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 information on a State-by-State survey and Military Survey.) The survey was released by the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation.

The mission of the FINRA Investor Education Foundation is to provide under served Americans with the knowledge, skills and tools necessary for financial success throughout life. The FINRA Foundation envisions a society characterized by universal financial literacy. FINRA is the largest independent regulator for all securities firms doing business in the United States. All told, FINRA oversees nearly 4,800 brokerage firms, about 170,400 branch offices and approximately 643,000 registered securities representatives.

The survey focused on four components of financial capability – making ends meet, planning ahead, managing financial products, and financial knowledge and decision-making. The survey found:

1. Almost half of the responders stated they had troubled making ends meet;
2. A quarter reported having overdrawn checking accounts;
3. Approximately 16 of mortgage borrowers were late with their payment at least once in the preceding 12 months;
4. A significant number withdrew funds from their retirement accounts;
5. Only 49 percent of the respondents stated they had a three-month rainy day fund. The percentage decreased as the age and income of the respondents decreased;
6. The majority of Americans do not have any retirement plans;
7. Less than half of the respondents with financially dependent children have not set aside money for a college education;
8. Twelve percent of all respondents are “unbanked: while 15 percent do not have a checking account and 28 percent do not have a savings account, money market fund or time-deposit account;
9. Nearly one-quarter of respondents utilized alternative forms of banking in the last five years;
10. Sixty-eight percent of the respondents said they had a credit card and 27 percent said they had at least four;
11. Three in five respondents owned a home. This includes 41 percent of African-Americans, 42 percent of Hispanics and 69 percent of Caucasians own homes;
12. More than half of the respondents had retirement accounts yet the responses varied by income and education group; and,
13. Most respondents were not as financially literate and they thought.

FINRA will continue to analyze the survey results as it tabulates and prepares to release the Military and State-by-State Surveys. The survey is available online. FINRA plans to repeat the survey in three to five years to measure the progress of efforts to increase the financial capabilities of US adults.

SBA Releases New Report on Business Owners

The Small Business Administration (SBA) released a working paper which seeks to provide a better understanding of the starts and stops of nonemployer businesses. Nonemployer businesses are those with no employees other than the owner and include part-time, home-based businesses where the owners work less than 40 hours per week.

According to the paper, The Nonemployer Start-up Puzzle, points out that these firms make up three-quarters of the firms in our economy. These firms are more likely to start as an occupational decision as oppose to a response to an opportunity in the marketplace.

The paper is authored by Zoltan Acs, Brian Headd, and Hezekiah Agwara, and uses special tabulations produced by the U.S. Census Bureau’s Nonemployer Statistics and funded by the U.S. Small Business Administration, Office of Advocacy. The findings include:

1. Nonemployer firms have entry rates about three times those of employer firms. Of existing companies in 2004, 34.3 percent of nonemployers were new and 12.6 percent of employers were new.
2. Exit rates in the time period studied were lower but similar to entry rate levels for both nonemployers and employers.
3. Entry and exit rates, collectively referred to as turnover, seem to be associated with an industry’s economies of scale, or the amount of capital needed for entry. For example, mining, with high economies of scale, had low turnover rates, while services, with low economies of scale, had high turnover rates.
4. The econometric model found, after controlling for population growth, that states’ unemployment rates were positively correlated with nonemployer entry.

Interesting Read

Redistricting and the 2010 Governor’s landscape
By Chris Cilliza
Washington Post

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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 public housing capital fund received $2.5 billion which is a two percent increase over last year’s allocation.

3. The HOPE VI program received $200 million FY2010 but up to $65 million can be used to fund the administration’s proposed Choice Neighborhood Initiative as a demonstration. (See ViewfromDC November 11 post)

4. The community development block grant (CDBG) program received approximately $4.5 billion with approximately $4 billion to be distributed by formula and the balance is directed to set-asides. The set-asides include $150 million for regional planning strategies which are expected to integrate housing, transportation and land use planning. Also included in the set-asides is $25 million for a new Rural Innovation Fund to address concentrated housing distress and poverty in rural communities.

5. The HOME program received $1.825 with no funding for set-asides.

6. Homeless assistance programs received $1.865 billion.

7. The voucher program received $16.3 billion for housing assistance payments and $1.6 billion in administrative fees.

There were a number of administrative provisions included in the bill:

1. HUD cannot use any FY2010 program dollars to fund projects which attempt to use eminent domain for a private project. The use of eminent domain must be for a public purpose.

2. Moving-to-Work agencies will have their funding renewed based on the terms of their existing contract.

3. At least $25 million of the regional planning grants must go to areas with fewer than 500,000 people.

Funding for the CDFI programs includes:

1. $107.6 million for the CDFI Program;
2. $80 million for the new Capital Magnet Fund;
3. $25 million for the Bank Enterprise Award Program;
4. $12 million for the Native Initiatives;
5. $4.15 million for a new Financial Education and Counseling Pilot Program; and
6. $18 million for the CDFI Fund’s administrative expenses.

S&P Issues Ratings to Housing Finance Agencies

Standard and Poors issued a series of credit ratings in December. The following received the “AAA” rating:

• Minneapolis/St. Paul Housing Finance Board’s (MN) single-family mortgage revenue bonds (mortgage backed-securities, or MBS, program -- CityLiving Home Program).

• Dakota County Community Development Agency’s (MN) single-family mortgage revenue bonds (mortgage-backed securities, or MBS, program), series 2009A.

• Nashville & Davidson County Metro Government Health & Educational Facilities Board’s (TN) multifamily housing revenue bonds, series 2009, issued on behalf of Alco Dellway Partners L.P. for the Dellway Villa Apartments project.

• West Virginia Housing Development Fund's Fund's (WVHDF) New Issue Bond Program (NIPB) series 2009.

• Georgia Housing and Finance Authority's (GHFA) single-family mortgage revenue bonds series 2009C.

• Nebraska Investment Finance Authority's (NIFA) $134 million taxable bonds single-family home ownership revenue bonds series 2009A.
• Utah Housing Corporation's (UHC) multifamily housing revenue bonds, series 2009A.

• Alaska Housing Finance Corporation's (AHFC) mortgage revenue bonds, series 2009A.

• Nevada Housing Division's (NHD) HFA Initiative multifamily bonds (NHD) HFA Initiative multifamily bonds, series 2009A.

• Nevada Housing Division's (NHD) single-family mortgage revenue bonds (NHD) single-family mortgage revenue bonds, series 2009-I.

• California Statewide Communities Development Authority's affordable multifamily housing revenue bonds series 2009A.

• Standard & Poor's Ratings Services assigned its 'AAA' long-term rating to Kentucky Housing Corp.'s (KHC) $180 million series 2009C.

S&P assigned “AA” rating to:

• New York City Housing Development Corporation's (NYCHDC) multifamily housing revenue bonds (Federal New Issue Bond Program) 2009 series 1 and 2.

