is expected to request some adjustments before signing. The budget creates a "Virginia Housing Trust Fund" and provides $7 million in initial capitalization in the second year of the biennium. The Housing Trust Fund will provide a flexible source of loans and grants to support a broad range of affordable housing efforts from homeownership to homelessness.

The Fund will have up to 20% in the form of grants with special targeting to reduce homelessness. The balance of the Fund will be in the form of flexible, low interest loans and will be available for a broad range of housing initiatives. The creation of the Housing Trust Fund could not come at a better time as Federal housing programs are being deeply cut.

The Trust Fund will be administered by the Virginia Department of Housing and Community Development and the Virginia Housing Development Authority. DHCD will take the lead in program design and fund allocations while VHDA will oversee loan underwriting and administration.

Safety-Net Issues:

• Opposing budget reductions to programs that provide shelter, health care, and other basic necessities to low-income Virginia residents. Advocate to restore the Homeless Intervention Program (HIP) and Homeless Shelter funding cuts. Results: Supplants TANF Funding cuts for HIP with General Funds (SALT's Top Priority). HIP funds were restored from General Fund for FY 2011 in the amount of $3,191, 583 and for FY- 2012 in the amountr of $4.419,115. Thank your legislators, especially Delegate Charniele Herring.
• Providing state-subsidized "rental assistance" to working families whose wages do not enable them to afford adequate housing. Senator Mamie Locke, patron; (SB 616) to General Laws, Chair Sen. Locke; Budget Amendment Item 99 #1s. Results: Passed Senate General Laws & Senate Finance Committees and passed the Senate. Crossed over to House. Sent to and defeated by House General Laws. Rental Assistance Delegate Charniel Herring, patron, (HB 451) to General Laws--#1 Housing, Chair, Del. Albo. Results: Carried over in House General Laws.
• Implementing a cost-of-living adjustment (Indexing) for payments to low-income families under the Temporary Assistance to Needy Families (TANF) program. Senator Janet Howell, patron, Budget Amendment Item 327 #1s. Delegate James Scott, patron, Budget Amendment Item # not yet available. Results: Not considered/called up in House or Senate.
• Opposing the diversion of TANF funding toward non-TANF purposes--TANF Community Funding Pool bill. Delegate David Englin, patron, HB 80, Results: Passed HWI (22-0). Next, sent to Appropriations Committee to be carried over. No Senate Bill.
• TANF Welfare Ban Opt Out/Transitional Support Services for former Drug offenders. SB 576. Results: Passed Senate Rehabilitation and Social Services Committee (11-4) Next, Carried Over in Senate Finance -- Delegate Vivian Watts, Patron, HB 226. Results: HWI Carried over to next year

TANF Contingency Fund (Stimulus). The Temporary Assistance for Needy Families (TANF) provisions in section 2101 of the American Recovery and Reinvestment Act of 2009 (ARRA) created a new fund, the TANF Emergency Contingency Fund (ECF), under which Virginia can receive federal reimbursement for up to $79 million of increased TANF-related expenditures. Virginia can access stimulus funds in each of three categories:

• · non-recurrent short-term payments;
• · subsidized employment; or ·
• basic assistance.

Results: We thank Senator Janet Howell, Delegates Jim Scott and Ken Plum for their leadership and for passionately presenting the case for obtaining TANF Emergency Stimulus funding by insisting that the State of Virginia include qualified local initiatives with new or increased expenditures to be considered in the next Virginia request for TANF federal Stimulus funds. Allowing the successful pass-through of TANF Stimulus funds to the localities and the non-profits is making difference in the lives of those in the greatest need.

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