'Housing America' Ad to Hit Dem and GOP Conventions. NACEDA is part of a new affordable housing ad campaign led by the National Association of Housing and Redevelopment Officials (www.nahro.org), along with more than 20 partner organizations. The ad will be included in Delegates and Media Guide at the two major party conventions. The ad highlights statistics from this year's Zogby International poll, including the following figures: 92% cite having a decent affordable place to live as a high priority; 74% agree that presidential candidates' ideas for providing more affordable housing would help determine for whom they would vote; and 69% are more likely to select a candidate who articulated his or her detailed plan for providing affordable housing.

South Carolina Association of Community Development Corporations, with the Association of Housing Counselors will host the 2008 Housing and Economic Development Summit, "Preparing for a Sustainable Future in the Carolinas," September 15-16 in Greenville, SC.

Texas Association of CDCs will host the 10th Annual Texas CED Policy Summit, October 1 in Austin, TX.

Launching CDC Research: Corianne Scally, Assistant Professor at the University at Albany, SUNY, is seeking your support for a research project on the successes and challenges of state associations of community development organizations. For this research, she is collecting a variety of written documents and publications, distributing an Internet-based survey, and conducting case studies of 2-3 associations. Research findings will be presented at the NACEDA Annual Summit & Policy Conference in 2009. Check your inboxes (and mailboxes) soon for more information. Questions? Contact Corianne at (518) 591-8561 or cscally@albany.edu.

LISC Buffalo Comments on Bill Addressing Vacant City Houses. Michael Clarke of the Local Initiatives Support Corp. in Buffalo spoke highly of the legislation, which has been approved by state lawmakers, as reported by the Buffalo News in a June 21 article. If signed into law, the bill would allow communities such as Buffalo access to a countywide land bank--a tool that has seen use in other states to revitalize distressed neighborhoods, according to the report.

Save the Date: NeighborWorks Training Institute: August 18-22 in Chicago, offering a symposium "Organizing in the Face of Foreclosure: What Can Communities Do?" among more than 100 courses offered in community building, neighborhood revitalization, green building, affordable housing, homeownership education, management and leadership. Early-bird registration, saving $50, ends July 7. (Info.)

Mortgage Aid Bill Progresses in Senate. The Senate voted on June 24 to limit amendments and debate on a landmark housing bill, but several members were pushing amendments that could delay final consideration.

By 83-9, the Senate invoked cloture on its substitute for a massive House-passed package (HR 3221), which includes a plan aimed at helping struggling homeowners refinance loans they can't afford, along with a regulatory overhaul of mortgage giants Fannie Mae and Freddie Mac.

The legislation would have the Federal Housing Administration provide $300 billion in new, cheaper mortgages for distressed homeowners who would not qualify for government-insured, fixed-rate loans. Borrowers about to take a substantial loss would be allowed to refinance, and ultimately share with the government a portion of any profits made from their properties. The bill would create a new regulator for government-sponsored enterprises Fannie Mae and Freddie Mac, which buy home loans from banks. It would provide $14.5 billion in tax breaks, including a credit of up to $8,000 for borrowers who buy their first home in the next year and includes $3.9 billion in funding for CDBG for foreclosure relief (further details, see below).

Mortgage Relief Bill Gutting Rejected in Senate but Presidential Veto Looms. Regarding the Housing and Economic Recovery Act (H.R. 3221), Sen. Christopher Bond (R-MO) proposed that the government-sponsored enterprises Fannie Mae and Freddie Mac contribute to the housing trust fund on a voluntary instead of mandatory basis, and that a to-be-established Federal Housing Administration foreclosure prevention program be eliminated, as reported by the National Low-Income Housing Coalition. After these amendments were voted down, Sen. John Ensign (R-NV) moved to return provisions for renewable energy incentives to the bill. While his proposal for more than $6 billion in tax breaks has bipartisan support and is co-sponsored by Sen. Maria Cantwell (D-WA), some Senate Democrats oppose it for lack of offsetting tax increases. The Bush Administration reportedly approves of the bill's reforms to government-sponsored enterprises Fannie Mae and Freddie Mac, but objects to the $4 billion provision of Community Development Block Grant funding for distressed cities to buy foreclosed homes, saying only lenders would benefit. The White House also wants removal of language preventing the Federal Housing Administration from using a risk-based formula in making loan decisions as needed for the agency to expand the administration's FHASecure housing program. Additionally the FHA should not be allowed to use the GSEs to subsidize FHA loan guarantees, the White House holds. The Senate will take up the bill again after the July 4th recess.

