Memo#42
H. C. Covington (ach1@sprynet.com)
Thu, 15 Jan 1998 10:57:11 -0600
Forward for your information:
Sonny
National Low Income Housing Coalition
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NLIHC Weekly Housing Update
Vol. 3 No. 1
Memo to Members
January 9, 1998
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POINT OF VIEW
by Helen Dunlap, President
As we begin the New Year, I thought it would be appropriate to begin with a
collaborative experience as the focus of Point of View. This past week I
had the pleasure of facilitating a discussion on healthy communities
between seven major health care systems' CEOs and CFOs. Collectively, the
group represented the leadership of over 170 hospitals in 47 states.
What does this have to do with housing and community development? That
question was in fact the focus of the discussion. Each hospital system in
the country is struggling to figure out how to achieve their mission -
healthy customers. Each health care system is challenged with the need to
work more effectively with the community. They define community as
everything from the neighborhood in which they are located to the places
where their customers reside.
Of most interest to me as a houser was learning about what they are doing
to build better neighborhoods given their perspective. The majority of the
systems represented at the meeting indicated that they do three year needs
assessments of the communities they serve. Several hold forums and use
asset mapping to identify the needs and the concerns of their communities
(which are mainly located in inner cities, first ring suburbs and other
areas where we too are working). Questions which each of us as housers and
community developers should ask ourselves: "were you part of that survey in
your area?", "were you and your residents participants in that community
forum?" If not, we are missing a great opportunity to collaborate with
institutions and individuals who are seeking the same results as we
are--healthy and economically stable communities.
A significant focus of the meeting was on the actions of the health care
community to reinvest in neighborhoods. To illustrate, the representative
from the St. Joseph Health System indicated that they had mapped the
characteristics of Orange County, California and picked the poorest, most
distressed census tract. I had actually done some housing work in the area
so was familiar with the problems of this Santa Ana neighborhood. This is
a neighborhood where the stock has deteriorated even though it is, in many
cases, less than 20 years old, the units are small and overcrowded and
working wages do not cover housing costs. The Health System went into the
neighborhood and surveyed residents.
Housing was not one of the problems identified by the residents. The
problems were crime, security, drugs, quality of education, traffic, etc.
The conclusion made by those of us at the discussion was and would continue
to be that these are housing problems and that addressing these issues is
in fact the struggle of most good housing developers and providers as we
move into the next millennium. I share this discussion with each of you
because as we begin the year it is important we take a few minutes to think
about the work of colleagues in health and education and transit and
employment. Are we communicating? Are they communicating? Are we
maximizing the strategy and resources of "place" to achieve a healthy
environment?
Budget
1999 Federal Budget
While the specifics of the Administration's 1999 Budget Proposal will not
be officially available until submission to Congress during the first week
of February, several high level sources in the Administration have
indicated that the HUD Budget request will provide for new or increased
resources. Gene Sperling, Assistant to the President on Economic Policy has
reportedly said in last Sunday's New York Times--"I think people will
regard this as the best HUD budget in over a decade".
Reported increases include funding for 100,000 new vouchers and
certificates including a set aside for homeless and for welfare to work,
adequate resources for Section 8 renewals and another round of Enterprise
Zone and Homeownership Zone monies. Because of the proposal to include 202
and 811 in the HOME, it is unclear from sources whether CDBG and HOME
resources have increased or stayed the same. Increases in homeless
programming were reported publicly by the White House at Christmas and are
described further in Memo.
It is anticipated that further information regarding the Budget will be
available prior to its submission to Congress.
Budget
Homeless Budget
President Clinton has agreed to propose to Congress, in his FY99 Budget, an
increase for homeless programs, from $823 million to $1.15 billion. This
figure includes $192 million for 34,000 new Section 8 rental assistance
vouchers and $956 million for the continuum of care SuperNOFA for FY99.
HUD Secretary Cuomo has strongly encouraged the President to increase the
homeless budget.
