HUD Approves $3 M Gresham Section 108 Loan Application.

Good timing, HUD local news release HERE, follows by just a day or so my prior post on HUD Section 108 loan program national study. 

City of Gresham Section 108 web page HERE has more details on their planned use of 108 loans.

Originally created and posted on the Oregon Housing Blog.

HUD Updating Consolidated Planning Tools, Training Next Week.

One of my astute readers pointed out to me a recent HUD notice to CDBG, ESG, and HOME grantees announcing training and a conference call next week with the Assistant Secretary for CPD on a new eCon Planning Suite to be used to prepare and report on HUD required Consolidated Plans.

Text of email is pasted below:

Next week, for the first time in 17 years, HUD will announce new tools to transform the Consolidated Plan into a tool for priority-setting and targeted investment planning for housing and community development.  These tools are designed to support need-driven, place-based decisions and informed public participation to help you meet your goals.

On Monday, May 7 at 1 pm ET, the Office of Community Planning and Development (CPD) will host a webinar to introduce and demonstrate these exciting new tools. To register for the webinar, click on this link. [OHB NOTE: Does not look like you have to be grantee to register for this session].

On Tuesday, May 8 at 3pm ET, Assistant Secretary Márquez will host a call for all grantees to discuss the new tools.  To RSVP for this call, please contact Staci Lattimore at Staci.S.Lattimore@hud.gov. To participate, dial (800) 762-7308 and tell the moderator you are calling for “Con Plan Grantees.”

Originally created and posted on the Oregon Housing Blog.

HUD Section 108 Loans in Detroit Have Gone Sour.

Detroit Free Press story is HERE.

..the city will get $33 million in CDBG money but must use more than $8 million of it to repay the [defaulted] loans to HUD.

Originally created and posted on the Oregon Housing Blog.

Use of ACS for CDBG Distribution Mixed Bag for Oregon Cities but Overall a Statewide Increase.

New report from HUD HERE previews distributional impacts of using the American Community Survey data for the first time, using FY 2011 data. While the projections are NOT official formula allocations for FY 2012 they do signal direction of shift in distributions resulting from using ACS data.  

Pages 103-104 show Oregon projected allocations for entitlements with details on the formula components, page 34 shows impact on Oregon's statewide /non entitlement grant. Pages 28-30 show biggest gainers and losers nationwide.

I have prepared Oregon PDF HERE showing summary impacts on individual grantees and statewide impact.

Would appreciate any additional thoughts/corrections from CDBG recipients added as comments to this post; note that while Oregon share of national CDBG may be increasing, overall CDBG funding, including Oregon, will be decreasing as a result of FY 2012 appropriations.

Originally created and posted on the Oregon Housing Blog.

Fair Housing Issues in Cincinatti Suburbs Are Heating Up.

Original HUD AS for Fair Housing column in Cincinnati Enquirer is HERE; response from local official [Vice Chairman of Board of Trustees] in Green Township is HERE.  

Apparently several Cincinnati suburban communities have/are planning to withdraw from the CDBG program in hopes this will remove their affirmatively furthering fair housing obligations, including obligations to cite public housing in their communities.

Originally created and posted on the Oregon Housing Blog.

HUD Oregon Community Planning and Development Formula Grant Down 11% in Last Decade and In Last Year.

HUD has published FY 2011 formula allocations by state for its 4 major formula grant programs: Community Development Block Grants, HOME, Housing for Persons with AIDS (HOPWA), and Emergency Shelter Grants (ESG).

The tables I created HERE show by Oregon grantee the amount of HUD CPD formula funding for FY 2011, FY 2010, FY 2007, and FY 2002; the tables include columns showing the percentage change for one year, 5 year, and 10 year periods. 

Observations:

1. Adding all 4 formula programs together, funding statewide is down by -11% since 2002, -8% since 2007, and -11% in the last year. 
2. For the CDBG program the decline was greater: -16% since 2002, -11% since 2007, and -16% in the last year. 
3. The City of Portland CDBG decline was even greater: -24% since 2002, -13% since 2007, and -17% in the last year.
4. HOPWA grants have increased or stayed the same: up 54% since 2002, up 16% since 2007, and FY 2011 funding is about the same as last year. 
5. ESG grants are flat from last year and over 5 years, but up 17% since 2002.
6. NOTE: As population has increased from FY 2002 and FY 2007, percentage decreases in HUD CPD formula funding would be greater if computed on a per capita basis.

Originally created and posted on the Oregon Housing Blog.

Danville, Illinois Gets Fair Housing Suit That Includes Charge Based on Failure to Affirmatively Further Fair Housing.

Danville Commerical News story is HERE.