• Pennsylvania Housing Finance Agency's (PHFA) series 2009-106A, B, and C ($250 million) and 2009-107 ($604.26 million) single-family mortgage revenue bonds.

Standard & Poor's Ratings Services also raised its issuer credit rating (ICR) on the Housing Authority of the City of San Buenaventura, Calif. (VHA) to 'A+' from 'A'.

For more information, contact Valerie White, New York (1) 212-438-2078.

Read more »

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 at the national, regional, state and large metropolitan statistical area (MSA) levels.

Key findings of the study include:

1. The proportion of U.S. households that are unbanked varies considerably across racial and ethnic groups with certain racial and ethnic groups being more likely to be unbanked than the population as a whole. Minorities more likely to be unbanked include blacks (21.7 percent of black households), Hispanics (19.3 percent), and American Indian/Alaskans (15.6 percent). Racial groups less likely to be unbanked are Asians (3.5 percent) and whites (3.3 percent).

2. Certain racial and ethnic minorities are more likely to be underbanked than the population as a whole. Minorities more likely to be underbanked include blacks (an estimated 31.6 percent), American Indian/Alaskans (28.9 percent), and Hispanics (24.0 percent). Asians and whites are less likely to be underbanked (7.2 percent and 14.9 percent, respectively).

3. Households with income under $30,000 account for at least 71 percent of unbanked households. As income increases, the share of households that are unbanked declines considerably. Nationally, nearly 20 percent of lower-income U.S. households - almost 7 million households earning below $30,000 per year - do not currently have a bank account. In contrast, only 4.2 percent of households with annual income between $30,000 and $50,000 and less than 1 percent of households with yearly income of $75,000 or higher are unbanked.

4. Households with an annual income between $30,000 and $50,000 are almost as likely as lower-income households to be underbanked.

This survey complements an earlier FDIC Survey on Banks' Efforts to Serve the Unbanked and Underbanked, published in February 2009, which found that most banks are aware that there are opportunities to serve unbanked and underbanked individuals in their areas, but that more can be done.

Mayors Increase Effort to Deny Guns to Terrorists

A bipartisan coalition of mayors is increasing their efforts to deny terrorists from purchasing guns. In November, the Mayors Against Illegal Guns purchased an ad in The Washington Post calling on Congress to make two changes to federal law and policy.

First, the group wants to ensure the information uncovered during background checks will allow the FBI to deny suspected terrorist from purchasing guns. Currently, the FBI does not have the authority to deny any one on the “no fly list” from purchasing guns. The ‘no fly list”, also referred to as the terrorist watch list, prohibits suspected terrorists from flying to or from the United States. By closing the “terror gap” as it is called by the mayors, the FBI will be able to ensure individuals “too dangerous to fly” (in the words of New York City Mayor Michael Bloomberg) do not purchase guns.

Second, the group would like the Tiahrt Amendment repealed. Named after its author Rep. Todd Tiahrt (R-KN), the amendment requires the FBI to destroy information obtained during a background within 24 hours unless it must be turned over to a law enforcement agency or prosecutor in connection with a criminal investigation. The mayors believe maintaining this information for 90 days will allow the FBI to ascertain if a suspected terrorist is seeking to purchase guns or explosives.

The mayors maintain providing the FBI with this authority may have prevented the shooting at Ft. Hood. The FBI had the alleged assailant, Major Nidal Malik Hasan under surveillance and was monitoring his communications with suspected terrorist groups.

The Mayors Against Illegal Guns is dedicated to making America's cities safer by cracking down on illegal guns. Since launching in 2006, the coalition's bipartisan ranks have grown to more than 500 mayors from more than 40 states, and the statement of principles has been endorsed by major national organizations such as the US Conference of Mayors and the National Conference of Black Mayors.

Black Caucus Wants More Done About Jobs in Their Community

The Congressional Black Caucus is demanding the Obama administration focuses greater attention to the economic plight of the black community claiming the bailout and stimulus money has not adequately addressed the concerns of their constituents.

The caucus is threatening to vote against financial regulatory legislation scheduled for a floor vote December 9. The caucus wants greater attention paid to members of the black community in danger of losing theirs homes in addition to ensuring there is an expansion of government lending to the black community and there is greater access of federal funds to minority-owned banks.

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Activist's Web site, tweets put new face on homelessness
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Analysis: Contentious primaries will precede 2010 Senate elections
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Before Redistricting: The Other ‘R’ Word
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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 head of households. (Minorities in rural communities are more likely to be homeowners than their urban counterparts).
5. Nearly 40 percent of those renting in rural communities live in single-family homes which his twice the rate of those renting in metropolitan communities.
6. A similar percentage of those renting in rural communities (42 percent) live in multifamily structures with two or more apartments.
7. Those renting in rural communities tend to live in older housing. Thirty-four percent of units occupied by renters in rural communities were built before 1960.
8. Rural renters are more likely to live in substandard housing than those who own in rural communities.
9. Renters in rural communities were more likely to pay more than 30 percent of their income on housing than those who own in rural communities.

HAC says the federal government has helped to improve conditions within rural communities but funding cuts in recent years has reduced the number of available affordable units.


Group Has Resources to Help Secure Homeless Funding

The National Alliance to End Homelessness (NAEH) has materials which can help agencies interested in receiving grants from the Homelessness Prevention and Rapid Re-Housing Program (HPRP). HPRP contains $1.5 billion which is distributed by agencies in various local areas. For more information, groups should contact the Alliance at its web site.

Group Highlights Communities Providing Assistance to Homeless Children and Youth

The National Association for the Education of Homeless Children and Youth (NAEHCY) released two publications recently. The first highlights efforts to create four different temporary models for unaccompanied youth. The publication provides a step-by-step guide and includes sample forms and documents. The other updates the most frequently ask questions on the education rights of homeless children and youth. The publication was originally released five years again was prepared in conjunction with the National Law Center on Homelessness and Poverty.

Group Calls for Extension of Key Provisions to Stimulate the Economy

The Center on Budget and Policy Priorities (CBPP) called for Federal stimulus dollars to be used to increase unemployment insurance and for providing fiscal relief to states as more effective in stimulating the economy. The group made this observation in a research paper released on its web site in November.

CBPP states that targeting financial relief to those in need of replacement income will result in an immediate infusion of cash in the economy. The research suggests low and moderate income households receiving unemployment are more likely to spend the money immediate. Higher income households may be able to rely on savings for a period of time before needing to spend.

Providing fiscal relief to states allows governors to reduce the need to cut funds from other important areas such as education and health care. Many states must balance their budgets necessitating cuts to popular and important programs.

