Congress Pursues Active
Housing Agenda in First Six Months

Housing is back on the Congressional agenda in a way that it hasn’t been for more than a decade.

"During the 12 years that Republicans ran the House, their leaders didn’t pay much attention to affordable-housing activists," the Washington Post reported in an April 9 front page story. "But now that Democrats took over the House in November," the paper continued, "their leaders are affordable-housing activists. Liberals Barney Frank (Mass.) and Maxine Waters (Calif.) run the two panels overseeing housing policy after agitating for years, without success, for increased government rent assistance. They came to office promising to pass the first major housing legislation since the early 1990s."

Frank and Waters are keeping those promises.

In late May, for example, the House Financial Services Committee overwhelmingly approved the Section 8 Voucher Reform Act (CLPHA Weekly Report, June 4). Under Frank’s leadership, that same committee successfully shepherded reforms of Fannie Mae and Freddie Mac through the House. In addition to establishing a new oversight for these "government-sponsored enterprises" that legislation would establish the first national housing trust fund.

In late March, moreover, the House approved legislation sponsored by Waters – "The Gulf Coast Hurricane Housing Recovery Act of 2007" – which frees up $1.2 billion in funds for Louisiana’s Road Home Program and authorizes funding for 4,500 new project based vouchers for supportive housing for seniors, the disabled, and the homeless.

It’s not just Frank’s committee that has been busy.

Following timely passage of a joint budget resolution, House and Senate appropriators are moving forward with the 12 bills needed to fund federal programs for FY 2008.The allocations flowing from the House resolution to the appropriations bills provide for an increase of nearly seven percent – from $47.5 billion in FY 2007 to $50.7 billion in FY 2008 – for programs overseen by the Transportation, HUD and Related Agencies appropriations subcommittee.

The appropriators will divvy up that increase among the many different programs funded through the subcommittee, the purview of which includes everything from the Department of Transportation and the Federal Maritime Commission to the public housing capital and operating funds, Section 8 vouchers, and the HOPE VI program. The House subcommittee is scheduled to mark-up its appropriations bill today, June 11, with the full Appropriations Committee following with its markup June 18.

The bill could reach the House Floor as early as the last week of June.

In a June 4 letter to the lead housing appropriators in the Senate – Sens. Patty Murray (D-WA) and Kit Bond (R-MO) – CLPHA urged the legislators to:

-- Fund the public housing operating fund at the $5.0 billion level as determined by the new operating fund formula;

-- Fund the public housing capital fund at the industry-projected need level of $3.5 billion;

-- Reauthorize, expand and provide adequate funding of $600 million for the HOPE VI program; and

-- Provide the industry-projected need level of $14.9 billion funding for voucher renewals based on the most recent 12 months leasing and cost data.

Meanwhile, on May 24, the House Ways and Means select revenue subcommittee heard from Orlando Cabrera, HUD’s Assistant Secretary for public and Indian housing. The topic: tax incentives for affordable housing. The Low Income Housing Tax Credit program, he said, is "a nearly indispensable resource for the HOPE VI program." LIHTC equity, continued Cabrera, "provides a logical and important source of leverage for HUD programs, including HOPE VI and Capital Funds, and the significance of LIHTCs as a leverage funding source among PHAs will likely increase."

CLPHA, in its written testimony, urged just such an increase.

"Given the overwhelming level of public housing capital needs, public housing appropriation levels, and the need for replacement housing in many jurisdictions, a targeted resource for public housing redevelopment is needed," said CLPHA.

The testimony continued: "A dedicated public housing tax credit could raise significant amounts of equity for this purpose. For example, an annual allocation of $100 million in public housing tax credits would generate approximately $1 billion in equity, assuming a 10-year credit period. After 20 years, a public housing tax credit program would generate the roughly $20 billion in equity needed to address the existing public housing capital needs backlog."

Further, said CLPHA, "In addition to an increase in tax credit allocations for public housing redevelopment, there are various modifications to the tax credit that would benefit these projects. An alternative to increasing the LIHTC for public housing would be to design a tax credit tailored to the redevelopment of public housing properties, and that might address the broader community development and resident self-sufficiency mission of public housing agencies and their partners. A recent example of this approach is the New Markets Tax Credit (NMTC), enacted by Congress in 2000 to encourage investment in low-income communities.

In early March, Sens. Mel Martinez (R-FL) and Barbara Mikulski (D-MD) introduced legislation to reauthorize the HOPE VI program for five years. The bill calls for funding of $600 million annually, despite the administration’s request to eliminate the program.

