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Novogradac Concentration on Poverty Presentation2015 CHFA Housing Credit SummitDenver, Colo.

June 16, 2015

www.novoco.com 1

National Issues –Concentration of Povertyfor the CHFA 2015 Housing Credit Summit

June 16, 2015 www.novoco.com

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Mark ShelburneNovogradac & Company [email protected](919) 889-2596


June 16, 2015

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Agenda

IntroductionFair Housing LawDisparate Impact

Affirmatively FurtheringUpcoming HUD Rule

Policy


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Disclaimer

• Only a summary• National focus, specifics vary by state• Another side to most of presentation• Not providing legal advice


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Agenda



Policy


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Introduction


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Two Areas...


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A great deal of overlap, but not the same

Important to be aware when dealing with each


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Agenda



Policy


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Fair Housing Law


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Seven Protected Classes

Poverty?


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Fair Housing Law

• Legal/Policy Distinction• Two main areas of the law:

– General Fair Housing– Affirmatively Furthering

• Both have been around for >40 years


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Fair Housing Overall

Affirmatively Furthering

Applicable...regardless of any subsidy when using certain federal

resources

Meaning at the project

level

do not intentionally discriminate and provide reasonable accommodations

determining those least likely to apply and following a plan for marketing to them

Meaning for programs

do not intentionally discriminate; Supreme Court to rule on disparate impact

allocate resources so as to desegregate; upcoming rule replaces AI process


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Agenda



Policy


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Disparate Impact

Only one issue in the Texas

case

Is disparate impact a basis to establish a fair housing

claim?

Is disparate impact a basis to establish a fair housing

claim?

Not second guessing facts

or ruling on QAP priorities

Not second guessing facts

or ruling on QAP priorities

There are several possible

outcomes...

There are several possible

outcomes...


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Sides with State, Reverses the Lower

Court

Sides with Plaintiff, Upholds the Lower

CourtSomething Else

Quick Summary

fair housing enforcement requires proof of intent; claims based on disparate impact not possible

legal status quo, fair housing actions can be based on evidence of disparate impact

e.g., no clear majority or changing the legal standard

Overall, General

Consequence

different law for home mortgages, NIMBY challenges, and more

sigh of relief from advocates and others

experts scramble to figure out the meaning

Meaning for LIHTC

program

not that anything goes

more pressure for QAPs to prioritize opportunity areas

see above


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Agenda



Policy


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• AFFH is more than not discriminating• Undertaking actions as a condition of accepting

federal resources• Goal is to eliminate barriers to fair housing• Connections to LIHTC?

– not necessarily clear– subject of a different lawsuit


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Agenda



Policy


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• AFFH process will be part of ConPlan• HUD provides data• Several goals, including:

– improving choice– end Racially and Ethnically Concentrated Areas of

Poverty (R/ECAPs)

• Proposed rule considers proximity to amenities– arguably policy being brought into the legal side– won’t matter if part of the Rule


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Agenda



Policy


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“Explanations exist; they have existed for all time; there is always a well-known solution to every human problem ---

neat, plausible, and wrong.”

- H.L. Mencken, Prejudices: Second Series, 1920

Policy


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Policy

• No end of complication• One misinterpretation of a recent Harvard study:

every poor family in Denver just move to Jefferson Co.

• HUD study on QAPs:– they matter for the location of projects– effect measurable both with positive incentives and

avoiding disincentives


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National Issues –Concentration of Povertyfor the CHFA 2015 Housing Credit Summit


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Mark ShelburneNovogradac & Company [email protected](919) 889-2596

[handout] 2015-6 chfa concentration of poverty · microsoft powerpoint - [handout] 2015-6 chfa...

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