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A Decade of HOPE VI

2009-10-15T02:12:00.003-04:00

Research Findings and Policy Challenges

Source: The urban Institute

Susan J. Popkin, Bruce Katz, Mary K. Cunningham, Karen D. Brown, Jeremy Gustafson, Margery Austin Turner

The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

Note: This report is available in its entirety in the Portable Document Format (PDF).

Introduction

Launched in 1992, the $5 billion HOPE VI program¹ represents a dramatic turnaround in public housing policy and one of the most ambitious urban redevelopment efforts in the nation's history. It replaces severely distressed public housing projects, occupied exclusively by poor families, with redesigned mixed-income housing and provides housing vouchers to enable some of the original residents to rent apartments in the private market. And it has helped transform the Department of Housing and Urban Development's (HUD) approach to housing assistance for the poor. This report provides a comprehensive summary of existing research on the HOPE VI program. Its central purpose is to help inform the ongoing debate about the program's achievements and impacts, and to highlight the lessons it offers for continuing reforms in public housing policy.

HOPE VI grew out of the work of the National Commission on Severely Distressed Public Housing, which was established by Congress in 1989. Congress charged the Commission with identifying "severely distressed" public housing developments, assessing strategies to improve conditions at these developments, and preparing a national action plan for dealing with the problem. Based on its investigation, the Commission concluded that roughly 86,000 of the 1.3 million public housing units nationwide qualified as severely distressed and that a new and comprehensive approach would be required to address the range of problems existing at these developments.

In response to these findings, Congress enacted the HOPE VI program, which combined grants for physical revitalization with funding for management improvements and supportive services to promote resident self-sufficiency. Initially, housing authorities were allowed to propose plans covering up to 500 units with grant awards of up to $50 million. The program's stated objectives were as follows:

to improve the living environment for residents of severely distressed public housing through the demolition, rehabilitation, reconfiguration, or replacement of obsolete projects (or portions thereof);
to revitalize sites on which such public housing projects are located and contribute to the improvement of the surrounding neighborhood;
to provide housing that will avoid or decrease the concentration of very low-income families; and
to build sustainable communities.²

Since 1992, HUD has awarded 446 HOPE VI grants in 166 cities. To date, 63,100 severely distressed units have been demolished and another 20,300 units are slated for redevelopment (Holin et al. 2003). As of the end of 2002, 15 of 165 funded HOPE VI programs were fully complete (U.S. GAO 2003b). The billions of federal dollars allocated for HOPE VI have leveraged billions more in other public, private, and philanthropic investments.

Evaluating HOPE VI

After a decade of HOPE VI, a wide range of constituencies—Congress, the administration, housing groups, local elected officials, resident advocates, and the media—are asking challenging questions about what all of the investment has accomplished:

To what extent has HOPE VI achieved its intended benefits?
What impact has HOPE VI had on the original residents, public housing sites, the neighborhoods in which developments are located, and the surrounding cities and metropolitan areas?
What impact has HOPE VI had on approaches to public housing development, management, and design?
On a more forward-looking note, what lessons does HOPE VI offer for public housing or for affordable housing policy more generally?

The nature of the HOPE VI program makes responding to these fundamental questions especially challenging. HOPE VI has not been "one program" with a clear set of consistent and unwavering goals. Rather, the program has evolved considerably during the past decade—in legislation, regulation, implementation, and practice. To an unusual extent, the program has been shaped more through implementation than by enactment. What was initially conceived as a redevelopment and community-building program evolved over time into a more ambitious effort to build economically integrated communities and give existing residents more choice in the private housing market. Because of the flexible nature of the program, local housing authorities have had tremendous latitude in how they chose to design and implement their local HOPE VI initiatives. It is impossible, therefore, to provide simple answers to general questions about programmatic effectiveness and "lessons learned." The response to such questions is usually another question: "Which HOPE VI program are you asking about?"

Owing to the unusual nature of the HOPE VI program, HUD has not—and probably could not have—carried out a single, comprehensive evaluation that would have examined all aspects of the program. In 1994, HUD initiated a "Baseline Assessment" of HOPE VI (Fosburg, Popkin, and Locke 1996) that was intended as the first step in an incremental evaluation process. This baseline analysis was followed by an "Interim Assessment" report (Holin et al. 2003). But these reports consist of case studies focusing primarily on HOPE VI sites and redevelopment plans; there was only a very minimal attempt to gather information about the original residents and no plan for tracking resident outcomes. As the program expanded, HUD added a requirement to the HOPE VI selection process that sites had to hire local evaluators, but the criteria for these evaluations were vague and there were no requirements that housing authorities collect specific types of performance measures. As a result, a lack of consistent data across sites has hindered national research on the program.

Further complicating the challenge of evaluating HOPE VI is the fact that the program was initiated at a time of enormous change in the broader public housing system. In many respects, HOPE VI has served as a laboratory to test new and often contentious ideas about public housing finance, management, and design. People's thinking about the performance and impact of HOPE VI is intertwined with their views on the evolution of federal housing policy more broadly, and their concerns about the future role of public housing in helping to address the needs of the poor.

In part because of the absence of definitive data and evaluation results, perceptions about the impacts of HOPE VI vary widely. Some people characterize it as a dramatic success, while others view it as a profound failure. There is no question that the program has had some notable accomplishments. Hundreds of profoundly distressed developments have been targeted for demolition, and many of them are now replaced with well-designed, high-quality housing serving a mix of income levels. HOPE VI has been an incubator for innovations in project financing, management, and service delivery. Some projects have helped turn around conditions in the surrounding neighborhoods and have contributed to the revitalization of whole inner-city communities. However, HOPE VI implementation has also encountered significant challenges. Some HOPE VI projects have been stalled by ineffective implementation on the part of the housing authority or conflict with city government. In others, developments were simply rehabilitated or rebuilt in the same distressed communities, with little thought to innovative design, effective services, or neighborhood revitalization.

Most seriously, there is substantial evidence that the original residents of HOPE VI projects have not always benefited from redevelopment, even in some sites that were otherwise successful. This can be partly attributed to a lack of meaningful resident participation in planning and insufficient attention to relocation strategies and services. As a consequence, some of the original residents of these developments may live in equally or even more precarious circumstances today.

Purpose of This Report

This report reviews the existing research literature on both the achievements and the challenges of the HOPE VI program. In addition, it draws upon a day-long symposium on the program's strengths and weaknesses, held in the fall of 2003, involving a diverse group of practitioners, policymakers, advocates, and researchers. This assessment comes at a critical time in the evolution of HOPE VI—and of public housing policy in general. In its FY 2004 and FY 2005 budget submissions, the Bush administration proposed eliminating funding for the program altogether, citing long delays between grant awards and the completion of the revitalization projects at many sites. Congress ultimately restored the program for FY 2004, but at a substantially lower level of funding.³

There is no doubt that housing authorities, cities, and industry advocates would prefer to continue the program. HOPE VI is currently the only major source of redevelopment funding, and many localities are pleased with their successes in replacing older projects that were blighting their communities with new, mixed-income developments. In contrast, advocates for low-income housing have been outspokenly critical of the program, pointing to sites where much money has been spent and little accomplished, and emphasizing the small numbers of original residents who have thus far been able to return to the revitalized HOPE VI sites. Yet, these advocates are now pushing to continue HOPE VI funding, though they are also pressing for extensive reforms such as greatly expanding the rights of original residents and formalizing their role in the redevelopment process (cf. Center for Community Change 2003, National Housing Law Project 2002).

This debate is not likely to be easily resolved, as it involves a number of highly contentious issues:

the appropriate targeting of limited resources for affordable housing;
the impact of HOPE VI on the larger affordable housing supply and the appropriate roles of the public and private sector in providing this housing;
the needs of residents who are being displaced, and the extent to which HUD and local housing authorities are responsible for addressing these needs;
how race and ethnicity limit choices and opportunities for public housing residents; and
what to do about "hard-to-house" public housing residents, including families with special needs (multigenerational households, large families, disabled residents), "lease violators" (with back rent payments, criminal histories, illegal residents on the lease), and residents with substance abuse or mental illness who are at risk of becoming homeless.

Research alone cannot resolve these issues, but this report seeks to help inform the ongoing debate by pulling together a wide array of research to address the critical questions about the program's achievements, impacts, and the lessons it offers for public housing policy. This is, by necessity, an early and limited assessment. Most projects are still undergoing redevelopment, and many new developments are not "seasoned enough" to allow for a definitive examination. For now, in the absence of a comprehensive evaluation, we draw on the considerable evidence available from targeted efforts to examine different aspects of the HOPE VI program. This evidence includes large-scale studies carried out by the Urban Institute on resident outcomes, Abt Associates' baseline and interim assessments, the recent attempts to assess neighborhood impacts by the Brookings Institution and the Housing Research Foundation, as well as the many smaller studies by local evaluators and related research on mobility and scattered-site housing.

In our view, this evidence strongly supports continuation of the HOPE VI approach as a way to improve outcomes for distressed developments, residents, and neighborhoods. The program has achieved substantial success; it has demolished some of the most distressed and destructive housing environments, replaced them with much higher-quality housing and, in many cases, with mixed-income communities. Many residents who relocated with vouchers are living in higher-quality housing in safer neighborhoods. Therefore, HUD should continue to operate a targeted redevelopment program that provides funds for both physical revitalization and supportive services. However, the evidence also points to the urgent need for reforms in the HOPE VI program if it is to realize its full potential to improve the circumstances of very low-income families and communities. In particular, assistance with relocation and supportive services should be strengthened, and new attention should be given to innovations such as "enhanced vouchers" that would provide long-term counseling and support to vulnerable families in conjunction with housing assistance.

Chapter 2 provides essential background for understanding the performance of HOPE VI, by describing the dreadful conditions in many central city public housing developments that led to the call for a radical new approach to public housing. Next, we offer a brief overview of fundamental changes in public housing policy that began in the 1990s and that influenced the evolution of the HOPE VI program. Chapters 4 through 7 discuss the outcomes of HOPE VI, focusing in turn on the public housing sites themselves, the original residents, services and supports for today's residents, and improvements in the surrounding neighborhoods. The report concludes with a review of key lessons learned, priorities for ongoing research, and implications for the future of HOPE VI and public and assisted housing policy more broadly.

Note: This report is available in its entirety in the Portable Document Format (PDF).

NY City Housing Crisis

2009-10-15T01:56:00.002-04:00

As City Adds Housing for Poor, Market Subtracts It

According to The NY times, Mayor Michael R. Bloomberg is closing in on a milestone: building or preserving 165,000 city-financed apartments and houses for low-, moderate- and middle-income families, the goal of a $7.5 billion housing plan he announced in 2002 and expanded in 2005.

