The Community Development Network

On November 14, the House of Representatives passed the FY08 Transportation, Housing and Urban Development, and Related Agencies (THUD) conference report by a vote of 270-147. The vote was short of the two-thirds majority of those present needed to override a presidential veto. Go to http://clerk.house.gov/evs/2007/roll1102.xml to see how Members voted.

The same day, the White House issued a Statement of Administration Policy (SAP) on the bill, again threatening a veto because the bill exceeds the president’s spending requests by $3 billion, does not cut what the president has deemed ineffective programs and includes nearly 2,000 earmarks. The HUD portion of the bill contains $183.5 million in Economic Development Initiative earmarks, down from $307 million in such pork spending in FY06. The FY07 HUD spending bill did not include Economic Development Initiative earmarks.

On November 15, Senate and House Democratic leaders announced a strategy to complete the remaining 11 appropriations bills. The new strategy would compromise with the president’s request for FY08 spending, which the House and Senate have exceeded by some $22 billion in their spending bills. The proposal is to send President Bush an omnibus spending bill in December that exceeds his spending levels by only $11 billion.

Within hours, the White House responded that the proposal is insufficient and that the president intends to stick to his original request levels. Senate Minority Leader Mitch McConnell (R-KY) said that the president is serious about his total overall figure and he is not interested in any additional domestic spending.

The Senate was to have taken up the FY08 THUD conference report before Thanksgiving recess but failed to do so. The Senate is expected to vote on the bill when it returns from recess the week of December 3. The Senate passed its THUD spending bill on September 12 by a veto-proof vote of 88-7. A continuing resolution that expires December 14 currently provides funding for HUD program at FY07 levels.

On November 15, the House failed to override the president’s veto of the Labor, Health and Human Services, and Education spending bill, falling short by two votes. This bill exceeds the president’s spending requests by $9.6 billion.

The FY08 THUD conference report would provide modest yet critical funding for many programs. The report also includes important policy guidance on a range of HUD programs. Although the conference report was agreed to by House and Senate negotiators on November 8 (see Memo, 11/9), details are now available.

Tenant-Based Assistance: For the tenant-based Section 8 housing choice voucher program, funding is mid-way between Senate- and House-passed levels, which should be sufficient to renew existing vouchers given that the report also updates how HUD distributes voucher funding to administering agencies. The report provides that funding for renewals will be based on the most recent federal fiscal year data available and provides exceptions to the distribution formula for public housing agencies (PHAs) that went into receivership within the previous 24 months, overspent their FY07 allocation or were impacted by the 2005 hurricanes. The report directs HUD to notify PHAs of their FY08 allocations within 60 days of the bill’s enactment. The report also includes $50 million to adjust the voucher allocations for PHAs that experienced a significant increase in renewal costs due to portability or for PHAs with a higher leasing rate at the end of the federal fiscal year than the average for the entire year.

The conference report also includes a $50 million increase above FY07 for tenant protection vouchers and instructs HUD to issue tenant protection vouchers for all units that were occupied within the previous 24 months, instead of HUD’s current practice of issuing tenant protection vouchers only for units under lease at the time the unit leaves the federal housing inventory.

The conference report does not include a provision requested by the president, and included in both the House and Senate bills, for $5 million as an incentive program for PHAs to consolidate their voucher administration.

The conference report also includes the first new, incremental vouchers since FY02. The bill provides $75 million for Veterans Affairs Supportive Housing (VASH) vouchers, to be made available to PHAs that partner with eligible VA medical centers and other entities, $30 million for vouchers for non-elderly disabled families and $30 million for Family Unification Program (FUP) vouchers. The VASH vouchers must remain in the VASH program upon turnover; the non-elderly disabled vouchers and the FUP vouchers must remain available for those purposes upon turnover, to the extent practical.

Project-Based Assistance: The conference report falls well short of what will be necessary to renew project-based Section 8 contracts with private owners in FY08. The report provides $6.138 billion for contract renewals, about $2 billion short. The appropriators’ anger toward HUD for this insufficient funding level is clear in the report’s language. The report states, “The conferees note the Department’s inability to identify actual funding needs for Project-Based Rental Assistance renewals. The conferees also find that the Department has not been aggressive in reducing the impact that its decisions are having on the affordable housing community. In light of what appears to be a severe funding shortage, the Department has taken the drastic step of abandoning its practice of 12-month contracts and has been sending short-term renewal contracts that impact owners, landlords, financial institutions and, most importantly, tenants of Project-Based rental contracts.”