Read more »

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 corporations, assisted housing owners, and other for-profit and nonprofit entities. While the new proposal has not been formally introduced into legislation, the Senate’s 2010 fiscal year HUD appropriations bill does include funding for the initiative. The Senate bill contains $250 million for the initiative with $165 million reserved for public housing agencies. The House appropriations bill calls for $250 million for HOPE VI. Final passage of an appropriations bill will not be determined until late December. A continuing resolution (CR) is in effect until December 18 which is keeping the Federal government operating at the 2009 funding levels.

There are two significant differences between the Choice Initiative and Hope VI. First, the Choice Initiative requires one-for-one replacement of all public and assisted housing affected by projects funded under this initiative. Second, the new initiative allows displaced residents to return to the site after revitalization is complete if they desire to return. There is no guarantee under HOPE VI.

In reporting on the Choice Initiative, the National Association of Housing and Redevelopment Officials (NAHRO) expressed concern that the HUD proposal does not clarify if the department’s Office of Public and Indian Housing or its Office of Community Planning and Development would administer the program. NAHRO also said there needs to be clarification on the role federal departments such as transportation and education would play in the implementation of this initiative.

The National Low Income Housing Coalition (NLIHC), a vocal critic of HOPE VI, wants to make certain there are stronger provisions in place protecting displaced families and those wishing to return when the project is completed. NLIHC would also like to see more specificity in the definitions used to determine what projects are eligible for funding. NLIHC has a copy of the legislative language for review. Click here to review the language. According to NLIHC, HUD is accepting comments on the legislation. You can send an email to HUD.

Homeless Veterans Twice the Rate of the General Population

A recently released report says the rate of homeless veterans is twice the rate of the general population. According to the report released by the Homeless Research Institute, the rate of homeless veterans is 58 for every 10,000 veterans. The report further states that women are increasing in the number of veterans who are homeless and that a large number of veterans returning from the wars in Afghanistan and Iraq are receiving homeless services from the Department of Veterans Administration (VA).

The report, Vital Mission: Ending Homelessness Among Veterans, is an update to a 2007 report detailing the plight of homeless veterans. Both reports use VA data.

The report’s findings show:

- The number of female veterans is higher among younger cohorts;

- Homeless veterans tend to be between the ages of 35 and 54 even though 40 percent of them are 665 and older;

- Four percent of the homeless veteran population served in Afghanistan and Iraq; and,

- African-Americans are overrepresented among veterans as they are in the general population.

The report offers the following recommendations:

- The VA needs to create a homeless prevention and rapid re-housing program.

- Continue expanding the HUD and Veteran Administration’s Supportive Housing Program.

- Ensure an adequate supply of affordable housing for veterans with low-incomes;

- Enhance and bring to scale existing VA homelessness programs.

Mayors Release a Report on Anti-Hunger in 24 Cities

The United States Conference of Mayors (USCM) released a report describing anti-hunger initiatives in 24 cities. The report, Childhood Anti-Hunger Programs in 24 Cities, was prepared in collaboration with Sodexo USA. Many of the initiatives are funded with U.S. Department of Agriculture funds and supported by private organizations such as Feeding America.

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Renters not immune to foreclosure crisis
Many investors carrying upside-down mortgages on rental buildings
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How to Do a Second Stimulus
Another vast, sprawling package, including every spending measure anybody ever thought of, is out of the question.
By Clive Crook
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Agency says it Stands by Job-Creation Estimate
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Republicans heading for a spectacular bloodbath in Florida
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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, for example, if a family’s income doubles then their rent will double. The differences in approaches to rental policies continue to be a major obstacle to reaching a consensus on the best approach to provide affordable housing for low-income families.

Brooke is the first African-American senator elected by popular vote. He is a native of Washington, DC and attended Howard Univeristy. He was known as a strong advocate for affordable housing, fair housing, health care and women’s rights. He was also a vocal opponent of the Vietnam War.

He was nominated for the award by the late Senator Ted Kennedy (D-MA). The award is given by the U.S. Congress. It is the highest civilian given by Congress. Among the dignitaries in attendance was President Barack Obama, Speaker of the House Nancy Pelosi (D-CA), Senate Majority Leader Harry Reid (D-NV), Senate Minority Leader Mitch McConnell (R-KY), House Majority Leader Steny Hoyer (D-MD), and House Minority Leader John Boehner (R-OH).

NLC Report Highlights Local Innovations to Help Families and Children

The National League of Cities has released a report which reviews innovative solutions by local governments to help families and children and offers insights into what cities can do in the future.

The report, The State of City Leadership for Children and Families, was released in mid-October before more than 300 municipal leaders who attended the 2009 National Summit on Your City’s Families in Boston.

The report looks at municipal efforts to help families with after-school programs, community wellness initiatives, expanding access to child care and early childhood development programs, promoting innovation and accountability in education, increasing opportunities for the economic success of families and children and being more aggressive to curb youth violence.

CDFI Advisory Boar to Meet in Washington, DC

The Community Development Financial Institution Advisory Board is scheduled to hold its next meeting, Monday, November 16 in Washington, DC at the U.S. Department of the Treasury. There will be limited seating for the public (approximately 50 available seats) on a first come, first serve basis. Any member of the pubic wishing to attend mu st contact the CDFI Fund’s Office of Legislative and External Affairs by 5:00 p.m. Eastern Time on Wednesday, November 11, 2009 by e-mail to inform the CDFI Fund of your desire to attend the meeting and to provide the following information which is required to facilitate your entry to the facility: name as it appears on a government issued identification; date of birth; and social security number. Any questions can be directed to Bill Luecht in the Office of Legislative and External Affairs by calling (202) 622-8042.

In other CDFI news, CDFI Fund Director Donna Gambrell delivered the keynote address at the National Community Investment Fund’s (NCIF) Annual Development Banking Conference in Chicago in early November. She said the NCFI network is leading the way “in developing ways to measure social performance.”

“NCIF’s Social Performance Metrics allow CDFI banks to better demonstrate their effectiveness and therefore, demand more resources,” she said. “This is one area in which I hope that strengthened CDFI networks will help diffuse knowledge and best practices and ultimately allow more CDFI banks to show in a concrete way their track record of generating economic opportunity for individuals and small businesses and providing essential community services.” She commended NCIF for its emphasis on “developing common standards for thinking about social impact.”

“By creating industry standards for communication of social impact, Social Performance Metrics valuations enhance the industry’s ability to attract additional capital to the sector, as well as help identify community development-oriented banks that are eligible to be certified as CDFIs,” she said.

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Democrats' Woes Confirmed
We already knew that the love affair independents had with Democratic candidates in 2006 and 2008 was over.
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Pols Stand On Unstable Ground
Democrats should be worried about their dismal showing among whites.
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Is It Public, or Is It Private?
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A panel of legislators and staff tells State Legislatures that the federal recovery money took some of the sting out of the recession.
But there’s more pain to come.
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In the name of jobs, ideas that won't work
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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 of the Neighborhood Reinvestment Corporation (now NeighborWorks America) and I. Donald Turner the first executive director for Bridge Housing in San Francisco.