It has already financed the creation or preservation of 94,000 units, including 72,000 for low-income households, city officials say.

But those efforts have been overwhelmed by a far larger number — the 200,000 apartments affordable to low-income renters that New York City has lost over all, because of market forces, during the mayor’s tenure.

The shrinking supply of these apartments, highlighted by researchers at New York University, illustrates not only the increasing strain that housing costs have had on this city of renters, but also the limits of the mayor’s success in providing the city’s poor with reasonable places to live. While the mayor’s plan has put thousands of low-income families in new or rehabilitated buildings and helped stabilize neighborhoods, it has been nearly drowned out by the twin waves of gentrification and rent deregulation.

“We’re losing units even with additions to the stock under the mayor’s housing plan,” said Victor Bach, a senior housing policy analyst for the Community Service Society, a nonprofit antipoverty group, and a member of a panel that advised the Bloomberg administration on housing in 2002. “I’m not knocking the plan. I’m just saying it hasn’t done much to stop the hemorrhaging of lower-rent units across the city.”

Including public housing, the number of apartments considered affordable to low-income households — those earning less than 80 percent of the city’s median income, or less than $37,000 — decreased to 991,592 from 1,189,962, a drop of nearly 17 percent, from 2002 to 2008. About 42 percent of the city’s households fit in that income category in 2008.

The data were supplied by the Furman Center for Real Estate and Urban Policy at New York University, which analyzed the city’s Housing and Vacancy Survey from 2002, 2005 and 2008. The center and other housing experts consider an apartment affordable if it costs no more than 30 percent of a family’s income, or about $925 a month for a family earning $37,000.

More HERE

New Grant Opportunity- Broadband Technology Opportunity Program (BTOP)

2009-07-14T13:53:00.006-04:00

HUD has informed public housing authorities about an important grant opportunity to help provide broadband (high-speed Internet) to communities in need, including residents served by Public Housing Authorities (PHAs).

Ms. Sandra B. Henriquez, Assistant Secretary Public and Indian Housing said, "As more services related to government, employment, health, job training, and education are delivered online, access to broadband is becoming increasingly necessary." In response, she said, the Broadband Technology Opportunity Program (BTOP) is making funding available to connect unserved and underserved populations to this important infrastructure.

BTOP’s funding is made available through the American Recovery and Reinvestment Act (ARRA) to help advance the Administration’s goal of providing broadband access to all Americans. Most importantly to us in the public housing business, BTOP expressly recognizes that HUD and PHAs are already working with the communities, infrastructure (including Neighborhood Networks centers), and populations that the Administration is targeting. Applicants are encouraged to leverage other Recovery Act funding towards this Broadband project.

Accordingly, the NOFA encourages PHAs to apply in partnership with other public, private and not-for-profit programs that can help efficiently and effectively achieve program objectives.BTOP is being administered by the National Telecommunications and Information Administration (NTIA) at the Department of Commerce. The Program’s Notice of Funding Availability (NOFA) announces three types of grants, two of which are directly applicable to Public Housing Authorities (PHAs.)

These are:Grants for Sustainable Broadband Projects:Sustainable Broadband Adoption grants are intended to fund innovative projects that promote broadband demand, such as projects focused on broadband education, awareness, training, access, equipment or support, particularly among vulnerable populations. (See NOFA p. 33006-33007) The first of three Sustainable Broadband Adoption grant rounds will award $150 million in project support. (p. 33110) Grants for Public Computer Centers:Public Computer Center grants are intended to fund projects that provide broadband access to the general public or a specific vulnerable population, such as low-income, unemployed, seniors, children, minorities and people with disabilities.

The NOFA includes “Neighborhood Networks centers in public housing developments” as part of its definition of a public computer center. (See NOFA p. 33109) Projects must create or expand a public computer center meeting a specific public need for broadband service, including but not limited to education, employment, economic development, and enhanced service for health-care delivery, children, and vulnerable populations. (p. 33114) The first of three Public Computer Center grant rounds will award $50 million in project support. (p. 33110)

PHAs may wish to submit applications in partnership with organizations that possess expertise in information technology provision and training. This may include public, private and/or not-for-profit partners, all of which are eligible to apply.

Applications will be scored in part on whether they include organizations already receiving ARRA funds. This includes all PHAs that receive a HUD Capital Fund Recovery Grant. Application Information:Applications are being accepted from July 14-August 14. Electronic applications will be available on or about July 31.

Paper applications for grant requests of less than $1 million will be accepted. The NOFA and required application can be found at: http://broadbandusa.sc.egov.usda.gov/info_lib.htm. Workshops providing information about the application process are being offered through July only. To find a workshop in your area and to register, please go to: http://broadbandusa.sc.egov.usda.gov/workshop.htm. Finally, applicants may wish to contact their state’s Governor’s office which NTIA will consult as part of the grant review process to determine each state’s priority areas. (See NOFA, p. 33107)

For additional information please contact:The Broadband Technology Opportunities Program1401 Constitution Ave, NW Washington, DC 20230 Tel. 202-482-2048 Email: btop@ntia.doc.gov

She said she encourages PHAs to apply for BTOP support.

Publishers note: If your housing authority is in need of assistance writing for the Broadband Technology Opportunities Program, contact two of the most successful public housing community technology and Neighborhood Networks grant writers, Mr. Erol Shorter at: besknd@aol.com or Mr. Rock at: Principal.CoreSynergyGroup@gmail.com

CoreSynergyGroup.com

More than 1,000 people would be relocated in Charlotte, NC Housing Plan

2009-06-29T01:39:00.002-04:00

According to the Charlotte Observer, More than 1,000 people would be relocated if the city gets federal funding to raze Boulevard Homes.

The city has applied for a Hope VI grant – the same type of grant used to raze and rebuild what used to be Piedmont Courts – that would tear down the nearly 40-year-old Boulevard Homes complex and erect a mixed-income neighborhood in one of Charlotte's biggest trouble spots.

But for those who currently live in Boulevard Homes, it means moving vans and adjusting to new neighborhoods.

The Charlotte Housing Authority and a faith-based community group hosted a festival Saturday at Boulevard Homes to let people know that there are organizations willing to help the more than 300 families who might have to relocate.

Organizers say it gives everyone a chance to learn more about what the new homes and apartments will look like, and learn what opportunities are available to the people who live there now.

Hundreds showed up Saturday for hamburgers, hot dogs, entertainment and information despite temperatures that topped 90 degrees.

But late Saturday, some residents were still reserved about the possibility of demolishing Boulevard Homes. Benjamin Harris said he was glad the event brought his neighbors together, but worries that authorities or civic groups won't do enough to educate people on how to thrive without assistance from the government.

“They need more education in what you're getting involved in,” he said. “If you been raised here 20-something years, this is all you know. You don't know how to branch out.”

Jennifer Gallman with the Charlotte Housing Authority told WCNC-TV, the Observer's news partner, that Saturday's event was an important step in getting the community's support moving forward. “It breaks the ice, it starts to tear down the wall of fear and uncertainty and helps people hang out together, find their commonality and form a bond,” she said.

More HERE

Homelessness Prevention and Rapid Re-Housing Program (HPRP)

2009-06-08T11:52:00.001-04:00

Program Purpose

The Recovery Act includes a $1.5 billion appropriation for the Homelessness Prevention and Rapid Re-Housing Program (HPRP). The purpose of the HPRP is to provide homelessness prevention assistance for households who would otherwise become homeless and rapid re-housing assistance for persons who are homeless. The overall goal of HPRP is for participants to achieve housing stability.

Public Benefits

The expected benefit of HPRP is to prevent homelessness and to facilitate the rapid re-housing of individuals and families. In addition, we will meet HUD’s overriding goal of creating and preserving jobs. HPRP is focused on housing and will provide temporary financial assistance and housing relocation and stabilization services to individuals and families who are homeless or would be homeless but for this assistance. Many individuals and families who benefit from this program will be able to concentrate efforts on re-entering the workforce and attaining self-sufficiency, thereby producing economic activity and enhancing the number of jobs created/saved.

Kinds and Scope of Program Activities
The eligible activities allowed under HPRP are clear and intentionally focused on housing—either direct financial assistance to help pay for housing, or services designed to help participants obtain, maintain and remain in housing. Funds are also available to track assistance through HMIS for local program or policy use and reporting to HUD. Grantees and sub-grantees may use HPRP funds to administer the following categories of eligible activities: (1) financial assistance; (2) housing relocation and stabilization services; (3) data collection and evaluation; and (4) administrative costs.

The HPRP Notice (FR-5307-N-01), which outlines the eligible activities, also includes a section that clearly states activities that are ineligible, including services that are eligible under other Recovery Act programs, mortgage costs, and credit card bills. In an effort to further avoid mismanagement of grant funds, the Notice stipulates that HPRP funds must not be used to make payments directly to program participants, but only to third parties, such as landlords or utility companies. The Notice can be found at http://hudhre.info/documents/HPRP_Notice_3-19-09.pdf.

Public Housing Capital Fund Stimulus - Competitive

2009-05-31T09:53:00.002-04:00

Program Description

To provide funds for the capital and management activities of Public Housing Agencies as authorized under section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g) (the "Act"), with the exception that funds cannot be used for operations or rental assistance. The funds shall be awarded by competition for priority investments, including investments that leverage private sector funding or financing for renovations and energy conservation. Funds shall be obligated through competitive funding by September 30, 2009.

Public housing authorities shall give priority to capital projects that can award contracts based on bids within 120 days from the date the funds are made available to the public housing authorities. Public housing agencies shall prioritize capital projects that are already underway or included in the 5-year capital fund plans required by the Act (42 U.S.C. 1437c-1(a)). Funds provided under this heading shall serve to supplement and not supplant expenditures from other Federal, State, or local sources or funds independently generated by the grantees. Notwithstanding section 9(j), public housing agencies shall obligate 100 percent of the funds within 1 year of the date on which funds become available to the agency for obligation, shall expend at least 60 percent of funds within 2 years of the date on which funds become available to the agency for obligation, and shall expend 100 percent of the funds within 3 years of such date.

Milestones in the award process include the publication of the competitive Notice of Funding Availability (NOFA), the approval by HUD of applications, the signing by the public housing authority of a Capital Fund Program Amendment to the Consolidated Annual Contributions Contract (ACC) for selected applicants, the execution by of the ACC by the HUD Field Office, and the spreading of funds awarded in HUD's Line of Credit Control System (LOCCS).

