With the morass of activity surrounding the attack on Iraq and the impeachment of the President, the Republicans managed to meet last week to discuss their domestic priorities for 1999. At the forefront will be social security reform, along with tax cuts, education, health care, missile defense, and electricity deregulation. Rest assured that of these priorities, social security reform and tax cuts will top their list. 

Republican members have all been appointed in the House and Senate. House Democrats have not yet fully completed their committee assignments. The Senate Banking, Housing and Urban Affairs Committee will be composed of the following members: Phil Gramm (R-TX), Chairperson; Richard Shelby (R-AL), Connie Mack (R-FL), Robert Bennett (R-UT), Rod Grams (R-MN), Wayne Allard (R-CO), Michael Enzi (R-WY), Chuck Hagel (R-NE), Jim Bunning (R-KY), Michael Carpo (R-ID), Rick Santorum (R-PA), Paul Sarbanes (D-MD), Christopher Dodd (D-CT), John Kerry (D-MA), Richard Bryan (D-NV), Tim Johnson (D-SD), Jack Reed (D-RI), Evan Bayh (D-IN), John Edwards (D-NC), and Charles Schumer (D-NY). 

Republicans on the House Banking and Financial Services Committee include: Jim Leach (IA), Chairperson, Bill McCollum (FL), Marge Roukema (NJ), Doug Bereuter (NE), Richard Baker (LA), Rick Lazio (NY), Spencer Bachus (AL), Michael Castle (DE), Peter King (NY), Tom Campbell (CA), Ed Royce (CA), Frank Lucas (OK), Tim Ryun (KS), Merrill Cook (UT), Bob Riley (AL), Rick Hill (MT), Steve LaTourrette (OH), Donald Manzullo (IL), Walter Jones (NC), Paul Ryan (WI), Doug Ose (CA), John Sweeney (NY), Judy Biggert (IL), Lee Terry (NE), Mark Green (WI) and Pat Toomey (PA). 

At the prodding of Rep. Richard Gephardt (D-MO), the Republican majority opened up eleven seats on various committees to Democrats. This would increase the committee ratios favorably for Democrats on some committees. Under the new ratios, each party would gain two seats on Education and Workforce. Both parties would pick up an additional slot on Commerce and Resources. Democrats would pick up one additional seat on Agriculture, Appropriations, International Relations, National Security, Science, Small Business and Veterans Affairs. The ratio and number of slots on all other committees would remain unchanged from what they are now. The House Banking Committee, the committee which has oversight over HUD's programs, would see no change in the ratio of Democrats to Republicans.

OMB RESPONDS TO HUD'S FY 2000 BUDGET REQUEST 

As usual, this time of year focuses on next year's budget. Each federal agency submits its funding requests to OMB, where it is reviewed and "passed back" to the agencies for appeals. We are in the appeals process. In HUD's case the pass back was not good. Most of the requests came in under funded. HUD is appealing almost its entire request. It appears that HUD did not make its case for higher funding levels well enough to suit OMB. The following chart shows how much work HUD needs to do to convince OMB of the need for higher funding levels. The numbers in ( ) represent funds counted as set-asides in other programs.

Dennis Hastert, (R-IL), the relative unknown plain talking, former wrestling coach and touted "work horse" is poised to become the next Speaker of the House. The six-term, 56 year old Hastert is described as a behind scenes deal maker man of his word without a hint of scandal attached to him. He is his own man and can bridge the divisions in his own party. This fact alone will give him the stature that he currenly lacks as he assumes the third highest office in the land. He is not considered as radical or as flamboyant as former Spreaker Gingrich nor does he have aspirations for the Presidency. His main concern appears to be getting back to the work of the House. He may be just what the Republican party and the rest of Congress needs to get back on track.  

CDBG, HOME, ESG AND HOPWA ALLOCATIONS SHOULD BE RELEASED BEFORE THE NEW YEAR 

NCDA, along with the other interest groups and grantees, are anxiously awaiting the release of the FY 1999 allocations for the CDBG, HOME, ESG and HOPWA programs. We have been told by HUD these figures will not be released before Christmas. The only information we have been able to obtain is that grantees can expect a two-tenth's of one percent increase in their CDBG allocation. The other program increases are still a mystery. As soon as the numbers are released, we will post them to our website at http://www.ncdaonline.org 

