ATTENDANCE:

Angelito Santos (Quincy, MA)(Chair)
Raquel Asrelsky (Springfield, MA)
Johnny Beatty (Beaumont, TX)
Xiaomin Cai (Delaware County, PA)
Ron Cousar (Colorado Springs, CO)
Toney Crapps, Sr. (Dade County, FL)
Sue Guio (DeKalb, IL)
Ned Handy (Cambridge, MA)
Nancy Haney (Lubbock, TX)
Paul Hilgers (Austin, TX)
Eric Hinderliter (Lancaster, PA)
Denise Hoover (Birmingham, AL)
Jacqueline Howell (Monroe, CA)
Barbara LaBrier (Dayton, OH)
Michael Pasi (Albuquerque, NM)
Terry McCaffrey, Fort Wayne, IN)
Margine Sake (San Francisco, CA)
Adrian Straley (Tuscaloosa, AL)
Leo Stevens (Jackson, MS)
Sara Wallace (Brookline, MA)

INVITED GUESTS:

Deidre Maguire-Zinni, Director, Entitlement Policy Division, HUD CPD
Robert Duncan, Assistant Director, HUD CPD

The presence of important HUD-CPD staff changed the format of this meeting somewhat into a dialogue between HUD and the Committee Members.

A. REVIEW OF MINUTES OF JUNE, 1997 COMMITTEE MEETING

Comment: The Chair will send copies of the meeting notes to those who did not receive them.

B. LEGISLATIVE ISSUES

1. HUD FY98 Budget and Cuts to CDBG (set-asides)

Discussion/Concerns: The Committee members expressed concern about the increasing set-asides which have effectively reduced CDBG allocation by nearly $500 million by FY 1998-99. HUD reminded the Committee that some of these set-asides have been part of the CDBG budget for a long time, although acknowledging that they too are concerned about the growing set-asides. HUD admitted that the set-asides are more staff-intensive because they are competitive funds. On the suggestion that the set-asides be capped at a rate lower than it currently is (say, as a per cent of total CDBG allocation), HUD cautioned that capping might institutionalize the set asides and create a host of other concerns or issues. Some members suggested that the effects of inflation on our programs should be raised with our legislators.

Strategy - Draft a resolution expressing concern about the increasing set-asides under the CDBG program and recommending increased CDBG funding in view of the importance and effectiveness of these resources in addressing critical community development needs and goals and to take inflation into account.

Comments - The Committee's recommendation was developed prior to the Audrey Nelson Award Ceremony when Massachusetts Congressman Barney Frank spoke and suggested that he believes the "set-asides" is the "wrong war" to fight. He felt that the high military budget cannot be justified at this post cold war time and should still be trimmed to enable the Federal Government to fund important initiatives such as the CDBG.

2. HUD'S FY99 Proposed Funding

Discussion: During the Committee meeting, the enclosed News Release from HUD on the President's proposed $1.4 Billion in increased funding for some of HUD's initiatives. This proposal includes $250 million increase for CDBG, $50 million increase for HOME, $25 million for lead hazard control, and the removal of most set-asides from the CDBG program.

Comments - While the Committee did not have the opportunity to review closely the contents of this News Release, it would be reasonable to assume that the members will consider the proposed budget to be consistent with the Committee's proposed resolution and therefore would endorse NCDA's full support of the President's proposed HUD budget for FY 1999.

3. H.R. 2. (Public Housing Reform Bill)

Discussion: The Committee discussed "Home Rule"/Title IV of HR 2 which will allow local governments to apply for public housing capital and operating funds. Some members expressed that this measure will give communities an opportunity to have better control of public housing authorities, particularly the troubled ones. However, other members expressed concern about the long term implications of this provision. The CD Committee expressed its concerns on this matter to NCDA. According to Chandra Western, the Conference of Mayor recommended that this provision be removed from the proposed bill.

Strategy - NCDA to support the U.S. Conference of Mayors in opposing the Home Rule provision of HR 2 and to continue to track the status/progress of HR 2.

II. REGULATORY ISSUES

2.1. LEAD BASED PAINT FINAL RULE

Discussion: HUD indicated that they are considering the many comments and recommendations received during the public comment period. The Lead Based paint Final Rule is expected to be released soon, although HUD was not prepared to provide a specific time frame. The Chair mentioned that the Committee/NCDA had send several sets of comments to HUD.

Strategy - CD Committee will await the release of the final rule.

2.2. OMB CIRCULAR A-133, A-103, A-122

Upon the Committee's request, HUD will issue summary notes on the major changes in all applicable OMB Circulars.

III. PROGRAMMATIC ISSUES, TRAINING NEEDS, AND TECHNICAL ASSISTANCE

3.1. IDIS and the Grants Managemement System - annual plans/report, annual review, letters from HUD

Discussion/Concerns: HUD will update the USERS Manual and a Performance Report Manual. Smaller entitlement communities with limited staff are faced with the challenge of learning, using, and keeping up with new HUD systems such as the IDIS and Communities 2020. Resource sharing among communities, except for e-mails, has not been utilized as a strategy. Communities are also faced with the challenge of linking the IDIS with local accounting, budgeting and bookkeeping system. Each community is "reinventing the wheel" by coming up with their own systems or procedures. There is no indexing system for all IDIS newsletters and bulletins to make it easy to find particular subject matters. There may be incompatibility issues between Communities 2020 and other GIS used by communities. HUD has not provided (and does not want to provide) guidelines or tips on crafting performance goals for activities. The absence of such guidelines on performance goals will make it difficult to evaluate and agree as to whether the written performance goals are acceptable or not. HUD suggested that NCDA may wish to study what types of organizational structures work better in implementing the CDBG program.

Strategy - NCDA (perhaps through its regional groups) should explore the possibility of resource sharing to assist smaller communities (e.g., subcontracting of tasks/projects). NCDA should promote sharing of forms and systems developed by communities to implement the IDIS and other programs.

3.2. Miscellaneous Member Questions and Issues

Discussion: The Salary Survey included in the Conference packet was discussed. The committee feels that the survey should not be limited to the CD Director and should be expanded to include the other CD staff. The survey/study should take into account differences in mission, programs and resources, scope of staff responsibilities, among others.

Thank you for your participation.

Please send all comments, corrections, or additions on the above to:

Angelito Santos, CD Committee Chairperson
Department of Planning and Community Development
1305 Hancock Street
Quincy, MA 02169
Tel. (617) 376- 1373
FAX (617) 373-1097
E-mail: asantos@ci.quincy.ma.us