The Catalog of Federal Domestic Assistance (CFDA) number for this program is 14.884.
For more detailed information related to Capital Fund Formula or Competition Recovery Act information, please refer to the Office of Capital Improvements Recovery Act Information web site.

HUD Publishes NOFA Making $995 million in Recovery Act Funding Available to PHAs

The Department is pleased to announce that it has published a Notice of Funding Availability (NOFA) making $995 million of Capital Fund Recovery Act funding available to PHAs. The Department is excited about the benefits that will be realized by providing this funding. In addition to providing a powerful stimulus to the economy through job creation, this funding has the potential of transforming the public housing program in a number of ways. First it will direct a significant amount of funding to address the needs of the elderly and persons with disabilities. Second, it will provide a substantial amount of funding to transform distressed public housing. Third, it will provide gap financing. Finally, it will make a large investment in improving the energy efficiency and environmental performance of public housing. To view a .pdf version of the NOFA, click on the heading above. The Department also issued an email to all PHAs announcing publication of the NOFA. You can read the email here.
Eligible Applicants

Public Housing Agencies that own or operate Low Income Public Housing and are eligible to receive capital funding under section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g) (the "Act").

Funding Amounts

Total Funding: $995,000,000
Total Funds Allocated: $995,000,000
Total Funds Obligated:Total Funds Expended:

NTIA delays stimulus award money

2009-05-26T15:21:00.002-04:00

The National Telecommunications and Information Administration, which is responsible for doling out some $4.7-billion of the $7.2 billion in total broadband stimulus money, has delayed its submission and grant schedule by about three months.

According to GigaOM, the NTIA has shifted the date it will begin to issue funds. In an announcement late last week, the agency said it would accept grant applications in September and begin awarding funds in December, contradicting a previous statement released two months ago that said the first funding distributions could come as early as June.

According to analyst Craig Settles, the delay will likely help many of the larger metro areas and municipal efforts around broadband because they'll have more time to put together a sustainable business plan. In fact, it could be good news for all parties vying for money.

For more:
- see GigaOM

Public Housing Capital Funding Available

2009-05-18T15:21:00.001-04:00

Public Housing Capital Funding will be awarded competitively through a Notice of Funding Availability (NOFA) that can be accessed on HUD’s Recovery Act website. HUD will accept applications from public housing authorities from June 1 until July 21, 2009 for the Energy Efficiency funding category and from June 1 until August 18, 2009 for the other three funding categories. HUD will review and award grants to PHAs that effectively address the requirements in the NOFA for the following four funding categories:

Energy Efficiency: $600 million is available for PHAs to create more energy efficient public housing units. Applications are due for this category on July 21, 2009.

Financing Stalled Projects: $200 million is available to allow PHAs to develop or renovate public housing projects stalled due to lack of resources.

Public Housing Transformation: $100 million is available to transform obsolete public housing projects into newly built or renovated developments.

Housing for the Elderly/Persons with Disabilities: $95 million is available to improve public housing units and create community facilities for the delivery of medical and other services to this vulnerable population.

HUD's Public Housing Capital Fund Program provides annual funding to public housing authorities to develop, finance, and/or modernize the public housing in their communities. This funding can be used to make large-scale improvements such as new roofs and for the replacement of plumbing and electrical systems to increase energy efficiency.

HUD Secretary Announces Nearly $1 Billion To Improve Public Housing

2009-05-18T15:16:00.002-04:00

Visit to Pennsylvania highlights grants that will help the elderly, boost energy efficiency and create jobs

WASHINGTON, D.C. – U.S. Department of Housing and Urban Development Secretary Donovan today announced that HUD is offering nearly $1 billion to make substantial improvements to thousands of public housing units nationwide. The Public Housing Capital Funds being offered are provided through The American Recovery and Reinvestment Act of 2009 (Recovery Act) and are designed to help public housing authorities improve the quality of their housing stock, promote energy efficiency and create jobs.

The announcement came during a visit to Marshall Lee Towers in Conshohocken, Pennsylvania, which is home to 91 elderly and disabled residents. Marshall Lee Towers is one of seven residential properties managed by the Montgomery County Housing Authority (MCHA), which has already received $1,141,093 in HUD Recovery Act Capital Fund dollars. Projects planned for Marshall Lee Towers with these funds include upgrades to facilities that will create a significant reduction in water and energy use. The Secretary highlighted MCHA as an example of how Recovery Act dollars are being used, not only to create jobs and jump start the nation’s economy, but also to reduce energy costs among public housing facilities. Montgomery County Housing Authority houses 1100 residents in 615 homes throughout the County.

“I am pleased to be at Marshall Lee Towers in Pennsylvania today to announce another substantial investment we are making to improve public housing in America, create jobs and grow local economies,” said Secretary Donovan. “The funding in the Recovery Act, signed by President Obama, will give local housing agencies the resources they need to provide quality housing, especially for the elderly and persons living with disabilities. These funds will also help to transform distressed public housing projects, improve energy efficiency and lower the operating costs for housing authorities.”

In March, HUD allocated nearly $3 billion in Recovery Act funding to more than 3,100 public housing authorities across the U.S. Distributed by formula, that funding is already being put to work to improve public housing and create safer, more livable environments for lower income residents. The additional $1 billion announced today will be awarded competitively.
More HERE

HUD SPEEDS NEARLY $3 BILLION TO NATION'S PUBLIC HOUSING AUTHORITIES TO IMPROVE HOUSING

2009-05-14T18:35:00.000-04:00

Recovery Act Funding to increase jobs, promote energy efficiency

WASHINGTON - Just over a month after President Obama signed the American Recovery and Reinvestment Act of 2009 into law, the U.S. Department of Housing and Urban announced today that, subject to HUD approval, public housing authorities can begin spending nearly $3 billion to make significant improvements to tens of thousands of public housing units nationwide. HUD is informing 3,122 local housing authorities in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands that spending can begin on a backlog of previously underfunded capital improvement projects.

"President Obama has given us the mandate to put this money to work quickly so it can make a real difference in the lives of Americans," said HUD Secretary Shaun Donovan. "HUD is working overtime to get this money to our housing authorities so they can repair and produce critically needed affordable housing, create jobs, and improve the quality of life for their residents."

Recovery Act funding provided through HUD's Public Housing Capital Fund Program is effectively more than doubling the Department's annual support of local housing authorities to improve their public housing stock. Allocated through an established formula, this funding will allow local housing agencies to address the long-standing capital needs of public housing, create jobs, and increase energy efficiency. HUD will shortly make an additional $1 billion available in capital funding that will be awarded to housing authorities through a competition.

HUD's Capital Fund Program provides annual funding to public housing authorities to develop, finance, and/or modernize the public housing in their communities. This funding can be used to make large-scale improvements such as new roofs and for the replacement of plumbing and electrical systems to increase energy efficiency.

For detailed information about the funding and specific funding amounts to individual public housing agencies visit the website.

###

HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

SECRETARIES CHU AND DONOVAN SIGN AGREEMENT TO HELP WORKING FAMILIES WEATHERIZE THEIR HOMES

2009-05-14T18:13:00.002-04:00

Unprecedented interagency collaboration will help save energy cost, lower carbon footprint

WASHINGTON - U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan and U.S. Department of Energy (DOE) Secretary Steven Chu today announced an important step forward in the partnership between HUD and DOE to streamline and better coordinate federal weatherization programs. These efforts will make it easier for low-income families to weatherize their homes, saving money for working families and creating tens of thousands of new green jobs.

Today, the Secretaries signed a Memorandum of Understanding (MOU) to coordinate energy retrofit programs in the American Recovery and Reinvestment Act of 2009. The signing of the MOU today represents the next step in a longer-term partnership between these agencies, as they continue to make it easier and more cost-effective for families to weatherize their homes. View the MOU.

This unprecedented interagency collaboration will help minimize administrative barriers and simplify the process for residents of HUD public and assisted housing that are seeking to weatherize their homes under the DOE Weatherization Assistance Program, which is targeted to low-income households. By eliminating unnecessary red tape and helping more families weatherize their homes, Secretary Chu and Secretary Donovan are helping to fulfill President Obama's goal of making government work better for all Americans.

Vice President Joe Biden, joined by Secretary Donovan and Secretary Chu, praised the interagency proposal during his remarks at a Recovery Act Implementation Cabinet Meeting in Washington, D.C.

"This agreement is the perfect example of government coming together in service of the greater good," said Vice President Biden. "Thanks to this new partnership, we're going to tear down the unnecessary barriers in making the homes of low-income and elderly citizens more energy-efficient and shred the red tape that too often stands between government assistance and the people it is meant to serve. In the process, we'll not only bring down energy costs, but also create new green jobs that will be the foundation of our economic recovery."

"The Recovery Act made a critical investment in home energy efficiency," said Secretary Chu. "But, to help as many families as possible, we need to cut the federal red tape that tangles up too many Americans trying to do the right thing. By making it as easy as possible for families to weatherize their homes, we can create new jobs that can't be shipped overseas, save families money on their energy bills, and take another step toward energy independence."

"HUD is committed to making public housing more green, while keeping it as affordable as possible for working families, particularly in these challenging economic times," said Secretary Donovan. "This partnership will ensure that HUD and DOE together can play a significant role in the Administration's goal to weatherize one million homes, while at this same time serving a population in need. I am proud of the work our agencies have done and look forward to a continued partnership with Secretary Chu and DOE to make all housing affordable and energy efficient."

This agreement will also impact tens of thousands of residents in rural communities -- mostly seniors and low-income individuals -- who are part of U.S. Department of Agriculture's Multi+Family Housing Direct Loan Program.

"This agreement will make a big difference in the lives of many rural residents providing much-needed heating and cooling, saving money and enhancing energy efficiency," said U.S. Department of Agriculture Secretary Tom Vilsack added.

Currently, the income verification requirements under DOE's Weatherization Assistance Program duplicate the HUD system for verifying income before providing housing subsidies. Under this new agreement, the income verification process will be conducted only once, breaking down bureaucratic barriers to using weatherization funds in HUD-assisted housing. HUD is committing to rent stabilization and scope of work requirements consistent with weatherization requirements.

The Recovery Act provides $16 billion to the Department of Energy and the Department of Housing and Urban Development to improve the energy efficiency of existing homes. The partnership announced today between HUD and DOE will coordinate funding for the Weatherization Assistance Program, which received $5 billion under the Recovery Act. Other energy efficiency efforts include $4.5 billion in HUD funding to renovate and upgrade public and Native American housing, as well as $250 million to retrofit privately owned federally assisted housing. In addition to the weatherization funds, DOE received $3.2 billion for Energy Efficiency and Conservation Block Grants for cities, counties, states and Indian Tribes, $3.1 billion for the State Energy Program, and other programs.

