Survey Reveals Lack of Financial Capability by U.S. Adults

The first of three linked surveys assessing the financial capability of U.S. adults was released in December and paints a troubling picture of financial capacity of US adults while indicating the importance of increasing the ability of US adults to make informed decisions. According to the report, more than half of those surveyed reported difficulty covering monthly expenses; do not have a “rainy day” fund; more than one in five were engaged in alternative financing mechanisms; and, demonstrated an “inability to do basic interest calculations and other math-oriented tasks.”The survey, Financial Capability in the United States, is based on the responses of 1,500 American adults in a nation-wide telephone survey. (The results of two other surveys will be released in 2010 which will provide...

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2010 Appropriations Bill Signed into Law; Includes Funding of Housing, Community Development and CDFI

President Barack Obama signed legislation which provides funding for federal housing and community development programs for FY 2010. The act includes funding for programs administered by the Department of Housing and Urban Development (HUD) and the Community Development Financial Institutions Fund (CDFI).The bill provides funding for the following HUD programs:1. The public housing operating fund receives $4.8 billion which is a seven percent increase above the FY2009 figure. HUD officials claim this provides local housing authorities with enough funding to cover 100 percent of the cost to operate public housing units. The housing authorities’ Washington representatives disagree believing the allocation is still $450 million short of what is needed to administer public housing.2. The...

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A Quarter of US Households Remain Outside the Banking System

Survey results released by the Federal Deposit Insurance Corporation (FDIC) revealed that twenty-five percent of US households, including large percentage of low-income and minority households, are outside of the banking system. The survey, FDIC National Survey of Unbanked and Underbanked Households, was conducted on behalf of the FDIC by the U.S. Bureau of the Census as a supplement to the Census Bureau's Current Population Survey during January 2009.In addition to collecting accurate estimates of the number of unbanked and underbanked households in the U.S., the survey was designed to provide insights into their demographic characteristics and reasons why the households are unbanked and/or underbanked. The survey represents the first time that this data has been collected to produce estimates...

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Rural Housing Needs Overlooked According to Recent Statistics

The Housing Assistance Council (HAC) released new statistics which demonstrates the needs of renters in rural communities is often overlooked. Using data culled from the 2005 American Housing Survey (AHS) and the 2000 Census of Population and Housing, HAC released the following:1. Twenty-four percent of the rural housing stock, more than 6.3 million units, is renter-occupied.2. Four states have rural rental rates higher than the national average – Alaska, California, Hawaii, and Rhode Island.3. Renters in rural communities live on an average income of approximately $21,000 while owners in rural communities subsist on an average income of approximately $43,000.4. Thirty-nine percent of minority headed households in rural communities are renters compared to one-fifth of rural white...

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HUD Unveils Initiative to Replace the HOPE VI Program

The Department of Housing and Urban Development (HUD) unveiled a proposal designed to replace the HOPE VI program. The new initiative, the Choice Neighborhood Initiative, would build on the framework established by the HOPE VI program by incorporating a broader spectrum of disciplines in the revitalization effort. This includes housing, transportation, education, energy and the private sector. HOPE VI provides grants to housing agencies to revitalize severely distressed public housing. While it is not a “neighborhood revitalization” program, HOPE VI projects have provided the impetus for broader neighborhood revitalization.The new proposal calls for $250 million in competitive grants to be awarded to eligible grantees which includes local governments, public housing agencies, community development...

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Senator Receives the Congressional Gold Medal

Former Senator Edward W. Brooke III was presented with the Congressional Gold Medal in a ceremony on the Capital Rotunda October 28. Brooke, a strong advocate for public housing, was given the award two days after his 90th birthday.Brooke is best known as the author of a provision, called the Brooke amendment, which limited the income paid by public housing residents to no more than 30 percent of their income. Efforts to replace this provision have generated a great deal of controversy within the low-income housing advocacy community. Advocates strongly support his provision as a vital tool to keep public and assisted housing affordable to low-income families. Public housing authorities contend it reduces the incentive to work since a family’s rent is tied to the income they earn. They contend,...

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Magazine Inducts Five into its Hall of Fame

Renee Lewis Glover, President and CEO of the Atlanta Housing Authority, is one of five inductees to Affordable Housing Magazine’s Hall of Fame. Glover is credited with changing the face of public housing through the agency’s willingness to demolished large tracts pf public housing and replacing it with mixed-income developments.While receiving her fair share of criticism from public housing advocates, she has transformed public housing in Atlanta and serves as a model for other housing authorities nationally which have replicated her success in communities large and small.Joining Glover in the Hall of Fame are Sister Lillian Murphy, CEO of Mercy Housing; John McEvoy, former executive director of the National Council of State Housing Agencies; and posthumously George Knight, former director...

