Bill To Establish Housing Trust Fund Advances

The bill was filed by Senator Joyce Elliott of Little Rock. She says having grown up poor herself in south Arkansas, she knows the importance of owning a home.

A single mom we caught up with in North Little Rock is living that dream. 38-year-old Karen Davis is a first time home owner. She was able to acquire this energy efficient home with federal housing assistance, giving her $2,500 for a down payment. That made it affordable and put a roof over the heads of her two kids.

Davis says, "They have the front yard and back yard to play in. I don't have to get permission for play grounds or trampolines. I don't have to worry about making noise upstairs or downstairs for neighbors. It's very beneficial."

Senator Elliott says Arkansas is just one of 12 states that does not have a housing trust fund. Senate Bill 396 would change that.

The measure says those eligible for assistance must make equal to or less than 80-percent of the median household income. It would make available grants, loans, and loan guarantees. The money could be used for things like rent, down payment assistance, housing and foreclosure counseling, or land acquisition.

In an unusual move, the measure passed so quickly through the Senate Insurance and Commerce Committee Thursday morning, we barely had time to set our camera up. We caught up with Senator Elliott afterwards.

She says, "This bill is designed to help those who are homeless, disabled, those in rural areas where they might not have a lot of resources, the folks who we normally leave out of the housing market or have inadequate housing this will provide a way that we can get them into adequate housing."

This bill does not yet have a funding mechanism. This measure simply establishes the program.

Senator Elliott says in the next legislative session she'll work to get the money. She is also hoping some stimulus money could be used for this measure.