ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, January 24, 1996 TAG: 9601240053
SECTION: VIRGINIA PAGE: C-5 EDITION: METRO
DATELINE: RICHMOND
SOURCE: SUE ROBINSON SAIN STAFF WRITER
If you are an engaged couple, a gay couple, or a single parent who wants to share home ownership with another single parent, you will soon find it impossible to qualify for a Virginia Housing Development Authority home loan.
Housing commissioners approved a regulation Tuesday that critics say discriminates against unmarried and same-sex couples.
The change - 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 Miller, chairman of the housing authority board.
The loudest board voice in opposition, Commissioner Albert Eisenberg, saw it differently.
"It is bigoted nonsense elevated to formal state policy," he said. The new policy "uniquely combines bigotry with stupidity."
Eisenberg raised questions about the risk of costly legal challenges, and if the Federal Housing Administration would sever its connection with the housing authority. The FHA insures roughly 70 percent of housing authority loans.
"What the policy will do for sure," said Kent Willis of the American Civil Liberties Union "is inspire lawyers to look for challenges."
The nonprofit housing authority is a public mortgage finance company that made some $906 million in mortgage loans to 11,400 borrowers in the last fiscal year. Many of those loans, 34 percent, were to married couples with dependents, and 19 percent were to married couples. Singles made up 33 percent of the borrower pool, followed by singles with dependents (10 percent) and other households (4 percent).
Under the rule change, some of those "others" who share living quarters would likely apply for a loan as single. But they would not be able to count two incomes toward their credit-worthiness.
The housing authority's mission, as articulated in its brochure, is "to help our fellow Virginians obtain safe, sound and decent housing otherwise unaffordable to them ... to operate in such a manner that all low- and moderate-income citizens have equal opportunity to benefit."
Some 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.
At a public hearing last week, 18 of the 20 speakers voiced opinions against the change.
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