Committee Co-Chair: Paul Hilgers, Austin, TX
Committee Co-Chair: Barbara Richardson, Rockford, IL

The meeting was chaired by Paul Hilgers. Paul called the meeting to order at 3:05 p.m. After introductions by committee members, Paul asked for approval of the minutes from the January 27^th committee meeting. Camilla Brown of Fulton County, Georgia made the motion to approve the minutes. Nancy Haney of Lubbock, Texas seconded the motion. The minutes passed unanimously.

Legislative and Regulatory Update

Vicki Watson provided a legislative and regulatory update to the committee on actions regarding HUD's housing programs. This update included an overview of HUD's FY 2001 budget resolution, the FY 2001 appropriations process, and an overview of authorizing legislation such as H.R. 1776 - The American Homeownership and Economic Opportunity Act of 2000, and proposed legislation to consolidate HUD's McKinney Act homeless assistance programs. Vicki also informed the committee that the House VA-HUD-IA Appropriations Subcommittee, at the urging of NCDA and other national interest groups, included the following language in their FY 2001 VA-HUD-IA bill, "...the Committee is concerned about several provisions in the proposed Lead-Based Paint rule, and plans to carefully monitor the ongoing negotiations between HUD and the industry on the impact of the rule. While the Committee does not have a recommendation at this time, the Committee reserves the right to revisit the issue should it be necessary, in Conference."

Vicki also informed the committee that Barbara Richardson, Rockford, IL, testified on behalf of NCDA and the other local government interest groups, including the U.S. Conference of Mayors, in support of consolidation of the programs at a hearing held by Senator Allard on May 23. Roslyn Phillips, Jacksonville, FL, testified on behalf of NCDA at the House Subcommittee on VA-HUD-IA in April on HUD's FY 2001 appropriations. Roslyn pressed the need for a $5 billion dollar allocation for CDBG this year and a $2 billion allocation for HOME. Both Barbara and Roslyn did an outstanding job representing the association before Congress.

HOME 2000 Conferences

Vicki updated the committee on three HOME conferences HUD will hold this year. The conferences will be held in Washington, D.C. on July 11/12, in San Antonio September on 19/20, and in Berkeley, California on November 14/15. Each conference will focus on three tracks: CHDOs, Asset/Property Management, and Construction Management. The CHDO track will focus on developing and sustaining CHDO capacity. The Asset/Property Management track will focus on evaluating the development package, underwriting projects, and monitoring rental projects throughout the affordability period. The Construction Management track will focus on program design considerations, tools and techniques for managing the construction process, and dispute resolution. HUD is designing these conferences as "peer-oriented" sessions and welcomes participation by NCDA's member communities. If you are interested in participating in these conferences, please contact Vicki Watson at 202-887-5532.

Lead-Based Paint Discussion

Paul Hilgers lead the committee in a roundtable discussion on HUD's Lead-Based Paint final regulation. Committee members discussed possible effects of the rule on their CDBG and HOME programs, with increases in programs costs, and cut-backs in program operations topping the list. The committee members discussed the following issues surrounding the regulation: (1) Committee members commented that this rule will shut down downpayment and closing cost programs nationwide; (2) Some of the committee's smaller member communities said that they would not target units with lead-based paint because of the cost factor; (3) Landlords will not participate in the Section 8 program because of these regulations - too costly; (4) It will be difficult to have contractors pay for the training because it is so expensive. This expense will likely fall on local communities; (5) Many committee members wanted to make the rule subject to units where children under the age of 6 reside, not all housing units; (6) Committee members felt that CDBG and HOME were not the right resources for Congress and the Federal government to focus upon in funding this regulation, and Congress and HUD should seek other resources; (7) Some committee members were concerned with the liability issue on the part of local governments in implementing this regulation; (8) Other members felt recipients will go through predatory lenders to avoid having to pay for these burdensome lead-based paint costs; and (9) Many committee members said that local communities will see an enormous political backlash if they don't implement this regulation.

What is NCDA's role in this? The committee directed NCDA staff to do the following: (1) collect data on HUD's current Lead Hazard Control Grant Program grantees; (2) collect data from communities that have decided not to undertake a LBP program because of this regulation; (3) do a complete analysis of the cost of the rule and convince to ameliorate the regulation; (4) find out more information on the lawsuit that the State of Rhode Island has instituted against the paint industry; and (5) call for a more coordinated federal effort with other federal agencies on this issue.

Vicki Watson informed the committee that NCDA, along with NAHRO, ALHFA, and COSCDA, have asked HUD and Congress to delay implementation of this regulation until additional funds are made available to pay for the cost of the regulation. NCDA will continue to work with Congress and HUD to ameliorate the effects of this regulation on local governments.

HOME IDIS Discussion

HUD is requiring HOME participating jurisdictions to clean-up their data in IDIS by June 30, 2000. Many of the committee members commented that they had already cleaned-up their HOME data in IDIS. Some committee members noted the following difficulties in cleaning up their data: (1) Previous staff that are no longer employed by local communities inputted the original data, and current staff are now having to clean-up the incorrect data. (2) Communities have cleaned-up their data and have sent their IDIS clean-up letter to their HUD field office, but the field office never forwarded the letter to HUD headquarters; (3) Consortia that are no longer consortia need more time to clean-up the data; and (4) HUD's technical assistance line has not provided adequate technical assistance.

Committee members were also dismayed with the lack of protocol on HUD's part in sending a letter directly to Mayors on this issue. Vicki will communicate these concerns to Mimi Kolesar at HUD.

CD/HOME Certification

NCDA forwarded a survey to its membership in March regarding the development by NCDA of a Community Development practitioner's certification program. NCDA received an overwhelming response in support of this certification. Vicki Watson asked the committee if they would like for NCDA to also develop a HOME professional certification program. The committee unanimously agreed that NCDA needs to also go forward with a HOME professional certification. The committee requested NCDA staff to work on this in the coming year. Members also recommended that staff look at the National Development Council's certification programs for reference in developing the CD and HOME certification programs.

NAHTI Contract Needs Assessment

The National Affordable Housing Training Institute (NAHTI), of which NCDA is a participating organization, applied for a $3 million dollar, three-year grant from HUD on May 19, 2000 for HOME technical assistance funds. If approved, NCDA would receive $350,000 over three years. Vicki Watson asked the committee what type of HOME technical assistance activities NCDA should focus on in this contract, and in future NAHTI funding. The committee recommended that NCDA focus upon the following areas in the upcoming contract, and in future NAHTI funding: (1) Technical assistance in implementing HUD's lead-based paint regulation; (2) Joint activities with other organizations, especially training sessions; (3) Technical assistance and information on predatory lending; and (4) Providing activities at NCDA's regional conferences, particularly the ongoing HOME training courses, such as the HOME Refresher Course.

There being no further business, the meeting adjourned at 5:00 p.m.

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