"As former Secretary of HUD, I know first hand this is a program that works," Martinez said at a March press conference. "The benefit is that we can take neighborhoods that have been underserved, underdeveloped, and left without the resources residents need and raise the living standards of their communities so that they thrive."

"We’ve had 13 years to see the successes of HOPE VI and the areas where we need change. Our reauthorization bill takes HOPE VI into the new century – reformed, refreshed and reinvigorated," said Senator Mikulski.

The Senate’s Housing, Transportation and Community Development Subcommittee is expected to hold a hearing in the near future on the HOPE VI reauthorization. Cosponsors of the legislation in that committee include Martinez and Committee chairman Chuck Schumer (D-NY), Jack Reed (D-RI), Robert Menendez (D-NJ), Sherrod Brown (D-OH), and Elizabeth Dole (R-NC).

On the House side, the Financial Services Committee is drafting Hope VI reauthorization legislation and has sought CLPHA input on the bill. CLPHA is in discussions with staff on key aspects of the bill.

"It’s hardly happy-days-are-here-again for those fighting for affordable housing funding," said Sunia Zaterman, CLPHA’s executive director. "The deficit and spending for the war in Iraq mean that all discretionary domestic spending is squeezed, not least housing."

Still, she continued, "there’s a lot of support in key places for our positions – whether it be expanding the Moving to Work demonstration program [renamed the Housing Innovation Program in SEVRA] or, we are hopeful, in providing for real increases in the public housing operating and capital funds."

 

OHA Receives ‘Flex Power’ Award

The Oakland Housing Authority (OHA) was recognized May 5 by "Flex Your Power," California’s statewide energy efficiency campaign, as a leader in energy efficiency with a 2007 Flex Your Power Award.

Forty-one winners and 32 honorable mentions were chosen from a highly competitive pool of California businesses, local governments and institutions. OHA took top honors in the Energy Efficiency category, along with other high-powered industry leaders Office Depot, Safeway, Inc., and Cisco Systems, just to name a few. The Energy Efficiency category recognizes organizations’ efforts to reduce total energy (electricity and/or natural gas) consumption through the installation of energy-efficient equipment, lighting and appliances or through the completion of energy-efficient building retrofits or new construction projects.

The Flex Your Power Awards originated in 2001 to acknowledge outstanding leadership in energy efficiency, helping California through the energy crisis. OHA is no stranger to these awards; BRIDGE Housing, an OHA partner on the HOPE VI Chestnut Linden Court development, was a 2002 Internal Policies and Reforms Flex Your Power award recipient for its Green Building Program.

"The Oakland Housing Authority was inspired to use energy more wisely for the benefit of our environment, our employees and our residents," said Jon Gresley, the authority’s executive director. "We have taken great steps to conserve energy and to save money to help the more than 3,000 low-income families who participate in our public housing program."

In 1999, OHA was one of the first housing authorities to participate in HUD’s Energy Performance Contracting (EPC) program, allowing it to use the money saved on utility costs to provide more services to residents. That same year, OHA was the first housing authority in the nation to employ electronic utility tracking.

With the EPC program and PG&E rebate partnerships, OHA has made upgrades to hundreds of units, resulting in savings of 5,626,781 kWh of electricity, 270,537 therms of natural gas, and more than $1.7 million dollars to date.

"We are proud to be recognized for our energy conservation efforts, especially when our efforts result in better homes and better lives for our residents," added Gresley.

Judy Monnier, Senior Management Analyst and EPC project Manager accepted the award on OHA’s behalf.

 

Question & Answer

Q: As I read the SEVRA legislation passed by the House Financial Services Committee last month, it seems to say in some places that funding for public housing FSS coordinators and their "activities" is included in the legislation, but in other places it indicates that the funding applies exclusively to Section 8. Can you clarify these seeming discrepancies?

A: Regarding the "activities" you reference, the bill’s authors are referring to the cost of FSS escrow accounts and other service costs associated with the FSS program and not to FSS coordinators.

When HUD changed the formula in 2004, this became a big issue in that some housing authorities didn’t want to continue FSS programs because the escrow accounts essentially amounted to a loss in revenue. The language is here because the renewal funding formula has a reallocation provision to address the funding of these escrow accounts and possibly the cost of supportive services.

Under the bill, after funds are recaptured at the end of CY 2007, recaptured funds will be first used for portability costs and then "FSS activities." This is different from funding coordinators.

SEVRA does, however, attempt to change the way that FSS coordinators are funded. Typically, FSS coordinators are funded through their own separate line item in appropriations bills. Their funding is not rolled into any other account. The bill’s authors want to change this funding structure and grant process by rolling the funding into the administrative fee account and distributing funding for coordinators in the form of an additional administrative fee.