The Recovery Act funds provide an historic opportunity for the two agencies to work together to accelerate deployment of energy efficient and green building technologies in millions of homes, while helping to create a highly-qualified, highly-trained, and high-performing workforce. Today's announcement is only one step in a continued partnership between the two agencies. HUD and DOE will continue to work together to provide guidance to public and assisted housing on energy efficiency programs, develop a common baseline for measuring energy efficiency, and develop new home energy financing products.

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HUD MAKES NEARLY $1 BILLION AVAILABLE IN RECOVERY ACT FUNDS TO IMPROVE PUBLIC HOUSING

2009-05-14T18:10:00.002-04:00

Grants will help the elderly and disabled, boost energy efficiency and create jobs

WASHINGTON - U.S. Department of Housing and Urban Development Secretary Donovan today announced that HUD is offering nearly $1 billion to make substantial improvements to thousands of public housing units nationwide. The Public Housing Capital Funds being offered today are provided through The American Recovery and Reinvestment Act of 2009 (Recovery Act) and are designed to help selected public housing authorities improve the quality of their housing stock, promote energy efficiency and create jobs.

In March, HUD allocated nearly $3 billion in Recovery Act funding to more than 3,100 public housing authorities across the U.S. Distributed by formula, that funding is already being put to work to improve public housing and create safer, more livable environments for lower income residents. This additional $1 billion will be awarded competitively.

"Today we are making another substantial investment to improve public housing in America and to create jobs and grow local economies," said HUD Secretary Shaun Donovan. "The funding in the Recovery Act signed by President Obama will give local housing agencies the resources they need to provide quality housing, especially for the elderly and persons living with disabilities. These funds will also help to transform distressed public housing projects, improve energy efficiency and lower the operating costs for housing authorities."

Public Housing Capital Funding will be awarded competitively through a Notice of Funding Availability (NOFA) that can be accessed on HUD's Recovery Act website. HUD will accept applications from public housing authorities from June 1 until July 21, 2009 for the Energy Efficiency funding category and from June 1 until August 18, 2009 for the other three funding categories. HUD will review and award grants to PHAs that effectively address the requirements in the NOFA for the following four funding categories:

Energy Efficiency: $600 million is available for PHAs to create more energy efficient public housing units. Applications are due for this category on July 21, 2009.

Financing Stalled Projects: $200 million is available to allow PHAs to develop or renovate public housing projects stalled due to lack of resources.

Public Housing Transformation: $100 million is available to transform obsolete public housing projects into newly built or renovated developments.

Housing for the Elderly/Persons with Disabilities: $95 million is available to improve public housing units and create community facilities for the delivery of medical and other services to this vulnerable population.

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SECRETARIES GEITHNER, DONOVAN ANNOUNCE NEW DETAILS OF MAKING HOME AFFORDABLE PROGRAM, HIGHLIGHT IMPLEMENTATION PROGRESS

2009-05-14T18:07:00.000-04:00

Source: HUD.gov

Just Over Two Months after Release of Program Guidelines, Homeowners Realizing Relief under Administration Plan Join Secretaries to Share Personal Stories

WASHINGTON - With the Making Home Affordable (MHA) program delivering much-needed relief to homeowners and to our economy just over two months after the release of program guidelines, Treasury Secretary Tim Geithner and Housing and Urban Development (HUD) Secretary Shaun Donovan today provided an update on the program's impact on stemming the housing crisis and keeping families in their homes and announced new options for homeowners facing foreclosure. The announcement and update came following a meeting with housing counselors from the National Community Reinvestment Coalition (NCRC) and with homeowners Nicholas Tekpertey of Reston, VA, and Warren Rohn of Lewiston, CA, who shared their success stories since participating in the Home Affordable Modification program.

"In just over two months, the Make Home Affordable program is up and running, helping our economy recover and making a difference in the lives and livelihoods of thousands of American homeowners. Historically low interest rates are allowing Americans to refinance and save money, and modifications are helping homeowners avoid foreclosure," said Secretary Geithner. "Today we are announcing a new program component to help homeowners obtain modifications in areas suffering from home price declines. If a modification is not possible, we are also announcing steps to encourage the quick private sale or voluntary transfer of property, which will save homeowners money and protect their financial future. These are critical steps in stemming the foreclosure crisis and stabilizing the housing market, both of which are critical to our economic recovery."

"I can't stress enough how important our HUD-approved counseling agencies are to the success of the Making Home Affordable program, and ultimately, to helping to keep American families in their homes," Secretary Donovan said. "That's why HUD has requested a $100 million investment in our Housing Counseling Assistance Program for fiscal year 2010, a $35 million increase from our 2009 budget. This investment will help further support the work of our 2,600 HUD-approved housing counselors across the nation, just like those at NCRC, who play a key role in ensuring that borrowers can take part in the modification and refinancing options made available through Making Home Affordable."

The Secretaries announced new details on the Making Home Affordable program:

Foreclosure Alternatives provide incentives for servicers and borrowers to pursue short sales and deeds-in-lieu (DIL) of foreclosure in cases where the borrower is generally eligible for a MHA modification but does not qualify or is unable to complete the process, which helps prevent costly foreclosures and minimizes the damage that foreclosures impose on borrowers, financial institutions and communities. The new details will simplify and streamline the process of pursuing short sales and deeds-in-lieu, which will facilitate the ability of more servicers and borrowers to utilize the program. The program provides a standard process flow, minimum performance timeframes and standard documentation, and it offers financial incentives to servicers and borrowers to pursue these alternatives to foreclosure.

Home Price Decline Protection Incentives will provide lenders additional incentives for modifications where home price declines have been most severe and lenders fear these declines may persist. To encourage the modification of more mortgages and enable more families to keep their homes, the Administration, building on insights pioneered by Chairman Bair and the FDIC, has developed an innovative payment that provides compensation based on recent home price declines. Together the incentive payments on all modified homes will help cover the incremental collateral loss on those modifications that do not succeed. HPDP payments will be linked to the rate of recent home price decline in a local housing market, as well as the average cost of a home in that market.

Since the launch of Making Home Affordable, more than one million Americans have now refinanced, due to historically low interest rates, and thousands of underwater borrowers have refinanced under the Home Affordable Refinance Program. Fannie Mae has had over 233,000 eligible refinance applications through its refinancing program, with more than 51,000 of these having loan-to-value ratios between 80% and 105%. More than 55,000 Home Affordable Modification offers have been extended to qualifying borrowers. Additionally, servicers have mailed more than 300,000 letters to homeowners who are potential candidates for the program. The refinance application volumes and modifications underway make clear the desire of homeowners to take advantage of the Administration's program.

Homeowners Nicholas Tekpertey and Warren Rohn have already seen the impact of the MHA modification program. In March, Tekpertey heard about the Home Affordable Modification from a friend, called his lender, faxed in his documents, and was qualified with relative ease. With this modification, he saves almost $600 per month and his payment is now affordable, with an annual total savings of $7,154. Warren Rohn received a Home Affordable Modification offer from his lender and was able to modify his loan with a 2% interest rate for five years.

"In February, I was facing foreclosure," Tekpertey said. "Making Home Affordable changed my situation, and gave me my home back. All homeowners who are worried about their mortgage payments should do what I did. Go to the website like I did. See if you qualify. This program is real, and this program works."

"This program saved my bacon," Rohn said. "Losing my trucking business was tough enough, but I'm not sure what I would have done if I lost my home. I want to say something to all the homeowners out there -- this program has made a real difference in my life. It's given me and my wife the security to know we're not going anywhere."

Making Home Affordable, a comprehensive plan to stabilize the U.S. housing market, was first announced by the Administration on February 18. The three part program includes aggressive measures to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac; a Home Affordable Refinance Program, which will provide new access to refinancing for up to 4 to 5 million homeowners; and a Home Affordable Modification Program, which will reduce monthly payments on existing first lien mortgages for up to 3 to 4 million at-risk homeowners. Two weeks later, the Administration published detailed guidelines for the Home Affordable Modification Program and authorized servicers to begin modifications under the plan immediately. Fourteen servicers, including the five largest, have now signed contracts and begun modifications under the program. Between loans covered by these servicers and loans owned or securitized by Fannie Mae or Freddie Mac, Home Affordable Modification participants now account for more than 75 percent of all loans in the country.

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HOPE VI Green Building and Energy Efficient Development Conference

2009-04-29T14:03:00.000-04:00

Learn more about the HUD - HOPE VI Green Building and Energy Efficient Development Conference

Ashville HOPE VI

2009-04-13T05:47:00.003-04:00

ASHEVILLE – Up to 320 of Asheville's poorest residents would be forced to move under a federal program to replace one of the city's most distressed public housing complexes with a mixed-income neighborhood.

Those who could be moved, as well as residents living near public housing, gave varied reactions to the HOPE VI program. The program would use private capital and about $15 million in federal money to overhaul one of two complexes: Lee-Walker Heights off Short Coxe Avenue or Aston Park Tower and Garden Apartments on South French Broad Avenue.

Getting the grant money is far from guaranteed. Asheville Housing Authority officials began the arduous and highly competitive application process last week. The federal government has not yet said when it will make a decision.

Some residents supported the program. Others, though, said it would tear apart tightly knit neighborhoods.

“I've been living in Lee-Walker Heights for six years, and I haven't had any problems,” said Celia McDow, 24, who lives in the complex just north of Mission Hospital with her son, 7, and daughter, 5. McDow works in the cafeteria at Ira B. Jones Elementary School and said she can get help from neighbors and walk to most places where she needs to go. That would change if she had to move.

“I really do love my community. Anything I need, my community is there for me,” she said.

Concentrated poverty

The concept behind HOPE VI is to disperse concentrated areas of poverty, which proponents of the program say foster crime and other social ills. Federal and private money is used to replace publicly owned housing with a mixed-income neighborhood of working- and middle-class as well as taxpayer-subsidized homes.

In past years, the grant has been difficult to get, but housing authority officials now think more money will be available. They hope to win a grant this year or next to overhaul one of the complexes.

Last year, four to five HOPE VI applicants were selected out of a field of about 30, said David Nash, the Housing Authority's chief operations officer. This year, funding was bumped up from approximately $100 million to $120 million, and there is hope that amount will rise to $600 million in years to come, he said.

The City Council has not taken an official vote on the issue, though some council members have expressed support for the program. That kind of backing will be vital in getting the grant. Housing authority officials plan to report back to the council in a month or two and will likely ask for financial help preparing the application.

One council member, Carl Mumpower, questioned whether the mixed-income model would work and said government shouldn't be spending money on such programs during a budget crisis.