Murphy led Mercy Housing from its base in Denver when it started with 220 units and now has 37,000 units it has helped develop, finance or preserve. It is currently serving more than 124,000 people. It also owns more than 14,000 units scattered across 250 affordable housing properties.

McEvoy was the force behind ensuring the Low Income Housing Tax Credit (LIHTC) became permanent and is indexed to inflation. He spent many years in Washington working on Capitol Hill and as a lobbyist in a Washington, DC-law firm before spending 12 years with NCSHA.

Knight helped grow NRC to where it was helping ten times more families under his leadership according to a tribute submitted by Charles Gould to the magazine. Knight died from cancer in 2008. According to a tribute submitted by Rick Holliday, Terner was a force in pursuit of affordable housing for those in need. He died in a plane crash in 1996 which also took the life of Ron Brown, who was the Secretary of Commerce at the time of the crash.

Congress Still Hasn’t Finalized Funding for 2010

It appears Congress will pass another continuing resolution to keep the government open until the end of the year until issues surrounding appropriations bills are resolved. Before any action is taken on the FY 2010 appropriations bills, Congress till needs to resolve how earmarks are going to be treated. Earmarks are special projects inserted into the appropriations bill by Members of Congress to fund their special projects. Some members want to subject these special projects to competitive bidding. A continuing resolution is a legislative mechanism which allows the government to remain open at 2009 funding levels until a new funding bill is approved by Congress and signed by the president.

Read more »

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 a slow recovery beginning at some point in 2010.

The City Fiscal Conditions Survey is a national mail and online survey of finance officers in U.S. cities conducted in the spring-summer of each year by NLC. This is the twenty-fourth edition of the survey which began in 1986.

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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 the end of the month.

NAHRO Celebrate 75th Anniversary, Elects New President

The National Association of Housing and Redevelopment Officials (NAHRO) is celebrating its 75th anniversary during its annual conference http://www.nahro.org/conferences/natprogram.cfm held in Washington, D.C. October 4-6. During the conference, the organization will formally announce its new leadership team. Akinola Popoola, Executive Director of the Opelika Housing Authority in Opelika, Alabama, will be installed as the new president. Betsey Martens, co-Executive Director of the Boulder Housing Partners in Boulder, Colorado, will be the Senior Vice President.

CDFI Fund Announces Awards

The Community Development Financial Institutions (CDFI) Funds announced the issuance of $52.7 million in awards to 62 organizations serving economically distressed communities. Donna J. Gambrill, Executive Director of the Fund, made the announcement in Milwaukee, Wisconsin October 2.

CDFI also announced it was extending the deadline for submitting a Request for Proposals (RFP) for a new Capacity-Building Initiative until October 30. The initiative is designed to expand the technical assistance and training opportunities for CDFIs nationwide. The volume of technical questions concerning the RFP was so high it was determined extending the deadline for submission was the best course of action to take.

Hispanic Advocates Call for Full Count of its Community, Initiate a New Grassroots Campaign

A coalition of Hispanic organizations and advocacy groups joined the United States Census Director Robert Groves October 1 to announce a new initiative, !HAGASE CONTAR! (It’s Time, Make Yourself Count), to encourage Hispanics to be counted during the 2010 census.

The coalition is seeking to ensure Hispanics are accurately counted n the 2010 census. The campaign seeks to enhance the Bureau’s efforts to count Hispanics through a sustained an aggressive community education initiative to mobilize hundreds of local organizations and the Spanish-language media. It is estimated Hispanics were undercounted by three percent in 2000 resulting in a loss of billions of dollars to the Hispanic community.

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Deciphering Voter Desire
In 2006 and 2008, it was clear what the electorate did not want. Less clear was what they did want.
By Charlie Cook

A Fleeting GOP Boost in 2010?
Republicans may do very well in the midterms without solving their demographic challenges.
By Ronald Brownstein

Ideology in the American Public
Alan Abramowitz
Senior Columnist

GOP Minority Candidates Ready for 2010 Races
By Richard Ivory
New Majority

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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 community residents, develops community programs that strengthen communities and increase opportunities for growth.

A unique new, 316-unit development providing innovative, inter-generational housing to low-income seniors and moderate-income workers, The Overlook is designed to integrate affordable housing and resident services to meet the needs of seniors and working families. Built on the site of a 12-story high-rise, formerly known as Parkside Terrace, which was closed in 2005 because it was a major source of crime in this southeast neighborhood, today the Overlook offers extensive community amenities including gated security and resident services appropriate to each generation.

The building was rehabilitated and renovated through a partnership between the city, Community Preservation and Development Corporation (CPDC), Crawford Edgewood Managers Inc. (CEMI), Union Bank, Capital One Financial Corporation and other financial institutions. The $73 million project was financed in part through tax-exempt bonds issued by the DC Housing Finance Agency and purchased by Union Bank and through Low Income Housing Tax Credit equity provided by Capital One Bank. The DC Department of Housing and Community Development provided more than $20 million in gap financing. The District of Columbia financed the acquisition of the property using their new Site Acquisition Fund Initiative (SAFI), contributing $1.6 million toward a $4.5 million loan from Enterprise Community Loan Fund.

The Overlook is ingeniously designed to meet the needs of seniors and families. Floors one through seven are dedicated to seniors, with 5,000 square feet of community space, including a health-care suite, convenience store, hair salon, computer lab, movie room, event room and laundry room plus TV/reading rooms at each level. Seniors have secure access to their portion of the building.

The top five floors are reserved for working families with exercise rooms or reading rooms on every floor. All of these apartments have full-size washers and dryers. Many have beautiful views of parkland and the nation's capital. Every apartment at The Overlook has brand new energy-star rated appliances, low-flow faucets and other energy-saving features as well as high-speed Internet access. All residents will have access to three acres of green space with a walking path, tot lot and outdoor terrace area, a credit union with ATM service, access-controlled parking and other state-of-the-art security features.


HUD Dream Team Featured in Housing Magazine

The Affordable Housing Finance Magazine has a feature article on the senior staff put together by the Shaun Donovan, current Secretary of the Department of Housing and Urban Development (HUD). The article, entitled HUD Dream Team, features an interview with the HUD secretary discusses his management team. Many in Washington consider this management group the most experienced group of senior officials the department has ever had.


CDFI Application Webinar Scheduled for Wednesday, September 30

A second webinar for the fiscal year 2010 round of Community Development Financial Institutions (CDFI) Funds has been scheduled for those unsuccessful in registering for the September 28 session. The second one will take place Wednesday, September 30, 2009, at 2:00 p.m. Eastern Time. Registration is required. Anyone wishing to access the webinar must register here.

The CDFI Fund will post an archived version of the webinar on its website so that interested parties may learn how to apply to the FY 2010 round of the CDFI Program at their convenience over the internet by visiting the funds site.

