Immmigration Moves Front and Center

This is the third in a series of articles on issues which will affect the November election. Today we look at immigration.

The decision by Arizona Governor Jan Brewer to sign legislation which allows state and local law enforcement officials to detain anyone who “appears” to be in the United States illegally has thrust immigration into the forefront of the national debate. On the heels of a divisive debate on health care, immigration appears to be the next contentious issue President Obama and the Democratic Party will address this summer.

The president promised during his campaign that he would pass comprehensive immigration reform within his first year in office. Democrats, concerned about the potential to suffer significant losses this November, have decided to pursue immigration reform this year in the hope that it will motivate Hispanic voters turn out in large numbers this fall.

A report released last month states the Hispanic vote can have a dramatic effect on 40 state and congressional races in the 2010 mid-term election. The report, The Power of the Latino Vote in the 2010 Election, also states immigration will be a major issue to the Hispanic voter. According to the Census, New Mexico is 44 percent Hispanic, Texas and California each are 36 percent Hispanic. Every state with high concentrations of Hispanic voters will see registrations for the elections soar. On a national basis, Hispanic residents were 9 percent of the country's population in 1990, 12.5 percent in 2000, and over 15 percent in 2007. One of every two people added to the nation's population between 2006 and 2007 were Hispanic. While the economy, health care and education are important to members of the Hispanic community, passage of comprehensive immigration reform is considered a litmus test on how committed the president and the Democratic Party are to their concerns.

Lydia Camarillo, Vice President of the Southwest Voter Registration and Education Project (SVREP) in an interview with A View from DC in March said the grassroots is very angry and feels the president has not kept his promise of enacting immigration reform which prompted many Latinos to vote for him in the fall of 2008. Camarillo said Latinos will not be satisfied with simply introduction of a bill, she says Latinos want a comprehensive bill passed.

“There are no excuses,” she said. “Democrats are in control and should be able to pass something.”

Republicans see risk and reward in immigration legislation. They believe it is an inopportune time to discuss immigration reform when the economy is the number one issue facing the country. Failing to address these economic issues, they believe, heightens their prospects this fall. However, there is the risk they will be perceived as anti-Hispanic and could alienate the fastest growing segment of the nation’s voting population.

In an editorial in the March 19 edition of the Washington Post, Sens. Charles E. Schumer (D-NY) and Lindsey O. Graham (R-SC) summarized the basic elements of comprehensive immigration reform legislation they hope will generate bipartisan support.

Their proposal will require the creation of a biometric Social Security card to ensure that illegal workers cannot get jobs; fulfill and strengthen the nation’s commitment to border security and interior enforcement; create a process for admitting temporary workers; and implement a tough but fair path to legalization for those already here.

Graham recently threatened to withdraw his support for reform if Democrats insist on proceeding on this issue at the expense of another key issue: climate change. The House Democratic leadership said they will move on immigration reform after they receive a Senate-passed bill. Democrats are privately saying they do not have the votes to pass a bill but are willing to make the effort and make the Republicans appear the villain when it fails.

Camarillo said Hispanics may withhold support for Democrats in the fall if immigration reform is not passed. That strategy doesn’t sit well with a long-term time advocate for immigration reform.

Arnoldo S. Torres, a political consultant based in Sacramento, California, does not believe that strategy will help.

“How is that helping their efforts,” he said. “They need to elect more progressive people in the next two to four years who will work toward passing reform. For them to say it is okay for moderate Democrats or conservative Republicans to get elected who aren’t going to vote for what they want contradicts their objective to get reform passed. It really is an empty threat and not a well thought out idea.”

He doesn’t believe many Hispanic advocates are interested in solving the problem and stopping the flow of immigrants but getting more Hispanics registered to vote for Democrats
Torres was the Director of the Washington office of the League of United Latin American Citizens (LULAC) in the late seventies and early eighties and was instrumental in writing and helping to pass the Immigration Reform and Control Act (ICMA) of 1986. That was the last time Congress passed comprehensive immigration reform.

ICMA sought to address the same issues currently under debate:

1. It made it illegal to knowingly hire or recruit illegal immigrants (immigrants who do not possess lawful work authorization);

2. Required employers to attest to their employees' immigration status;

3. Granted amnesty to certain illegal immigrants who entered the United States before January 1, 1982 ; and,

4. Granted a path towards legalization to certain agricultural seasonal workers and immigrants who had been continuously and illegally present in the United States since January 1, 1982.

Torres said lessons from that legislation have not been learned. He said our immigration policy has never fully addressed the two key factors that influence immigration. First, there is the “push” factor. There is insufficient economic development occurring in the countries of origin of the immigrants. In his view, trade agreements open markets for US goods but keep the US markets closed to foreign products. Therefore, there are few economic opportunities in those countries to prevent migration to the US. He said the “pull” factor is the second issue not address. This is where US businesses offer work opportunities which are low-paying by US standards but are better than the prospects immigrants have in their home countries.