Many Lee-Walker Heights residents also don't think the program would help them in the long run, resident McDow said. Officials may consider the complex dangerous, but residents feel it would be worse in other public housing, McDow said.

“They (residents) were really upset about the idea,” she said.

Housing authority officials said those who would be moved could choose to go to another public housing complex or into private housing that accepts public vouchers. They would get money to help them relocate, said Nash.

Every attempt would be made to allow relatives living in different households in one complex to stay together, he said.

Once the complex is rebuilt, people could apply to come back.

“Anybody who has a good rental history and meets the criteria, which is elderly, disabled or working, would be able to move back,” said Nash.

If all goes smoothly, construction could be finished in three years, he said. More HERE

Authors Of East Rome Redevelopment Plan Reveal Details

2009-04-13T05:12:00.001-04:00

As reported by The Rome News Wire, Representatives from two of the firms that prepared the East Rome Revitalization Plan told city officials that they believe the project is a feasible possibility.

On Wednesday, John Skach of Urban College Inc. and Chuck Billard of TCG International presented a draft of the redevelopment plan that focuses around Maple Street and 12th Street.

“We did this in preparation for an application for HOPE VI funds,” Skach said.

The consulting team for the revitalization plan consisted of members of Urban College Inc., TCG International, Marketek and Rhodes Engineering.

The Northwest Georgia Housing Authority initially sought out proposals for the project and hoped to receive a HOPE VI grant award from HUD for the revitalization costs.

HOPE VI addresses the eradication of severely distressed public housing.

If approved, the HOPE VI award would provide $15 million in grant money while generating $47 million in total construction, new jobs and building supplies and an estimated $195,000 per year increase in property tax revenues.

The grant money could only be used on public housing, however, and not on items like railroad crossings.

Part of the plan calls for the demolition of 100 public housing units along with construction of 300 units, of which 100 would be public housing.

The other 200 units are what the consulting team are basing the source for the projected increase in property tax revenues of $195,000 per year.

The East Rome study area totaled 593 acres that extend from the north at the intersection of East 2nd Avenue and the rail line south to Hwy. 411. Maple Street closely bisects the area and is the main roadway through the study area.

Skach said creation of the draft revitalization plan consisted of five phases. More HERE

Community revitalization: Hope for tomorrow

2009-04-13T05:05:00.004-04:00

As reported by Andrew Barksdale at The FayObserver, Anastasia Vann won’t miss her cramped, two-bedroom apartment in Campbell Terrace.



Staff photo by Octavio Jones
Anastasia Vann, a resident of Campbell Terrace Apartments, will be moving out her home in preparation for the Hope VI project. Watch an interview with Vann at fayobserver.com.

The vinyl floors are faded and gray, The concrete walls painted an egg-shell yellow. The windows look out over identical red-brick buildings.

The public housing complex, built on the edge of downtown in 1953, will be razed early next year. So will its older cousin, Delona Gardens, a block away.

For more than two generations, the housing projects have sheltered Fayetteville’s working poor and penniless. More than 90 percent of tenants today are unmarried women. About half have children living with them.

Beginning this month, they will start leaving as the city embarks on a $119
million project called Hope VI. The two housing complexes will be replaced by more than 550 apartments and 105 single-family homes throughout the Old Wilmington Road area, offering new hope for a blighted community dotted with empty lots and shuttered homes.

Vann, who is 43 and lives alone, has already begun packing, even though she hasn’t found a place to live. She would prefer to rent a house but will settle for a modern apartment. She wants to plant a garden and have more privacy.

“I want a new beginning,” she said.

About 213 families live in the two projects to be demolished. Everyone has two options: move to another Fayetteville Metropolitan Housing Authority complex or find a private apartment or rental house. The housing agency estimates that two-thirds of the tenants will leave public housing in favor of the open market. When they do, they will get federal Section 8 program vouchers to subsidize their rents.

The decision can be difficult for some families, who worry about finding another school for their children or dislike the idea of uprooting after so many years in one place.

“Some are scared, but most of us are excited,” said Vann, a member of the Housing Authority’s residential advisory board.

The residents won’t do it alone. The Hope VI program will pick up the moving tab and pay other relocation expenses, and officials will help them find apartments or rental houses.

The linchpin of the project is a $20 million federal Hope VI grant, which the Housing Authority won last year. As part of the revitalization project, a community center, a day care and a medical clinic are planned. So is a 72-unit apartment complex on Bunce Road on the other side of town.

Everything has to be built by 2013. The first wave of construction is scheduled to begin this summer or early fall.

Getting outside help

To keep the project on track and handle the mounds of paperwork, the housing agency sought an outside consultant last year. The board hired Boulevard Group Inc., an Atlanta firm with experience overseeing other Hope VI projects, to manage this one. More HERE

The $694,000 project - Part of the Alamito Hope VI project

2009-04-13T04:56:00.000-04:00

EL PASO --

As reported by Aileen B. Flores at the Elpaso Times, The El Paso City Council recently approved the street reconstruction and drainage improvements of St. Vrain Street in Segundo Barrio.

The $694,000 project is scheduled to begin in November with a projected seven-month construction period, said Julie Baldwin, spokeswoman for the El Paso Engineering Department.

Construction crews will replace the existing road with two lanes and a parkway on both sides, new sidewalks, handicap ramps and new street lights and signs, Baldwin said.

The water lines, storm and sanitary sewers under the street will also be replaced, she said.

Construction on St. Vrain will be from Delta Drive to Father Rahm Avenue.

The project is part of the Alamito Hope VI project and will be funded by the city and Housing Authority of El Paso. Construction will be under contract to Quest Contracting Inc. of El Paso, according to a city document. More HERE

RFP: Hope VI Grant Application, Revitalization Plan and Program Management Services

2009-03-18T10:46:00.001-04:00

RFP: Hope VI Grant Application, Revitalization Plan and Program Management Services:
The Houston Housing Authority hereby solicits proposals from qualified professional consulting firms to provide services for the Development of a Hope VI Grant Application, Revitalization Plan and provide Program Management Services for the revitalization of Kennedy Place and Kelly Village Housing Developments as specified in RFP No. 09-02.

Interested offerors may obtain the Request for Proposals package by contacting:ANNA SIMOTASPURCHASING OFFICERHOUSTON HOUSING AUTHORITY2640 FOUNTAINVIEW, SUITE 408HOUSTON, TEXAS 77057(713) 260-0554 FAX: (713) 260-0556

The Request for Proposals is available on the Internet at http://www.housingforhouston.com/.

The Pre-Proposal Conference is rescheduled for Thursday, February 12, 2009, at 3:00 p.m. (CST) in the Houston Housing Authority Boardroom, 4th Floor, 2640 Fountainview, Houston, TX 77057.

The proposals must reach the Houston Housing Authority no later than 4:00 P.M. (CST) on February 18, 2009. Proposals received after the deadline will be rejected unless the conditions allowed for late submittals exist for consideration as specified in the RFP.

A Fair Housing and Equal Employment Opportunity Agency. For assistance: Individuals with disabilities may contact the 504/ADA Administrator at 713-260-0528, TTY 713-260-0547 or 504_ADA@housingforhouston.com

The Housing Crisis - "Older Americans are getting whacked twice,"

2009-03-17T12:49:00.003-04:00

At 94, Sylvia Merlin is stuck.

MSN reports in it's article, Seniors crushed by housing crisis, the widow can't sell her home or fall back on her investments. She's lost $200,000 in the stock market since the beginning of 2008, she says. Like a growing number of seniors, she's been unable to move into the retirement community she had planned to because of the shattered housing market and her dwindling retirement portfolio.

And Merlin is running out of time: Her health is deteriorating, and her home is increasingly unlivable.
94 and nowhere to go

"Older Americans are getting whacked twice," says Thomas Shapiro, the director of the Institute on Assets and Social Policy at Brandeis University, and the co-author of a study titled "Living Longer on Less." "Home equity, which is their largest reservoir of wealth and their largest expense, has taken a tremendous hit. Portfolios have taken the same hit as everyone else, but seniors don't have the same length of time to dig themselves out."

Elderly Americans with fixed incomes are increasingly being compelled to make seemingly impossible decisions, Shapiro says, such as choosing between paying their housing bills or their medical costs.

More than 54% of all senior households "do not have sufficient financial resources to meet median projected expenses based on their current financial net worth, projected Social Security and pension incomes," according to the Brandeis study.

Some seniors are moving in with their children because they can't pay all the bills. Census reports show multigenerational families are on the rise in part, experts say, because of the housing and larger economic crisis. An estimated 3.6 million parents (not all of them elderly) live with their adult children, according to 2007 census data, up from 2.3 million in 2000, an increase of 57%. In those households, the number of parents 65 and older was up 62%.

Others are turning to reverse mortgages, loans available for seniors 62 and older that allow them to get cash based on the value of their home with no monthly mortgage payments. Such a loan is repaid out of proceeds from the eventual sale of the home or from the borrower's estate after his or her death. More HERE

Rebuilding Begins In New Orleans

2009-03-10T09:37:00.002-04:00

Work finally starts after delays at New Orleans’ ‘Big Four’

By Bendix Anderson

NEW ORLEANS—Since the floodwaters of Hurricane Katrina poured into the C.J. Peete public housing complex here, Jocquelyn Marshall and her son have traveled from an emergency shelter in Tunica, Miss., to an apartment in Houston, and then to an apartment in another New Orleans neighborhood.

It’s been a long voyage for Marshall, who still hopes to return to C.J. Peete.

The possibility for that return came a little closer to reality Jan. 6, when workers started to build the first phase of new apartments at C.J. Peete. As president of the residents’ association, Marshall spoke at the groundbreaking along with developers, city and federal officials, and former residents.

“It was a beautiful, sunny day— a day of excitement,” she says.

Hope and delay

After years of protest and delay, work has begun on the first new apartments at C.J. Peete and St. Bernard, two of New Orleans’ “Big Four” public housing sites slated for redevelopment after Hurricane Katrina. The redevelopment of the other two Big Four sites isn’t far behind. As of February, officials expected work to start at the Lafitte and B.W. Cooper projects in 2Q2009.
More than 3,000 mixed-income apartments in the four redevelopments are slated to open by 2011.

That’s well behind the projects’ original time frames outlined in 2006. Lawsuits, local approvals, and the chaos in the nation’s financial markets have delayed the projects.

However, developers and officials have made good use of the extra time by including residents in the process of designing the redeveloped communities and living up to the principles of successful public housing redevelopments undertaken over the last decade under the Department of Housing and Urban Development’s (HUD) HOPE VI program.
“This investment is going to last for decades. The additional time was important,” says Vince Bennett, executive vice president for McCormack Baron Salazar, the St. Louis-based developer redeveloping C.J. Peete.

