NCDA Community Development Committee
Meeting Minutes
2000 NCDA Annual Conference
New Orleans, Louisiana
May 31, 2000

The meeting was called to order by Chandra Western. She explained that Committee Chairs Greg Hoover or Tom Phillips would not be attending the meeting. Anthony Covacevich was supposed to stand in, but he could not be there either. The meeting was chaired by Chandra.

• Roll Call

The meeting was attended by the following members.

Name
City/County

Sue Guio
DeKalb, IL

Michael Nail
NAHRO, Washington, DC

Rita Prible
Davenport, IA

Gary Hughes
Cedar Rapids, IA

Bruce Berger
Davenport, IA

Bob Geheret
Boston, MA

Jeannet Strevino
San Juan, Puerto Rico

Scott Stevenson
County of Los Angeles

Steve Young
Sacramento County

Ellen M. Lee
New Orleans, LA

Karla, G. Meyer
Denver, CO

LaShea Smith
Dayton, OH

Johnny Beatty
Beaumont, TX

Diana R. Serna
Harlingen, TX

Bruce Watson
Monroe, LA

Jacqueline Howell
Monroe, LA

Gracie L. Hall
Monroe, LA

Loretta Cleveland
Athens-Clark County, GA

Para Rosario
Bridgeport, CT

Camilla J. Moore
Fulton County, GA

Dee Arentz
Seattle, WA

Nancy Remington
East Providence, RI

Hazel Bang
Seattle, WA

Tom McClosky
Fall River, MA

George M. Hovorka
Fall River, MA

Gail Lewis
Brookline, MA

Amy Yuhsz
Newton, MA

Nancy Haney
Lubbock, TX

Barbara Ross
Denton, TX

Jo Carroll
College Station, TX

John Sasso
Newport, RI (CDTI)

Jackie McBride
New Orleans, LA

Melvin Richardson
Fulton County, GA

Venneta Butler
Fulton County, GA

• Approval of the Minutes

The minutes of the January 27, 2000 CD Committee Meeting were approved.

• Announcements

Chandra announced that Ned Handy of Cambridge, Massachusetts has made the decision to retire. Ned, a long time community development practitioner and member of NCDA, will leave the city of Cambridge on July 31, 2000. Ned plans to write his memoirs. Chandra suggested that NCDA members might like to write or e-mail Ned to wish his well.

• Appropriations Update

Chandra brought the group up to date on the 2001 appropriations schedule. She noted that the House subcommittee had passed HUD's bill and sent their proposed figures on to the Full House Appropriations Committee. She noted that there were a few shortfalls from last year's final enactment to CDBG and HOME, but that this was just the beginning of the process and that she felt that CDBG and HOME would most likely receive funding at or slightly above last year's levels. She also noted that in the CDBG program, the proposed"cuts" amounted to the huge amount of pork projects that were funded in the EDI line last year. She said that it is an election year and projects of this nature would more than likely reappear in that account. She said that the shortfall amounted to approximately $246 million overall and $60 million in the formula CDBG allocation. Chandra pointed out that NCDA was on record in testimony to Congress advocating for $5 billion in CDBG and $2 billion in HOME.

Chandra praised NCDA members Roslyn Phillips of Jacksonville, Florida and Barbara Richardson of Rockford, Illinois for that efforts in testifying before the HUD-VA subcommittee on behalf of local government public interest groups. Chandra pointed out that CD practitioners are not always asked to testify. Most often those asked are elected officials. She said that it was a testament to the good working relationship that NCDA has developed with the U.S. Conference of Mayors and the National Association of Counties that we are being asked to testify. She noted the outstanding job both members did for the Association.