In addition to the two webinar application workshops, the CDFI Fund will also be conducting five in-person application workshops. Registration is required for anyone wishing to attend one of the in-person application workshops and individuals must register through the CDFI Fund’s on-line registration system.

Interesting Read

The Lost Middle Ground
Bipartisanship is now studied as a relic of a bygone era, much the way paleontologists pore over dinosaur bones.
By Charlie Cook
The National Journal

Deja Vu All Over Again?
Why a Repeat of 1994 is Highly Unlikely
Alan I. Abramowitz
Guest Columnist
Crystal Ball

Housing Agency's Cash Reserves Will Drop Below Requirement
By Dina El Boghdady
The Washington Post

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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 Conference

The 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 housing and health care crisis on Hispanics.

According to Arturo Vargas, Executive Director of the National Association of Latino Elected and Appointed Officials (NALEO) the 2010 census is the biggest issue facing Latinos in the year. He told an audience the census impacts every issue they are passionate about and is equal to $14,000 per person.

Vargas made his remarks at the opening plenary session of the conference. He said this is the first Latino census because forms will be distributed in English and Spanish, there are Latinos in key positions within the US Bureau of the Census and Hispanic have gained enough political clout to ensure there is a fair and accurate census.

Another panelist, Phil Sparks, Director of The Census Project, said there is $300 billion of federal finds at stake and any mistakes made during the census could cost communities ten times that amount.

During a discussion on health care panelists said more funding is needed to ensure Hispanics receive the training necessary to become health care professionals. Individuals on the panel, which was chaired by Rep. Lucille Roybal-Allard (D-CA), said Hispanics are more likely to have higher rates of preventable diseases and be misinformed on medical options due to miscommunication with health care professionals. Greater efforts to increase the number of Hispanics practicing medicine, becoming nurses and educating the community on preventative measures will help reduce the many health problems Hispanics face, according to panelists.

Education Secretary Arne Duncan addressed the conference said more work needs to be done to increase the achievement levels of Hispanic students all grade levels and in higher education but opportunities will present themselves as the president’s initiatives take hold. He said President Obama is committed to investing in education and has bipartisan support to ensure students in K-12 can increase their performance by holding schools and their administrators more accountable. He also said students should be able to attend the college of their choice regardless of their immigration status.

The second day of the conference began with a discussion on the impact of Hispanics in the workforce and the economy. According to a speaker at the morning plenary session, legalization as a result of the 1986 immigration bill resulted in dynamic economic activity. Dr. Raul Hinojosa-Ojeda, Associate Professor at University of California at Los Angeles (UCLA) said the 1986 bill resulted in over $1 trillion of economic growth over a 10 year period after it was passed and this growth also had an impact on families. The university is expected to release the findings of a report on this topic in October.

Hinojosa-Ortega said Latino families are forced outside of the banking system and spend over $6 billion in check cashing and pay lending fees. He also said they sent $60 to $70 billion in remittance to Latin America in cash which, he claims, is more than the foreign aid and World Bank lends combined.

The Plenary Session included comments from a Member of Congress, two cabinet secretaries, and the first Latina owner of a bank in California in 34 years. The highlights of their comments follow:

• Rep. Loretta Sanchez (D-CA) said Hispanics can’t take classes at community colleges and universities because these institutions are cutting back classes. She said Congress is looking to pass legislation increasing Pell grants for students.

• Shaun Donovan, Secretary of the Department of Housing and Urban Development (HUD) www.hud.gov, announced the department has issued $6 million in grants to 10 Hispanic colleges and universities to rebuild homes, remove lead paint and perform community development activities.

• Hilda Solis, Secretary of the Department of Labor, said she is hiring more Occupational Health and Safety and wage and hour inspectors to make certain Hispanics are earning fair wages in safe work environments.

• Maria Contreras-Sweet, Chairwoman of the Board, Promerica Bank said Latinos must focus on “owning our own institutions” and creating wealth.

The Caucus also held a session where a panel of experts said more funding is needed to provide financial counseling and rooting out discrimination in housing to ensure Hispanics are able to buy homes. The panel, Current Issues in Latino Ownership, was moderated by Rep. Albio Sires (D-NJ). According to Jose Garza, Director of Housing Services for the League of United Latin American Citizens (LULAC), next to Native Americans Hispanics is the worst housed group in the country.

He said Hispanics tend to get lumped together but have very distinct needs based on the region of the country where they reside. He and Graciela Aponte, Legislative Analyst with the National Council of La Raza, more research is needed by origin and region on housing issues; more education needs to be provided to tenants so they understand their rights; there is a need for an increase in the number of affordable housing units; and, there needs to be greater access to financial education so the “unbanked can get banked”.

Read more »

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 VI program currently provides funding for public housing agencies. The Neighborhood Choice Initiative would allow local governments, for-profit and non-profit entities to apply for funding.

While the Senate will debate the merits of these two programs when the bill is up for a vote, no one expects major obstacles in the passage of a 2010 housing appropriations bill.

HUD Announces First Round of Stimulus Funding to Housing Authorities

The Department of Housing and Urban Development Secretary Shaun Donovan announced September 3 that 15 public housing authorities will receive a total of $96 million in stimulus grants. The funding is part of an additional $1 billion which will be awarded competitively to housing authorities.

Interesting Read

Mortgage Market Bound by Major U.S. Role
Classes of Borrowers Cannot Find Loans as Publicly Backed Debt Mounts
By Zachary A. Goldfarb and Dina ElBoghdady
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Forecasting the Midterm Elections: An Early Look at What to Expect in 2010
Alan I. Abramowitz
Crystal Ball

Bleeding Independents
Obama's agenda has fanned fears that government is expanding too far, too fast.
By Charlie Cook
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Volunteer 5-0: Civilian Patrols Grow As Recession Puts Citizens on Guard
By Jennifer Levitz
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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 will cover four key areas;

• CDFI Solutions for Foreclosure Prevention
• CDFI Expansion
• Portfolio Management and Risk Assessment
• Liquidity and Capitalization

The solicitation can be found on FedBizOpps (www.fbo.gov), the Federal government's information clearinghouse for contract opportunities. The contracts will be awarded this fall and that the technical assistance and training will be available to CDFIs the spring of 2010.

Interesting Read

The Myth of the Independent Voter Revisited
Alan I. Abramowitz
Crystal Ball

The Untouchable
Can a good mayor amass too much power?
By Ben McGrath
The New Yorker

Budget Pain Spreads to Energy-Rich States
By Ben Casselman
The Wall Street Journal

2010 House Outlook: Democrats Look Secure
By Greg Giroux and Bob Beneson
Congressional Quarterly

CQ Politics’ Guide to 2010 Senate Races
By Bob Beneson
Congressional Quarterly

Small Banks at Center of Overhaul Debate
By Brady Dennis
The Washington Post

Foreclosures Are Often In Lenders' Best Interest
Numbers Work against Government Efforts to Help Homeowners
By Renae Merle
The Washington Post

Read more »

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.