As for whether this would cover the cost of coordinators for public housing and Section 8, it seems clear that this only provides funds for HCV FSS coordinators. This isn’t anything new; when HUD issues its NOFA each year (drawing upon the funds that have been appropriated through the program as I cite above), the funds are solely reserved for HCV FSS coordinators.

 

Impact of Public Housing Rehab Studied

Work has begun on a MacArthur Foundation-funded study designed to demonstrate the economic impact resulting from the substantial rehabilitation of public housing units. In December, CLPHA was awarded a $625,000 grant from MacArthur to carry out the work.

Several studies have documented actual and potential changes resulting from public housing redevelopment. A Johns Hopkins study, for example, found that crime had decreased in the areas immediately surrounding some of Baltimore’s largest HOPE VI sites and that the character and aesthetics of those areas had significantly changed as a result of the redevelopment. Similarly, a Housing Research Foundation study found dramatic benefits accruing from the Orchard Park Hope VI redevelopment near Boston’s Dudley Square.

But none of these reports have been able to quantify the extent of economic benefits relative to the costs involved. Were the developments merely building on existing positive trends within the community, or were they critical catalysts for change? That’s one of the key questions the CLPHA study intends to answer.

The proposed study has three components:

l-- A comparative, quantitative economic cost/benefit analysis;

l-- A quantitative assessment of the relative importance of the public housing redevelopment to identified economic outcomes; and

l-- Contextual analyses of the selected developments and their surrounding areas in order to understand the impetus behind the public housing changes and the conditions behind the spillover outcomes.

The study involves comparative analyses of two-to-four separate public housing complexes in each of six cities across the country – Boston, Charlotte, Kansas City, San Francisco, Seattle and Washington. In addition to selecting complexes that have undergone substantial redevelopment (either through HOPE VI or a local initiative), "normal" public housing sites – those that have modernized using monies solely from the PHAs capital fund – will be reviewed as comparisons.

The study will track surrounding economic conditions and trends both before and after the public housing redevelopment. Among the questions:

l-- Are there specific points at which the local trend lines change?

l-- Do the changes differ based on the type of intervention and the characteristics of the neighborhood?

l-- To what extent did the redevelopment/modernization spark further investment/development and to what extent did it augment activities that were already taking place?

l How critical was the project in bringing about the identified changes in the surrounding community?

CLPHA has contracted with the Philadelphia-based Econsult Corporation to conduct the quantitative analyses for each of the sites and with Dr. Sean Zielenbach to manage the overall study and conduct the various case studies. Zielenbach is a Senior Consultant with the Chicago-based Woodstock Institute and also has his own community development consulting practice. CLPHA Deputy Director Deb Gross is overseeing the project.

The final report will be released in February 2008.

 

Rep. Frank to Address CLPHA Meeting

House Financial Services Committee Chairman Barney Frank (D-MA) and high-ranking HUD officials will be among those offering their views on the hot topics in housing at the June 28-29 CLPHA executive director’s meeting.

Frank will address the membership on the morning of the twenty-ninth. On Thursday, Assistant Secretary for Public and Indian Housing Orlando Cabrera and HUD Deputy Chief of Staff Scott Keller have been invited to provide an overview of the agency’s program and legislative priorities, while Ivan Pour of HUD’s Office for Public Housing Investments will discuss Moving to Work and mixed-finance issues.

Greg Byrne, Director of HUD’s Financial Management Center, will speak to asset management implementation issues, while David Vargas, Director of Housing Voucher Program, has been invited to discuss implementation of the voucher renewal formula.

In addition, CLPHA executive director Sunia Zaterman will provide a Washington Update, followed by a membership discussion on key issues such as: FY 2008 appropriations, SEVRA, HOPE VI reauthorization, public housing tax credit proposals and asset management implementation.

Brian Braley, Vice President Legislative Affairs with the Housing Authority Insurance (HAI) Group will update the membership on collaborative efforts between HAI and CLPHA. The two-day meeting will conclude with a roundtable featuring key staff from the House and Senate authorizing and appropriations committees.

Thursday’s membership roundtable will focus on: "Getting Green: How Do Environmental Issues Impact Public Housing Authorities?"

It’s not too late to register for the meeting. Simply fax this registration form to CLPHA at 202-638-2364 and we’ll add you to the list. Hotel reservations can be made by calling 800-321-3010.

 

Princeton Fellow Departs CLPHA

Jessica Bonney, for more than two years a CLPHA staffer through the Princeton Project 55 Public Interest Fellowship, is leaving the organization. She will study law at William & Mary beginning in August. Bonney focused on Moving to Work (renamed the "Housing Innovation Program" in the SEVRA legislation passed by the House Financial Services Committee last month) during her time at CLPHA, particularly in promoting the ability to test innovative strategies of MTW agencies so that other PHAs could benefit from their successes.

