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FINDING AFFORDABLE HOUSING
OTHER SOURCES OF FUNDING Federal Home Loan Bank (FHLB)
Affordable Housing Trust Funds, Council on Affordable Housing (COAH) and the Mount Laurel Decision - The Mount Laurel Doctrine prohibits housing discrimination against the poor by the state and municipalities. In 1975, New Jersey’s litigation was one of the first court cases of its type in the nation. It is widely regarded as one of the most significant civil rights cases in the United States. In direct response to this litigation, the New Jersey Legislature enacted the Fair Housing Act in 1985. This created the Council on Affordable Housing (COAH) to assess the statewide need for affordable housing, allocate that need on a municipal fair share basis, and to review and approve municipal housing plans that develop housing for people of low and moderate income. After a series of legal challenges by the NJ Fair Share Housing Center WWWFAIRSHAREHOUSING ORG the courts determined that COAH was not properly executing its responsibilities and that towns must use the trial courts to get their housing plans approved. In addition, it was determined that municipal affordable housing trust funds are to be spent on affordable housing development. These funds are accumulated at the municipal level through an assessment of a developer’s fee when building permits are issued. Families should reach out to their mayors and local housing officials to ask about the municipal housing plans and encourage municipalities to use trust fund dollars now and in the future, along with their zoning powers, to provide affordable housing for people with special needs.
The FHLB funds the Affordable Housing Program (AHP) that directs member banks to collaborate with developers to utilize this funding in conjunction with other programs such as the LIHTC and CDBG to develop housing for low-income populations. In addition, the Community Investment Program (CIP) provides funding to member banks to be used for long- term projects that create low-income housing. Community Reinvestment Act (CRA) Federal law requires that commercial banks have a continuing obligation to assist the credit needs of the local communities that they serve. This law requires evaluation of these financial institutions in meeting the community needs including low- and moderate-income neighborhoods. Often local banks assist housing development through grants or loans www. FEDERALRESERVEGOVCOMMUNITYDEVCRA?ABOUTHTM
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