• HUD Discussion

Ken Williams Assistant Deputy Secretary brought news of what HUD will be focusing on during the upcoming fiscal year. He said that Assistant Secretary Cardell Cooper will focus on timeliness of expenditure within the CDBG program. Ken gave the policy perspective on the issue. Congress is very concerned about the huge amounts of money remaining in letters of credit across the federal government. HUD is not the only agency with poor spend out rates. However, HUD does seem to have a majority of its appropriated money that is slow to spend out in grant programs. This is a problem. Ken indicated that the first timeliness conference was a great success and that NCDA, NAHRO and NACCED would be working with HUD on the three more conferences. The first conference was such a success that President Para Rosario suggested a timeliness session at this meeting. Amintha Cinotti of Providence, Rhode Island participated in the first timeliness conference and agreed to conduct the same session New Orleans.

Ken commented that the number of untimely communities had dropped from 309 to 196. However, what Ken did not say was that many grantees program years begin on July 1, and that number would likely rise after the 2000 funds come on line.

Ken also said that HUD would focus on the Inspector General's audit concerns, which would primarily focus on grant close outs, another timeliness issue.

Ken was questioned about the Community Builders and how they would figure in HUD's budget. Chandra commented that the House Subcommittee had zeroed out that line in HUD's budget and that overall, Congress was not happy that the Secretary had provided a mechanism to make the Community Builders permanent HUD employees. A discussion ensued that suggested some Community Builders were very useful and some were not. Participants were more inclined to have more program staff for assistance with routine situations than political types bypassing the local government processes which have had a detrimental impact on program administration. The discussion ended with no resolution on the issue. Chandra suggested that a new administration would be coming into power and that Community Builders may not be an issue much longer.

• Predatory Lending

Romulus Johnson updated the group on HUD's attention on this issue. This item was put on the agenda at the request of CD Committee Chair Greg Hoover. Romulus noted that HUD was asked by Senator Barbara Mulkulski of Maryland what HUD intended to do about this issue. Subsequently, Secretary Cuomo formed a task force and designated several sites to engage a discussion with members of the financial community, federal regulators and governmental entities to institute goals for combating predatory lending practices. Romulus noted that the first meeting was held in Baltimore. He said that as we learn more about the intent of the task force, we would pass the information along to the members.

Chandra Western commented that NCDA partners Freddie Mac and Fannie Mae had already taken steps to combat predatory lending practices. She said that both GSE's have developed policies that would require greater disclosure on the lending practices from the financial institutions they purchase mortgages from. Chandra also noted that with more large banks getting involved in the sub-prime market, the greater governmental over site would force a standardization of this sector of the lending market, thereby creating less incentive for predatory practices.

• Community Development Practitioner Certification

Chandra Western and Amintha Cinotti discussed the CD Certification Survey instrument and the responses. It indicated that the membership was overwhelmingly in favor of pursuing CD Certification. Chandra noted that a representative from NAHRO was in attendance, Michael Nail, Deputy Director and that NAHRO was interested in working with NCDA to design and implement the CD Certification program. Chandra indicated that Mr. Nail would be attending the Professional Planning and Development Committee Meeting on Thursday to discuss some of NARHO's experience with certification programs. She said that NAHRO has had a lot of experience with certification programs, particularly in the public housing arena and that they would like to have their members be allowed to receive the certifications as well. The group voted to recommend to the Board of Directors that NCDA pursue a CD Certification program.

• Lead-based Paint

A question was raised about what NCDA had been doing to address the implementation of the Lead-based Paint final rule that becomes effective on September 15, 2000. Chandra told the group that NCDA's staff, specifically Vicki Watson had been working very hard with the other local groups and members of Congress about the impact this rule would have on the CDBG and HOME programs. She also said that we had been successful in getting language in the House Appropriations Subcommittee report that suggested that a review of the rule might be in order to assess its impact on CDBG and HOME and on the availability of affordable housing. Chandra indicated that NCDA and the other groups were working on the Senate staff to add similar language in the their appropriations bill. She noted that we had added language in our testimony that the lead-based paint final rule needed to be addressed and suggested delaying the rule until more funded outside of CDBG and HOME could be appropriated and for the number of lead certified contractors around the nation to improve. Chandra indicated that there was a strong possibility that the rule could be delayed.

• Other Business

Being that there were no other business to discuss the meeting was adjourned

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