What is the answer?

That is hard to say. As Torres stated the Schumer-Graham proposal is a political response to a complicated issue. Without addressing the “push” factor Torres talked about, we will have this discussion again in 20 years. Plus, if politics defeats any reasonable solutions the status quo will only get worse. The response by Republican hardliners to immigration reform which includes a path to legalization is causing the party to be viewed as hostile to Hispanics. While the perception of Republicans by Hispanics is not as bad as the perception which exists in the African American community, it is heading in that direction. Republicans are not likely to increase their numbers significantly within the Hispanic community; however, more Hispanics can find comfort under their tent that African Americans.

What does this mean for housing?

The composition of the next Congress will determine the type of funding and policies affordable housing providers can expect over the next two years. A more conservative Congress is likely to reign in spending. A liberal Congress will attempt to increase funding for social programs. Immigration reform can potentially motivate Hispanic voters to participate this November and will likely vote for Democrats.

Here are a few thoughts to keep in mind:

1. Congress will take on immigration reform this year. With the signing of the Arizona law, Obama now has a call to action, a reason for taking it off the back burner and moving it to the front. Had the Arizona bill been vetoed, the urgency of reform would have been defused. Neither party is itching for this fight. This is an issue the winner can lose for winning.

2. Immigration and the economy will focus voter attention more than health care reform. As contentious as health care reform is as an issue, it pales in comparison to the historical, social and emotional weight that immigration carries. It will be divisive. Expect the debate to be heated.

3. Immigration will more strongly motivate the Republican Party base and Tea Party advocates to vote this November. Just as the Arizona law is galvanizing proponents for reform, a path to legalization or citizenship is galvanizing the Republican base and the Tea Party. For Democrats, Arizona gave them an early Christmas present. The Arizona bill is the easy get-out-the-vote cry for Hispanic voters. If the Hispanic voting population gets energized, the tea party’s electoral power will be put to the test. As reflected in the Census data cited above, there could be drastic effects in every election throughout the southwest, and enough swing voters in other areas that Congressional races could be decided on the immigration issue alone.

4. Opposition to a path to legalization is not universally opposed by some of the Republican Party’s natural constituents. For example, the US Chamber of Commerce (USCC) supports comprehensive reform which includes a path to legalization, while the National Federation of Independent Business (NFIB) which represents small businesses, does not. While there will be a great deal of pressure on Democrats in conservative districts, Republican lawmakers will also be under tremendous pressure from competing supporters within their party.

5. Immigration reform can be a key unifying civil rights issue for 2010. Hispanics of all backgrounds, Asians and African-Americans, each have shared experiences of racial profiling by police officers. Many police departments, to their credit, have worked hard to develop trust within these communities. If the Arizona law gains momentum in other states, that trust can evaporate and create hostilities which can adversely affect communities. Housing advocates may find different groups and new players in the public arena. There may be opportunities for coalition building, grassroots organizing and networking that simply weren't present in previous years. Stay up to date on immigration reform as this issue is debated in the near future.

Interesting Read

Politics

Can 2010 be a 2008 repeat?
By Chris Cillizza
The Washington Post

Voter anger fuels New Hampshire congressional candidates
By Shailagh Murray
The Washington Post

Prominent Republicans making more endorsements in primary races
By Karen Tumulty
The Washington Post

In Upstate New York, Democrats feel betrayed by Rep. Arcuri
By Sandhya Somashekhar
The Washington Post

Florida waits to see whether Crist will stay Republican or go independent
By Dan Balz
The Washington Post

Cuomo the non-candidate
By Howard Kurtz
The Washington Post

Democrats move to stem corporate political cash
By Ross Colvin and Thomas Ferraro
The Washington Post

'Nobody wins' on immigration reform
By Jonathan Martin and Kasie Hunt
Politico

Arizona governor signs immigration bill, reopening national debate
By Anne E. Kornblut and Spencer S. Hsu
The Washington Post

Hispanics urge Obama to reform immigration laws
Reuters

Growing Split in Arizona Over Immigration
By Randal C. Archibold
The New York Times

Arizona immigration conflict heats up
By Jonathan J. Cooper
The Associated Press

Immigration advocacy groups to challenge Arizona law
By Jonathan J. Cooper and Paul Davenport
The Washington Post

Housing and Community Development

Census nears 2000 mail-in response rate
By Carol Morello
The Washington Post

Fannie Mae wants to help some troubled borrowers get back into home market
By Kenneth R. Harney
The Washington Post

The national debt and Washington's deficit of will
By Joel Achenbach
The Washington Post

Goldman executives cheered housing market's decline, newly released e-mails show
By Zachary A. Goldfarb
The Washington Post

Read more »

The Fall Election Part Two: The Economy

This is the second in a series of articles on issues which will affect the November election. Today we look at the impact the economy will have on the election results.