House Panel Proposes to Eliminate HOME Funding Increase in Favor of Other Housing and CD Programs in FY09 Budget. Appropriations Committee Chairman David Obey (D-WI) and House Transportation, HUD & Related Agencies Subcommittee Chairman John Olver (D-MA) gained the support of Subcommittee Ranking Member Joseph Knollenberg (R-MI) regarding the additional $313 million that the White House requested for the HOME Investment Partnership Program, as reported in CD Digest. Some of that money would go to the Community Development Block Grant Program. The panel proposes that Public and Indian Housing programs get $1.62 billion beyond the budget request and $1.4 billion more than in FY08. Nearly $1 billion would go to Section 8 for tenant-based rental assistance ($532 million) and project-based rental assistance ($476 million). Public housing capital and operating funds would increase by $61 million and $300 million above current levels or $476 million and $200 million above what the White House requested. The Neighborhood Reinvestment Corp. would get $200 million, which would be $50 million more than what the White House requested although still $100 million short of current funding. The HOPE VI housing revitalization program and Brownfields Economic Development Initiative, which the White House wants to eliminate, would be saved. HOME Sign-On Letter Circulating. Meanwhile, a coalition of organizations, including NACEDA, is urging the subcommittee to provide at least $2 billion in formula grant funding for the HOME Investment Partnerships (HOME) program. A sign-on letter, led by the National Council on State Housing Agencies, is being sent to the Subcommittee, highlighting how the HOME program is one of the best housing investments Congress can make. Since Congress created the program in 1990, HOME has financed more than 1 million affordable homes, helping more than 500,000 renters and almost as many homeowners.

HUD Asset Management Goes to House Floor. The Financial Services Committee last week passed the Asset Management & Improvement Act of 2008 (H.R. 6216) by voice vote. Introduced on June 9 by Rep. Albio Sires (D-NJ) in his third attempt at such legislation, H.R. 6216 would exempt from HUD asset management requirements public housing agencies operating fewer than 500 units. New language would allow PHAs to terminate tenants for illegal use of firearms. The new bill excludes community service requirement language that had been added to the second version.

CDFI Fund $11M Increase Approved by House Subcommittee on June 17. Draft legislation from Financial Services and General Government Appropriations Subcommittee Chairman José Serrano (D-NY) would set FY09 funding for the Community Development Financial Institutions program at $105 million, compared to $94 million last year. The President had requested $28.6 million for the Fund. CDFI funding had decreased from $118 million in FY01 to $54.4 million in FY07, when Rep. Serrano became chair of the subcommittee and raised it for last year.

Affordable Housing Preservation and Tenant Protection Addressed in House Hearing on June 19. The Financial Services Committee had circulated a draft bill, and much testimony was directed at that draft. Chairman Barney Frank (D-MA) emphasized the importance of assisted housing in the creation of diverse, vibrant communities. Rep. Shelly Capito (R-WV) expressed concern for tenants whose assisted properties are converted to market rate housing. Rep. Al Green (D-TX) spoke in support of maintenance and one-for-one replacement of assisted units. John Garvin, HUD Deputy Assistant Secretary for Multi-Family Housing Programs, described the lack of tenant protection upon maturation of an assisted mortgage. Bill introduction is expected after the July 4 recess.

Section 811 Bill Reviewed in House Hearing on June 20. The Frank Melville Supportive Housing Investment Act of 2008 (H.R. 5772), introduced by Congressman Chris Murphy (D-CT) and co-sponsored by Congresswoman Judy Biggert (R-IL), streamline program guidelines to ensure maximum voucher distribution. Disabled residents would gain the opportunity to live independently, rather than be prematurely relocated to outside facilities, Murphy said before the Financial Services Subcommittee on Housing and Community Opportunity. Panelists speaking in favor of the proposed changes included Diane Randall of the Partnership for Strong Communities in Hartford, CT and Ann O'Hara of the Technical Assistance Collaborative testified on behalf of the Consortium of Citizens with Disabilities Housing Task Force.

