Encouraging the ownership of housing is particularly important in the impacted areas. The Committee acknowledges that only increased Federal support for affordable housing initiatives can make a substantial dent in the City's housing crisis. The State, however, is not without tools to promote home ownership in the affected areas. Expand CHFA Affordable Housing Programs CHFA issues mortgage-backed revenue bonds to finance affordable housing in the State. Under the program, CHFA makes a loan to a non-profit housing developer, who acquires land, develops building plans, selects eligible families for participation in the program, and provides construction training and supervision.
Families work in groups under the developer's supervision to construct their own homes.
Typically, the families devote 30 to 40 hours per week for seven to nine months to this effort. Technical tasks such as the foundation, plumbing, and electrical work are subcontracted. MDP loans also carry an interest rate of three percent and defer payment of principal and interest until the home is sold or refinanced. Although these CHFA programs could fulfill a desperate need in the areas impacted by the disturbances, to date CHFA has not made lending in Los Angeles a priority. Pending Congressional reauthorization of the program under which CHFA issues its mortgage revenue bonds, the Committee urges the CHFA board and staff to target these and other affordable housing programs to the areas impacted by the unrest.