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.