Foreclosure Issues Discussed in House Field Hearing in Cleveland on June 16, as reported by the National Low-Income Housing Coalition. At "Foreclosure Problems and Solutions: Federal, State, and Local Efforts to Address the Foreclosure Crisis in Ohio," held by the House Financial Services Subcommittee on Housing and Community Opportunity, witnesses discussed state and local efforts to help distressed borrowers and deal with foreclosed properties. Among them, Kim Zurz of the Ohio Department of Commerce testified that the state's foreclosure crisis is worsening. Patricia Kidd of the Lake County Fair Housing Resource Center told of her agency's efforts and urged more emphasis on tenant rights and credit issues of foreclosed persons. Chris Warren represented the Office of the Mayor of Cleveland, which saw a total of 15,000 foreclosures in 2006 and 2007 and has seen 8,000 so far in 2008. Antony Brancatelli, a member of the Cleveland City Council, said landlords should be required to give tenants 90 days notice of foreclosure.

U.S. Supreme Court Will Not Hear Atlantic Yards Eminent Domain Petition. The June 23 decision means that affected residents and property owners will have to work through New York state courts to prevent the takeover of land in the Flatbush section of Brooklyn. The Atlantic Yards project, one of the nation's largest redevelopment efforts, would include 11 residential towers and a new arena for the Nets professional basketball team as well as eight acres of open ground.

Baltimore's Revitalization Methods Criticized. The Inner Harbor and downtown area have been helped to the detriment of remaining areas of the city, according to Baltimore's Flawed Renaissance: The Failure of Plan-Control-Subsidize Redevelopment from the Institute for Justice. Loyola College Economics Professor Stephen J.K. Walters and graduate Louis Miserendino cite the aggressive use of eminent domain and development subsidies that failed to translate into benefits for citizens. City defenders contend that it did what it needed to do to rescue its downtown. Info: Castle Coalition, (703) 682-9320.

Community Land Trusts Are a Possible Way to Prevent Foreclosures and are gaining importance for affordable housing projects, according to The City-CLT Partnership: Municipal Support for Community Land Trusts, released on June 16 by the Lincoln Institute of Land Policy. Best practices are examined. Info: Lincoln Institute, (617) 661-3016.

HUD Fair Market Rents. Deadline: August 1. See Federal Register, 6/12/08, pp. 33529-90 or http://www.huduser.org/datasets/fmr.html. Contact HUD User, 1-800-245-2691.

Guidance to Federal Assistance Agencies Regarding Data Required of Recipients, drafted by the Office of Management and Budget. Deadline: August 5. See Federal Register, 6/6/08, pp. 32417-21 or http://www.regulations.gov.

FHA Payment History Acceptability Standards for when a homeowner applies for insurance through the Federal Housing Administration more than 60 days after closing. Deadline: August 8. See Federal Register, 6/9/08, pp. 32631-34 or http://www.regulations.gov. Contact Margaret E. Burns, HUD, (202) 708-2121.

Section 8 Removal of Most 50th Percentile Fair Market Rent Areas during FY 2009, for reasons relating to performance, according to HUD proposal listed in June 12 Federal Register. Deadline: August 8.

Disallowance of FHA Assistance on Seller-Aided Downpayments, re-proposed by HUD after courts cancelled a rule the agency published last October 1. Deadline: August 15. See Federal Register, 6/16/08, pp. 33941-55 or http://www.regulations.gov. Contact Margaret Burns, HUD, (202) 708-2121.

Circular A-133 2008 Supplement from the Office of Management and Budget, regarding audits of nonprofits, states, and local governments. Deadline: October 31. See Federal Register, 6/5/08, or White House website, or purchase a copy from the Government Printing Office, (202) 512-0132.

Our thanks to Housing Assistance Council, U.S. Department of Housing & Urban Development, NLIHC, CD Digest, Associated Press, and Opportunity Finance Network.

Copyright © 2008 by NACEDA. All rights reserved. Any republication must be credited to NACEDA.