Massachusetts Election Could Cloud 2010 Legislative Agenda

Scott Brown's election to the Senate could alter legislative plans for the remainder of 2010. In addition to putting the president’s plans for health care reform into doubt, Brown’s election could also cast doubts on additional stimulus funding and funding for housing and community development programs.

Rising deficits, the high costs associated with the president’s health care bill, uncertainty about the benefits of the president’s stimulus package and concern for their economic future drove voters to elect an outsider, and a Republican) in a reliably Democratic state.

Without a filibuster-proof majority, Democrats must be more careful with how they proceed on legislative initiatives particularly on items with large price tags. Media reports are suggesting the president will use his State of the Nation address to modify some of his initiatives and may even call for cuts to programs.

The president’s speech is going to focus heavily on jobs with, according to press reports, these five initiatives as the centerpiece of his presentation with an eye towards middle class voters:

1. Expansion of the child tax credit -- doubling it among families with incomes up to $85,000;

2. Increasing funding for child care;

3. Broader support for families supporting elderly relatives, including counseling, training and temporary respite care;

4. Limiting student loan payments to no more than 10% of their income; and,

5. Establishing an automatic employer-based individual retirement account plan, so that workers can establish an IRA through their workplace.

There are also late news reports Obama will ask for a partial three-year spending freeze. For providers of housing and community development programs and their constituents, there is cause for concern. In spite of successful utilization of the stimulus dollars, housing programs could be victims of future cost-cutting measures. In a recent editorial in The Advocate, the bi-weekly publication of the Public Housing Authorities Directors Association (PHADA), P. Curtis Hiebert, Director of the Keene (NH) Housing Authority, raised concern about the impact voter concerns about rising deficits could have on housing programs.

“All this raises concerns,” he said, “given that our capital needs and voucher programs are no adequately funded even under the current year’s good budget.”

This occurs shortly after the House narrowly passed another “jobs stimulus” bill in December. The bill does not offer much in terms of “new” money to create jobs but does provide an increase in funding for unemployment benefits, COBRA health insurance, and Medicaid spending. The prospect of passing another stimulus bill in the Senate is unlikely given the current political dynamics.

The Brown election has emboldened Republicans to play hard ball as they envision an opportunity to increase their standing in Congress. Most analysts don’t expect Republicans to regain control of either chamber but do expect them to increase their numbers. The landscape does not look good for Democrats. Vice President Joe Biden’s son, Beau Biden, has decided not the run for the Senate seat in Delaware. This creates a tremendous opportunity for Rep. Mike Castle (R-DE) to win that seat. (Republicans are also targeting the president’s former Senate seat in Illinois believing they can capture it as well.) For housing advocates, Castle has long been considered a supporter of affordable housing in Delaware; however, Tea Party activists in the Republican Party are aggressively supporting conservative Republican candidates seeking to reign in Federal spending. If they are successful, it can further erode funding support for housing programs.

Stuart Rothenberg, a highly respected political analyst in Washington, DC, is predicting there are 28 House races which are shifting the Republicans way giving them some traction at this early stage of the election cycle. In total, Rothenberg believes there are 72 seats in the House in play. The results of those elections could have a dramatic impact on support for housing programs.

The following list was posted on Rothenberg’s blog January 25. The asterisk indicates the trends shifting towards Republicans. Viewfromdc added the percentages in the brackets. That number reflects the percentage of votes taken by the congressman on housing and community development legislation which were consistent with the positions taken by the National Association of Housing and Redevelopment Officials (NAHRO) in 2009. While NAHRO’s positions are not shared by all housing advocates, their congressional voting record on Members of Congress provides a window into the current support for affordable housing.

Of the 28 listed with asterisks as currently leaning Republican, 17 had scores of 100 percent; three at 83 percent; one each at 80, 67 and 60 percent; three at 50 percent; and, two at zero. Of the 72 listed below, 50 have scores of 100 percent.

