Housing Fund For Poor to Get $4.3 Million
April 12, 2006 John Stamper Herald-Leader Frankfort Bureau
FRANKFORT—A program that builds housing for the working poor and disabled will get at least $4.3 million a year under a bill approved yesterday by both the House and Senate.
The measure would provide a stable revenue stream for the Affordable Housing Trust Fund by raising the recording fees on deeds and mortgages and certain other documents from $8 to $12, with $6 of that amount going to the housing program.
The trust fund, which has been helping programs like Habitat for Humanity build about 400 housing units a year, has been funded with appropriations from the state’s General Fund in recent years. It received about $3 million from the General Fund last year.
House Bill 537, which also raises several other fees assessed by county court clerks and county sheriffs, passed the Senate yesterday afternoon 26-6. The House gave its final approval yesterday evening on a 66-26 vote. The bill now goes to Gov. Ernie Fletcher for his signature.
Earlier in the day, the Senate Appropriations and Revenue Committee added the Affordable Housing Trust Fund provision to the bill and passed it 13-4.
A similar proposal was passed by the House several weeks ago but stalled in the Senate, where several members were skittish about the proposed increase.
Republican Sen. Gary Tapp of Waddy continued his opposition yesterday.
“Every time we come up here we’re raising fees of some sort. When is enough enough?” he asked.
Tapp said he has sympathy for those living in substandard housing but thinks people should help them “on a voluntary basis, rather than a mandatory basis.”
Supporters of the Affordable Housing Trust Fund were pleased with yesterday’s action, though they expressed disappointment that the approved fee was $4 less than their original request. A $10 increase would have brought in more than $6 million a year.
“The positive side is that this will provide a revenue stream year after year, so they can do some long-term planning,” said Rep. Jim Wayne, D-Louisville.
The trust fund also receives $500,000 a year from the Kentucky Housing Authority. In addition, Wayne said he hopes to include a provision in some other bill that would direct excess delinquent property taxes collected by the state to the trust fund.
The state budget anticipates receiving $7 million in delinquent property taxes, but Wayne said the state generally receives an additional $1.2 million.
Reach John Stamper at (859) 231-1305 or jstamper@herald-leader.com.
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