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Report Says City Fiscal Conditions Expected to Worsened in 2009

A report released by the National League of Cities (NLC) states cities will have a harder time meeting their fiscal needs in 2010 as a result of the nation’s economic condition.The report, City Fiscal Conditions in 2009, states that a decline in revenue from income and sales tax collections will result in significant budget gaps in 2010. These sources of local revenue typically decline first when jobs losses increase and the resulting purchasing of goods decreases.According to the report, property taxes are beginning to slow as housing values more closely reflect the economic downturn. The reports states it usually takes 18 months to several years before the revenues generated by local governments are impacted by brooder economic conditions. The report states that local governments can expect...

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Continuing Resolution Signed by President; Debate on Fate of Appropriation Bills Continues

President Barack Obama signed into law a Continuing Resolution which will keep the federal government operating until October 31. This will give Congress more time to finalize action on the various appropriation bills which fund the federal government. According to congressional sources, Members of Congress are debating the way in which earmarks are directed to private companies. Some members want earmarks targeted to private companies to be subject to competitive bidding.“Earmarks” are provisions placed by Members of Congress in appropriation bills which direct federal funds to a specific project or entity within that member’s district or state. The earmark can be placed in a House or Senate appropriations bill or in both. Action on the appropriation bills is expected to be completed before...

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DC Marks Renovation Milestone

Washington, DC Mayor Adrian Fenty took another step towards revitalizing one of the city’s worst neighborhoods when he announced the grand opening of a high rise development which provides intergenerational housing to low-income seniors and moderate-income workers.The new development, The Overlook, is located in the district’s Ward 8 a notoriously poor and high crime area. The city, residents and community members worked with the Community Preservation and Development Corporation (CPDC) which acted as the project’s developer.CPDC's mission is to develop vibrant communities through innovation and partnerships. To accomplish this, CPDC creates and preserves financially sound, socially responsible affordable housing for low- and moderate-income individuals and families and, in cooperation with...

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President Obama Headlines Dinner Celebrating Hispanic Heritage Month

President Barack Obama and First Lady Michelle Obama provided opening remarks to a dinner sponsored by the Congressional Hispanic Caucus Institute to begin the celebration of Hispanic Heritage Month. The dinner was held September 16.Obama said the most significant act of his early tenure as president was the appointment of Sonia Sotomayor to the Supreme Court. Sotomayor was on the dais at the dinner. Also attending the dinner was singer Marc Anthony who received the organization’s Lifetime Achievement Award. Anthony was in attendance with his wife, actress Jennifer Lopez.CHCI holds it Annual Policy ConferenceThe Congressional Hispanic Caucus Institute held its annual policy conference September 14-15 in Washington with major presentations devoted to the 2010 census and the impacts of the...

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Passage of Funding Bills at top of Congressional Agenda

Both the House of Representatives and US Senate will need to complete action on a 2010 housing appropriations bill before Congress adjourns this year. The House approved its version of an appropriations bill July 23 while the Senate Appropriations Committee approved its version July 30 (see August 11 post).Affordable housing advocates are pleased with the funding provided for the Department of Housing and Urban Development (HUD). It is uncertain if the HOPE VI will survive in its current form. The House funded the program at $250 million but the Senate provided funding for the administration’s proposed Neighborhood Choice Initiative. This new program is designed to allow for a broader pool of applicants and incorporate other elements of a community during the revitalization efforts. The HOPE...

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CDFI Accepting Proposals for Technical Assistance and Training

The U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund is accepting Request for Proposals (RFP) expand technical assistance and training opportunities for community development financial institutions (CDFIs) as part of a new Capacity- Building Initiative to greatly nationwide. This initiative is expected to increase the type of financial products and services to low income communities.This will make specialized training and technical assistance available throughout the industry and will cover the main issues which affect CDFIs. This includes affordable housing and business lending, portfolio management, risk assessment, foreclosure prevention, training in CDFI business processes, and assistance with liquidity and capitalization challenges. The RFP...