Pure Toss-Up (1 R, 9 D)

• AR 1 (Open; Berry, D) * (83%)
• AR 2 (Open; Snyder, D) * (100%)
• CO 4 (Markey, D) (100%)
• IL 10 (Open; Kirk, R) (17%)
• MI 7 (Schauer, D) * (100%)
• NH 1 (Shea-Porter, D) (100%)
• NH 2 (Open; Hodes, D) (100%)
• PA 7 (Open; Sestak, D) (100%)
• TN 8 (Open; Tanner, D) (83%)
• WA 3 (Open; Baird, D) (100%)

Toss-Up/Tilt Republican (0 R, 10 D)

• AL 2 (Bright, D) * (50%)
• FL 8 (Grayson, D) * (100%)
• ID 1 (Minnick, D) * (0%)
• KS 3 (Open; Moore, D) (100%)
• MD 1 (Kratovil, D) * (0%)
• MS 1 (Childers, D) * (80%)
• NM 2 (Teague, D) (100%)
• OH 1 (Driehaus, D) * (50%)
• OH 15 (Kilroy, D) * (100%)
• VA 5 (Perriello, D) (100%)

Lean Republican (3 R, 2 D)

• CA 3 (Lungren, R) (33%)
• LA 3 (Open; Melancon, D) * (100%)
• PA 6 (Gerlach, R) * (67%)
• TN 6 (Open; Gordon, D) (100%)
• WA 8 (Reichert, R) * (60%)

Republican Favored (8 R, 0 D)

• CA 44 (Calvert, R) (33%)
• CA 45 (Bono Mack, R) (67%)
• MN 3 (Paulsen, R) (0%)
• MN 6 (Bachmann, R) (17%)
• NE 2 (Terry, R) (33%)
• OH 2 (Schmidt, R) (17%)
• OH 12 (Tiberi, R) (33%)
• PA 15 (Dent, R) (67%)
•
Toss-Up/Tilt Democratic (0 R, 3 D)

• FL 24 (Kosmas, D) (100%)
• IL 14 (Foster, D) (100%)
• VA 2 (Nye, D) * (50%)

Lean Democratic (0 R, 11 D)

• HI 1 (Open; Abercrombie, D) Special Election (100%)
• IN 9 (Hill, D) * (83%)
• MO 4 (Skelton, D) (100%)
• NV 3 (Titus, D) (100%)
• NY 1 (Bishop, D) * (100%)
• NY 19 (Hall, D) (100%)
• NY 23 (Owens, D) (83%)
• NY 24 (Arcuri, D) (100%)
• NY 29 (Massa, D) (100%)
• SC 5 (Spratt, D) * (100%)
• WV 1 (Mollohan, D) * (100%)

Democrat Favored (2 R, 23 D)

• AZ 5 (Mitchell, D) (83%)
• AZ 8 (Giffords, D) * (83%)
• CO 3 (Salazar, D) * (100%)
• CA 11 (McNerney, D) * (100%)
• CA 47 (Sanchez, D) (100%)
• DE A-L (Open; Castle, R) (83%)
• GA 8 (Marshall, D) (83%)
• IA 3 (Boswell, D) (100%)
• LA 2 (Cao, R) (50%)
• NY 13 (McMahon, D) * (100%)
• NY 20 (Murphy, D) (N/A)
• NC 8 (Kissell, D) (100%)
• ND A-L (Pomeroy, D) * (100%)
• NJ 3 (Adler, D) * (100%)
• OH 16 (Boccieri, D) (100%)
• OH 18 (Space, D) (100%)
• PA 4 (Altmire, D) * (100%)
• PA 8 (Murphy, D) * (100%)
• PA 10 (Carney, D) (100%)
• PA 11 (Kanjorski, D) (83%)
• PA 17 (Holden, D) * (100%)
• SD A-L (Herseth Sandlin, D) (83%)
• TX 17 (Edwards, D) (100%)
• VA 9 (Boucher, D) * (100%)
• WI 8 (Kagen, D) (100%)

The time between now and the November election is an eternity but it is important for housing supporters to monitor these developments closely.