The conference report instructs HUD and the Office of Management and Budget (OMB) to, within one month of the report’s enactment, make a final determination about whether an Anti-Deficiency Act violation would exist if 12-month contracts were conditioned on the availability of funds and could be funded incrementally. Anything less than 12 months creates tremendous disincentives for these private landlords to leave the program.

Nationally, private owners of about 500,000 units receive HUD project-based Section 8 subsidy rents at levels below actual market rate rents. These owners are at risk of leaving the program that has been unable to pay its rents on time or even to ensure year-long contracts. In addition to these problems, which began mid-FY07, these owners are lured by higher rents in the private market. If HUD and OMB do not determine a violation exists, HUD is instructed to immediately begin issuing 12-month contracts.

The conference report includes language ensuring accurate appraisals for determining the real market value of multifamily properties and stronger right of first refusal options for preservation-minded purchasers of federally-subsidized housing. And, the report continues language allowing HUD to transfer debt and use agreements from an obsolete project or projects, provided no additional costs are incurred and other conditions are met, to other properties. The HUD Secretary must also report quarterly to Congress on the status of all project-based Section 8 housing.

Public Housing: The conference report provides level funding for public housing capital funds and a small increase for the public housing operating fund. If enacted, operating subsidies would meet only 85.4% of PHAs’ actual need, according to the November 14 Center on Budget and Policy Priorities (CBPP) Report, HUD Bill Avoids Deep Cuts in 2008. As reported in Memo on 11/9, the conference report includes language exempting PHAs with fewer than 400 units from the mandatory transition to asset management requirements and, under asset management, PHAs can continue to use up to 20% of capital funds for operating expenses, as authorized by the Quality Housing and Work Responsibility Act of 1998. The report also requires the HUD Secretary to provide performance bonuses in FY08 for PHAs that are high performers.

HUD must report to the House and Senate appropriations committees on all PHAs in receivership.

HUD is also directed to perform an updated capital needs assessment by contracting with a nationally recognized research entity. The review must include a statistical sample for projects of 500 units or less and a one-for-one review of projects in excess of 500 units. The report is due to the House and Senate appropriations committees by July 31, 2009.

The report also extends the authorization for the HOPE VI program until September 30, 2008. The HOPE VI program’s authorization ended at the close of FY07.

The conference report expands the number of Moving to Work (MTW) public housing demonstration agencies to include the following PHAs in California: Santa Clara, San Jose, and San Bernardino, as well as the Alaska Housing Finance Corporation.

Homeless Assistance Grants and Other Provisions: The conference report’s increase for homeless assistance grants includes $25 million for HUD to conduct a demonstration program on the effectiveness of rapid re-housing programs in reducing the number of families who are homeless.

The conference report also provides a new $200 million for the Neighborhood Reinvestment Corporation, a federally chartered organization, for mortgage foreclosure counseling. Both the Community Development Block Grant (CDBG) and HOME programs receive small increases.

The conference report includes $500,000 for HUD to establish an interagency working group with the Federal Transit Administration (FTA) and directs HUD and the FTA to develop a best practices manual to assist communities seeking to establish mixed-income transit-oriented development. HUD and FTA are to report back to the appropriations committees within six months of enactment on how they can better coordinate transportation and housing programs.

The conference report also requires the HUD Secretary to identify essential documents to translate for individuals with limited English proficiency in order to enhance access and services for HUD-assisted programs.

The CBPP paper comparing the president’s HUD request to the THUD conference report can be found here:

The National Housing Trust Fund (NHTF) Campaign has issued a response to the Statement of Administration Policy (SAP) issued on October 9 by the Executive Office of the President. The SAP opposed enactment of H.R. 2895, the National Affordable Housing Trust Fund Act of 2007.

The Administration made several arguments against the national affordable housing trust fund in the SAP, which also includes a recommendation from senior advisors that the president veto H.R. 2895.