GAO Releases a Report on Fair Lending

The General Accounting Office (GAO) recently released a report on fair lending which explored how effectively federal regulators monitored fair lending practices. The report, entitled, Fair Lending: Data Limitations and the Fragmented U.S. Financial Regulatory Structure Challenge Federal Oversight and Enforcement Efforts, offered the following recommendations:

1. Congress may wish to consider the merits of additional data collection and reporting options.
2. Congress may wish to consider extending the statute of limitations on ECOA violations.
3. Congress may wish to take steps to help ensure that consumers are adequately protected, that laws such as the fair lending laws are comprehensive and consistently applied, and that oversight is efficient and effective.
4. To help strengthen fair lending oversight and enforcement, Department of Justices (DOJ), Federal Deposit Insurance Corporation (FDIC), Federal Reserve System, Federal Trade Commission (FTC), Department of Housing and Urban Development (HUD), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), and Office of Thrift Supervision (OTS) should work collaboratively to identify approaches to better assess the potential risk for discrimination during the preapplication phase of mortgage lending.

Magazine Seeks Votes on Housing Development Awards

Affordable Housing Finance has selected 35 affordable housing developments in 10 categories to receive it fifth annual Readers’ Choice Awards. The magazine allows reader to make their selection on-line. Voting is limited to magazine subscribers. The deadline is August 31.


Interesting Read

Slumlords get share of $81M stimulus, despite code violations on buildings
By Tina Moore
The New York Daily News

Analysts Give Stimulus Mixed Reviews
CQ Politics

Auto Parts Makers Change Tack, Seek Fair Winds
By Dana Hedgpeth
The Washington Post

Half a Tank: Along Recession Road
With Theresa Vargas and Michael Williamson
The Washington Post

Waiting for Work in the Silent Woods
By Will Haygood
The Washington Post

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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 $2.5 billion.
5. Voucher Renewals: Both bills provide $16.3 billion to renew existing vouchers.
6. HOPE VI: The House provides $250 million for the HOPE VI program while the Senate provides $250 million for the president’s proposed Choice Neighborhood Initiatives.

Conferencing both bills is not expected to be contentious.

Urban Institute Releases New Paper on Governments Role in Building Neighborhoods and Schools

The Urban Institute released a paper in July entitled, Vibrant Neighborhoods, Successful Schools: What the Federal Government Can Do to Foster Both, authored by Margery Austin Turner and Alan Berube.

This paper focuses on four principles which affect the performance of schools and the communities where they are located. The four principles are:

1. Low-income children benefit from the resources and learning environment available at schools that also serve middle- and higher-income families.
2. Even in settings where most students are poor, schools can succeed with the right resources and accountability.
3. Kids perform better in school if they don't change schools frequently, and schools perform better when they have lower turnover.
4. Kids do better in school when they are healthy, well-nourished, and arrive at school ready to learn.

Comments on New Market Tax Credits Sought

The U.S. Department of Treasury is seeking comments on the New Markets Tax Credit Program (NMTC) Allocation Application. The deadline for comments is October 2, 2009. Click here to more information.

Interesting Reads

Westchester Agrees to Add Housing in Desegregation Pact
By Sam Roberts
The New York Times

For Cost-Cutting States, Next Year Could Be Bleaker Still
By Keith B. Richburg and Ashley Surdin
The Washington Post

'The Battle for America 2008: The Story of an Extraordinary Election'
By Dan Balz and Haynes Johnson
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A Political Odyssey
By Dan Balz and Haynes Johnson
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'High Risk, High Reward'
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The Washington Post

How Obama Snared the Lion of the Senate
By Dan Balz and Haynes Johnson
The Washington Post

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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 is expected to reflect that perspective. The committee members are expected to hear from researchers who will review their work on the needs of public housing residents, integrating housing with supportive services, and improving resident governance within public housing among other issues.

Voucher Reform Legislation Advances out of House Committee

The Financial Services Committee approved legislation designed to overhaul the housing voucher program popularly known as Section 8. Sponsored by Rep. Maxine Waters (D-CA), the legislation was approved by a vote of 41- 24. Action on the bill can be found here.

The legislation provides a number of changes to the voucher program among them stronger tenant protections for tenants in the former Moving to Work program now called the Housing Innovation Program. For more information on the changes click on the web site of the National Low Income Housing Coalition (NLIHC).

House Appropriations Committee Approves Housing Bill

The House Appropriations Committee approved a FY 2010 budget for the Department of Housing and Urban Development (HUD) www.hud.gov. The bill includes increases in a variety of programs including the public housing operating and capital funds, the community development block grant program (CDBG) and Section 8 voucher assistance. For detailed information on the bill click here.

Interesting Read

Latino Activists Seize on Texas Ruling to Boost Voting Power
By Stephanie Simon
Wall Street Journal

After Arrest, Cambridge Reflects on Racial Rift
Forum to Explore Deep-Seated Issues
By Krissah Thompson and Cheryl W. Thompson
The Washington Post

Hoboken Mayor’s Fall From Reformer to Defendant
By Nate Schweber
The New York Times

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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 also included the following data about sheltered homeless persons from the report:

• 68 percent are in principal cities – 32 percent are in suburban and rural areas.
• 68 percent are individuals – 32 percent are persons in families with children.
• 62 percent are members of minorities.
• 64 percent of all sheltered homeless adults are men and 36 percent are women.
• 40 percent of all homeless individuals are 31-to-50 years old.
• 12 percent of all sheltered homeless adults are veterans.

Additional findings in the report include the following:

1. About 664,000 people nationwide were homeless—either sheltered or unsheltered—on a single night in January 2008, down about 7,500 people (or one percent) from the previous year.

2. The number of people using homeless residential programs during the course of the year remained steady. Between October 1, 2007 and September 30, 2008, approximately 1.6 million homeless people used shelters or transitional housing programs at least once.

3. While the number of homeless individuals in shelters in 2008 was about the same as in 2007, the number of people in families increased by nine percent to 516,700, suggesting that family homelessness may be on the rise.

4. Family homelessness increased most especially in suburban and rural areas, by nearly 56 percent between 2007 and 2008. During that same time, the number of homeless individuals in suburban and rural areas increased by nearly 34 percent (see exhibit 4-2 and 4-3).

5. Homeless persons in shelters and on the street continued to be most heavily concentrated in urban areas. One in five people homeless on a single night in January were located in Los Angeles, New York, and Detroit.

6. However, in the twelve months ending on September 30, 2008, the number of people who accessed residential programs in suburban and rural areas increased substantially, from 23 percent in 2007 to 32 percent in 2008.

7. There were early signs that the economic crisis may be affecting trends in homelessness nationally. Notably, a greater share of people accessing the homeless system in 2008 came from stays with friends and family and from places where they had lived a year or more, suggesting that people who had been stably housed were becoming homeless after exhausting their housing options.