As former President Bill Clinton said during the presidential campaign in 1992, "It's the economy, stupid." The economy is the only constant issue which can dramatically impact elections. In 1992, then President George Herbert Walker Bush had very high approval ratings (above 90 percent following Desert Storm). Clinton was able to use dissatisfaction with the economy as a tool to focus voter attention, and he upset the incumbent.

A grassroots movement occurred in the 1994 mid-term election and former Speaker of the House Newt Gingrich's "Contract with America" became the rallying point for Republicans. Republicans gained control of both houses of Congress that year. It was the first time they had control of the House in over 30 years.

In the 2008 election, it was the Democrats who had the theme. Then Senator Barack Obama ran on "change." He parlayed voter dissatisfaction with the state of the economy and a ballooning deficit into a historic victory becoming the first African-American to be elected president in the United States.

He inherited a bad economy and a huge deficit. In just over a year's time, he shepherded a stimulus package initiated by his predecessor, George W. Bush, signed into law health care reform, and is pursuing other key agenda items he feels are important to the country.

However, in spite of the administration’s efforts, the economy does not show signs of immediate recovery and voters are upset. The immediate concern is to return the unemployed to work. In testimony delivered before the Joint Economic Committee, Ben S. Bernanke, Chairman of the Federal Reserve, said restoring the two million jobs lost during this tough economic period will take time.

While the administration has touted the most recent employment figures which indicated 162,000 new jobs were created in March. Republicans say those figures are misleading because they include temporary positions filled by the Bureau of the Census and employment due to the recovery from the February snowstorms. Unemployment still hovers near 10 percent and benefit claims are steady at approximately 450,000 weekly. This is causing some financial experts to be skeptical a full recovery is near.

Concerns about the economy and the Obama “agenda” have given rise to a grassroots movement, the Tea Party, which has energized opposition to incumbents in general, but more specifically, Democrats. Nervous Congressional Democrats, however, haven't forgotten the lessons from 1992 and '94. It is the status of the economy that determines the outcome of elections; and a grassroots movement and voter anger can affect the type of "change" that House and Senate incumbents fear in the mid-term elections.

Historically, the party of a new president loses seats in the subsequent mid-term election. The Democratic Party will not buck historical trends and win big this November. The only question facing Democrats is: how big will the losses be? Most experts expect Republicans to gain eight seats in the Senate and as many as 30 to 40 seats in the House. It is unlikely, but not improbable, for Republicans to regain control of the House, Senate or both. However, you can expect a surprise or two this fall

Whether Democrats lose big, small, or maintain the status quo, the appetite for big idea initiatives will be significantly diminished in 2011. One issue which is certainly going to be front and center leading into the fall and beyond is deficit reduction. President Obama has proposed a deficit reduction commission to explore short and long term solutions to this issue. Any proposed recommendations will be non-binding. However, it will be interesting to see what is proposed, but more importantly, what recommendations the White House and Congress will seek to implement. In his congressional testimony, Bernanke urged Congress to do more to control the Federal deficit. He has said the US economy can not sustain the deficits long term. His testimony will add pressure to Congress and the president to act.

Congress has held discussions in the past to devise strategies to control the deficit but these talks grind to a halt beyond a verbal agreement that controlling entitlement spending, specifically Medicare and Social Security, is critical to deficit reduction. No politician wants to face the wrath of citizens potentially facing cuts in benefits in the name of fiscal prudence. Any politician offering such a plan faces the real possibility of losing his or her next election.

As a result, expect gridlock in a number of arenas, particularly in the appropriations process. One of the most memorable examples of gridlock occurred in 1995 when the federal government was shut down. It could happen again in 2011. Even if it doesn't, there won't be money for housing issues unless advocates grow in effectiveness.

National Decisions, Local Impact

This raises legitimate concerns for housing and community development advocates and program providers. They are the first responders to the needs of the poor. When the economy is strong or weak, these individuals struggle to secure the resources and policies to help poor families. For example, very little has been done to help poor renters who were evicted from foreclosed properties not for failure to pay rent but due to the owners’ failure pay the mortgage.

The Congressional Black Caucus has expressed its concern to the president that poor communities, specifically the black community, have not benefited from the influx of stimulus dollars to local communities hardest hit by the economic downturn.

National decisions will have local consequences. Advocates need to keep certain points in perspective:

1. The current political and economic dynamics are not working in their favor; however, the ability to effectively manage current resources can help you leverage additional resources and different policies.

2. The health care legislation is going to increase administrative costs for all employers; therefore, plan for this increase now and factor it into the current budget as much as possible so as not to be blindsided when those costs go into effect.

