MORE NOTES FROM THE WINTER MEETING

In the February 5, 1998 issue of the NCDA Washington Report, members were briefed on the committee meetings held during the 1998 Winter Meeting. In this issue members will be brought up to date on current issues and trends at HUD's Department of Community Planning and Development, specifically those related to the CDBG, HOME and ESG programs that were discussed during the two-hour HUD briefing held on Friday during the Winter Meeting. Also discussed in this issue will be remarks made by Assistant Secretary Saul Ramirez, who opened the Winter Meeting on Thursday, January 29, 1998.

The majority of Mr. Ramirez's comments centered on the impending submission of the President's budget to Congress. He indicated that he had been pressing Secretary Cuomo to encourage the President to limit the number and amount of set-asides within the CDBG program. He suggested that the set-asides should be reduced by one-half of their FY 1998 amount for FY 1999 and another one-half in FY 2000. It appears that the President heard them. This years' CDBG set-asides total $292 million, down from an all-time high of $499.7 million in FY 1998.

Another issue that was a surprise to many of NCDA's members is the fact that HUD is backing away from the consolidation of Homelessness programs. Until HUD is convinced that a block grant approach will ensure that the homeless need will be met, they will not press for program consolidation. The concern is that if a block grant approach is used, grantees that may not have a homelessness problem will receive funding anyway. The current practice for awarding much of the homelessness funding is through a competition, so that those communities that are in serious need of funding, get it. Those that have less or no need would not seek funding. NCDA's members were very concerned that homelessness funding will continue to be delayed due to HUD's reorganization and loss of staffing. Mr. Ramirez indicated that he is definitely aware of the problem but, as it stands now, this is the direction that HUD is committee to taking.

Mr. Ramirez also commented on IDIS. As a former mayor, he understood the concerns NCDA members have with this data reporting and accounting system. He told the group that changes (new software) were being made to make the system more user friendly. It was made clear, however, that until something new comes along, IDIS would remain the system grantees must use to receive CPD funding and report on CPD funded activities.

Among his to priorities, Mr. Ramirez wants to forge a better working relationship with the Office of Fair Housing and Equal Opportunity (FHEO). He recognizes the strains that CPD and FHEO have had and continue to have relating to enforcement, particularly on the issue fair housing. With a proposed increase to the enforcement activities of FHEO in the FY 1999 budget, the strain between the two divisions may increase. The Assistant Secretary indicated that Secretary Cuomo was fully aware of the problems and is in the process of putting together a plan that would, hopefully, ameliorate the problems.

The HUD Briefing

Deputy Assistant Secretary Ken Williams, opened the session by introducing his staff: Richard Kennedy Director of the Office of Block Grant Assistance, Deirdre Maguire-Zinni, Director of the Entitlement Division, and Mimi Kolesar Director of the Program Policy Division in the Office of Affordable Housing. The following are highlights from that session.

CDBG
Deirdre Maguire-Zinni, Director of the Entitlement Division

Ms. Maguire-Zinni's comments related to three issues; timeliness of expenditures, the soon to be released desk guide to national objectives and eligible activities, and the lead-based paint rule.

• Timeliness of Expenditure. According to all reports from the field offices there are approximately one-quarter of all entitlement grantees that are not in compliance with the timeliness regulation. NCDA has not been able to secure the "list" of these grantees, however HUD is very concerned about this problem. Timeliness is a particular concern for HUD as not only are grantees failing to meet the requirements of the regulations, the lack of "quick" expenditure of funds, could lead one (Congress) to think that the current level of funding may not be needed.

• The Desk Guide for National Objectives and Eligible Activities for the CDBG Program. Due to HUD reorganization and downsizing, this project has not been completed. Ms. Maguire-Zinni informed the group that the Desk guide is in the final stages of completion and will most likely be coming out this spring. NCDA has agreed to assist HUD in distributing the publication. It will be uploaded onto HUD's homepage as well. This Deskguide will provide grantees with everything they need to know about eligible activities and national objectives. It will include examples of projects and how they qualify under the program. It should be a very useful tool for grantees and their subrecipients.

 
• Lead-based paint rule. Deirdre indicated that the lead-based paint rule has moved to HUD internal clearance and should be in final form soon. It is NCDA staff's understanding that the lead-based paint rule will not be published in the Federal Register before June, 30,1998. With HUD's reorganization and existing staff needed for other tasks, many of the on-going projects are taking lower priority. Look for the lead-based paint rule in June.