Vice President Al Gore, in announcing the President's decision, said,
"During this holiday season, all of us must recommit ourselves to helping
homeless Americans achieve what most of us take for granted -- a safe place
to live and the opportunity to become responsible, self-sufficient
citizens," the Vice President said "These new resources will go a long way
toward helping homeless citizens move off the sidewalks and into jobs -- to
find homes and hope."
The HUD assistance will go to 320 communities, all 50 state governments,
the District of Columbia and Puerto Rico. It was announced today that $700
million of the HUD assistance is in the form of Continuum of Care
competitive grants which will go to governments and non-profit groups to
provide long-term solutions to homelessness. In all, 1,396 homeless
assistance projects will get these grants and at least 330,000 homeless
people will be assisted.
"These grants are a matter of life and death for homeless people," said HUD
Secretary Cuomo. "Without this assistance, more men, women and children
would die. More would remain homeless, trapped in a nightmare world where
no American should live. Because of these grants, some of the most
vulnerable Americans are getting a second chance to reach for the American
Dream."
Big Correction
Preservation
In the December 19, 1997 Memo, we reported that Art Agnos had said that
50,000 units in California developed under the 236 and 221(d)(3) program
in California were in the pipeline for prepayment. The number should have
been 8,000 of the 50,000 eligible units. While extent of prepayment is
great both nationally and in California, the number was wrong. This does
not however change the basic thrust of the story which is that prepayments
are occurring with more frequency coupled with increased rents which effect
not just those households receiving Section 8 but the many families who are
not receiving Section 8 and who seeing affordable rents increase to levels
well above there ability to pay.
Additionally in the same article we coined a new description of a dire
prediction, known as the derriere prediction to describe the preservation
prepayment plight. For those of you who got a good chuckle at the derriere
prediction consider it a new description of your basic seat of the pants
perspective or for those who want the facts and nothing but the facts
consider that spell check has limited capacity to think when the writer is
not paying complete attention.
Capitol Hill
Relief for Nonitemizers
The Charitable Giving Relief Act will hopefully see some positive movement
when Congress reconvenes. The House version, H.R. 2449, has been
introduced and a Senate version is expected soon after reconvening. This
Act will allow generous nonitemizers to deduct 50% of their annual
contributions over $500 each year. According to Price Waterhouse research,
the legislation would increase charitable giving by $2.7 billion annually,
and $16.5 billion over the years 1998-2002. According to Independent
Sector, who is leading this charge, the 84 million nonitemizing taxpayers
in this country represent more than two-thirds of all taxpayers and the
legislation would restore fairness to the tax code for those nonitemizers
who give generously. Many, many nonprofits are contacting their House
members to encourage them to co-sponsor this bill.
Fair Housing
As reported in the November 7, 1997 Memo, a number of small cities have
drafted amendments to the Fair Housing Act which would dramatically change
the zoning and land use protections for people with disabilities and
children in the child welfare system. In addition to permitting localities
to limit the number of people with disabilities and juveniles who can live
in group homes and half-way homes in residential neighborhoods, proposed
language would also require housing providers to go through all the local
and state variance and appeals processes before filing a compliant at the
federal level. Proposed language would also dramatically alter the way HUD
administers the fair housing complaint process, making it less accessible
to laypeople. Proposed language could surface sometime this spring as
freestanding legislation or as amendments to other legislation.
A broad-based group, the Coalition to Preserve the Fair Housing Act, has
formed to work on ways to address some of the concerns raised by the
Bellevue language (some of which was also passed via resolution by the
National League of Cities, which did not draft the Bellevue language) to
protect the FHA from any amendments. We'll keep you posted.
