Homeownership and Opportunity for People Everywhere Act Exposed

The Homeownership and Opportunity for People Everywhere Act is listed under ALEC's Commerce, Insurance and Economic Development Task Force, but does not include information on when it was approved. ALEC has attempted to distance itself from this piece of legislation after the launch of ALECexposed.org in 2011, but it has done nothing to get it repealed in the states where it previously pushed for it to be made into law.

ALEC Bill Text

Summary

(1) Under existing federal law, the so-called HOME programs and the Homeownership and Opportunity for People Everywhere (HOPE) program, which are part of the Cranston-Gonzalez National Affordable Housing Act, provide funding for homeownership programs for specified persons and entities that receive matching funding, as specified, from non-federal sources.

It is the intent of the legislature that this bill provide a mechanism for (insert state) to fulfill the non-federal matching funds requirements of the federal HOME and HOPE programs.

The bill would authorize local government agencies to exempt, for a period of up to 20 years, specified projects receiving funding pursuant to the federal HOME and HOPE programs from local taxes, fees, or assessments. The bill would also authorize redevelopment agencies to participate in federal projects that receive the federal funding and would authorize the (insert the state Housing Insurance Fund or other appropriate state housing authority's fund) to use its resources to assist specified entities that receive the federal funding.

(2) The bill would require on or before (insert date) that the Affordable Housing Task Force, created by the bill in the (Department of Housing and Community Development or other appropriate agency) with membership as specified, submit a written report to the legislature regarding ways in which state housing programs may be restructured in order to benefit the greatest number of citizens by obtaining maximum federal funding under the Cranston-Gonzalez National Affordable Housing Act, with particular attention to be paid to the federal HOME and HOPE programs.

Model Legislation

Section 1.

(A) The legislature finds and declares all of the following:

(1) in 1990, the Cranston-Gonzales National Affordable Housing Act was enacted by the Congress and President of the United States as Public Law 101-625. The Act affirms as a national goal that every American family be able to afford a decent home in a suitable environment.

(2) Titles II and IV of the National Affordable Housing Act enacted the HOME programs and the Homeownership and Opportunity for People Everywhere (HOPE) program, respectively. A requirement of the HOME and HOPE legislation is that a portion of the funding for each recipient project shall be matched by funds from non-federal sources in order to carry out the homeownership program.

(B) In enacting this chapter, it is therefore the intent of the legislature to provide a mechanism for (insert state) to fulfill the non-federal matching funds requirements.

Section 2.

(A) Local government agencies may exempt, for a period of up to 20 years, from local taxes, fees, or assessments either of the following types of entities:

(1) multifamily projects that are either nonprofit or limited equity cooperatives and that qualify for, and receive, federal aid under either Title II of IV of the Cranston-Gonzalez National Affordable Housing Act.

(2) multifamily limited equity cooperatives that qualify for, and receive, federal aid under either Title II of IV of the Cranston-Gonzalez National Affordable Housing Act.

(B) The (insert the state housing insurance fund or the appropriate state housing authority's fund) may use its resources to assist nonprofit corporations exempt from federal income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code, redevelopment agencies, local finance agencies, and for-profit corporations that receive funding pursuant to either Title II of IV of the Cranston-Gonzalez National Affordable Housing Act.

Section 3.

(A) The Affordable Housing Task Force is hereby created in the (insert the Department of Housing and Community Development or other appropriate department) to report on methods by which state housing programs may be restructured in order to benefit the greatest number of citizens by obtaining maximum federal funding under the Cranston-Gonzales National Affordable Housing Act and, particularly, under Titles II and IV there. As a part of the report, the Treasurer shall study how the state bond programs can be counted as part of the non-federal match and how they might specifically fund the HOME and HOPE programs.

(B) The members of the task force shall include (list appropriate members). The task force shall meet as deemed necessary by the chairperson.

(C) Each member of the task force shall serve without compensation, but shall be reimbursed for actual and necessary expenses incurred in the performance of his or her duties to the extent that reimbursement is not otherwise provided by another public agency.

(D) The task force may request data from, and shall utilize the technical expertise of, other state agencies.

(E) On or before (Insert date), the task force shall submit its written report to the legislature.

Section 4. {Severability clause.}

Section 5. {Repealer clause.}

Section 6. {Effective date.}