3. It is unrealistic to expect significant increases in funding from the Federal government so there is a need to look outside the box for resources.

4. It is important to study and understand the impact the internet is having on business development, expansion, contractors, suppliers and the workforce. Understanding its impact is important in creating future economic development and job training initiatives.

5. Monitor local demographic changes and the analyses and assessment of their impact on your community’s economy. These demographic changes will help determine the type of economic development and job training initiatives you community and citizens will need in the future.

In order to navigate these murky economic times, it is advisable for local advocates to consider these ideas in the planning process;

1. It is important for local agencies and advocates to convey their work and contributions to the community in a concise and easy to understand language and images. Keep the message simple and easy for the listener to digest the salient points. Talk in terms of how your work is providing jobs to your community, increasing the local tax base, reducing dependency, serving kids, etc. Most people don’t care about the challenges you face or the details of your programs. They want to know their tax dollars are not being wasted.

2. Determine when it is best to play defense and when it is best to play offense when seeking Federal resources and regulatory changes. Don’t be afraid to use the current anti-Washington sentiment to advocate for greater local control.

3. Local agencies, such as public housing authorities, should explore hiring a rating agency like Standard and Poors, Fitch or Moody’s to assess your operations. These assessments can be expensive but they offer credibility and confirmation of your work.

4. Reevaluate your staff needs when an opening appears. Seek to hire individuals who do not require a lot of supervision, have great communication skills and are confident to express a fresh set of ideas.

5. Work with your professional associations to create career fairs in colleges and universities to encourage students to pursue a career with public agencies.

6. Pursue activities which can benefit both the agency and residents. For example, starting a business incubator or establishing a credit union might create opportunities to provide education, training, resources and opportunities in a non-traditional way that can be “sold” to a diverse group of policy makers and funders.

Economic downturns are platforms for innovation and growth. It is during these challenging times which offer great opportunities for local communities to challenge existing assumptions, pursue new ideas, tweak current initiatives and embrace the future. With some thought, an open mind and a willingness to make adjustments, advocates can become stronger, more efficient and more successful in meeting the needs of local communities.


Interesting Read


Housing and Community Development

Dorothy I. Height, founding matriarch of U.S. civil rights movement, dies at 98
By Bart Barnes
Special to The Washington Post

Inspector general says changes to Making Home Affordable may impede help
By Dina ElBoghdady
The Washington Post

Maryland changes how prisoners are counted in census
By Carol Morello
The Washington Post

Big businesses winning contracts meant for small ones, groups charge
By V. Dion Haynes
The Washington Post

Treasury seeks public comments on reform plans for housing-finance system
By Zachary A. Goldfarb
The Washington Post

Federal aid is forestalling only a fraction of foreclosures, report says
By Renae Merle
The Washington Post

Big Banks Draw Big Profits From Microloans to Poor
By Neil MacFarquhar
The New York Times


Politics

1994 Republican Rout Is Casting Shadow in 2010
By Adam Nagourney and Marjorie Connelly
The New York Times

Both national party committees spend big chunks on fancy meals, hotels, travel
By R. Jeffrey Smith
The Washington Post

North Carolina Democrats' votes against health care push labor to form party
By Philip Rucker
The Washington Post

A census sign that the Tea Party is less than it seems
By Dana Milbank
The Washington Post

Big cities, rural areas both trail on census returns
By Carol Morello
The Washington Post

Behind the Curtain, Cuomo Runs His Own P.R. Machine
By Jeremy W. Peters
The New York Times

G.O.P. Confidence Tested by Fears of Searing Divisions
By Jeff Zeleny
The New York Times

Read more »

The Fall Election Part One: Uncertainty Continues to Surround the Fall Election

During last week’s post we listed a series of issues which will affect the November election and provided an outline of action steps we believe the affordable housing community must undertake to prepare itself for the future. This week we look at the traditional mid-term losses faced by a first-term president and discuss its implications for affordable housing advocates.

Barack Obama’s first year and a half in office has not been without drama:

1. He inherited one of the most challenging economic periods of our country’s history;

2. Nominated the first Hispanic to the Supreme Court;

3. Decided to expand our presence in Afghanistan;

4. Saw the seat of the late Senator Ted Kennedy fall to a Republican resulting in Democrats losing their filibuster-proof majority in the Senate;

5. After a bruising and time-consuming fight was able to pass health care reform which was tried unsuccessfully by previous president’s for 100 years;

6. Has endured a highly vocal and confrontational opposition to his efforts by “Tea Party” activists;

7. Dissatisfaction by his liberal Democratic base; and,

8. He faced unanimous opposition by the Republican Party on health care and other initiatives.

Now he must lead his party through the mid-term election. Historically, the party of the incumbent president loses seats in the ensuring mid-term election. The fundamental question facing Obama is not whether Democrats lose seats, but how many. Since the health care debate heated up, the president’s popularity has dipped below 50 percent which could portend trouble for Democrats this fall.