A tight time frame

In June 2006, more than nine months after Hurricane Katrina tore through the city, HUD Secretary Alphonso Jackson announced his plan to demolish 4,500 units of public housing at four of the largest public housing sites in the city and rebuild the sites as mixed-income housing in just a few years.

The plan includes a mix of homeownership, public housing apartments, housing subsidized with low-income housing tax credits (LIHTCs), and apartments renting at market rates.

Wrapping around a new gym, Railton Place serves young adults aging out of foster care
and chronically homeless adults and veterans.

Increasing Need

The demand for affordable housing continues to grow across
the nation, with no signs of easing.
• In 2006, 39 million households were at least moderately cost
burdened (paying more than 30 percent of income on housing),
and nearly 18 million were severely cost burdened (paying
more than 50 percent). From 2001 to 2006, the number
of severely burdened households alone swelled by almost 4
million.

• The number of households with “worst-case housing” needs
in 2005 was 5.99 million, comprising 13.4 million individuals.
This is an increase of 817,000, or 16 percent, from 5.18 million
in 2003. Households with worst-case needs are defined as
unassisted renters with very low incomes who are either paying
more than half of their incomes for housing or living in
severely substandard housing. The group with the largest
increase in worst-case needs from 2003 to 2005 was families
with children—475,000 households.

• The proportion of American households that had worst-case
needs in 2005 was 5.5 percent, up from 4.9 percent in 2003.
• All regions of the country shared in worst-case needs, and all
regions experienced increases: 208,000 households in the
Northeast; 143,000 in the Midwest; 338,000 in the South;
and 129,000 in the West in 2005.

Sources: Department of Housing and Urban Development and Joint Center for
Housing Studies at Harvard University

Read More HERE

Learn More About HUD Recovery Act Programs

2009-03-09T09:19:00.002-04:00

Source: HUD.gov

The Recovery Act includes $13.61 billion for projects and programs administered by the Department of Housing and Urban Development, nearly 75 percent of which was allocated to state and local recipients on February 25, 2009 – only eight days after President Obama signed the Act into law. Recovery Act investments in HUD programs will be not just swift, but also effective: they will generate tens of thousands of jobs, modernize homes to make them energy efficient, and help the families and communities hardest hit by the economic crisis. The remaining 25 percent of funds will be awarded via competition in the coming months. Additional guidance on the implementation of all funds will be routinely provided on this website.

Promoting Energy Efficiency and Creating Green Jobs

These investments are powerful vehicles for economic recovery because they work quickly, are labor-intensive, create jobs where they are needed most, and lead to lasting neighborhood benefits. Many will also reduce greenhouse gas emissions and save Americans money by retrofitting housing to make it more energy efficient.

Public Housing Capital Fund: $4 billion invested in energy efficient modernization and renovation of our nation's critical public housing inventory.

Native American Housing Block Grants: $510 million invested in energy efficient modernization and renovation of housing maintained by Native American housing programs, and the development of sustainable communities.

Assisted Housing Energy Retrofit: $250 million invested in energy efficient modernization and renovation of housing of HUD-sponsored housing for low-income, elderly, and disabled persons.
Lead Hazard Reduction: $100 million invested in lead based paint hazard reduction and abatement activities.

Supporting Shovel-Ready Projects and Assisted Housing Improvements

These investments will support a broad range of housing and community development projects that are ready to go. Many of these projects have been held up for lack of private investment due to fallout from the broader economic crisis and credit crunch.

Tax Credit Assistance Program: $2.25 billion invested in a special allocation of HOME funds to accelerate the production and preservation of tens of thousands of units of affordable housing.

Community Development Block Grants: $1 billion for approximately 1,200 state and local governments to invest in their own community development priorities. Most local governments use this investment to rehabilitate affordable housing and improve key public facilities – stabilizing communities and creating jobs locally.

Project-Based Rental Assistance: $2 billion invested in full 12-month funding for Section 8 project-based housing contracts. This funding will enable owners to undertake much-needed project improvements to maintain the quality of this critical affordable housing.
Promoting Stable Communities and Helping Families Hardest Hit by the Economic Crisis
These investments will help communities and families that have experienced the brunt of the economic downturn. Resources will be used to stabilize and revive local neighborhoods and housing markets with heavy concentrations of foreclosed properties. Funds will also assist the vulnerable families and individuals who are on the brink of homelessness or have recently become homeless.

Neighborhood Stabilization Program: $2 billion invested in mitigating the impact of foreclosures through the purchase and rehabilitation of foreclosed, vacant properties in order to create more affordable housing and renew neighborhoods devastated by the economic crisis.
Homelessness Prevention: $1.5 billion invested in preventing homelessness and enabling the rapid re-housing of homeless families and individuals, helping them reenter the labor market more quickly and preventing the further destabilization of neighborhoods.

Overview of the Recovery Act

HUD Implementation of the Recovery Act

Learn More About HUD Recovery Act Programs

Community Development Block Grant

Project-Based Rental Assistance

Lead Hazard Reduction/Healthy Homes

Homelessness Prevention Fund

Tax Credit Assistance Program

Native American Housing Block Grant - Formula

Native Hawaiian Housing Block Grant

Public Housing Capital Fund - Formula

Funding Allocations by State

Transparency and Accountability Guidelines

Agency Plans and Reports

Weekly Report of March 3, 2009 [Excel]

HUD Sec - Personally disturbed" and even "angry" by the sluggish pace of rebuilding after Hurricane Katrina

2009-03-05T20:05:00.004-05:00

The Washington Times reports Housing and Urban Development Secretary Shaun Donovan on Thursday told residents he is "personally disturbed" and even "angry" by the sluggish pace of rebuilding after Hurricane Katrina, while Homeland Security Secretary Janet Napolitano promised the new administration would make the Gulf Coast region a priority.

The Cabinet secretaries, sent by President Obama to assess the rebuilding efforts, said the federal government has freed hundreds of millions of dollars for affordable housing, moving assistance and rebuilding fire and police stations destroyed during the 2005 storm.

"To be honest, we have been disturbed by what we have seen and what we have not seen in terms of progress," Mr. Donovan said at a press conference with Ms. Napolitano, who said she has been asking "why" the red tape has been so thick.

"This will not be the last time we are here," Ms. Napolitano said. "This will not be the last time I ask, 'Why?'"

They announced the funding news at the conclusion of their New Orleans listening tour, drawing cheers from local officials gathered at the site of a key redevelopment project.

The tour began Thursday as both Ms. Napolitano and Mr. Donovan spent a few hours at a university that remains only 50 percent usable, a home rebuilt by a nonprofit and a crop of freshly painted affordable homes built over the leveled remains of the upper Ninth Ward.

While Mr. Donovan acknowledged the innovation of the New Desire Redevelopment project, built at the site of a construction project leveled during Katrina, but said he was frustrated that "far too little progress" has been made on housing in New Orleans.

Mr. Donovan said the rebuilding work had been "too often about programs and rules" instead of about places and people.

"We have much much more work to do and we've got to get to it today," he said.

The secretaries announced that HUD had accepted Louisiana's $438 million long-term disaster recovery plan, built around the 2008 hurricanes Gustav and Ike — which will produce affordable rental housing, business assistance and coastal restoration.

Mr. Donovan announced a new five-year, $50 million program for permanent housing for more than 1,000 homeless families and people living with substance abuse issues or mental illness.

HUD also announced $23 million in rental assistance vouchers that would help an estimated 2,000 elderly and disabled disaster victims.

Ms. Napolitano said Benjamin Franklin High School could be reopened with FEMA providing the last $2.9 million of its needed funding.

"They've waited far too long, so let's get with it and let's get with it now," she said.

She said she has cleared public assistance FEMA funding to replace two police stations and one fire station and $12 million toward repairs for a water treatment plan. She also said she would extend the department's relocation assistance program — up to $4,000 in reimbursement for moving expenses — so anyone who incurred expenses from Katrina until May 1 this year could receive the money.

Earlier, the secretaries heard the "heart-wrenching" story of Lawrence Scurich, a veteran in his 80s who waited three years before he could return to a rebuilt version of the home he loved. He wiped away tears as he showed them his home, one of a series the St. Bernard Project nonprofit has helped to rebuild.

"What we have seen today makes us disturbed, angry even, to see some of the families living the way that they have and we pledge to you our partnership to a new beginning here in New Orleans and across the Gulf," Mr. Donovan said.

He announced a program to help people who missed a key housing deadline because of poor communication, urging the city's residents to call 866/785-3239 to see whether they qualify for assistance.

Also attending the press conference was newly designated FEMA Administrator Craig Fugate, the leader of Florida's emergency team, whom Mr. Obama nominated on Wednesday to lead the agency.

Mr. Donovan was to head to Texas while Ms. Napolitano was scheduled to tour the coast in Mississippi. More HERE

Will President Obama's Plan Help You?

2009-03-05T14:53:00.003-05:00

Meltdown 101: Will Obama's housing plan help me?
By J.W. Elphinstone

President Barack Obama's new mortgage relief plan, launched Wednesday, aims to help up to 9 million borrowers qualify for more affordable mortgages and stay in their homes.
Are you one of them?

Obama's "Making Home Affordable" program is designed to work with lenders to modify the loan terms for up to 4 million homeowners and to refinance up to 5 million homeowners into more affordable fixed-rate loans.

Here are some questions and answers about the latest round of aid for homeowners.
A: How do I know if I qualify for the refinancing plan?
Q: Only homeowners in good standing whose loans are held by Fannie Mae or Freddie Mac qualify.

The property must be owner-occupied and the borrower must have enough income to make payments on the new mortgage debt.

Borrowers can't owe more than 105 percent of their home's current value on their first mortgage. For example, if your home is worth $200,000, your first mortgage can't exceed $210,000. Borrowers with a second mortgage still can qualify as long as their first mortgage isn't more than 105 percent of their home's value.

Homeowners can't take cash out during the refinancing to pay other debt.
Borrowers have until June 2010 to apply for the program.

Q: How do I know if my mortgage is owned by Fannie Mae or Freddie Mac?
A: Call your current lender or mortgage servicer.

You can find the phone number on your monthly mortgage statement or coupon book.

You can also contact Fannie Mae at 1-800-7FANNIE and Freddie Mac at 1-800-FREDDIE from 8 a.m. to 8 p.m. EST. Or, go to http://www.fanniemae.com/homeaffordable and http://www.freddiemac.com/avoidforeclosure and fill out the online request forms.
Q: What borrowers qualify for the modification program?