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Groups Agree on Tax Credit Changes

According to Affordable Housing Finance magazine 40 national, state and regional groups have agreed to a number of legislative proposals to stimulate the low income housing tax credit (LIHTC) market.The coalition of organizations have agreed to three key points as part of a grassroots campaign entitled Affordable Rental Housing A.C.T.I.O.N. (A Call To Invest in Our Neighborhood). The three points are:1. Extend the Exchange Program to Maintain the Development Pipeline in 2010.2. Immediately Stimulate and Maintain Housing Credit Investment Demand by increasing the Housing Credit Carry back Period.3. Broaden the Investor Base.The group is encouraging supports to contact their congressional representatives to press the aforementioned points. For more information on the campaign, go here....

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Conference on Housing Funds Expected in September

The House and Senate is expected to conference on a FY 2010 appropriations bill in September after the House approved its version of the spending bill before adjourning for the August recess. The Senate is expected to take up its spending bill in September. The two chambers will conference before a final bill is submitted to the president for his signature.There are slight differences in each bill:1. Community Development Block Grants (CDBG): The House provides $4.6 billion for the CDBG program while the Senate provides $4 billion.2. HOME Program: The House provides $2 billion for HOME while the Senate provides $1.8 billion.3. Public Housing Operating Fund: The House provides $4.8 billion and the Senate $4.75 billion.4. Public Housing Capital Fund: The House and Senate both provide...

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Hearing on Public Housing Scheduled for Wednesday July 29

The House Subcommittee on Housing and Community Opportunity will hold a hearing on a hearing on Wednesday, July 29 to explore the future of public housing.According to a subcommittee press release, the hearing will focus on existing research on the state of the nation’s public housing stock, the ways in which federal housing policy should improve the lives and self-sufficiency of public housing residents and the impact of the Department of Housing and Urban Development’s HOPE VI Revitalization program on neighborhoods and public housing residents.While the witness list has yet to be compiled, Chairwoman Maxine Waters (D-CA) expressed a desire to introduce comprehensive public housing reform legislation as a priority. Waters is a strong advocate for residents of public housing and the hearing...

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HUD 2008 Homeless Report Submitted to Congress

The Department of Housing and Urban Development (HUD) has submitted its 2008 homeless report to Congress. The 2008 Annual Homeless Assessment Report asserts homelessness has increased particularly in suburban and rural areas. The report provides a national review of homelessness in the country. In releasing its report, the department also unveiled a new quarterly assessment of homelessness, Homeless Pulse Project, which is designed to help the government determine the impact of the current economic crisis on families.The annual report indicates the number of homeless individuals seeking shelter remained constant; however, the number of homeless families seeking shelter increased by 56 percent in the suburbs and rural areas while experiencing a nine percent increase overall.HUD’s press statement...

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New Administration Initiative Hot Topic during Appropriations Hearing

Shaun Donovan, Secretary of the Department of Housing and Urban Development (HUD), told a House panel the administration’s new Choice Neighborhood Initiative was crafted to build on the success of the HOPE VI program and will seek to include schools and other local players in redeveloping communities.Donovan testified before the Housing Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies June 19. He reiterated the points he made in his testimony before the Senate Subcommittee (see June 15 posting) by summarizing the four objectives the department hopes to achieve with their budget proposal.He spent a good portion of the question and answer period responding to questions about the administration’s Choice Neighborhood Program. The administration...

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HUD Secretary Testifies on Budget; Announces Partnerships with Other Agencies

Shaun Donovan, Secretary of the Department of Housing and Urban Development (HUD) told the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development and Related Agencies the department’s FY 2010 budget proposal is a “forward thinking budget with new ideas for driving energy efficient housing, sustainable, inclusive growth, and revitalization of neighborhoods of extreme poverty.”Donovan said the budget achieves five objectives:First, it addresses the housing and economic crisis by combining resources with tools to prevent foreclosures and making credit available to those in need. Second, it “returns the federal government to its leadership role as a catalyst for expanding the availability of decent and affordable rental housing.” He said the budget does this by providing...

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Affordable Housing Developers Urged to Have Voices Heard, Be Ready for Great Deals

Carol Galante, Deputy Assistant Secretary for Multifamily Housing at the Department of Housing and Urban Development (HUD), urged affordable housing developers to aggressively advocate before the government and philanthropy to ensure they have a seat at the table when decisions affecting housing are made.Galante was the keynote speaker at the 2009 Annual Meeting and Awards Luncheon for the Housing Association of Nonprofit Developers (HAND). HAND was formed in 1991 to support a professional community of housing providers in order to increase the supply of affordable housing in the Washington, D.C. metropolitan area. HAND was incorporated in June 1998 and is an IRS-approved 501(c)(3) non-profit organization. HAND is open to all nonprofit and for-profit housing developers, technical consultants,...

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