"Jessica played a key role in making the case to Congress and other policymakers that MTW was a worthy effort that encourages innovation among PHAs," said CLPHA Executive Director Sunia Zatterman. "We’ll miss her and we wish her the very best."

Asset Management Briefing Survey

CLPHA will participate in a briefing for House staff June 14 on asset management issues.If you haven’t yet responded to our survey on asset management implementation, please do so. The questions in the survey deal primarily with fees under asset management and the amount of time needed for transition. Please take a few minutes to take the survey by clicking here or forwarding this information to the appropriate person in your housing authority.

The survey is short – only 14 questions – and your input is very important!

 

NewsMakers

The Springwood Youth Center in Kent, WA – a collaborative effort of a broad range of community groups including the King County Housing Authority (KCHA) — has been selected as the winner of the Editor’s Choice Award for Innovative Architecture and Design by Recreation Management Magazine.

The $3.4 million Center, opened in October 2006, was designed by ARC Architects and construction was overseen by the KCHA. The Center replaced a cramped, dark, outdated structure built in the early 1970s that was bursting at its well-worn seams with use. It is located on the East Hill of Kent in the Springwood Apartments complex, a 321-unit public housing development owned and managed by KCHA.

"This is a phenomenal resource to the community," said KCHA executive director Stephen Norman. "We’re exceedingly pleased to have everyone’s hard work and the great results recognized by a leading national publication that specializes in this field."

The 10,800 square-foot building includes a gym with performance stage, a commercial kitchen, and classrooms for computers, arts and crafts and tutoring.

Judges wrote that the project contains "well-crafted and artistically rich spaces – a true community center." Judges also applauded the environmental responsiveness of the facility.

The facility is designed specifically for programs and activities that support middle and high school aged youth in the community. More than 1,200 youth enjoy recreational and educational programs at the center.

The Center was funded through "Building Better Futures," a partnership comprised of KCHA, the Puget Sound Educational Service District, Kent Youth and Family Services and the Center for Career Alternatives. Building Better Futures was established to support the development of services to low-income households in public housing and the surrounding communities on the West Hill of Kent. The Springwood Center is the second of two facilities developed at the site. The first, the Kent Family Center, houses a state-of-the-art Head Start program, a health care clinic for mothers and children, and a career development center.

The awards recognize new and renovated facilities that raise the bar for recreations facility design across the country. This is the fifth year of the competition – and the first Editor’s Choice Award. The award was given to the Springwood Youth Center to showcase not just the project design, but the mission of the facility as well. The Center is also the only project built to LEED (Leadership in Energy and Environmental Design) standards among the winners.

 

Help Wanted

The Hartford Housing Authority (HHA) is seeking a new Executive Director capable of building upon the success the Authority has already achieved. He/she should possess both vision and creativity to clearly identify and present to the 5 member BOC the alternatives and risks associated with moving forward with any recommendation regarding new programs or housing developments. The HHA has a solid portfolio, and is committed to expanding their homeownership programs for moderate to low income families.

The successful candidate will have a proven track record of developing creative affordable housing opportunities while demonstrating exceptional leadership ability, knowledge of HUD, State and Local government affordable housing regulations, a strong background in financial management, excellent organizational, oral and written communication skills. The candidate must have a bachelor’s degree from an accredited college or university in public administration, accounting, urban planning or a closely related field; have seven or more years experience in the private or public housing industry at the executive administration level.

The salary for the executive director is dependant upon qualifications; the HHA also offers an attractive benefits package. Send resume, salary history and references by June 25, 2007 to: Earline Williams, Griffon Group, LLC, 1323 Arlington Blvd., El Cerrito, CA 94530-2514. Fax: 860 887-6004. Email: .

 ***

The Council of Large Public Housing Authorities (CLPHA), a non-profit advocacy and lobbying organization representing 60 of the largest public housing authorities across the country, is seeking to fill the position of Research and Policy Analyst.

CLPHA is seeking an individual to conduct housing research and analyze public housing policies, regulations and legislation. Position requires excellent analytic and writing skills, and a background in public housing and Section 8.Direct experience in public housing/Section 8 operations and management is highly desirable.

Must be able to build working relationships with staff at HUD, CLPHA members, and other professional organizations.We are looking for a team player to complement a small, team-oriented staff. Masters degree in related field required. Salary commensurate with experience. Send resume to Deb Gross, Deputy Director, 1250 I St. NW Washington, D.C. 20005, Suite 901A, or e-mail to dgross@clpha.org, by June 15, 2007.