Larry Sabato, Director of the University of Virginia’s Center on Politics is predicting Republicans will gain seven seats in the Senate, 27 in the House of Representatives and will likely win at least seven gubernatorial races. The expected gains in the House and Senate will not give Republicans majority status in Congress but will give them greater leverage and influence on legislative matters and Supreme Court appointments.

Alfred Cuzan, writing for the Center on Politics Crystal Ball, correlates the president’s approval rating against the number of seats his party is expected to lose in the fall election. He reviewed the approval ratings of past Presidents Ronald Reagan and Jimmy Carter entering their midterm election and posed the question: is Obama another Reagan or Carter? His analysis suggests the more unpopular the president the more likely his party will lose seats in the next fall election. Cuzan determined his model indicates Obama’s approval rating will continue to decline which could be a bad omen for Democrats this fall. However, Cuzan acknowledged that Reagan benefited from a recovering economy after suffering loses in his midterm election while Carter endured a struggling economy which included high interest rates and high unemployment.

So where does this leave Obama and Democrats? Right now, on the defensive. There are so many factors which come to play this summer leading into the fall. Here are three to watch closely:

1. The economy. The administration indicated the most recent jobs numbers reflect an economy on the rebound. Republicans disagree. A recovering economy will help the president and Democrats this fall.

2. Immigration. The administration is under tremendous pressure by Hispanics to enact comprehensive immigration reform which includes a path to citizenship for undocumented workers. Many Republicans, including Tea Party activists, are adamantly opposed to what they call “amnesty”. This is an issue which will motivate the bases of both parties, although Republicans can damage themselves long-term with Hispanic voters if they are viewed as “hostile” towards immigrants.

3. The Supreme Court nomination process. This can invigorate the bases of both parties. Supreme Court Justice John Paul Stevens’ decision to retire creates another opportunity for the president to nominate a replacement. Stevens’ timing so close to the contentious health care has the potential to be just as volatile. Supreme Court Justices serve for life and Republicans are not eager to allow Obama to appoint a “liberal” to the bench.

In the House races, many of the seats gained by Democrats in the last two election cycles were in districts which leaned Republican. In 40 of those districts, voters voted for President George W. Bush in 2004 and half of the voters in those districts voted for John McCain in 2008. It is not unreasonable to assume a majority of those districts will return into the hands of the Republican candidate.

The Senate is a bit more unpredictable. No one would have predicted the seat of the late Massachusetts Senator Ted Kennedy would fall into the hands of a Republican. Delaware was considered a safe Democratic seat until the vice president’s son, Beau Biden, decided not to run for office. Now it appears a Republican, the moderate Mike Castle, will win that seat. The fall elections are so unpredictable, there are some experts suggesting the solidly Democratic State of California may elect one of Senator Barbara Boxer’s (D) Republican challengers to replace her.

While a great deal of attention is focused on the congressional elections, the gubernatorial races could significantly shape Congress for the future. According to the Center for Politics, there are 23 states with no incumbents running for governor, including the big states of California, New York, Florida, Michigan and Pennsylvania. New York and Pennsylvania are expected to lose seats after the Census Bureau has completed its tally of the 2010 Census. Congressional maps will be redrawn as a result of the census results and the party in power will control that process. Historically, redistricting has been a vehicle for the party in power to protect its members while punishing the opposing party.

What should affordable housing advocates do next? Here are our suggestions:

1. Learn from the Tea Party. Grassroots organizing and education are critical to ensure your concerns are reflected by candidates.

2. Make sure you educate all of your constituents, workers, etc., on the importance of sending back in Census forms and what it means to your community. (We will discuss the Census in greater detail in a future posting.)

3. Although you likely cannot tell others how to vote, make sure to tell them to vote and why it is important.

4. Solidify your relationships now with businesses, churches, non-profits and other groups and see what common ground exists politically.

5. As you are discussing issues, be sure to listen. Ask residents and other groups what is important to them. You may be surprised at what you learn.

6. Rehearse your elevator speech now. Be prepared to tell both elected officials and candidates who you are and why your concerns matter. Let them know that you are not just a housing advocate, but a person that represents a block of voters, and tell them how many.

7. Remember, elected officials, for all of their talk of service, are most interested in themselves. That’s why they are putting up with all of the headaches of running for office. Therefore, find common ground. If you went to the same college, use that to your advantage. If their play children play soccer and your do too, find an artful way to mention soccer when you talk to them.

8. Be fair in your criticism and praise of your elected official. Research until you find at least one vote on which the incumbent did something right, and thank them for it.