Internet Tax Bill
The Center on Budget and Policy Priorities and the National Governors
Association are working together to educate advocates on the unknown
consequences of the "Internet Tax Freedom Act." The bills (S. 442 from
Senator Wyden (D-OR) and H.R. 1054 from Representative Cox (R-CA)) would
prohibit states from collecting sales tax on sales completed via the
internet. According to the Center, the ability of state and local
governments to continue to derive significant amounts of revenue from their
sales taxes is threatened. General sales taxes supply nearly one-quarter
of all the tax revenues that states, cities, counties and school districts
use to support the government programs and services they provide. Although
regressive, there could possibly be an increase in sales taxes if the bills
were to pass. Many Representatives and some Senators have co-sponsored
these bills from both sides of the aisle. Ask yours if they have and where
the potential lost revenue would come from.
Homelessness
New Report Shows Increase
According to its Executive Summary, the newest report from the National
Coalition for the Homeless, Homelessness in America: Unabated and
Increasing, "examines how we have fared in out efforts to address
homelessness, what we have learned and where we need to go to close this
grim and shameful chapter of this nation's history and to ensure that
homelessness is not part of America's future." The report found that
homelessness has increased dramatically over the past ten to fifteen years
with many communities having doubled or tripled their shelter capacity in
order to respond to the increase. However, even with this response, the
study also found that demand for emergency shelter far exceeds supply.
The report makes several findings and draws several thoughtful and pointed
conclusions. Immediate action steps for Congress and the Clinton
Administration are also included. The full report is to be posted this
month to the NCH website (http://nch.ari.net) and is also available for
$6.25 from NCH, 1012 14th St., NW #600, Washington, DC, 20005 or call
(202)737-6444.
HUD
Resident Input Key
Residents claimed victory after the issuance of a clarification memorandum
on enforcement strategies in properties which fail to meet certain HUD
standards. After an August, 1997 notice was issued (Housing Notice 97-50),
assisted housing residents were concerned that HUD was not making it very
clear that Section 8 contract termination is not the preferred method of
resolution for such properties. The recent memorandum, dated December 29,
1997, restates HUD's current policy that, "while it is the Department's
responsibility to ensure that owners and management agents fulfill their
contractual obligations, the termination of the Section 8 contract and
subsequent relocation of the residents is considered the action of last
resort."
The memo goes on to say that HUD Field Offices should make efforts to
enlist residents early on as full partners with HUD in the development of
enforcement and preservation strategies. HUD also expects to issue an
Enforcement Guide soon which will provide an extensive discussion of, among
other things, various enforcement tools and a discussion of when to seek
the advice and assistance of tenants and/or tenant organizations.
Rural Housing
Rural Housing and Welfare
The Housing Assistance Council recently released a report, "Rural Housing
and Welfare Reform: State of the Nation's Rural Housing 1997." According
to Executive Director, Moises Loza, the "analysis indicates that these
rural families may already be earning as much as they can, but even so they
are not able to get out of poverty and into decent housing with decent
futures for themselves and their children."
"To replace welfare with work and enable welfare recipients to afford
decent housing, they will need better-paying jobs, child care and
transportation," said study co-author Cushing N. Dolbeare, the Dean of
Housing. She continued, "But these essential resources are often missing
in rural areas, so the report concludes that it is difficult to be
optimistic that welfare reform, on balance, will help rural Americans
improve their lives."
The report found that almost one quarter of rural households pay more than
30 percent of their incomes for housing - including over three million
rural households who pay more than half their incomes for housing and 4.9
million paying between 30 and 50 percent. The report outlines the many
ways housing problems are even worse for rural welfare recipients.
To order the $6 report, call HAC at (202)842-8600.
People and Faces
The National Neighborhood Coalition has chosen its new Executive Director.
Betty Weiss, who comes from her position as the Communications and Research
Director for the National Community Action Foundation, will hold the head
post at NNC. We look forward to working with Betty.Event
Media
On December 30, 1998, Jason DeParle wrote first page article entitled,
Success, and Frustration, as Welfare Rules Change in the New York Times.
This article is an excellent overview of the first years experience and
underlying issues relating to changes in welfare.