A primary cause for the suit are actions by the Danville Mayor:

Mayor Eisenhauer has publicly led a campaign to reduce the supply of subsidized housing in Danville over the next four years and prioritize so-called longtime residents for these housing subsidies. The Mayor’s effort to reduce the supply of subsidized housing is a key objective of the City’s 2010 Consolidated Plan, which proposes to reduce public housing by 326 units and Housing Choice Vouchers by 223, impose punitive work and community service hour requirements, and limit housing subsidies to “those who have ties to the community.” Given the fact that African-Americans make up the majority of the residents of public housing, Housing Choice Voucher holders, waitlist participants and eligible households for both subsidies, these proposed actions will have an unlawful disparate impact on African-Americans...

Actual complaint HERE is posted on Shriver National Center on Poverty Law website.

Texas HUD Fair Housing Conciliation Agreement Forces Significant Changes in State CDBG Plans.

Says law firm PR HERE. PR highlights some of requirements of conciliation agreement:

• Shift an additional $152 million toward housing needs of low- and moderate-income households
• Provide funding for the replacement of all public housing units in the City of Galveston and in other municipalities where units were destroyed, and set aside $100 million to rebuild subsidized housing in the Counties of Harris, Galveston and Orange
• Fund an $18 million "Impacted Area Buyout" program to permit low- and moderate-income victims of the hurricanes to move out of areas of high minority and high poverty concentration, and a "Title Clearance and Legal Assistance" program to resolve problems with "heir property" and to make those properties eligible for disaster assistance
• Provide up to $5 million to fund a "Moving to Opportunity" program under which tenants with portable rental subsidies can relocate to higher opportunity areas

25 page Conciliation Agreement with HUD is HERE. 

Originally created and posted on the Oregon Housing Blog.

Weschester Election Results Could Signal Push Back on HUD CDBG Civil Rights/Fair Housing Settlement.

Blog post HERE makes that suggestion.

Originally created and posted on the Oregon Housing Blog.

Louisiana to Use $55 Million in HUD Block Grants (CDBG) to Help Farmers.

News story is HERE.

Originally created and posted on the Oregon Housing Blog.

Update 1: 35th Anniversary of HUD Project Based and Voucher Section 8 Rent Assistance, and CDBG.

Update 1: Added link to House hearing report that contains 1973 HUD massive 500 page report, Housing in the Seventies.
--------
In my continuing "HUD Anniversary Series" let me add another biggie.

Saturday August 22th marks the 35th anniversary of THREE major HUD programs:

1. Section 8 Housing Vouchers.
2. Section 8 Project Based Rental Assistance.
3. Community Development Block Grants.

These three landmark HUD programs were a creation of the Nixon administration. However, the actual legislation was signed by President Ford on August 22, 1974, just two weeks after Nixon announced his resignation. (Date was 13 months after I started working for HUD in my home town of Detroit).

Some resources:

1. President Ford's signing statement is HERE.
   
2. Public Law 93-383 summary and legislative history is HERE.
   
3. Comprehensive history of Housing certificate/voucher program evolution is HERE (I excerpted from a recent HUD draft Statement of Work for an upcoming study of Administrative Fee costs).
4. GAO report HERE from Spring 1974 INCLUDES 900 unit Experimental Housing Allowance program in Salem (this was precursor to Housing Certificate and Voucher programs).
5. From Internet Archive , House hearing record containing HUD report, Housing in the Seventies (close to 500 pages).
   

I ENCOURAGE others who have experience with the start of these programs and/or who know of links to other relevant documents to add your experience and links with the comment tool below this post. It might be particularly useful if anyone can share their experience with the Salem Experimental Housing Allowance Program or the start of the project based Section 8 or CDBG programs.

Originally created and posted on the Oregon Housing Blog.

HUD To Issue Interim Rule Tomorrow on Use of Section 108 Loans for State CDBG Program.

Tomorrow's Federal Register will have an interim rule detailing the requirements for state CDBG programs to make HUD Section 108 loans on behalf of non entitlement communities. The rule is prompted by Recovery Act legislation.

The "Public Inspection" FR version of the interim rule is HERE. (Only the formatting will change when formally published tomorrow).

Excerpt:

This interim rule implements section 222 in Division I of the Omnibus Appropriations Act, 2009, Public Law 111-8 (2009 Appropriations Act). Section 222 authorizes HUD, to the extent of Fiscal Year (FY) 2009 loan guarantee authority, to provide community development loan guarantees, under section 108 of the Housing and Community Development Act of 1974 (HCD Act), to states borrowing on behalf of local governments in nonentitlement areas (governments that do not receive annual Community Development Block Grants (CDBG) from HUD). Section 108 authorizes HUD to guarantee notes issued by such nonentitlement local governments or their designated public agencies supported by the respective state’s pledge of its CDBG funds. Prior to the enactment of section 222, HUD lacked authority to guarantee notes issued by states on their behalf. State officials interested in applying for a loan guarantee commitment pursuant to this new authority should take note that HUD’s authority to issue such
commitments will expire on September 30, 2010 (and could be fully utilized by other borrowers before that date), unless the provision continues to be included in future appropriations acts.

Originally created and posted on the Oregon Housing Blog.

Details on $1 Billion in CDBG Recovery Act Funding Released; Oregon Gets $5.9 Million.

