Summer Reminders

Washington, DC is going to be mired in presidential politics in 2008. For housing and community development professionals, the most substantive work to come out of DC in 2008 will be a 2009 budget. There is a chance that other initiatives will be passed but during a presidential election year, the budget and attendant appropriations bills are the only legislative measure Congress will pass in 2009 affecting the housing and community development community.

Here are few things you can do in 2008 that will help your agency:

1. Financial earmarks. Do you have a new playground you want funded? Are you looking to fund a project for seniors in one of your developments? Talk to your congressional representatives about placing “earmarks” in the next budget. “Earmarks” are specific items the Member of Congress slips into an appropriations bill for a project in his or her district. Commonly known as “pork”, but during an election year it is a great way to fund a specific project. Although Congress reduced the percentage of “earmarks” by 50 percent in FY 2008 compared with FY 2006, it is unlikely they will be eliminated altogether. In FY 2008 $179.8 million was appropriated for Economic Development Initiative (EDI) “earmarks” and @46 million for neighborhood initiative “earmarks” within CDBG. Examples of HCD “earmarks” in FY 2008 can be accessed at: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_reports&docid=f:hr497.110.pdf (Pages 599 thru 606).
2. Mortgage Credit Crisis: If any legislative action is to occur it is to resolve the mortgage credit crisis. It is important that your agency and your organizational representatives are active participants in the discussion on the credit solution so it does not adversely affect access to the bond markets for tax credit production and low-income homeownership initiatives. Efforts must be made to push Congress, the Department of the Treasury and the Department of Housing and Urban Development (HUD) to represent your interests in this matter.
3. District visits: Invite your congressional delegates to as many photo opportunities as possible. Whether they come or not is irrelevant. During an election year it gets them face time in front of your activities and provides you with a chance to promote your agency’s work and to illustrate that you are a valuable resource to your congressional representatives and their staffs... You should also invite the opponent as well; however, protocol certainly calls for the incumbent to be invited.
4. Issues within your power to control: Don’t get your hopes up that things will change at the central offices of the Department of Housing and Urban Development (HUD). It is great to be optimistic but you are still dealing with an institution, which in my opinion, is outdated to meet the demands of today’s agencies. HUD has a vested interest in regulating and maintaining compliance controls for it to fulfill its oversight responsibility more so than establishing a regulatory framework that permits maximum flexibility and spurs creative development and program implementation. Although some administrative reforms and simplification have been proposed, without statutory reform, it is unlikely the Office of Public and Indian Housing (PIH) will be moved beyond the Administrative Reform Initiative enhancements until the Department assesses the results of implementing the new program monitoring and reporting systems under the new asset management framework.
5. Private investment opportunities: Learn as much as possible about the Community Reinvestment Act (CRA). CRA is legislation enacted 30 years ago which requires banks to invest in low income communities. Here is a web site with useful information: http://www.ncrc.org/. The more tools you are able to use outside of the normal HUD structure, the more successful your agency will be.
6. Vote. You need to vote and encourage others to vote. Your vote does count and will have a huge difference in both the local, state and national election. Understand that your “big picture” vote may undermine your job. For example, if you believe we need a Democrat in the White House and Congress, you can expect more regulation with whatever increase in money may come to your agency. Traditionally, the reverse is true. A Republican in the White House means more of the same from the last eight years. Regardless, VOTE.

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Interesting Reads

The Washington Post includes two articles which offer different insights into the current housing situation. This first article "How HUD Mortgage Policy Fed The Crisis" by Carol D. Leonnig, describes how the Department of Housing and Urban Development’s (HUD) policies contributed to the current crises. The second, "FHA Loans Emerge From the Sidelines" by Dina ElBoghdady , describes how the increase in the Federal Housing Administration’s (FHA) loan limits has benefited homebuyers.

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Posted in: crisis,development,fed,fha,hud,loans,mortgage,urban

Hillary Bows Out

Random thoughts on the nomination process which has just ended:

1. Congratulations to Barack Obama. He earned the nomination by working hard, playing by the rules and not letting racism become an obstacle to securing the nomination.
2. Congratulations to Hillary Clinton for an impressive race, not quitting and pushing Obama to the very end.
3. Clinton blew it. The nomination was there for the taking and she simply blew it. She can blame sexism, her staff, the media, whomever she wants to blame but as the head of ticket she needs to take responsibility for this loss. She disrespected the other candidates and expected everyone to genuflect on the carpet of here inevitable coronation as Democratic nominee.
4. We have discovered the Clinton machine is not as powerful as we all thought. I always considered the Clintons to be con artists and felt the extended primary season worked against Hillary. The essence of a con is timing. The more time needed to pull off the scam the more likely the scam won’t work. Hillary tried to have everyone believe she accomplished so much during her years in the White House. During the Clinton presidency Democrats lost the Congress in record fashion, were beset by controversy, resulted in an impeachment and ended in pardons to some very shady characters. The balanced budget and welfare reform initiatives emerged from the Republican-controlled Congress. Clinton cooped those issues to become his own when he realized those ships could not be stopped. The strong economy and relative peace during the Clinton administration was due to the balance between the Republican Congress and the Democratic White House. To Bill’s credit, the achievements happened under HIS watch not their (Bill and Hillary’s) watch.
5. It upsets me that the Clinton campaign and the media appeared to believe that Obama needs to apologize to her campaign and supporters. For what? They each ran a hard campaign and she lost. She is not expected to end her campaign but suspend it, what’s up with that?
6. The nomination was not stolen from Clinton, she lost fair and square.
7. Clinton damaged her reputation within the African-American community by trying to change the rules in the middle of the contest. From the very beginning Clinton knew Florida and Michigan were going to be sanctioned. When the Rules Committee made its decision only a Florida Obama supporter objected. Yet when Clinton realized she was losing and needed those votes she cried for a change in the rules to suit her purpose.
8. Clinton can’t have it both ways. Now she is trying to muscle her way into the VP slot or the position of her choice. She deserves consideration but Obama is better off letting her return to the Senate where she can build a credible record of achievement on her own and not one centered on her husband.

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Nomination thoughts

Random thoughts on the nomination process which has just ended:

1. Congratulations to Barack Obama. He earned the nomination by working hard, playing by the rules and not letting racism become an obstacle to securing the nomination.
2. Congratulations to Hillary Clinton for an impressive race, not quitting and pushing Obama to the very end. She has become to women what the Rev. Jesse Jackson was to African Americans in 1984. She demonstrated a woman can compete for the most powerful position in the world. One day a woman will become president of the United States. I am not convinced it will be Hillary.
   
3. Clinton blew it. The nomination was there for the taking and she simply blew it. She can blame sexism, her staff, the media, whomever she wants to blame but as the head of ticket she needs to take responsibility for this loss. She disrespected the other candidates and expected everyone to genuflect before her inevitable coronation as Democratic nominee.
4. We have discovered the Clinton machine is not as powerful as we all thought. I always considered the Clintons to be less than truthful and felt the extended primary time frame worked against Hillary. Manipulating the truth is the hall mark of the Clintons. The more time needed to twist the truth the more likely the plan won’t work. Hillary tried to have everyone believe she accomplished so much during her years in the White House. She claimed credit for her husbands accomplishments. The more time people had to dig into the facts, the less credible she became. The facts did not coincide with her statements and then her story seemed to change with the wind. The truth is during the Clinton presidency Democrats lost the Congress in record fashion, were beset by controversy, resulted in an impeachment and ended in pardons to some very shady characters. The balanced budget and welfare reform initiatives emerged from the Republican-controlled Congress. Clinton cooped those issues to become his own when he realized those ships could not be stopped. The strong economy and relative peace during the Clinton administration was due to the balance between the Republican Congress and the Democratic White House. To Bill’s credit, the achievements happened under HIS watch not their (Bill and Hillary’s) watch.
5. It is clear from the nomination results that while many Democratic delegates and super delegates respected the Clintons, they were not well liked. It is interesting that a number of analyst on CNN, MSNBC and Fox were saying how the appointments of Howard Dean and Nancy Pelosi to their positions of DNC chair and House Majority Leader were signs the Clinton machine did not have the muscle everyone thought they did.
   
6. It upsets me Clinton supporters and some in the media appeared to believe that Obama needs to apologize to Clinton and supporters. For what? They each ran a hard campaign and she lost. She is now expected not to end her campaign but suspend it, what’s up with that? I am one of the few who does not believe he needs Hillary on his ticket.
   
7. The nomination was not stolen from Clinton, she lost fair and square.
8. Clinton damaged her reputation within the African-American community by trying to change the rules in the middle of the contest. From the very beginning Clinton knew Florida and Michigan were going to be sanctioned. When the Rules Committee made its decision only a Florida Obama supporter objected. Yet when Clinton realized she was losing and needed those votes she cried for a change in the rules to suit her purpose. She has a lot of fence mending to do. Obama does as well but as the nominee he is afforded some leeway.
   
9. Clinton can’t have it both ways. She is not the nominee therefore she must submit her supporter to Obama. Trying to muscle her way into the VP slot or the position of her choice is not smart. She deserves consideration but Obama is better off choosing some one else. She is better off returning to the Senate where she can build a credible record of achievement on her own and not one centered on her husband.

One final thought: I want to express a debt of gratitude to the men and women who fought, died and survived on the beaches of Normandy on this day in 1944. This country owes you so much for your sacrifices and accomplishments.

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Posted in: Nomination thoughts