Jul 18, 2003  |  By: JOE CREA  | COMMENTS     

RICHMOND, Va. — A second attempt to make unmarried couples, including same-sex couples, eligible for low-interest home financing loans is underway in Virginia.

The Virginia Housing Development Authority will hold a public hearing on July 24 to debate changing its 19-year-old “family rule,” which stipulates that only Virginia citizens related by “blood, marriage, or adoption” qualify for VHDA’s public home lending program. The board could vote on the change as early as July 25.

“The change would impact a pretty broad range of people,” said Dyana Mason, executive director of Equality Virginia, a statewide gay rights advocacy group. “It would permanently benefit disabled people, single mothers, low-income people and anyone else who needs assistance in applying for a low-income loan. And getting more Virginians into homes is a good thing for the state in terms of long-term economic development.”

The 10-member, governor-appointed board tried to amend the “family rule” in January 2002 but were “bullied” by social conservatives, notably the Family Foundation of Virginia, from making such changes, Mason said.

“Some of the more conservative members of the General Assembly threatened to make the family rule law, and it scared off the VHDA for it would have taken away their responsibility,” Mason said.

The Family Foundation has criticized Democratic Gov. Mark Warner for appointing members to the board that they say will support the “effort by the homosexual activist lobby in Virginia to change the definition of family.”

Gay Arlington County Board Member Jay Fisette, who was appointed to the VHDA board by Warner, said despite the protestations of the Family Foundation, the change would not alter Virginia’s definition of family.

“The rest of the country continues to have their definition of family intact while private mortgage lenders and housing authorities in 49 states don’t discriminate against unmarried couples, single moms, senior citizens or two college students,” Fisette said.

Family Foundation mobilizes
In an e-mail sent to supporters, the Family Foundation said that for the state to grant loans to “any combination of individuals is bad business.” To support their claims, the foundation argued that “studies show that cohabitating couples rarely stay together beyond five years” and that this is “particularly true for homosexual relationships.”

They also argue that if the “family rule” is removed by the VHDA, then that would signal a “tacit endorsement by a state agency of cohabitation and homosexuality.”

Fisette said that the Family Foundation remains “isolated” and “alone” on this issue.

“It really is somewhat sad that they are so out of touch with mainstream business communities,” Fisette said. “Realtors, banks, developers all disagree with their narrow view. Not only are they isolated on this issue but because of them, Virginia is isolated, as it is the only state in America with such a discriminatory rule.”

Mason said the Family Foundation was espousing “extreme rhetoric” and were trying to “scare fair-minded Virginians” away from supporting the regulation change.

“Most federal agencies don’t have this restriction,” Mason said. “If the VHDA were to adopt this change, we would simply be just getting in line with other states.”

The Family Foundation did not return calls seeking comment.

Warner wants rule overturned
Gov. Warner’s office did not return calls for this article, but officials told the Richmond Times-Dispatch that the “family rule” violates VHDA’s mission and values. The agency seeks to help those in need obtain decent housing.

“For the governor, it is just this simple: Moving renters to home ownership is good for Virginia’s communities,” Ellen Qualls, the governor’s press secretary, told the Times-Dispatch. “VHDA’s lending policy has been more restrictive than any other in the industry, including affordable-housing agencies and programs in every other state in the nation — which view broad lending practices as good business practices.”

VHDA changed the policy in 1994 to allow unmarried couples to apply for loans but then-Gov. George Allen, a Republican, objected to the change in policy and tried to prevent it, saying it would encourage gay and unmarried couples to live together. The board defied Allen’s wishes and voted 6-1 to eliminate the rule. But after a heated public debate in 1996 on whether gay couples should qualify, the board reinstated the previous guidelines.

In late 2001, the board proposed to eliminate the rule, after a statewide assessment showed that the policy was an obstacle for low-income housing residents, primarily single women, the elderly and disabled.

The board is comprised of 10 members, including the treasurer of Virginia, a representative from the state’s Board of Housing & Community Development, the director of the Department of Housing & Community Development, and seven ...