Committee Chairperson: Roslyn Phillips, Jacksonville, Florida

Committee Vice-Chair: Karla Gomez-Meyer, Denver, Colorado

Persons Attending: Rosyln Phillips, Jackson, Florida, Karla Gomez-Meyer, Denver, Colorado, Mike Hilliard, Aurora, CO, Bobby Hudson, Aurora, CO, Ken Brunsvold, Minneapolis, MN; Henrietta Woodward, Charleston, SC; Nancy Haney, Lubbock, TX; Phyllis Brown, Lubbock, TX; Emily Nottingham, Tucson, AZ; Greg Hoover, Davenport, IA; Vicki Covey, Amarillo, TX; Michael Howell-Moroney, Norristown, PA; Toni Bennett, Irvington, NJ; Valorie Jordan, Colorado Springs, CO; Jacqueline Howell, Monroe, LA; Gracie L. Hall, Monroe, LA; Mattie A. Morehead, Monroe, LA; Sherlyn Harris, New Orleans, LA; Gail M. Lewis, Brookline, MA; Martha McLennan, Portland, OR; Dick Wright, Des Moines, IA; Jacqueline Thompkins, Orlando, FL; Bob Schulte, Des Moines, IA; Larry Ferdinand, Shreveport, LA; Dotti Moorman, Falls Church, VA; Maurice A. McGee, New Orleans, LA; George M. Hovorka, Fall River, MA; Tom Phillips, Hartford, CT; Steve Young, Modesto, CA; Camilla J. Moore, Fulton County, GA; Peter Garbati, Malden, MA; Richard Montesdeoca, McAllen, TX; Bettye Young, Atlanta, GA; Luisa Rodriguz-Garcia, Denton, TX; Paul Hilgers, Austin, TX; Anne K. Hettinger, Alexandria, VA; and Vicki Watson, NCDA.

The chairperson called the meeting to order at 1:35 p.m.

LEGISLATIVE/REGULATORY UPDATE

Vicki Watson gave a legislative and regulatory update to the committee on the following:

(1) Homelessness consolidation legislation. The committee was given a brief overview of H.R. 1073 -- a bill sponsored by Rep. Rick Lazio (R-NY) to consolidate HUD's McKinney homeless assistance programs. The legislation set-asides 30% of the funding allocation for a permanent housing development competition. It would also require grantees to provide a 50% match from non-federal sources and up to a 100% match if grantees count volunteer hours towards their match. The Senate is unlikely to introduce similar legislation this session.

(2) HUD has withdrawn its proposed fair housing rule (Fair Housing Performance Standards for Acceptance of Consolidated Plan Certifications and Compliance with Community Development Grant Performance Review Criteria). The rule amends CDBG regulations to provide performance review standards for affirmatively furthering fair housing requirements. Richard Kennedy, from HUD's Office of Block Grant Assistance, reported to the committee that communities still have the basic requirement to affirmatively further fair housing and report their efforts in this area. Dick also noted that Cardell Cooper wants to work with national interest groups, including NCDA, in preparing another rule.

(3) Financial Services Modernization. Both the House and Senate have introduced legislation (H.R. 10/S. 900) targeted at streamlining the financial services industry. The Senate version would cut away at the existing CRA by: (1) allowing banks that are not CRA-compliant to affiliate with other entities and engage in new powers; (2) providing a permanent safe harbor from CRA for those institutions that have a current "satisfactory" rating; and (3) eliminating small banks from CRA.

(4) Low-Income Housing Tax Credit. H.R. 175/S. 1017 provide an increase in the state ceiling on the Low-Income Housing Tax Credit from its current level of $1.25 per capita per state to $1.75 per capita per state, and indexes the tax credit for inflation. If enacted, this will be the first time since 1986 that the tax credit has been increased. NCDA plans to work with its members and national interest groups over the next year to support the tax credit and advocate for its increase.