Ms. Kolesar began her presentation by reporting the impressive accomplishments of the HOME program, which has generated 280,000 units of affordable housing and now provides 36,000 low-income families with tenant-based assistance. She continued by saying that Congress and the Administration have taken notice, as funding for the program has risen since its inception in 1991 despite tremendous pressure to cut discretionary spending. NCDA members, therefore, should work to keep HOME in good stead with both the politicians and the American people. Ms. Kolesar then alerted members to the following developments relative to the HOME program:

• As mentioned in the February 5, 1998 issue of the NCDA Washington Report, the President's budget contains a proposal to create a HOME loan guarantee program, or "HOME 108." The proposal builds on the successes of the current Section 108 loan guarantee program that allows CDBG funds to be leveraged up to five times their worth. The proposal would allow HOME funds to leveraged in the same fashion, thus allowing PJs to finance larger rental or homeownership developments.

• Currently available through the HUD web site is Notice 97.09, which details how HOME can be used with other sources. 97.09 will be updated later this month to include the final rule and the technical corrections. This and other notices can be accessed directly at http://www.hud.gov/cpd/home/homereg.html or, for those without internet capabilities, through Community Connections.

• A technical guide that details how HOME can be used in conjunction with the Low Income Housing Tax Credit (LIHTC) has been mailed to all PJs, but additional copies can be obtained by calling Community Connections.

• "HOME Fires," a new product offered by HUD, can be picked up at any HUD field office and will be posted on the HUD web site soon. "HOME Fires" are one page policy pieces that cut through the thick of the HOME regulations to give quick and dirty answers to commonly asked questions.

• The basic training manual for the HOME program — "Building HOME" — continues to be available at the HUD field offices and will be updated shortly.

• HUD headquarters has requested that we alert PJ's to the May 28, 1997 amendment to the HOME regs. The regs at 92.203 provide three methods a PJ may use to conduct income verifications. The amendment requires the PJ to use only the first of these methods, i.e. examine source documents for the verification of the initial occupancy. For PJ's using a local housing authority to do such verification, this should not be a problem as this something they probably do routinely.

• HUD will publish a new program guide and brochure by the end of the month that will contain both the HOME final rule and its technical corrections. The consolidated rule will be packaged with a new look and will be available both in hard copy and through the HUD web site (http://www.hud.gov) or through Community Connections (1.800.998.9999).

Idaho Moves Citizens with Disabilities to Homeownership

An Idaho homeownership program targeted to low-income persons with disabilities has created several new homeowners while saving taxpayers thousands of dollars. The Idaho Council on Development Disabilities (ICDD) collaborated with the Idaho Housing and Finance Agency, the Federal Home Loan Bank of Seattle, and several local lenders to create HOYO (Home of Your Own), a homeownership initiative targeted to citizens with disabilities, especially those in group homes and state institutions.

"None of us could have anticipated the interest — we were surprised the project grew so quickly," says Debbie Berrey, the former HOYO coordinator at ICDD.

One of ICDD's missions is to help move persons with disabilities to independent living. This mission, combined with the spiraling costs of providing housing to these people, provided the impetus for the program. The state currently spends up to $70,000 each year on residents with disabilities living in institutions or group homes. When these residents move into their own homes, the state can save as much as $40,000 a year per person.

ICDD provides homeownership education to all borrowers, including pre- and post-purchase counseling and delinquency prevention support. The HOYO coordinator spends a lot of time raising public awareness of the needs and abilities of her clients.

The project began when the University of New Hampshire provided a $40,000 grant to start a pilot program in Idaho to help persons with disabilities become homeowners. The Idaho Housing and Finance Agency then awarded $520,000 in HOME funds to help homebuyers with down payment and closing costs. ICDD also received $117,000 in Affordable Housing Program funds from the Federal Home Loan Bank of Seattle. The finance agency offers applicants an additional incentive with below market-rate loans. ICDD helps with structural modifications required for accessibility and safety.

Qualifying borrowers apply for single-family mortgage loans and use up to 25 percent of the loan's face value to meet HOME match requirements. The program initially received enough funds for 26 loans at $25,000 each.

HOYO applicants must show that they can live independently, maintain their own home, and have access to a support system. Their household income cannot exceed 80 percent of the area median income. The program extends eligibility to heads of households or a spouse with disabilities, reserving 60 percent of its funds for persons with developmental disabilities.
 

Attached to this mailing is a questionnaire from HUD on brownfields. It is intended to get an idea of where communities are on this issue. HUD would greatly appriciate it if you would take a minute to complete and return the survey to NCDA attention; Chandra Western. Thank you.

NCDA NOTES

April 6-12, 1998 is National Community Development Week
Please forward a schedule of your community's CD Week activities. If you need additional promotional materials, please contact NCDA staff as soon as possilbe.

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 Karen Means, karen@ncdaonline.org, whenever possible. If you are not set up for e-mail, please fax them to Karen. An electronic copy makes it easier to post the position on NCDAonline.

• The NCDA Washington Report is now available on the internet! Just point your browser to http://www.ncdaonline.org

 
• NCDA's e-mail address is karen@ncdaonline.org — DO WE HAVE YOURS???

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