Mayors Present President with Plan to Address Unemployment

The United States Conference of Mayors (USCM) met with President Obama and continued to express their concern about the loss jobs in their communities. The meeting with the president kicked off the organization’s annual winter meeting which was held January 20-22 in Washington, DC.

More than 230 mayors gathered to advocate for their 2010 Metro Agenda for America. The agenda focuses on five areas the mayors feel are keys to revitalizing their communities:

Jobs

In meeting with the president and his cabinet, the mayors contend additional resources are needed to stem the rise in unemployment in their communities. Their report points out unemployment remains in double-digits in many communities with the highest concentration of unemployment in large metropolitan statistical areas. The report contends that the stimulus funds have not gone directly to cities. In order to boost unemployment, the mayors outline nine steps to increase employment opportunities:

1. Target new funds directly to cities with the highest unemployment rates or revenue shortfalls. The mayors contend states (which received the majority of stimulus funding for distribution) are slow to spend funds and fail to fund areas with the greatest needs.

2. Increase funding for the Energy Efficiency and Conservation Block Grant (EECBG) to provide “green” jobs.

3. Increase funding for the Community Development Block Grant (CDBG) program.

4. Increase funding for the Community Oriented Policing Services by $1 billion.

5. Provide an additional $1.2 billion for summer youth jobs.

6. Provide additional funding for the Transportation Investment Generating Economic Recovery (TIGER) Grants with the Department of Treasury.

7. Increase funding to modernize school.

8. Increase resources to the Small Business Administration (SBA) to make credit available to small businesses.

9. Use Troubled Asset Relief Program (TARP) funds to provide job-creating municipal bonds for infrastructure projects.

Surface Transportation

The mayors are calling for a reauthorization of legislation to fund infrastructure in cities with a call for more funds to go directly to cities and by-pass states.

Energy Efficiency and Conservation Block Grant (EECBG)

The mayors are calling for long-term funding for the Energy Efficiency and Conservation Block Grant program. The mayors do not call for a dollar amount but state that funding should come from regular appropriations and new energy and climate legislation.

Airport Security

The mayors are calling for state-of-the-art technology for detecting weapons and explosives at commercial airports.

Federal Investments

The mayors are calling for support of a number of programs which benefit local communities including CDBG, the Home Affordable Housing Program, public housing programs, Section 8 funding and the Low-Income Home Energy Assistance Program.

Interesting Read

The Stimulus Project: CNN Looks at the CNN Project

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Economy flounders, despite the stimulus
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Anti-Incumbent Election? Don’t Hold Your Breath
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Nonprofit helps small businesses form
Economy offers opportunity
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Advocate business writer

Stakes are high as government plans exit from mortgage markets
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President Gets A- for Handling Current Situation

The Brookings Institution gave President Obama an A- for his handling of the current economic situation in a posting released January 11. The grade was part of a status report issued by Brookings a year after issuing a series of 12 memos to the incoming president on the most important issues it felt the nation faced during his tenure in office.

Brookings gives the president credit for appointing Timothy Geithner as Secretary of the Treasury and for keeping Ben Bernanke as Chair of the Federal Reserve. Overall, Brookings gives the president an A for his handling of the current economic crisis. However, it feels the president still has to improve on his perceived ability to address long-term economic challenges. He gets a B- for his handling of long-term issues for his overall rating of A-.

For more information, click here.

Group Releases Report on Stimulus Funds and Public Housing

The National Association of Housing and Redevelopment Officials (NAHRO) released the result of a survey it conducted last summer on the use of stimulus dollars by its members. Respondents to the survey stated they had obligated 53 percent of their funds and expended 18.5 percent. On average, respondents expected to spend all of their funds by June.