HOME PROGRAM

Mimi Kolesar, Director of the Program Policy Division within HUD's Office of Affordable Housing, provided an update to the committee on the HOME program. Mimi first appealed to the committee to double check their HOME IDIS production data. Mimi also provided an update to the committee on several HOME-related publications that will be released by HUD this year. They include the following: (1) A guidebook that will focus on several local and state case studies regarding using HOME for homeownership. This publication is set to be published in July 1999; (2) HUD will update its gray book on income eligibility in July 1999. The issue of self-certification will be addressed through the gray book this year; (3) HUD is in the process of developing a multi-family homeownership guide with a chapter on housing trusts; (4) HUD will also develop a model guidebook on employer-assisted housing. This guidebook will be available near the end of the summer.; (5) HUD is nearing completion of a property and asset management guidebook for the HOME program. This publication will be available in the coming weeks; (6) HUD is developing a monitoring guidebook for the HOME program. This guidebook will have a chapter that focuses upon CHDO monitoring. This publication is expected to be completed by the end of September.

The Office of Affordable Housing is working to include more information on its web site. Currently, grantees can access the following documents: (1) Building HOME, a training manual prepared by ICF Kaiser which provides an easy-to-follow format regarding the HOME program; and (2) HOME training materials in power point for grantees to use in making presentations on the HOME program. NCDA encourages its members to use these two documents.

HUD'S HOMELESS PROGRAMS

John Garrity, Director of the Office of Special Needs Assistance, provided an update to the committee on HUD's homeless assistance programs and provided the committee with the following information:

(1) HUD's FY 1999 Continuum of Care NOFA deadline was June 2, 1999. HUD received over 3,000 applications for $750 million in funding.

(2) There is a new requirement for HUD to approve more permanent housing projects.

(3) There are two proposed legislative changes: (1) A proposal to allow contracts under the Shelter Plus Care program to have terms of between one to five years, instead of the standard five year term. This will provide communities with the flexibility to design contracts under the program based on their needs. This proposed change is currently at the hill; (2) A proposal to allow Shelter Plus Care renewals to be funded out of the regular Section 8 account after the end of the contract period. This proposal is at the hill currently. It will be considered by Congress this year, but may not be enacted.

(4) There is an effort to terminate existing Continuum of Care projects funded prior to FY 96 that have not established contract agreements. HUD has sent letters to 100 projects to terminate approximately $100 million in funding. This reallocated funding will be made available for other projects this year.

(5) Last year, HUD awarded Continuum of Care funds to 1,500 projects, of which 670 were renewal projects.

HOME TECHNICAL ASSISTANCE GUIDEBOOK/NAHTI CONTRACT

Vicki Watson and Peter Richardson, a private consultant, engaged the committee in a discussion of the development of a CHDO technical assistance guidebook. Vicki prepared an outline of the proposed TA guidebook and forwarded it to the Housing Committee for their review prior to the June 3 meeting. The guidebook will be funded through NCDA's NAHTI contract and will be completed this year. Based on a HOME technical assistance survey to NCDA's HOME members earlier this year, the overwhelming topic requested for technical assistance was CHDOs. At the June 3 meeting, the committee was asked to provide recommendations for other areas that should be included in the guidebook. Committee members listed the following areas for inclusion: (1) Template of agreements that CHDOs use; (2) Financial models with layering of program sources (include different project/city sizes); (3) Overlap of CHDOs and CBDOs; (4) CHDO self-sufficiency; (5) Strategies that CHDOs use to support themselves; (6) Focus on some bad experiences that CHDOs have encountered; (7) CHDO Board conflict of interest; and (8) Public participation and notification of CHDO projects.

Vicki also announced to the committee the availability of HOME refresher course training this year through the NAHTI contract. NCDA has funding to provide HOME refresher course training to three regions. Region VI has already requested training.

OTHER

Dick Kennedy asked the committee if HUD should include an affordability period for housing developed within the CDBG program. The committee responded with a resounding "no." Committee members want grantees to have full flexibility in designing the affordability period of projects.

There being no other business, the meeting adjourned at 1:35 p.m.

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