USCM RELEASES ANNUAL HUNGER AND HOMELESSNESS SURVEY 

The U.S. Conference of Mayors released its annual report on hunger and homelessness on Wednesday, December 16. The report, which is entitled A Status Report on Hunger and Homelessness in American Cities, is composed of a 30 city survey on hunger and homelessness. Each city was surveyed in five major areas: (1) the demand for emergency food assistance and emergency shelter and the capacity of local agencies to meet that demand; (2) the causes of hunger and homelessness and the demographics of the populations experiencing these problems; (3) exemplary programs or efforts in the cities to respond to hunger and homelessness; (4) the availability of affordable housing for low-income people; and (5) the outlook for the future and the impact of the economy on hunger and homelessness. The report found that 78% of the cities surveyed experienced an increase in the request for emergency food assistance. The past year's request for emergency food assistance increased by an average of 14%. It is estimated that on average, 21% of the requests for emergency food assistance were unmet. In regards to homelessness, requests for emergency shelter in each of the 30 cities increased by an average of 11 percent, with 72 percent of the cities registering an increase. Lack of affordable housing lead the list of causes of homelessness. Other causes included: substance abuse, lack of services, mental illness, low paying jobs, domestic violence, changes and cuts in public assistance, poverty and the lack of access to affordable health care. Copies of the report are available from USCM at a cost of $15. Contact Doreen Hardie at 202-293-7330 to obtain a copy.  A summary as well as information on how to download the report from the internet is available at http://www.usmayors.org/uscm/ 

ASSISTANT SECRETARY COOPER TO EXTEND COMMENT PERIOD ON FAIR HOUSING RULE 

On October 28, 1998 HUD's CPD division issued a propose rule requesting comment on how the Department would be assessing grantees' performance in ameliorating identified impediments to fair housing. HUD is concerned that some grantees have not identified and or carried out methods to eliminate impediments to fair housing choice. This rule is basically designed to inform grantees what HUD will be looking for in its performance review of a grantee's analysis of impediments to fair housing (AI). 

An important issue in this rule relates to the withholding or suspension of CDBG funds should HUD find that a grantee has not measured up to performance measures of their AI's. This is one of the most contentious issues of the proposed rule -- HUD's ability to withhold CDBG funds should it find that the grantee has not met its AI performance measures. You may recall that the AI was included in the consolidated plan regulation, which gets statutory authority from the CHAS. Instead of FHEO producing a new fair housing rule, a compromise was made to include the AI as part of the consolidated plan, since communities were already required to assess housing needs. The language in the consolidated plan vaguely outlined what the community was supposed to do to complete its AI. HUD produced manuals and held workshops on completing the AI. The performance language on the AI was contained in the CDBG entitlement regulations, which is why thise proposed rule is being issued from CPD and not FHEO. This new rule would amend the consolidated plan rule, include the performance language for AI and reiterate HUD's authority to withhold CDBG funds if it determines the grantee has not met its performance goals in eliminating fair housing impediments. 

Many practitioners believe the regulation goes too far in the legal authority cities have in addressing impediments to fair housing, particularly as they relate to the private sector. Some believe that HUD is taking too much liberty in its ability to withhold CDBG funds before communities have taken advantage of its due process rights. Some believe that the way the rule is written implies that communities don't have any due process rights if HUD determines it has not met its fair housing performance goals. 

Because of these concerns, NCDA has requested Assistant Secretary Cooper for an extension of the comment period on this proposed rule to allow for an open dialogue with HUD, grantees, practitioners and their Washington representatives. He has verbally agreed that an extension to February 15 is a better alternative than complete withdrawal of the proposed rule. NCDA has scheduled a session on this rule at the Winter Meeting in January. NCDA will hold a conference call on January 19, 1999 at 2:00 p.m. EST with members to discuss this regulation. The call is limited to seven members. If you are interested in providing your comments on the regulation during this conference call, please complete the enclosed form and fax it to Chandra Western or Vicki Watson at 202-887-5546. 

NCDA provided members with a copy of the proposed rule and invited comments and questions. To date we have received three comments/questions on the proposed rule. If you don't have a copy of the proposed rule, check the Federal Register, October 28, 1998 or call NCDA and we will fax you a copy.

