WASHINGTON, DC – As part of a multi-faceted approach to create more affordable housing throughout the region, Rep. Bill Delahunt today announced several new Housing & Urban Development (HUD) grants for the Barnstable County HOME Consortium.

"The lack of affordable housing in southeastern Massachusetts has become the single most critical issue facing the economy of our region" said Delahunt today.  "The good news is that we have a talented and dedicated group of professionals working to address this issue.  They just need funding to leverage private investment."

Over the past year numerous reports have documented the out-migration of residents from Massachusetts, citing the lack of affordable housing as one of the major reasons.  In addition, Delahunt has cited the lack of affordable housing as also contributing to the "shrinking" of the seasonal workforce, which in turn has forced local businesses to seek foreign labor to work in local restaurants and lodging establishments during the summer months. 

Funding from HUD has been approved for the Barnstable County HOME Consortium, which covers Cape Cod’s 15 towns.  HOME will receive $716,618 from two HUD sources: the American Dream Down-Payment Initiative (ADDI) and the HOME program.  The Cape HOME program is one of the few in the nation that has been organized by county government.  In this case, the Barnstable County HOME consortium was organized by the Cape Cod Commission and provides financial support for a number of local housing initiatives.  This year, the HOME consortium will target funds for the development of affordable rental housing in the region.

"Federal incentives can spark development of affordable housing here—and not a moment too soon, with the average price of a Cape Cod home having increased by 80 percent since 2000," noted Delahunt. Under the HOME program, developers can qualify for loans at zero percent interest. To be eligible, loan recipients agree to build and maintain affordable housing for an extended period of time – typically 40-50 years. "It is an innovative way to link public and private resources," Delahunt said, "by encouraging developers to ensure quality affordable housing as they build in our communities."

The 2006 grants also include ADDI dollars that provide direct financial assistance to future homeowners in completing the actual purchase transaction. Studies indicate that the lack of a down-payment or full closing costs is the primary barrier to home ownership for low-income households. "ADDI provides hard-working individuals and families with an extra boost in the form of a down-payment, transforming renters into homeowners," Delahunt said. 

-30-