Thursday, September 17, 2009

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”.

Monday, September 7, 2009

Passage of Funding Bills at top of Congressional Agenda

Both the House of Representatives and US Senate will need to complete action on a 2010 housing appropriations bill before Congress adjourns this year. The House approved its version of an appropriations bill July 23 while the Senate Appropriations Committee approved its version July 30 (see August 11 post).

Affordable housing advocates are pleased with the funding provided for the Department of Housing and Urban Development (HUD). It is uncertain if the HOPE VI will survive in its current form. The House funded the program at $250 million but the Senate provided funding for the administration’s proposed Neighborhood Choice Initiative. This new program is designed to allow for a broader pool of applicants and incorporate other elements of a community during the revitalization efforts. The HOPE VI program currently provides funding for public housing agencies. The Neighborhood Choice Initiative would allow local governments, for-profit and non-profit entities to apply for funding.

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

HUD Announces First Round of Stimulus Funding to Housing Authorities

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

Interesting Read

Mortgage Market Bound by Major U.S. Role
Classes of Borrowers Cannot Find Loans as Publicly Backed Debt Mounts

By Zachary A. Goldfarb and Dina ElBoghdady
The Washington Post

Forecasting the Midterm Elections: An Early Look at What to Expect in 2010

Alan I. Abramowitz
Crystal Ball

Bleeding Independents
Obama's agenda has fanned fears that government is expanding too far, too fast.

By Charlie Cook
National Journal

Volunteer 5-0: Civilian Patrols Grow As Recession Puts Citizens on Guard

By Jennifer Levitz
Wall Street Journal

Monday, August 24, 2009

CDFI Accepting Proposals for Technical Assistance and Training

The U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund is accepting Request for Proposals (RFP) expand technical assistance and training opportunities for community development financial institutions (CDFIs) as part of a new Capacity- Building Initiative to greatly nationwide. This initiative is expected to increase the type of financial products and services to low income communities.

This will make specialized training and technical assistance available throughout the industry and will cover the main issues which affect CDFIs. This includes affordable housing and business lending, portfolio management, risk assessment, foreclosure prevention, training in CDFI business processes, and assistance with liquidity and capitalization challenges. The RFP will cover four key areas;

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

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

Interesting Read

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

The Untouchable
Can a good mayor amass too much power?

By Ben McGrath
The New Yorker

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

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

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

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

Foreclosures Are Often In Lenders' Best Interest
Numbers Work against Government Efforts to Help Homeowners

By Renae Merle
The Washington Post

Sunday, August 16, 2009

Groups Agree on Tax Credit Changes

According to Affordable Housing Finance magazine 40 national, state and regional groups have agreed to a number of legislative proposals to stimulate the low income housing tax credit (LIHTC) market.

The coalition of organizations have agreed to three key points as part of a grassroots campaign entitled Affordable Rental Housing A.C.T.I.O.N. (A Call To Invest in Our Neighborhood). The three points are:

1. Extend the Exchange Program to Maintain the Development Pipeline in 2010.
2. Immediately Stimulate and Maintain Housing Credit Investment Demand by increasing the Housing Credit Carry back Period.
3. Broaden the Investor Base.

The group is encouraging supports to contact their congressional representatives to press the aforementioned points. For more information on the campaign, go here.

GAO Releases a Report on Fair Lending

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

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

Magazine Seeks Votes on Housing Development Awards

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


Interesting Read

Slumlords get share of $81M stimulus, despite code violations on buildings

By Tina Moore
The New York Daily News

Analysts Give Stimulus Mixed Reviews
CQ Politics

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

Half a Tank: Along Recession Road

With Theresa Vargas and Michael Williamson
The Washington Post

Waiting for Work in the Silent Woods

By Will Haygood
The Washington Post

Tuesday, August 11, 2009

Conference on Housing Funds Expected in September

The House and Senate is expected to conference on a FY 2010 appropriations bill in September after the House approved its version of the spending bill before adjourning for the August recess. The Senate is expected to take up its spending bill in September. The two chambers will conference before a final bill is submitted to the president for his signature.

There are slight differences in each bill:

1. Community Development Block Grants (CDBG): The House provides $4.6 billion for the CDBG program while the Senate provides $4 billion.
2. HOME Program: The House provides $2 billion for HOME while the Senate provides $1.8 billion.
3. Public Housing Operating Fund: The House provides $4.8 billion and the Senate $4.75 billion.
4. Public Housing Capital Fund: The House and Senate both provide $2.5 billion.
5. Voucher Renewals: Both bills provide $16.3 billion to renew existing vouchers.
6. HOPE VI: The House provides $250 million for the HOPE VI program while the Senate provides $250 million for the president’s proposed Choice Neighborhood Initiatives.

Conferencing both bills is not expected to be contentious.

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

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

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

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

Comments on New Market Tax Credits Sought

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

Interesting Reads

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

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

'The Battle for America 2008: The Story of an Extraordinary Election'
By Dan Balz and Haynes Johnson
The Washington Post

A Political Odyssey
By Dan Balz and Haynes Johnson
The Washington Post

'High Risk, High Reward'
By Dan Balz and Haynes Johnson
The Washington Post

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

 
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