DANIELS SIGNS HABITAT BILL
By MaryJane Shearer on Thursday, June 9th, 2011 |
On June 2, 2011, Governor Mitch Daniels signed into law HB1180 which exempts Indiana’s Habitat for Humanity (HFH) affiliates from the difficult and cumbersome requirements of the SAFE Act legislation which regulates the conventional mortgage loan industry.
The SAFE Act legislation, as written in Indiana, would have effectively put HFH affiliates out of business due to the costly license fees and bonding requirements necessary to hold and write mortgages in the state. The legislation was designed to deter predatory lenders, like those that caused the foreclosure crisis, and to ensure consumer protections. HFH supports those efforts and stands firmly against predatory lenders that prey on the poor. HFH’s model is based on a no-profit/no-interest mortgage. Of Indiana’s 68 HFH affiliates, only 5 would have been able to continue to operate if HB1180 had not been signed into law. HFH affiliates were unintended victims of the SAFE Act legislation.
During the most difficult political environment in recent years, HFH Indiana was successful in passing this bill with a House vote of 98-0 and a Senate vote of 50-0. In a year marked by political division, protests, and the Democratic walkout, Habitat was able to bring both parties together in support of their low-income housing program. All legislators agreed that Habitat’s ministry had value in their districts, and none of them wanted HFH affiliates to cease operating.
HB1108 was authored by Representative Ed Clere who also serves on the Floyd County HFH Board of Directors. Representative Clere’s HFH affiliate would have been one of the affiliates to close its doors if his legislation did not pass. Habitat Indiana’s State Director, Gina Leckron, said “Habitat for Humanity has a huge ability to break down barriers, even political ones, to get to the heart of the matter. Low income housing does matter, and Habitat’s work has made a huge impact in the state, housing over 3,300 families.”
Habitat for Humanity is a non-profit, ecumenical Christian housing ministry that unites people of all races, religions and backgrounds to build homes around the world for families in need. Since its inception, HFH International has built more than 400,000 homes worldwide, providing more than 2 million people with decent, affordable shelter.
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