The first is that a National Housing Trust Fund is redundant of the HOME Investment Partnership Program. The NHTF Campaign response is that there are number of important differences between the national affordable housing trust fund and HOME, including the lack of deep targeting in the HOME program that is provided in the trust fund bill.

The Administration opposes the spending of Federal Housing Administration (FHA) receipts for the trust fund, one of two funding sources for the trust fund passed by the House of Representatives. The funds would come from expansion of the FHA’s home equity conversion mortgage (HECM) product. The NHTF Campaign argues that the FHA bill, H.R. 1852, the Expanding American Homeownership Act of 2007, generates considerable new revenue for the general Treasury, and the FHA measure ensures that the funds will be used to benefit a number of housing and housing-related purposes, including a national housing trust fund.

The second funding source for the trust fund would come from H.R. 1427, the Federal Housing Financial Reform Act of 2007. This bill reserves funds from Government Sponsored Enterprises Fannie Mae and Freddie Mac as a dedicated source of funding for the trust fund. The Administration says that it opposes funds from Fannie Mae and Freddie Mac being used for the trust fund. This argument is inconsistent with their position that they will accept an affordable housing fund as part of the GSE regulatory reform legislation.

The SAP expresses concern that the trust fund will be susceptible to political influences that would harm the goals of the fund. However, the legislation includes specific language that prohibits any funds being used for political activities and gives HUD authority to impose penalties on grantees that violate these provisions of the law.

More information about the National Housing Trust Fund Campaign can be found here:

Sign Your Organization on to Housing America 2007 Petition

Support the Housing America 2007 petition drive. Housing America 2007 is a nationwide campaign to shine a spotlight on this country's critical need for affordable housing. Spearheaded by the National Association of Housing and Redevelopment Officials, partners in the campaign include the American Federation of State, County and Municipal Employees; Housing Assistance Council; Local Initiatives Support Corporation; Mortgage Bankers Association; National Association of Counties; National Association of Home Builders; National Association of Realtors; National Council of State Housing Agencies; National Housing Conference; National League of Cities; National Low Income Housing Coalition; and the U.S. Conference of Mayors.

The Housing America 2007 petition drive is aimed at creating a groundswell of documented support for the ongoing provision of affordable housing. Signatures will be collected through this fall, at which time they will be compiled and presented to Congress and the Administration. Please sign the petition yourself and for your organization. Please also forward it to any other organizations involved in housing and community development in your local area. Bottom line, the more signatures we can collect, the greater impact the petition will have when delivered to Congress.

Signing on is easy! Simply go to http://HousingAmerica.blogspot.com. Scroll down to the bottom of the "Sign on to the Housing America 2007 Petition!" entry and click on "Comments." Type your name, zip code, address and your organization, if you wish (this is optional, not required), in the text box, and then click "Publish."If you have any questions about Housing America 2007 or the online petition, please contact Mary Barron at mbarron@nahro.org.

Thank you in advance for your assistance and support!!

Seasonal Celebration to Benefit Transitional Youth Nov 28

Come support Transitional Youth and celebrate their 11^th annual Seasonal Celebration on Nov 28^th. Invite your friends to a wonderful night of entertainment and helping the kids through Transitional Youth.

The 2007 Seasonal Celebration will feature performances by Aaron Meyer, Chad and Rachel Hamar, Patrick Lamb, Michael Allen Harrison and Julianne Johnson.

The Seasonal Celebration is November 28 at 7 pm at the Arlene Schnitzer Concert Hall. Tickets available at ticketmaster.com.

Transitional Youth actively reduces local youth homelessness by providing housing, outreach and support to homeless youth. Learn more about Portland’s homeless youth challenges by visiting www.transitionalyouth.org.

Affordable Housing NOW! (AHN) has developed a nationally recognized training on how to effectively advocate for housing. Learn values-based framing and messaging techniques that will not only prepare you to help with AHN’s advocacy for more housing resources, but will increase your ability to communicate with and inspire elected officials, the media and fellow community members.

AHN will offer our training on Framing and Housing Messaging on Dec 3 in Beaverton at 3700 SW Murray Blvd, Rm #195 (corner of Murray and Millikan). We will hold the same training in Portland Dec 4 at Sisters of the Road Café, 133 NW 6^th Avenue.