HUD IS PUSHING TWO PROGRAMS FOR ITS FY 2000 HUD BUDGET 

At a recent Campaign for Housing and Community Development Funding meeting, HUD officials brought forth two programs they would like to see authorized next year. Both programs were part of the President's FY 1999 Budget, but were not passed by Congress. The HOME Bank proposal, a.k.a. the HOME Loan Guarantee Program, is modeled on the CDBG Section 108 Loan Program. The program would allow PJs to leverage their HOME funds for large-scale development of rental and for-sale housing. Each PJ could borrow up to five times the amount of its latest HOME allocation from private lenders. HOME Bank loans could be used for all activities currently eligible under the HOME program, except for tenant-based rental assistance. These activities include acquisition, new construction, reconstruction, site improvements, conversion, demolition, financing costs, relocation expenses, and credit enhancements. The second program which HUD is promoting is the Community Empowerment Fund (CEF). CEF is intended to bring private investment to distressed urban and rural communities. The Community Empowerment Fund would combine the Economic Development Initiative (EDI) and the Section 108 Loan Guarantee Fund to provide a single economic development tool for distressed communities In CEF, HUD proposes to (1) require standardized underwriting for all loans funded with Section 108 funds, (2) create a CEF Community Trust to overcome other barriers, and (3) explore efforts to expand private credit enhancement of economic development lending. OMB has rejected these two programs in their "pass back." HUD is appealing this decision. 

HOMELESS SUPER NOFA WINNERS TO BE ANNOUNCED THIS MONTH 

HUD has informed NCDA that the FY 1998 homeless continuum of care SuperNOFA winners will be announced on Wednesday, December 23, by President Clinton. HUD received over 2,500 applications this year. The competition combined the funding for the Supportive Housing Program, Shelter Plus Care Program and Section 8 Moderate Rehabilitation for SROs Program into a single competition. HUD did inform NCDA that the FY 1999 competition will be announced earlier than last year. We expect a NOFA to be published in late February or early March. 

HUD ANNOUNCES FAMILY SELF-SUFFICIENCY AND FAMILY UNIFICATION FUNDING 

On December 9, HUD Secretary Cuomo awarded $17.8 million to the Family Self-Sufficiency Program (FSS) and $19.1 million to the Family Unification Program (FUP). The FSS funding will be used to fund self-sufficiency coordinators in 530 small public housing agencies across the country. The FUP funding will be used to provide rental assistance to approximately 3,000 low-income families. Children in these families have been taken or are about to be taken from their parents and put into foster care by local social service agencies because the families lack adequate housing. 

VICE PRESIDENT GORE ANNOUNCES $220 MILLION IN HOPWA FUNDING 

As part of the commemoration of World AIDS Day on December 1, the Vice President announced $220 million in grants for housing and support services for over 65,000 low-income people with HIV/AIDS and members of their households. The funding will go to communities across the country to provide rental assistance and supportive services such as meals, transportation, and counseling to persons with HIV/AIDS. The funding represents a 10% increase over last year's funding level. 

IDIS UPDATE 

As reported in previous issue of the Washington Report, HUD is in the process of converting its existing method of disbursing funds to a new, Department-wide system. Gone are the days that each office in HUD will disburse and track funds from a different system. The entire Department will disburse funds through one system. This is important to NCDA's members because the current system of receiving and tracking funds will no longer exist. IDIS will be incorporated into the new system that is based on Oracle software which will provide HUD and Congress information on program expenditures that they need. According to HUD officials, the new and improved system will provide grantees with project tracking information to help them keep better records of expenditures and activities without the need to maintain two or more separate systems. 

HUD will be making an announcement on the changeover of grants management systems after the first of the new year. After many hours of hearing the concerns of grantees through the IDIS working group, reports of issues directly from field staff and anecdotal evidence of duplicate reporting, HUD assures us that they have listened and will implement changes for the betterment of all involved. They hope to finalize the design by March 1999 and begin Field Office briefings soon after. HUD' intent is to make the transition as painless as possible, with the new system being windows based, internet accessible and as easy to use an ATM. 

HUD OFFERS TRAINING 

HUD's Office of CPD will continue its training on CDBG, HOME, economic development, and relocation. The training sessions are free and will be conducted by ICF Kaiser. The following provides you with the schedule for the training through next spring. Space is limited, so register early. Contact your local HUD Field Office for further information or ICF Kaiser at 703-934-3392. 
 