9. Treat Republicans like Democrats and vice versa. Advocates simply can’t assume they will receive support or opposition from their congressional representative.

10. There is a fine line between being persistent and a pain in the rear. Strike the right balance between being a pest and being a professional.

11. Know your issues well enough so that you can express your concerns in a way that is meaningful to the incumbent.

12. Take the time to educate candidates on the work you are doing in the community. If the incumbent is never with you on any issues, try as hard as you can to get someone else elected.

13. Remember all politics is local. National member groups, by their nature, do not have the focus to assist much with the issues that may be in play in your district or state. Therefore, strike a careful balance between your local concerns and support of national issues.

Next week’s posting will focus on the economy.


Interesting Read

Housing and Community Development

Economy has shifted Americans' attitudes about homeownership and money
By Sadie Dingfelder
Special to the Washington Post

Renting isn't reckless if you're not ready for homeownership
By Michelle Singletary
The Washington Post

Foreclosures create opportunities in Prince George's, Md.
By Ovetta Wiggins
The Washington Post

Thousands May Lose Rental Vouchers
By Cara Buckley
New York Times

The Invisible Underclass
By Eugene Robinson
The Washington Post

Faith in homeownership drops, Fannie Mae poll shows
By Renae Merle
The Washington Post

Baltimore takes a holistic approach to unhealthy housing
By Eliza Barclay
The Washington Post

Obama to meet at the White House with black church leaders
By Hamil R. Harris and Krissah Thompson
The Washington Post

Politics

A census sign that the Tea Party is less than it seems
By Dana Milbank
The Washington Post

Republicans focus efforts on November, say 2012 can wait
By Dan Balz
The Washington Post

Of Swans and Spoilers
Heading toward Election Day, Democrats won't be getting much help on the jobs front.
By Charlie Cook
The National Journal

Hispanics skeptical that Obama, Democrats will deliver immigration overhaul
By Sandhya Somashekar
The Washington Post

Anger over health-care reform spurs rise in threats against Congress members
By Sari Horwitz and Ben Pershing
The Washington Post

Five ways Michael Steele could come back
By Chris Cillizza
The Washington Post

Read more »

Summer Action Could Turn Up the Heat for Housing Advocates this Fall and Beyond

The debate surrounding passage of health care reform illustrated how intense the partisan divide is in Washington, DC and underscores the growing importance of the November mid-term election. The level of the disagreement reminds many political veterans of the events leading up to the passage of the Civil Rights Act of 1964. The epithets, death threats, spitting incidents and threats of violence against individuals and the Federal government who supported the legislation have dominated the media in the past few weeks.

Opponents of President Barack Obama’s health care plan, particularly those who are part of the Tea Party movement, have vowed to take their fight to the ballot box this November. They promised to punish Democrats who voted for Obama’s health care plan. Tea Party groups and others are targeting those Democrats elected in Congressional districts won by Sen. John McCain in his failed 2008 presidential bid.

The fervor surrounding the health care debate should be a wake up call to housing and community development advocates leading into, and going beyond, the fall election. A number of issues are going to influence the election results to varying degrees. They include:

1. The typical mid-year losses that the party of a new president endures;

2. The economy; an economic upswing bodes well for Democrats if an economic upswing occurs. The jury is still out whether the economy will really pick up in time to make a difference in November.;

3. The various constituency groups with a point to make this fall;

4. Cash; more specifically the Supreme Court decision on corporate and union spending on elections; and,

5. The anger associated with the passage of health care legislation;

Each of these influences are pieces to a broader puzzle to determine how much and what type of Federal resources will be available to low-income households. How the puzzle is put together will determine the level of financial assistance to individuals, families and the agencies serving this population and the kind of initiatives to help these families achieve economic self-sufficiency.

What do the political changes mean for those administering local housing and community development programs? Are there action steps local advocates and administrators can take to position themselves favorably regardless of the results of November’s elections?

In the coming weeks A View from DC will look at some of the factors affecting November’s election and offer our recommendations on the steps needed by advocates in 2011 and beyond. Here is an outline of our recommendations:

1. Job creation is not the only measurement of a growing economy and should be viewed with caution by local communities. Local groups should also take the time to more fully understand the internet’s impact on the economy and on the future earning potential of low income individuals and households.

2. The census. Working with the Census Bureau is going to be critical to ensure as many individuals in low-income communities are counted particularly immigrants from Asia, Africa and Latin America.

3. National membership organizations need to develop regional strategies to meet the needs of their constituents. Redistricting will create winners and losers which will result in the need for different political strategies to address the implications these changes will bring to localities. A broad national approach to accommodate the resulting changes will be insufficient.

4. It is important to learn the key lesson from the Tea Party movement - it all begins with the grassroots. Greater emphasis needs to be placed on local organizing efforts.