HUD to hold Web Cast on Fair Housing

The Department of Housing and Urban Development (HUD) will hold a forum and simultaneous web cast on “Affirmatively Furthering Fair Housing” Wednesday, July 22. The forum will be held at its headquarters office in Washington, DC. The “discussion” is designed to assist the department in its efforts to ensure its efforts to further fair housing are effective.

Specifically, the department hopes to answer the following questions:

1. How can the existing AFFH review process be improved?
2. What documentation do recipients currently use to demonstrate compliance with AFFH requirements and to support their certifications to AFFH?
3. What factors should be included in an analysis of impediments (AI) for fair housing choice?
4. How often should AIs be updated without creating undue burden?
5. What are the advantages and disadvantages of creating a regional approach to affirmatively further fair housing?
6. What can communities and public housing agencies do to reduce housing segregation and increase housing opportunities for protected classes under the federal housing civil rights laws?

If you want to attend the forum you must register by sending an email to affh@hud.gov, with “Headquarters” in the subject line and the following information: (a) your full name; (b) organization; (c) phone number; and (d) e-mail address.

To participate via webcast, you must send an e-mail to affh@hud.gov, with “Webcast” in the subject line and the following information: (a) your full name; (b) organization; (c) phone number; and (d) e-mail address. You may view the webcast by going to www.hud.gov and clicking on Webcasts.

Mayoral Group Votes New Officers

The United States Conference of Mayors (USCM) elected Seattle Mayor Greg Nickels its new president during its summer meeting in June. Also elected officers by the organization’s membership was Burnsville (MN) Mayor Elizabeth B. Kautz as Vice President and Los Angeles Mayor Antonio R. Villaraigosa as Second Vice President for 2009–2010.

Other offices elected include five selected to complete vacancies on the organization’s Trustee and Advisory Board. They included Honolulu Mayor Mufi Hannemann, Southfield (MI) Mayor Brenda Lawrence, Dallas Mayor Tom Leppart, Philadelphia Mayor Michael Nutter, and Bowling Green (KY) Mayor Elaine Walker.

Also appointed to the Advisory Board were: Salt Lake City Mayor Ralph Becker, Arlington (TX) Mayor Robert Cluck, Rochester (NY) Mayor Robert J. Duffy, Bridgeport (CT) Mayor Bill Finch, Long Beach Mayor Bob Foster, Redondo Beach Mayor Michael A. Gin, Chattanooga Mayor Ron Littlefield, Laredo Mayor Raul G. Salinas, St. Louis Mayor Francis G. Slay, Mesa (AZ) Mayor Scott Smith, and Piscataway (NJ) Mayor Brian C. Wahler.

Interesting Read

What To Watch For At Sotomayor’s Hearing
By Keith Perine
Congressional Quarterly

White House to Push Forward on National Urban Policy Agenda
Administration to Host Daylong Talks Tomorrow; Tour of U.S. Cities Planned
By Robin Shulman
The Washington Post

Town hits economic jackpot to become 'Kia-ville'
By Elise Zeiger
CNN

Power of Stimulus Slow to Take Hold
Rising Joblessness Blunts President's Plan for Recovery
By Lori Montgomery
The Washington Post

White Committee Chairmen Have Fewer Black Aides
By Jonathan Allen
Congressional Quarterly

Cities Lose Out on Road Funds from Federal Stimulus
By Michael Cooper and Griff Palmer
The New York Times

Doubts About Obama’s Economic Recovery Plan Rise Along With Unemployment
By Edmund L. Andrews
The New York Times

It Came from Wasilla
By Todd S. Purdum
Vanity Fair

The Outsider: Where Is Sarah Palin Going Next?
By David Von Drehle and Jay Newton-Small/Dillingham
Time Magazine

Study: Many Payday Borrowers Need Additional Loan
Nancy Trejos
The Washington Post

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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 is proposing $250 million to build on the HOPE VI program to include privately assisted housing with the goal of creating “viable neighborhoods with decent and affordable housing, improved access to jobs, better schools, and increased public transportation opportunities.”

Donovan said the HOPE VI program has worked and is effective but needs to be expanded. He said public housing units are three times as likely to be distressed but said assisted housing can be part of the community’s problem. He said the Choice program can expand the offerings provided by public housing authorities.

Donovan also said the administration is committee to developing a new formula for the Community Development Block Grant (CDBG) program. It has agreed to a hold harmless which ensures communities will not lose any money in FY 2010 but would not commit to a hold harmless beyond the next fiscal year. He said they were looking at a formula which would better target need and are considering two particular factors – income levels and the range of housing services provided with these funds. He said they are not locked into a particular formula but are looking at how to weigh various factors to develop a viable one. He agreed the 2010 census will be a factor in determining the formula.

HUD could be heading for a major show down between local governments and low income advocates. Many advocates have sought changes to the CDB formula claiming it does little to address the real needs of the poor in their communities. Local governments argue the flexibility of the program allows it to tailor funds to its community needs. Deeper targeting of these resources will limit how local governments use these funds.

Note: A View from DC will not post June 29 but will return the week of July 10.

A View from DC would also like to give a shout out to the 1975 class of Cardinal Hayes High School in the Bronx. Thirty-four years ago today that class joined the ranks of Hayes alumni which include Martin Scorsese, Regis Philbin, professional basketball player Jamal Mashburn and current Super Bowl champ Willie Colon. The class of 1975 features corporate executives, entrepreneurs, award winning writers, Grammy nominated artists and some of New York’s dedicated police and firemen. Scattered through out the world, this class has used the lessons learned from the dedicated men and women who offered guidance, discipline and direction. Nestled 10 minutes from Yankee Stadium, this “beacon from the Bronx” has been a source of salvation for many of New York’s youth of all races and ethnicities. It continues to shepherd young boys into manhood with more than 96 percent of its graduates going to major colleges and universities.

Interesting Read

Numbers on Welfare See Sharp Increase
By Sara Murray
The Wall Street Journal

Recovery's Missing Ingredient: New Jobs
Experts Warn of a Long Dry Spell
By Michael A. Fletcher
The Washington Post

Credit Score Shell Game
As High Scores Vanish, Borrowers' Luck Runs Out
By Nancy Trejos
The Washington Post

Owego Prepares for Rough Landing
Demise of Helicopter Program Means Hundreds of Jobs Lost in Struggling N.Y. Area
By Philip Rucker
The Washington Post

Old Public Housing Makes Way for New Approach in Atlanta
By Robbie Brown
The New York Times

Obama’s Pledge on Donations Faces Reality
By Jeff Zeleny
The New York Times

Read more »

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 funding for the Housing trust Fund, fully funding public housing, providing funding for tenant-based assistance and funding for homeless programs.