The survey results included:

1. A majority of respondents, 93.2 percent, said they used the funds to complete projects identified in their agency plan.
2. Dwelling structures was the principal activity undertaken with these funds.
3. The most popular projects were roof repairs/replacements (33.5%); heater/A/C repairs/replacements (32.2%); window replacements/upgrades (25.7%); and, parking lot/sidewalk repairs (21.8%).
4. Greene improvements accounted for 38.5% of the projects reported.
5. According to the report, $319,339 on average was obligated to local businesses and $61,435 has been spent on local businesses.
6. The report also states that, on average, $62,071 had been obligated to minority-or women-owned businesses and $10,441 has been spent on these groups.

NAHRO recently reported to its membership that Assistant Secretary for Public and Indian Housing Sandra Henriquez has expressed her happiness with the success of housing authorities to expend these funds. Her only concern is the rate of expenditure to date but she expressed confidence it will improve.

Preliminary Findings Suggest Financial Conditions Will Continue to Decline for States

The National Governors Association (NGA) and the National Association of State Budget Officers (NASBO) forecasted continued fiscal difficulties for states in releasing preliminary results of its biannual report The Fiscal Survey of States.

The economic downturn has dramatically impacted states over the last two years have caused state officials to believe the impact on states will not be over soon. According to the findings in The State Fiscal Situation: The Lost Decade states were forced to reduce General Fund expenditures by 4.8 percent and are expected to reduce these funds by four percent in 2010.

Tax revenues are expected to continue a downward spiral in 2010 which will also be felt in fiscal years 2022 and 2012. Overall, state revenues declined 7.5 percent in fiscal 2009, which for most states ended June 30, 2009. Revenues will likely continue on this downward trend for another one to two quarters before turning up slowly.

The weakening of state fiscal conditions is reflected in the $250 billion in budget gaps faced by states between fiscal 2009 and fiscal 2011. Of the $250 billion, states closed $72.7 billion in budget gaps during fiscal 2009 and $113.1 billion before the enactment of their fiscal 2010 budgets to bring them into balance with drastically declining revenues.

Founded in 1908, NGA is the collective voice of the nation’s governors and one of Washington, D.C.’s most respected public policy organizations. Its members are the governors of the 50 states, three territories and two commonwealths. Founded in 1945, NASBO is the instrument through which the states collectively advance stage budget practices. The major functions of the organization consist of research, policy development, education, training, and technical assistance.

States Taking the Initiative to Combat Dropout Problem

Six states – Colorado, Massachusetts, Minnesota, New Hampshire, Tennessee and West Virginia – have decided to develop comprehensive state dropout prevention and recovery policies through the State Strategies to Achieve Graduation for All initiative.
The initiative will help states clearly identify their dropout problem; assess the gaps in student supports for preventing students from dropping out of school and recovering the students that drop out; and create a dropout prevention and recovery action plan for implementation that includes tactics such as state policies, executive orders, advisory councils, legislation or regulatory reforms.

The initiative is informed by a report recently released by the NGA Center, Achieving Graduation for All: A Governor’s Guide to Dropout Prevention and Recovery, which identifies the root causes of the high school dropout problem and offers an action plan for states to curb dropouts, help youth succeed and strengthen state economies. Specific recommendations contained in the report for states to reduce the incidence of students not completing high school include promoting high school graduation for all; targeting youth at-risk of dropping out; reengaging youth who have dropped out

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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.

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Redistricting and the 2010 Governor’s landscape
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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.

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A Quarter of US Households Remain Outside the Banking System

Survey results released by the Federal Deposit Insurance Corporation (FDIC) revealed that twenty-five percent of US households, including large percentage of low-income and minority households, are outside of the banking system. The survey, FDIC National Survey of Unbanked and Underbanked Households, was conducted on behalf of the FDIC by the U.S. Bureau of the Census as a supplement to the Census Bureau's Current Population Survey during January 2009.

In addition to collecting accurate estimates of the number of unbanked and underbanked households in the U.S., the survey was designed to provide insights into their demographic characteristics and reasons why the households are unbanked and/or underbanked. The survey represents the first time that this data has been collected to produce estimates 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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