5. There appears to be a consensus among political experts that Republicans will make significant gains in November. It is important to develop a strategy now to work with elected officials before they become entrenched in Washington politics.

6. Advocates need to revise their message and take advantage of the anti-Washington sentiment in the country. Advocates who are members of national organizations need to be more judicious in using their political capital.

7. Traditional job training programs and skill development for low-income individuals need to be reevaluated and other forms of training need to be explored.

8. Local groups, particularly housing authorities, need to better utilize the Community Reinvestment Act (CRA) and other financial tools to generate additional resources for themselves and their residents.

9. Without an element of teaching financial literacy and wealth creation to low-income households, any future progress will be short-lived.


More than 30 million US Households Receive Inadequate Banking Services

The Federal Deposit Insurance Corporation (FDIC) released data this winter which documented that more than 30 million households in the United States are either unbanked or underbanked. According to the data, 25.6 percent of the population does not receive adequate financial services. It is estimated that the total number of adults in these households is 60 million.

Included in the findings:

1. The Southern Region has the highest incidences of underbanked households.
2. A large percentage of black, American Indian/Alaskan and Hispanic households are unbanked or underbanked.
3. Approximately five million households which are banked may be underbanked as well.

The survey, FDIC National Survey of Unbanked and Underbanked Households, collected a variety of data by sponsoring a supplemental survey to the Current Population Survey (CPS) administered by the US Bureau of the Census. The survey sought to identify more reliable data number and types of households in the United States which are unbanked or underbanked.

For purposes of the survey, unbanked households did not have anyone with a checking or savings account. Underbanked households contain an adult with either a checking or savings account but who also uses other financial services like check cashing establishments, non-bank money orders, payday loans, or pawn shops at least once or twice a year.

The data revealed the following characteristics of unbanked households:

1. They are more likely to be single-head of household with women comprising a higher percentage of these households versus men. Women comprised 20 percent of this population while men comprised 14.9 percent of the population.

2. Blacks, American Indians/ Alaskans and Hispanics are more likely to be unbanked than Asians and whites.

3. More low-income households are unbanked with those earning less than $30,000 comprising the overwhelming majority (71 percent) of low-income, unbanked households.

4. As age and education increases, the unbanked percentage decreases.

5. Over 40 percent do not believe they will open a bank account in the future.

6. Two-thirds of this population uses alternative financial services such check cashing establishments.

The underbanked share many of the characteristics of the unbanked population:

1. This population is more likely to be single head of household; however, the difference between females and males is only one percent. Approximately 28 percent of female headed households are underbanked versus 27 percent for male head of household.

2. Blacks, American Indians/Alaskans and Hispanics are also more likely to be underbanked versus Asians and whites.

3. Money orders and check cashing services are the two most popular alternative financial services used by this population. Convenience is the principal reason given for utilizing these services.

4. The underbanked rates decline as education and age increases but the rates are similar in the $30,000 to $50,000 range as it is for those earning less than $30,000.

The report concludes there is an opportunity for the government and the financial industry to provide a service to a significant portion of the US population. It does not offer recommendation on how to provide that service.

Hispanic Coalition Issues Interim Immigration Report Card

A coalition of Hispanic organizations released an interim report which is critical of the lack of support for “progressive immigration” reform as reflected in their votes on related matters.

The National Latino Congreso (NLC) issued the Immigrant Justice Report Card Interim Progress Report Card which looked at how Members voted and/or supported immigration-related legislation in the 110th and 111th Congress. The report looked at 15 Senate votes, four Senate bills, seven House votes and 10 House bills.

The report concluded that in spite of strong national support for “progressive immigration reform”, most members of the House of Representatives have records which favor
anti-immigrant measure” while Senators are slightly more inclined to support “pro-immigrant” reform. NLC says 53 percent of House members are pro-immigration reform while 67 percent of the Senators have similar views.

According to the organization’s tally, approximately 41 percent of House members with a large number of immigrants in their district tend to support what NLC calls “anti-immigrant” measure. In the Senate, approximately 26 percent of the senators support similar measures.

Congressional action on immigration reform is expected to be a major factor in determining the level of support candidates running for office this fall will receive from Hispanic voters. Many of the organizations represented by NLC have called for action on immigration reform this year and have stated they will not be satisfied unless legislation is passed.

The National Latino Congreso has brought together Latinos from all walks of life- from grassroots community members to national elected officials- to create a united Latino agenda on a variety of issues. The National Latino Congreso is convened by the Hispanic Federation (HF), League of United Latin American Citizens (LULAC), the Mexican American Legal Defense and Educational Fund (MALDEF), the Mexican American Political Association (MAPA), the National Alliance of Latin American and Caribbean Communities (NALACC), the National Day Labor Organizing Network (NDLON), the National Hispanic Environmental Council (NHEC), Southwest Voter Registration Education Project (SVREP), and the William C. Velasquez Institute (WCVI).

