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.

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