CDBG	HOME	Economic Development	Relocation
December 9-11, 1998  Fawcett Center Hotel  2400 Olentangy River Road  Columbus, OH	January 12-14, 1999  Adam's Mark Hotel  1550 Court Place  Denver, CO	January 26-28, 1999  Sea Turtle Inn  One Ocean Blvd.  Atlantic Beach, FL	January 12-14, 1999  Doubletree Inn  4 West University Pkwy.  Baltimore, MD
January 12-14, 1998  Doubletree Hotel  310 S.W. Lincoln  Portland, OR	February 2-4, 1999  Fawcett Center Hotel  2400 Olentangy River Road  Columbus, OH 43210	February 23-25, 1999  Crowne Plaza Seattle  Downtown at Freeway Park  1113-6th Avenue  Seattle, WA	January 20-22, 1999  Days Inn Lake Shore Drive Hotel  644 North Lake Shore Drive  Chicago, IL
February 9-11, 1999  Doubletree Inn  4 West University Pkwy.  Baltimore, MD	February 3-5, 1999  The Warwick Hotel  65 West 54th Street  New York, NY		January 26-28, 1999  Crowne Plaza Seattle  Downtown at Freeway Park  1113-6th Avenue  Seattle, WA
February 16-18, 1999  Radisson Suite Hotel  700 Avenue H East  Arlington, TX	February 16-18, 1999  The Westin Long Beach  333 East Ocean Blvd.  Long Beach, CA		February 9-11, 1999  Atlanta Marriott Marquis  265 Peachtree Center Avenue  Atlanta, GA
March 16-18, 1999  Providence Baltimore  Kennedy Plaza  Providence, RI	March 2-4, 1999  Best Western Inn  162 East Ohio Street  Chicago, IL		March 2-4, 1999  The Warwick Hotel  65 West 54th Street  New York, NY
	March 9-11, 1999  Swissotel Boston  One Avenue de Lafayette  Boston, MA		March 8-10, 1999  Adam's Mark Hotel  1550 Court Place  Denver, CO

HUD Releases Memo on Impact of the 1999 Appropriations Act on the HOME Program 

In a recent memo to its CPD Directors and HOME participation jurisdictions, HUD outlined the following HOME program changes relating to the FY 1999 Appropriations Act: 

(1) FY 1999 HOME Appropriation Level. As we all know by now, the HOME program received an allocation of $1.6 billion in FY 1999. This is an increase of $100 million over the FY 1998 level. Of this amount, $29 million will be set-aside for technical assistance, $7 million for management and information systems, and $17.5 million for housing counseling. 

(2) Income Caps for High Income Areas. The FY 1999 HUD Appropriations bill directs the HUD Secretary to grant exceptions to not less than 10 jurisdictions to allow these jurisdictions to use the true 80 percent of area median income as their income cap for the HOME and CDBG programs, instead of the national median income. Currently, 98 jurisdictions are required to use the national median income level as the qualifying income level for these programs, instead of 80 percent of area median income. HUD is in the process of determining how to implement this exception. The result would be that no fewer than 10 CDBG Grantees and HOME PJs (metro-cities and urban counties) in high income areas will have higher income limits than would otherwise be the case. HUD has not put forward any directive on how they are determining the jurisdictions to be selected for this exception. If you are interested in having your jurisdiction selected, NCDA suggests that you contact both your HUD CPD office, Secretary Cuomo, and your congressional representative immediately. 

(3) Determining Income Eligibility for Homebuyers. The appropriations act removes the provision that HOME-assisted homebuyers requalify as income eligible at the time of occupancy or when the HOME funds are invested, whichever is later. The new language establishes the following timing for qualifying HOME-assisted homebuyers as income eligible: (a) in the case of a contract to purchase existing housing, at the time of purchase; (b) in the case of a lease-purchase agreement for existing housing or for housing to be constructed, at the time the agreement is signed; or (c) in the case of a contract to purchase housing to be constructed, at the time the contract is signed. 

(4) Prohibition Against Use of HOME for Public Housing Activities. An amendment to the National Affordable Housing Act has extended the prohibition against use of HOME funds for Public Housing Modernization and operating subsidy to cover new construction of public housing as well. 

HUD is seeking a correction to return the HOME eligible activities to what they were prior to this change. No new commitments of HOME funds can be made for public housing new construction until such correction is enacted. Public housing authorities may still serve as subrecipients and use HOME funds for non-public housing units. A unit qualifies as a public housing unit if it receives public housing funds for development, or if it receives or will receive, upon construction completion, public housing operating subsidy. Any HOME funds committed by legally binding agreement prior to enactment of the Act, October 21, 1998, are not affected by this change. 

(5) Exclusion of HOME and CDBG from PHA Total Development Costs. When calculating the total development costs of public housing development projects undertaken by a PHA, the Department will no longer include funds provided under CDBG and HOME. This calculation determines the maximum amount a PHA may commit to certain development projects, and it also affects a PHA's annual contribution from HUD. This change impacts only public housing development activities, not all housing development activities undertaken by PHAs. By removing HOME and CDBG from the TDC calculation, these programs may become more attractive development resources for PHAs undertaking public housing development projects. 