Following up HUD Secretary's announcement of a couple of days ago, details are now available about HUD CDBG Recovery Act funding (Web page for this program is HERE)

Allocations for Oregon, totalling $5,904,958 are pasted below:

Oregon Total	$5,904,958
NONENTITLEMENT	$3,837,579
ASHLAND	$55,622
BEAVERTON	$164,057
BEND	$116,890
CLACKAMAS COUNTY	$569,949
CORVALLIS	$145,487
EUGENE	$371,021
GRESHAM	$236,604
HILLSBORO	$175,988
MEDFORD	$166,819
MULTNOMAH COUNTY	$81,318
PORTLAND	$2,726,586
SALEM	$390,778
SPRINGFIELD	$164,302
WASHINGTON COUNTY	$539,537

Substantial Amendment Timing:
HUD Notice scheduled for publication in FR tomorrow says this about substantial plan amendment timing:

"Entitlement grantees, Insular Areas, and non-entitlement counties in Hawaii are to submit the substantial amendments to their program year (PY) 2008 action plans to their HUD field office by June 5, 2009. States are to submit the substantial amendments to their FY2008 action plans to their HUD field office by June 29, 2009.

The deadline for the Homelessness Prevention and Rapid Re-housing Program (HPRP) funding pursuant to HUD’s March 19, 2009, Federal Register notice is May 18. Grantees that wish to submit a single substantial amendment for both programs must do so by May 18, 2009."

Web Video: Barney Frank Asks HUD How CDBG Funding Got Cut in Budget.

A short 3 minute video snippet from this weeks House Financial Services Committee hearing on the HUD budget. Chair Frank asks HUD Secretary Jackson and CPD General Deputy Assistant Secretary Bregon for explanation of impact that elimination of CDBG funding for some cities (as HUD has previously proposed) would have on other cities and how amount of CDBG cut in FY 2009 budget was decided upon.

Cites Began to Look at Foreclosure Bail Outs.

Two news stories.

1. One from Minnesota, HERE, would include CDBG funded loans.
2. The other from Indianapolis, HERE would involve a discounted bulk purchase of FHA foreclosures in specific areas, called an "asset control area" program.

Editorial Comment: As someone at HUD who helped deal with an inventory of 16,000 FHA foreclosures in my home town of Detroit, there is NO greater challenge for a government agency than trying to interface with private contractors/non profits to efficiently acquire, rehab, preserve and then sell foreclosed properties,especially in declining markets.

$600 Million in Mississippi Katrina Money Switching from Housing to State Owned Port Expansion.

Remember that special HUD block grant money for Katrina?

Mississippi is asking HUD for a waiver to allow it to move $600 Million from housing to help pay for state owned port expansion. HUD says it has no discretion and is likely to approve the waiver as early as today. (Mississippi Governor Barbour is former national GOP Chair)

Story is HERE.

Extension of Mortgage Insurance Deduction: Unpublished Letter to Oregonian Editor.

[Link Correction]
I sent this letter on Thursday December 27th to the Letters to the Editor at the Oregonian. I expect it will not be published.

To the Editor:

Today's editorial Gordon Smith on the Home Front (HERE) lauded Senator Smith for passage of an extension of the tax deductibility of mortgage insurance premiums. The editorial projected that 90% of the Oregonians would be income eligible for the deduction. There are two problems I see with your endorsement of this costly revenue reducing tax provision.

1. The deduction is NOT targeted. Whether good or bad, the SCHIP child health insurance debate helped to focus attention on income targeting. This deduction is NOT targeted and would allow homeowners with income in excess of $100,000 to claim the deduction (phase out begins only at $100,000 of adjusted gross income for married couples). Up to the phase out levels, the higher the income and the higher the cost of mortgage insurance/more expensive the home, the higher is the potential cost to the government in lost revenue. (The 90% of Oregonians cited as income eligible in the editorial is meaningless—renters can't claim the deduction, and only those owners who pay mortgage insurance AND who itemize the deduction will be able to take the deduction on their federal tax return). See this Tax Foundation Fact sheet (http://www.taxfoundation.org/files/ff49.pdf) for more information on who benefits from the home mortgage interest deduction.

2. The Cost for this Additional Home ownership Subsidy Is Not the Highest Housing Priority. The Congressional Budget Office projects that the cost of the mortgage insurance provision will be $570 million dollars over the next 10 years. (See CBO cost estimates for H.R. 3648 found at http://www.cbo.gov/ftpdocs/86xx/doc8667/hr3648.pdf). With the current federal revenue loss from property taxes, mortgage insurance, and gain on sale estimated at more than $120 BILLION a year [see footnote at the bottom page 17 of the Congressional Research Service analysis of H.R. 3648 found at http://assets.opencrs.com/rpts/RL34212_20071206.pdf) and with other housing programs facing budget cutbacks, adding yet another additional subsidy without significant income targeting for home ownership cannot be the highest housing priority facing our country.