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Housing and Community Development

Americans rebuild for the 'new urban century'
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Hispanics Set to Grade Candidates on Litmus Test this Fall

A leading analyst on Hispanic voting patterns said immigration reform will be to Latinos what choice is to women – a litmus test for Members of Congress in this fall election. For those members

Lydia Camarillo, Vice President of the Southwest Voter Registration and Education Project (SVREP) told A View from DC in a wide ranging interview that a member’s position on immigration reform will have a big say on the support he or she receives from Latino voters. She said Gray Davis, former Republican Governor of California, would still be governor if he did not renege on his promise to support immigration reform. James G. “Gray” Davis was the Democratic Governor of California from 1999 until he was removed in a recall election in 2003.

She said the grassroots is very angry and feels the president has not kept his promise of enacting immigration reform which prompted many Latinos to vote for him in the fall of 2008. Camarillo said Latinos will not be satisfied with simply introduction of a bill, she says Latinos want a comprehensive bill passed.

“There are no excuses,” she said. “Democrats are in control and should be able to pass something.”

She said Latinos are not the swing voters as some might surmise but are a pretty reliable vote for Democrats although the intensity of their vote may vary state-to-state. She said 67 percent voted for President Obama which is significant because Latinos, on average, are a young electorate. The average age of the Latino electorate is 22 years old and is likely to vote along the lines of their parents. She said there is no gender or generation gap within the Latino community.

She said because of the closeness of various races in November, the Latino vote can have a significant impact on the election’s outcome. She said any effort to pass a punitive immigration bill will not please the Latino electorate. She said the health care debate has ignited the anger within the Latino community because of a provision which prevents undocumented immigrants from purchasing health care even if they have the resources to do so.

“The president won by such a large margin the Latino vote is not appreciated as much,” she said. “If he won by a closer margin, Latinos would be call saviors.”

She said the census will have a huge impact on future elections. She said the Latino community continues to grow in spite of being undercounted by a third in the last census. She said the census count will be of particular importance in states with large Hispanic populations which are expected to gain congressional seats such as Utah, Colorado, Arizona and Texas.

SVREP's mission is to empower Latinos and other minorities by increasing their participation in the American democratic process. They do this by strengthening the capacity, experience and skills of Latino leaders, networks, and organizations through programs that consistently train, organize, finance, development, expand and mobilize Latino leaders and voters around an agenda that reflects their values. Thus, SVREP's motto: "Su Voto Es Su Voz" (Your Vote is Your Voice).


Credit Unions Fail to Meet Needs of Low Income Households

A report released by the National Community Reinvestment Coalition found that credit unions are failing to meet the needs of low income households. As a result, NCRC is calling for the Federal government to require credit unions to comply with reporting and investing requirements as specified in the Community Reinvestment Act (CRA) http://www.ffiec.gov/cra/.

"Credit Unions: True To Their Mission Part II" looked at data to measure how credit unions fared in offering services to low income households as compared to mainstream banks. The findings in the report indicated that mainstream banks performed better in offering services as measured by fair lending indicators than credit unions which are non-profits chartered with the mandate to service the underserved. The fair lending indicators measure the percentage of loans given to women, minorities and low- and moderate-income borrowers.

As a result of the report, NCRC is calling for CRA to be applied to all large credit unions. NCRC has a total of seven recommendations as a result of the report:

1. It is calling for CRA’s reach to expand and apply to credit unions.

2. NCRC is calling for changes in how the designation of underserved areas is determined. They feel it should be defined in a more meaningful way where only areas with low- and moderate income households should designated as underserved.

3. They are also calling for the National Credit Union Administration (NCUA) to enhance its anti-discrimination reviews of credit unions.

4. NCRC wants to mandate the NCUA to measure a credit union’s performance.

5. NCRC want to amend the Home Mortgage Disclosure Act (HMDA) so that small institutions can report their lending data. Previous arguments against such reporting center on the time and cost of gathering this data. NCRC contends that technological advances make reporting much easier and less expensive.

6. NCRC feels small business lending should be disclosed by credit unions and mid-size banks.

7. Finally, NCRC feels community development credit unions (CDCU) should be supported by other credit unions and banks.

HUD Secretary Testifies Before Congress

Shaun Donovan, Secretary of the Department of Housing and Urban Development (HUD) testified before the House Financial Services Committee to explain the administration’s rationale for submitting its proposal on the Choice Neighborhoods Initiative.

In his testimony Donovan reiterated the department’s desire to broaden the number of players involved in the revitalization of neighborhoods. Donovan praised the HOPE VI program, which the Choice initiative would replace, but felt it was not as comprehensive as is needed in many neighborhoods.

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