HOME PJs requiring further information on any of these issues should contact their local HUD CPD Office. Questions from local CPD Offices should be addressed to the appropriate Desk Officer in the Office of Affordable Housing Programs, (202) 708-2685.

NCDA TECHNOLOGY NEWS 

NCDAonline UPDATE!!! If you have not logged on to NCDAonline.org with your permanent passwords, you will not be able to log on to the member only section of the website. Please contact Chandra Western at NCDA or e-mail her at chandra@ncdaonline.org. She will provide you with the information necessary to get into the "Members Only" section as well as how to personalize and make permanent your passwords and user ID. NCDA staff has discovered that members are not personalizing their passwords, they continue to use the temporary passwords to get to the members only section. AGAIN, PLEASE CONTACT CHANDRA WESTERN TO TO TAKE ADVANTAGE OF THE TECHNOLOGY AT YOUR FINGERTIPS! In response to your requests NCDAonline.org has been enhanced. As part of these ongoing enhancements, we will eventually discontinue the PAL system. To maintain the PAL, the Forum, and the member e-mail list is redundant. We hope you will let us know what you think of the improvements and offer suggestions for further enhancements.

NCDA ANNOUNCES THE WINNERS OF THE 1999 AUDREY NELSON AWARD COMPETITION
Santa Ana, CA St. Joseph Ballet  Fulton County, GA Families First  El Paso, TX Project Vida	Phoenix, AZ Self Employment Loan Fund, Inc.  Harrisburg, PA YWCA - Sylvan Heights Mansion Project  Minneapolis, MN Dear/Blind Services - Minn. Housing Project

NCDA WINTER MEETING NOTES 

The NCDA Winter Meeting will be held on January 27-30, 1999 at the J.W. Mariott Hotel in Washington, DC. At the request of members, we will not schedule the program committees (CD, ED, and Housing) concurrently. We have included one-half day for committee meetings beginning at 12:00 p.m. and ending the Board of Directors meeting on Wednesday, January 27, 1999. Please see the attached Draft Agenda. IMPORTANT: GET YOUR ROOM RESERVATIONS IN NOW!! THEY ARE GOING FAST!! 

CALL FOR AGENDA ITEMS 

The annual meeting of the NCDA Board of Directors will be held on January 27, 1999 at 6:00 p.m. at the J.W. Marriott Hotel (the site of the Winter Meeting). Please provide to Chandra Western, not later than January 15, 1999, items for the Board of Directors Meeting agenda. 

POSTING JOB ANNOUNCEMENTS 

NCDA staff is ever willing to include position vacancies of member communities in the NCDA Washington Report. To better assist members as well as staff, we ask member communities to e-mail position vacancies to Carla Sauls whenever possible. If you are not set up for e-mail, please fax them to Carla. An electronic copy makes it easier to post the position on NCDAonline.

You can now post your job announcements directly on NCDAonline. If you post job announcements directly to NCDAonline, please forward a hard copy of the announcement to Carla Sauls so it can be included in the next issue of the NCDA Washington Report. 

December 9, 1998. Statutorily Mandated Designation of Difficult Development Areas and Supplemental Designation of Qualified Census Tracts. This document designates "Difficult Development Areas" and supplemental "Qualified Census Tracts" for purposes of the Low-Income Housing Tax Credit (LIHTC) under Section 42 of the Internal Revenue Code of 1986. 

December 18, 1998. Fair Housing Enforcement -- Occupancy Standards Notice of Statement of Policy. This statement of policy advises the public of the factors that HUD will consider when evaluating a housing provider's occupancy policies to determine whether actions under the provider's policies may constitute discriminatory conduct under the Fair Housing Act on the basis of familial status ( the presence of children in a family). Publication of this notice meet the requirements of the Quality Housing and Work Responsibility Act of 1998. 

December 18, 1998. Lead Management and Disposal of Lead Based Paint Debris . EPA is proposing a rule under the Toxic Substances Control Act to provide new standards for the management and disposal of lead-based paint debris generated by individuals or firms. Also on December 18, 1998, the agency issued another document proposing to suspend temporarily the applicability of regulations under Subtitle C of the Resource Conservation and Recovery Act which currently apply to lead-based paint debris. This was done to avoid confusion and duplication of Federal requirement these two acts. 

Job Opportunities 

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