A: You don't have to be behind on your mortgage payments to qualify. Delinquent borrowers and current borrowers who are at risk of imminent default are both eligible.

The program applies to mortgages made on Jan. 1 or earlier. The mortgage payment including taxes, insurance and homeowners association dues must exceed 31 percent of the borrowers' gross monthly income.

The property must be the homeowner's primary residence. It can't be investor-owned, vacant or condemned. Home loans for single-family properties that are worth more than $759,750 don't qualify.

The program is voluntary, relying on a $75 billion subsidy to encourage mortgage companies to participate. Lenders must agree to reduce the loan payments to 38 percent of a borrower's monthly income. After that, the government and lender split the cost of bringing the payment down to 31 percent.

Eligible borrowers will have to provide their most recent tax return and two pay stubs, as well as an "affidavit of financial hardship" to qualify for the loan modification program. In the affidavit, applicants will have to cite the reasons behind their financial woes, such as job loss or a drop in income. The government will then take steps to verify the information.

Borrowers are only allowed to have their loans modified once. The program runs through Dec. 31, 2012.
Q: What if I'm in bankruptcy or in active litigation over my mortgage?

A: That doesn't necessarily keep you from qualifying for the modification program. And borrowers in active litigation can modify their home loans without waiving their legal rights.

Q: What do I do to get help?

A: For the modification program, call your lender or mortgage servicer to see if you're eligible. For the refinance program, first find out if your mortgage is held by Fannie Mae or Freddie Mac. Then contact your lender, mortgage servicer or a mortgage broker for refinancing options.

Q: How soon can I get help?

A: Both the modification and refinancing programs start immediately.

Q: What if I don't qualify for either program — is there any other way to get help with a mortgage?

A: Contact your lender or mortgage servicer regarding other modification programs or refinance options. Alternatively, contact a local housing counselor to negotiate with your lender or servicer, to help locate other local resources like rescue grants or loans, or to facilitate a short sale or deed-in-lieu of foreclosure if staying in the home isn't possible.
A short sale is where homeowners sell houses for less than the amount owed on them, and the lender then considers the debt paid off. A deed-in-lieu of foreclosure is where the borrower gives the property to the lender to satisfy a delinquent loan and to avoid foreclosure proceedings.
Local housing counselors can be found at the U.S. Department of Housing and Urban Development's Web site at http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.

Q: Do FHA, VA or USDA home loans qualify for modifications under Obama's plan?

A: Mortgages backed by the Federal Housing Administration, Veterans Administration or the U.S. Department of Agriculture are being modified under other programs. The Obama Administration and Congress are working on legislation that would allow modifications of these home loans consistent with the Making Home Affordable program.

On the Net:
http://www.financialstability.gov

Source: The Associated Press. All rights reserved.

Obama's Loan Modification Plan

2009-03-05T11:40:00.003-05:00

Obama's Loan Modification Plan: 7 Things You Need to Know
The White House releases fresh details on its plan to save the housing market
Source: Luke Mullins U.S. News

As reported by U.S. News, At the heart of the President Barack Obama's ambitious plan to rescue the housing market is the conviction that restructuring distressed mortgages will keep struggling borrowers in their homes and help insert a floor beneath plummeting property values. With $75 billion dedicated to reworking troubled loans, that's a big bet—especially considering that a top banking regulator said last December that almost 53 percent of loans modified in the first quarter of 2008 went bad again within six months. But supporters argue that mortgage modifications need to be properly engineered to work—and many early ones weren't. To that end, the Obama administration on Wednesday unveiled fresh details on its plan to restructure at-risk loans and help as many as four million home owners avoid foreclosure. Here are seven things you need to know about Obama's loan modification program.
1. Payments, not prices: The plan centers on the belief that struggling borrowers will stay in their homes—even as values decline sharply—as long as they can make their monthly payments. Although not everyone agrees with this, billionaire investor Warren Buffett endorsed the philosophy in his most recent letter to shareholders. "Commentary about the current housing crisis often ignores the crucial fact that most foreclosures do not occur because a house is worth less than its mortgage (so-called “upside-down” loans)," Buffett wrote. "Rather, foreclosures take place because borrowers can’t pay the monthly payment that they agreed to pay."
2. Thirty-one percent: To that end, the administration's plan requires participating loan servicers to reduce monthly payments to no more than 38 percent of the borrower's gross monthly income. The government would then chip in to bring payments down further, to no more than 31 percent of the borrower's monthly income. In lowering the payment, the servicer would first reduce the interest rate to as low as 2 percent. If that's not enough to hit the 31 percent threshold, they would then extend the terms of the loan to up to 40 years. If that's still not enough, the servicer would forebear loan principal at no interest. The plan does not, however, require servicers to reduce mortgage principal, which Richard Green, the director of the Lusk Center for Real Estate at USC, considers a shortcoming. "For underwater loans, if you don't write down the balance to be less than the value of the house, people still have an incentive to default," Green says. "Writing down the principal first instead of last—which is what [the Obama administration is] proposing—makes sense to me."
3. Cash incentives: To encourage participation, servicers will be paid $1,000 for each modification and will get an additional $1,000 payout each year for as many as three years, as long as the borrower continues making payments. Borrowers, meanwhile, can get up to $1,000 knocked off the principal of their loan each year for as many as five years if they make their payments on time. Neither party can receive the cash incentives until the modified loan payments have been made for at least three months.
4. Financial hardship: The Obama administration is pitching its plan as an effort to help responsible homeowners ensnared in the historic housing slump and painful recession—not speculators. As such, only owner-occupied, primary residences with outstanding principal balances of up to $729,750 are eligible. Occupancy status will be verified through documents, such as the borrower's credit report. In addition, the program is designed to target homeowners who are undergoing "serious hardships"—such as a loss of income—which have put them at risk of default. To participate, borrowers will have to sign an affidavit of financial hardship and verify their income with documents. "If we would have had such stringent verification over the last four or five years, we probably wouldn't be in as bad a position as we are in," says Richard Moody, the chief economist at Mission Residential. But while Moody has no objection to such verification, obtaining documents from so many homeowners could be an onerous effort. "It's going to be a very time-consuming process," he says. Only loans originated on or before Jan. 1, 2009, are eligible, and modified payments will remain in place for five years. Now that the administration's plan is out, lenders are free to begin modifying loans.
5. Net present value: To determine if a particular mortgage will be modified, the servicer will perform a so-called net present value test. The test compares the expected cash flow that the loan would generate if it is modified with the expected cash flow it would generate if it isn't. If the modified loan is expected to produce more cash flow for the mortgage holder, the servicer is to restructure the loan. Howard Glaser, a mortgage industry consultant and a U.S. Department of Housing and Urban Development official during the Clinton administration, called this component of the plan "clever," arguing that it would work to ensure broad participation. "When you apply the formula, the loans that are modified are the ones that are in the best economic interest of the investors to modify," Glaser says. "The federal subsidy for the payment on the modification…tips the scale toward modification as a better deal for the investor." More HERE

Barack Obama Keeping Promises

2009-03-01T09:54:00.002-05:00

In the Weekly Address this morning, President Obama explains how the budget he sent to Congress will fulfill the promises he made as a candidate. On fiscal responsibility, a fair tax code, a clean energy economy, real health care reform, and education, this budget sets out a new vision for our country.

But having put his priorities on paper and having stood behind them, the President recognizes that there are those who will fight against change every step of the way.

"I realize that passing this budget won’t be easy. Because it represents real and dramatic change, it also represents a threat to the status quo in Washington. I know that the insurance industry won’t like the idea that they’ll have to bid competitively to continue offering Medicare coverage, but that’s how we’ll help preserve and protect Medicare and lower health care costs for American families. I know that banks and big student lenders won’t like the idea that we’re ending their huge taxpayer subsidies, but that’s how we’ll save taxpayers nearly $50 billion and make college more affordable. I know that oil and gas companies won’t like us ending nearly $30 billion in tax breaks, but that’s how we’ll help fund a renewable energy economy that will create new jobs and new industries. I know these steps won’t sit well with the special interests and lobbyists who are invested in the old way of doing business, and I know they’re gearing up for a fight as we speak. My message to them is this:

"So am I."

Watch the full address and read the transcript below.

Remarks of President Barack Obama
Weekly Address
Saturday, February 28th, 2009
Washington, DC

Two years ago, we set out on a journey to change the way that Washington works.

We sought a government that served not the interests of powerful lobbyists or the wealthiest few, but the middle-class Americans I met every day in every community along the campaign trail – responsible men and women who are working harder than ever, worrying about their jobs, and struggling to raise their families. In so many town halls and backyards, they spoke of their hopes for a government that finally confronts the challenges that their families face every day; a government that treats their tax dollars as responsibly as they treat their own hard-earned paychecks.

That is the change I promised as a candidate for president. It is the change the American people voted for in November. And it is the change represented by the budget I sent to Congress this week.

During the campaign, I promised a fair and balanced tax code that would cut taxes for 95% of working Americans, roll back the tax breaks for those making over $250,000 a year, and end the tax breaks for corporations that ship our jobs overseas. This budget does that.

I promised an economy run on clean, renewable energy that will create new American jobs, new American industries, and free us from the dangerous grip of foreign oil. This budget puts us on that path, through a market-based cap on carbon pollution that will make renewable energy the profitable kind of energy; through investments in wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient American cars and American trucks.

I promised to bring down the crushing cost of health care – a cost that bankrupts one American every thirty seconds, forces small businesses to close their doors, and saddles our government with more debt. This budget keeps that promise, with a historic commitment to reform that will lead to lower costs and quality, affordable health care for every American.

I promised an education system that will prepare every American to compete, so Americans can win in a global economy. This budget will help us meet that goal, with new incentives for teacher performance and pathways for advancement; new tax credits that will make college more affordable for all who want to go; and new support to ensure that those who do go finish their degree.

This budget also reflects the stark reality of what we’ve inherited – a trillion dollar deficit, a financial crisis, and a costly recession. Given this reality, we’ll have to be more vigilant than ever in eliminating the programs we don’t need in order to make room for the investments we do need. I promised to do this by going through the federal budget page by page, and line by line. That is a process we have already begun, and I am pleased to say that we’ve already identified two trillion dollars worth of deficit-reductions over the next decade. We’ve also restored a sense of honesty and transparency to our budget, which is why this one accounts for spending that was hidden or left out under the old rules.