He said the third objective of the budget is to invest in urban and rural communities through funding for the community development block grant (CDBG) program and the Choice Neighborhood program. The Choice Neighborhood program replaces the HOPE VI program. Donovan said the new program builds on the successes of HOPE VI but is expanded to include improved access to jobs, schools and increase public transportation opportunities. A fourth objective is to create more efficient housing and sustainable growth. Donovan would like to see housing which requires less transportation and more energy efficient homes.

The final objective is to transform the way HUD functions, according to Donovan. To accomplish this, Donovan said the department is seeking to set aside one percent of its funds to allow HUD to increase it research and development, improve its technology and increase the technical assistance it offers.

Donovan is scheduled to testify before the House Appropriations Subcommittee on Transportation, Department of Housing and Urban Development June 19 at 10 a.m. The testimony will be carried live via web cast. The subcommittee received its overall allocation of funds for next year. Each appropriations subcommittee received an allocation which determines how much it has available for the departments and programs in its jurisdiction. The FY 2010 allocation for this subcommittee is $68.8 billion which is $13.8 billion more than the FY 09 allocation of $55 billion.

HUD Partners with Other Agencies

An interagency Partnership for Sustainable Communities was recently announced by U.S. Secretary of Transportation Ray LaHood, U.S. Secretary of Housing and Urban Development Shaun Donovan, and U.S. Environmental Protection Agency Administrator Lisa P. Jackson which is designed to improve access to affordable housing, more transportation options, and lower transportation costs while protecting the environment in communities nationwide.

The agreement establishes six principles to guide interagency coordination:

1. Provide more transportation choices.

2. Promote equitable, affordable housing.

3. Enhance economic competitiveness.

4. Support existing communities.

5. Coordinate policies and leverage investment.

6. Value communities and neighborhoods.

HUD Deputy Secretary Ron Sims and Acting Surgeon General Steven K. Galson issued a national 'call to action' to confront the prevalence of home-related preventable diseases such as lead poisoning and asthma. Sims and Galson unveiled HUD’s Healthy Homes Strategic Plan and the Surgeon General's Call to Action to Promote Healthy Homes as a coordinated effort with other public and private partners to stimulate a national dialogue about creating healthier homes.

HUD's Strategic Plan focuses on four key goals:

1. Building a National Framework: Foster partnerships for implementing a healthy homes agenda.
2. Creating Healthy Housing through Key Research: Support strategic, focused research on links between housing and health and cost-effective methods to address hazards.
3. Mainstreaming the Healthy Homes Approach: Promote the incorporation of healthy homes principles into ongoing practices and programs.
4. Enabling Communities to Create and Sustain Healthy Homes: Build sustainable local healthy homes programs.

The Call to Action also offers a consumer-friendly punch list of things every family can do to make their home healthier and safer including:

1. Check gas appliances, fireplaces, chimneys, and furnaces yearly and change furnace and air conditioning filters regularly.
2. Keep children safe from drowning, lead poisoning, suffocation and strangulation, and other hazards.
3. Improve air quality in their homes by installing radon and carbon monoxide detectors, eliminating smoking and exposure to secondhand smoke, and controlling allergens that contribute to asthma and mold growth.
4. Improve water quality by learning to protect and maintain private water wells.

Up Coming Conferences

The National Housing Conference will hold its Solutions for Working Families:
2009 Learning Conference on State and Local Housing Policy June 28-30 in Chicago.

The National Association of Housing and Redevelopment Officials (NAHRO) will hold its summer conference in Portland, Oregon July 16-18.

The National Alliance to End Homelessness will hold is annual conference July 29-31.

Interesting Read

Atlanta Says Farewell to Last Large Public Housing Building
Donna Kimura
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California Aid Request Spurned By U.S.
Officials Push State To Repair Budget
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Charter schools hit, miss in new report
Limited English, poverty students get math and reading boost
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With Senate in Dispute, N.Y. Politics a 'Circus'
Party Defections Leave Control Uncertain
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Hate Crimes Rise as Immigration Debate Heats Up
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The Unelected: Bennet Appointment Sets Up Hot 2010 Race
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The Unelected: New York’s Gillibrand Makes the Most of Brief Tenure
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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, lenders, local governments, and advocates.

The annual meeting is held each June and features the presentation of the HAND Housing Achievement Awards. The awards recognize the finest in affordable housing projects, programs, and organizations during the preceding year.

Galante said she wants to be a bridge between the Department of Treasury and HUD. Helping the credit industry move forward is one of three goals she hopes to accomplish during her tenure at HUD. She said there are not enough investors for the market and that it needs to be broadened to include other players such as utility companies. These new investors can be encouraged to be good corporate investors thru the low income housing tax credits (LIHTC). She wants to ensure HUD programs work better with the tax credits programs. She said there was a NOFA issued in April with a closing date of June 29 which seeks comments on how the programs can better perform together.

Her second goal is to draft new approaches to preservation and new development. She wants to maintain long-term housing affordability as much as possible. She points to the housing trust fund legislation and the president’s proposed successor to the HOPE VI Revitalization program as examples of trying to expand the assisted housing stock and incorporate schools and retail in neighborhood design.

Her third goal is to make multi-family FHA program more widely available. She said HUD programs are like “your dad’s Pontiac, they haven’t changed much.” She said there are a lot of tools which are not financially available for affordable housing in today’s market which presents an opportunity for FHA.

She offered five recommendations to participants:

1. She said they must be aggressively advocating for what is needed with government and philanthropists over the next year to ensure they have a seat at the table when decisions on housing are made.
2. She said it would be wise to assess their organizational strength at this point in time. “What do you do best? What is your value added? Focus on your portfolio and put it in the best position,” she said.

3. Be ready to acquire property. She believes there will be huge discounts on high end quality property which will be made available in many markets that can transition into effective mixed income housing.

4. She encouraged the developers to plan new mixed use, transit oriented, green developments.

5. Finally, she said to stay nimble, innovative, and be creative to get the deal done.


$1.5 Billion in New Market Tax Credits Awarded

On May 27, the Department of Treasury announce it was awarding $1.5 billion in New Market Tax Credits to 32 organization scattered throughout the country.

In making the announcement, Treasury Secretary Tim Geithner said, "Many communities have been left with a shortfall of financial support and are unable to pursue desperately needed projects, leaving residents to fall even further behind. The New Markets Tax Credit program helps break that cycle by providing an incentive to invest in communities to break ground on new projects, create jobs, and offer much needed services."

The 32 organizations receiving awards have identified principal service areas covering 33 states, the District of Columbia, and Puerto Rico. The NMTC Program, established by Congress in December 2000, permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in investment vehicles known as Community Development Entities (CDEs). The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. A majority of the taxpayer's investment must in turn be used by the CDE to make qualified investments in low-income communities.

Interesting Read

HUD Prepares a Plan to Struggling HFAs
By Donna Kimura
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For Some Homeowners, Promised Help Is Elusive
By Peter S. Goodman
The New York Times

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