Committee reviews BHIP changes, agrees to 30% minimum set‑aside for five‑year assistance

The House General and Housing Committee on Feb. 28 reviewed proposed statutory changes to the state’s Building Homes and Incentives Program (BHIP), focusing on preserving five‑year forgivable loans and establishing a recurring minimum allocation. Cameron Wood, Office of Legislative Council, told the committee the draft was being worked from "draft 6.1, dated 02/28/25 at 12:30PM" and cautioned that "this version has still not been edited."

Committee members discussed compromise language presented to them by administration representatives, including John Gilpin, to avoid concentrating all assistance into the 10‑year forgivable loan option and to protect assistance for people experiencing homelessness. Members asked the Department of Housing to set an annual minimum allocation "to be used for 5‑year grants or forgivable loans" while allowing remaining funds for either five‑ or ten‑year loans. The draft requires the housing department to consult with the Agency of Human Services on factors used to determine the set‑aside amount, including "the availability of housing vouchers, current need for housing for eligible households" and support services for landlords.

Members pressed for clarity about how unused five‑year set‑aside funds would be handled. The draft provides that if the department cannot place the five‑year funds within a year the remaining amount may be made available for the 10‑year fund. Committee members debated whether that rollover was the intended treatment, whether the set‑aside should be re‑established each year from new appropriations, and whether the statutory language should be tightened so it is not ambiguous. Several members expressed that the draft's phrasing made the five‑year minimum look like a permanent floor: "there is the sub 7, which says that the minimum shall be 30%" and that the committee might revise wording to read "shall be a minimum of 30%."

Members also discussed operational details: who the five‑year grants are meant to serve (the draft contemplates households exiting homelessness, families in refugee resettlement, individuals with disabilities and others) and whether the statutory text should be reorganized so provisions that apply to both five‑ and ten‑year paths appear in a shared subsection rather than under the 10‑year subsection. Cameron Wood said he would work with staff and return corrected, edited language for the committee's review.

No formal vote on BHIP language was recorded at the meeting. Committee members requested clearer drafting on rollover and minimum‑set‑aside mechanics and directed staff to consult with Sean and other administration and human services contacts before the next meeting.