Resources
The Center for Law and Social Policy has scheduled two audio conferences
called "TANF Regulations: What Do They Mean for Your State?." The first
one, on Friday, January 16 from 12:30 - 1:30 pm EST, will focus on
work/time limits/family violence. The second, on Friday January 23 from
12:30 - 1:30 pm EST, will focus on state waivers/state funds. For more
information, call the CLASP Audio Conference Line at (202)797-6535.
Welfare to Work grants are now available from Department of Labor's
Employment and Training Administration (ETA). Local government agencies,
non-profit organizations and for profit firms may compete for these funds,
which are targeted toward the hardest to serve welfare recipients. $184
million is available in the current competition, with a total of $700
million available over the next two years. Applications for this round are
due by March 10, 1998. Information on these grants can be obtained
through the Internet at http://wtw.doleta.gov .
The National Law Center on Homelessness and Poverty has two new
publications. "Access Delayed, Access Denied" examines not-in-my-backyard
opposition to housing and services for homeless people across the United
States. "Blocks to Their Future" reports on the barriers to preschool
education for homeless children. Both are available from the Center for
$25 each plus $3 postage and handling; call (202)638-2535 to order.
NAIHC Conference
On February 23-24, 1998, the National American Indian Housing Council's
(NAIHC) will hold its 4th Annual Legislative Conference at the Grand Hyatt
in Washington, DC. Indian Housing legislation will be a topic of
discussion. For further information contact Amy C. Sagalkin, NAIHC,
Legislative Assistant at 202-789-1754 fax: 789-1758.
Rapoza Associates will be holding a series of one day briefings to inform
and instruct community based organizations on the new Welfare to Work
program. The briefings will also guide organizations to the resources that
will be made available through the Department of Labor, particularly the
national competitive grant program. To find out more about the Boston
briefing on January 26, the Des Moines briefing on February 2, the Atlanta
briefing on February 5 or the Sacramento briefing on February 12, call
(202)393-5225 or visit Rapoza Associates' website: http://www.rapoza.org .
There is a $100 fee for registration submitted before January 16 and $150
thereafter.
Websites of the Week
Community Capital Websites
The National Community Capital Association (formerly the National
Association of Community Development Loan Funds) shares some of their
members' websites. You can visit the NCCA site at: http://www.nacdlf.org .
Alternatives Federal Credit Union
http://www.alternatives.org
Cascadia Revolving Fund
http://www.cascadiafund.org
Coastal Enterprises, Inc.
http://www.ceimaine.org
Cornerstone-Homesource Regional Loan Fund
http://www.cinternet.net/cpi/cf
Delaware Valley Community Reinvestment Fund
http://www.libertynet.org/~dvcrf
First State Community Loan Fund
http://members.aol.com/cglackin/index.html
Housing Assistance Council
http://www.ruralhome.org
Mountain Assn. for Community Economic Development
http://www.maced.org
McAuley Institute
http://www.housinglink.com/mcauley.htm
Montreal Community Loan Association
http://www.accent.net/~acem
Northern California Community Loan Fund
http://www.ncclf.org
Ohio Community Development Finance Fund
http://www.tsreg.com/cdff
Rural Community Assistance Corporation
http://www.rcac.org
Self-Help Ventures Fund
http://www.self-help.org
Washington Area Community Investment Fund
http://www.marcnet.com/wacif/
Capitol Hill
1998 Congressional Calendar
Following is the planned 1998 Congressional calendar.
House Senate
Reconvenes Jan. 27 Jan. 27
Presidents' Day recess Feb. 16-23 Feb. 14-22
Spring recess April 2-20 April 4-19
Memorial Day recess May 25-29 May 23-31
Independence Day recess June 26 - July 13 June 27 - July 5
August recess Aug. 10 - Sept. 8 Aug. 1 - Sept. 7
Target adjournment October 9 October 9
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