Light refreshments will be provided. Space is limited, so RSVP now: Contact Michael Anderson via email or at (503) 335-9884.

Affordable Housing NOW! is a coalition of over 40 organizations and hundreds of individuals whose goals are to secure new resources for affordable housing for the Portland Metro area by building a movement large enough to make funding for affordable housing for people with low incomes a political priority in the Metro area. To learn more about Affordable Housing NOW!, go to: http://www.cdnportland.org/ahn.html

TACS Presents ‘The New 990: Tough Issues and Unknowns’ Dec 3

Have you been afraid to even look at the proposed new 990? Have you looked at it and felt bewildered?

Don't miss this opportunity to move beyond the basics to in-depth exploration of 990 challenges. Come meet the new form and face the future.

While the final form is yet to come, the IRS has announced major changes embodied in the draft version to be in place for the 2008 reports we file in 2009.

We invite nonprofit CFO's, fiscal managers, and the accountants and attorneys who advise them, to join Terry Miller, dynamic national trainer on tax exemption issues, for an in depth look at the implications of the new 990. Terry will highlight what's known and unknown about IRS plans and their potential impact.

Terry will review the new "core" 990 form and the 15 specific schedules proposed to accompany it and explore the underlying issues that are driving the IRS to insist on more detailed answers. Identify the records you'll need to start keeping in 2008 to be ready to file the new 990 in 2009.

Break out sessions will go deeper on the most challenging topics and schedules. An Ask the Experts panel will provide multiple views on the toughest issues.

Terry Miller has been active for seven years on the planning committee of the annual AICPA Not for Profit Industry Conference, and is widely recognized for his ability to make the torturesome twists and turns of 990 reporting entertaining as well as understandable.

Terry suggests that former Secretary of Defense Donald Rumsfeld may have words of wisdom to ponder in preparation for the new 990- "there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns -- the ones we don't know we don't know."

Date: December 3, 2007

Time: 8:30 am - 4:00 pm

Cost: $150 open registration $135 NAO Member

Verizon Scholarships Available

Location: Ecotrust Conference Center, 721 NW 9th Avenue, Portland, Oregon

Click here for driving and parking directions.

We are hosting an Open House with the Housing Development Center and the Association of Oregon Community Development Organizations on December 6^th from 4-6pm at our new offices in the Nationwide office park, 847 NE 19^th Avenue, Suite 150, Portland, OR. For more information call Terrie at 503-233-4041.

Enterprise presents a Live Online Event ‘Regional Equity: How Data Maps Can Influence Policy and Provide Program Focus’ on  Thursday, December 13 at 11:00 am featuring the Coalition for a Livable Future’s Equity Atlas as well as analysis from the Kirwan Institute for the Study of Race & Ethnicity.

For several years, Portland, Oregon's Coalition for a Livable Future has been working in partnership with Portland State University and others to conduct research on equity conditions in the six-county Portland-Vancouver, Wash. region. Jill Fuglister, Co-Director of the Coalition and Equity Atlas Project Director, will present how the Coalition developed this project, and how CLF and its members are using the Atlas to address inequality in Portland.  

Inequality has a geographic footprint, and the Kirwan Institute utilizes maps to communicate the history and presence of discriminatory and exclusionary policies that spatially segregate people. Jason Reece, AICP, Senior Researcher, Kirwan Institute for the Study of Race & Ethnicity at The Ohio State University will present on how the Institute uses mapping to inform social justice policy in Baltimore, Austin and other major cities.

The Portland Development Commission is sponsoring this workshop to assist developers, contractors and others better understand sustainable construction, LEED certification requirements, and how to take the LEED “Accredited Professional” exam.

Where: Portland Development Commission, 222 NW Fifth Ave. Portland OR, The Commission Room, First Floor

Who: This training is offered to affordable housing developers, sheltered market developers and construction trades (MWESB), and PDC staff

Limit: 70 people – selection will be based on a first come, first served basis

Brightworks will facilitate this training. This firm consulted for Gerding Edlen on the development of OHSU’s Health and Wellness Center, a LEED Platinum Building.