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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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.

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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”.

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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 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.

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