THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, January 24, 1996 TAG: 9601240424
SECTION: LOCAL PAGE: B7 EDITION: FINAL
SOURCE: STAFF REPORT
DATELINE: RICHMOND LENGTH: Medium: 67 lines
If you are a single parent who wants to share home ownership with another single parent, an engaged couple or a gay couple, you will soon find it impossible to qualify for a Virginia Housing Development Authority home loan.
Housing commissioners Tuesday approved a regulation critics say discriminates against unmarried couples and same-sex couples.
The change - a moved backed by the governor - becomes effective on loans being processed starting Feb. 5.
The broader ``household'' standard, had been in use since 1994.
``We feel that the new definition is the proper definition of a family unit,'' said Michael G. Miller, chairman of the VHDA board.
The loudest board voice in opposition, Commissioner Albert C. Eisenberg, saw it differently. ``It is bigoted nonsense elevated to formal state policy,'' he said.''
Eisenberg raised questions about the risk of costly legal challenges, and whether the FHA would sever its connection with VHDA. The federal housing authority insures roughly 70 percent of VHDA loans.
``What the policy will do for sure,'' said Kent Willis of the ACLU ``is inspire lawyers to look for challenges.''
The nonprofit Virginia Housing Development Authority is a public mortgage finance company that made some $906 million in mortgage loans to 11,400 borrowers in the last fiscal year. Most of those loans, 34 percent, were to married couples with dependents, and 19 percent were to marrieds. Singles made up 33 percent of the borrower pool, followed by singles with dependents (10 percent) and other households (4 percent).
Under the rules change, some of those ``others'' who share living quarters, would probably qualify for a loan as single.
But they would not be able to count two incomes toward credit-worthiness.
Real estate associations opposed the language change, as did the civil rights group Virginians for Justice, which speaks up for equal rights for gays and lesbians.
Opponents of the ``family'' language argue that mortgage lending shouldn't be tied to marital status or relationships but should be managed based on credit-worthiness.
Representatives from the Family Foundation and Concerned Women for America endorsed the change.
Reportedly, 18 of the 20 speakers at a public hearing last week urged against the change.
The vote came one month after Gov. George F. Allen's emissary and then-director of the Virginia Department of Housing and Community Development David Caprara brought the new language to the VHDA's Board of Commissioners. Tuesday's vote was along party lines, with the six Allen appointees forming the majority to approve the change 6-2. ILLUSTRATION: Graphic
THE NEW RULE
A single-family loan can be made to more than one person only if
all such persons . . . are related by blood, marriage or adoption or
by legal custodial relationship.
Exceptions may be made by the executive director in cases of
personal or financial hardship in which one of the persons is
elderly (62 or older) or is physically or mentally disabled.
KEYWORDS: GENERAL ASSEMBLY MORTGAGE LOANS VHDA by CNB