I realize that passing this budget won’t be easy. Because it represents real and dramatic change, it also represents a threat to the status quo in Washington. I know that the insurance industry won’t like the idea that they’ll have to bid competitively to continue offering Medicare coverage, but that’s how we’ll help preserve and protect Medicare and lower health care costs for American families. I know that banks and big student lenders won’t like the idea that we’re ending their huge taxpayer subsidies, but that’s how we’ll save taxpayers nearly $50 billion and make college more affordable. I know that oil and gas companies won’t like us ending nearly $30 billion in tax breaks, but that’s how we’ll help fund a renewable energy economy that will create new jobs and new industries. In other words, I know these steps won’t sit well with the special interests and lobbyists who are invested in the old way of doing business, and I know they’re gearing up for a fight as we speak. My message to them is this:

So am I.

The system we have now might work for the powerful and well-connected interests that have run Washington for far too long, but I don’t. I work for the American people. I didn’t come here to do the same thing we’ve been doing or to take small steps forward, I came to provide the sweeping change that this country demanded when it went to the polls in November. That is the change this budget starts to make, and that is the change I’ll be fighting for in the weeks ahead – change that will grow our economy, expand our middle-class, and keep the American Dream alive for all those men and women who have believed in this journey from the day it began.

Thanks for listening.

The HUD Plan to help homeowners

2009-03-01T09:36:00.003-05:00

Source: The White House Blog

Help for homeowners

The President’s strategy for economic recovery is a stool with several legs, as he’s said, and one of them is solving the foreclosure crisis.

"We must stem the spread of foreclosures and falling home values for all Americans, and do everything we can to help responsible homeowners stay in their homes," he said yesterday as he signed the American Recovery and Reinvestment Act into law.

Though communities across the country have been affected by the crisis, Arizona has been hit particularly hard -- in 2008, only two states had more foreclosures.

And President Obama is there today, in Phoenix, to unveil his "Homeowner Affordability and Stability Plan," which will help bring relief to homeowners and bring some order to the housing market.

The President will talk more about his plan a little later today. In the meantime, we’re sure you have a lot of questions, like, Am I eligible for assistance? Might I be able to modify my loan? When do I apply? We've put together an example sheet that will show you what options might be available to you, depending on the circumstances of your mortgage, as well as answers to some common questions (below).

Questions and Answers for Borrowers about the
Homeowner Affordability and Stability Plan

Borrowers Who Are Current on Their Mortgage Are Asking:

What help is available for borrowers who stay current on their mortgage payments but have seen their homes decrease in value?

Under the Homeowner Affordability and Stability Plan, eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Through the program, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they hold in their portfolios or that they placed in mortgage backed securities.

I owe more than my property is worth, do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

Eligible loans will now include those where the new first mortgage (including any refinancing costs) will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less you may qualify. The current value of your property will be determined after you apply to refinance.

How do I know if I am eligible?

Complete eligibility details will be announced on March 4th when the program starts. The criteria for eligibility will include having sufficient income to make the new payment and an acceptable mortgage payment history. The program is limited to loans held or securitized by Fannie Mae or Freddie Mac.

I have both a first and a second mortgage. Do I still qualify to refinance under the Homeowner Affordability and Stability Plan?

As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible to refinance under the Homeowner Affordability and Stability Plan. Your eligibility will depend, in part, on agreement by the lender that has your second mortgage to remain in a second position, and on your ability to meet the new payment terms on the first mortgage.

Will refinancing lower my payments?

The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate. These borrowers, however, could save a great deal over the life of the loan. When you submit a loan application, your lender will give you a "Good Faith Estimate" that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

What are the interest rate and other terms of this refinance offer?

The objective of the Homeowner Affordability and Stability Plan is to provide borrowers with a safe loan program with a fixed, affordable payment. All loans refinanced under the plan will have a 30 or 15 year term with a fixed interest rate. The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by the lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans will have no prepayment penalties or balloon notes.

Will refinancing reduce the amount that I owe on my loan?

No. The objective of the Homeowner Affordability and Stability Plan is to help borrowers refinance into safer, more affordable fixed rate loans. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.

How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac?

To determine if your loan is owned or has been securitized by Fannie Mae or Freddie Mac and is eligible to be refinanced, you should contact your mortgage lender after March 4, 2009.

When can I apply?

Mortgage lenders will begin accepting applications after the details of the program are announced on March 4, 2009.

What should I do in the meantime?

You should gather the information that you will need to provide to your lender after March 4, when the refinance program becomes available. This includes:

information about the gross monthly income of all borrowers, including your most recent pay stubs if you receive them or documentation of income you receive from other sources
your most recent income tax return
information about any second mortgage on the house
payments on each of your credit cards if you are carrying balances from month to month, and
payments on other loans such as student loans and car loans.

Borrowers Who Are at Risk of Foreclosure Are Asking:

What help is available for borrowers who are at risk of foreclosure either because they are behind on their mortgage or are struggling to make the payments?

The Homeowner Affordability and Stability Plan offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.

Do I need to be behind on my mortgage payments to be eligible for a modification?

No. Borrowers who are struggling to stay current on their mortgage payments may be eligible if their income is not sufficient to continue to make their mortgage payments and they are at risk of imminent default. This may be due to several factors, such as a loss of income, a significant increase in expenses, or an interest rate that will reset to an unaffordable level.

How do I know if I qualify for a payment reduction under the Homeowner Affordability and Stability Plan?

In general, you may qualify for a mortgage modification if (a) you occupy your house as your primary residence; (b) your monthly mortgage payment is greater than 31% of your monthly gross income; and (c) your loan is not large enough to exceed current Fannie Mae and Freddie Mac loan limits. Final eligibility will be determined by your mortgage lender based on your financial situation and detailed guidelines that will be available on March 4, 2009.

I do not live in the house that secures the mortgage I’d like to modify. Is this mortgage eligible for the Homeowner Affordability and Stability Plan?

No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible. If you used to live in the home but you moved out, the mortgage is not eligible. Only the mortgage on your primary residence is eligible. The mortgage lender will check to see if the dwelling is your primary residence.

I have a mortgage on a duplex. I live in one unit and rent the other. Will I still be eligible?

Yes. Mortgages on 2, 3 and 4 unit properties are eligible as long as you live in one unit as your primary residence.

I have two mortgages. Will the Homeowner Affordability and Stability Plan reduce the payments on both?

Only the first mortgage is eligible for a modification.

I owe more than my house is worth. Will the Homeowner Affordability and Stability Plan reduce what I owe?

The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender’s discretion modifications may include upfront reductions of loan principal.

I heard the government was providing a financial incentive to borrowers. Is that true?

Yes. To encourage borrowers who work hard to retain homeownership, the Homeowner Affordability and Stability Plan provides incentive payments as a borrower makes timely payments on the modified loan. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.

How much will a modification cost me?

There is no cost to borrowers for a modification under the Homeowner Affordability and Stability Plan. If you wish to get assistance from a HUD-approved housing counseling agency or are referred to a counselor as a condition of the modification, you will not be charged a fee. Borrowers should beware of any organization that attempts to charge a fee for housing counseling or modification of a delinquent loan, especially if they require a fee in advance.

Is my lender required to modify my loan?

No. Mortgage lenders participate in the program on a voluntary basis and loans are evaluated for modification on a case-by-case basis. But the government is offering substantial incentives and it is expected that most major lenders will participate.

I'm already working with my lender / housing counselor on a loan workout. Can I still be considered for the Homeowner Affordability and Stability Plan?

Ask your lender or counselor to be considered under the Homeowner Affordability and Stability Plan.

How do I apply for a modification under the Homeowner Affordability andStability Plan?

You may not need to do anything at this time. Most mortgage lenders will evaluate loans in their portfolio to identify borrowers who may meet the eligibility criteria. After March 4 they will send letters to potentially eligible homeowners, a process that may take several weeks. If you think you qualify for a modification and do not receive a letter within several weeks, contact your mortgage servicer or a HUD-approved housing counselor. Please be aware that servicers and counseling agencies are expected to receive an extraordinary number of calls about this program.

What should I do in the meantime?

You should gather the information that you will need to provide to your lender on or after March 4, when the modification program becomes available. This includes

information about the monthly gross income of your household including recent pay stubs if you receive them or documentation of income you receive from other sources
your most recent income tax return
information about any second mortgage on the house
payments on each of your credit cards if you are carrying balances from month to month, and
payments on other loans such as student loans and car loans.

My loan is scheduled for foreclosure soon. What should I do?

Contact your mortgage servicer or credit counselor. Many mortgage lenders have expressed their intention to postpone foreclosure sales on all mortgages that may qualify for the modification in order to allow sufficient time to evaluate the borrower's eligibility. We support this effort. More HERE

Senate Banking Cmte. Hearing on Homeowner Affordability and Stability

2009-03-01T09:21:00.005-05:00

Housing and Urban Development Secretary Shaun Donovan testifies during a Senate Banking, Housing and Urban Affairs Committee hearing on Capitol Hill February 26, 2009 in Washington, DC. The committee is hearing testimony on HUD's homeowner affordability and stability plan. (Photo by Mark Wilson/Getty Images) Watch the testimony on Cspan: Senate Banking Cmte. Hearing on Homeowner Affordability & Stability with HUD Sec. Donovan

Mortgage Plan: 02-19-09 Homeowner Affordability and Stability Plan Summary

Executive Summary

Read the Homeowner Affordability and Stability Plan Fact Sheet HERE
Read Support Under the Homeowner Affordability and Stability Plan: Three Cases HERE

The deep contraction in the economy and in the housing market has created devastating consequences for homeowners and communities throughout the country.

Millions of responsible families who make their monthly payments and fulfill their obligations have seen their property values fall, and are now unable to refinance at lower mortgage rates.
Millions of workers have lost their jobs or had their hours cut back, are now struggling to stay current on their mortgage payments – with nearly 6 million households facing possible foreclosure.
Neighborhoods are struggling, as each foreclosed home reduces nearby property values by as much as 9 percent.

Refinancing for Up to 4 to 5 Million Responsible Homeowners to Make Their Mortgages More Affordable

A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners

Supporting Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac

The Homeowner Affordability and Stability Plan is part of the President’s broad, comprehensive strategy to get the economy back on track. The plan will help up to 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure. In doing so, the plan not only helps responsible homeowners on the verge of defaulting, but prevents neighborhoods and communities from being pulled over the edge too, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs. The key components of the Homeowner Affordability and Stability Plan are:

1. Affordability: Provide Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Falling Home Prices

· Enabling Up to 4 to 5 Million Responsible Homeowners to Refinance: Mortgage rates are currently at historically low levels, providing homeowners with the opportunity to reduce their monthly payments by refinancing. But under current rules, most families who owe more than 80 percent of the value of their homes have a difficult time refinancing. Yet millions of responsible homeowners who put money down and made their mortgage payments on time have – through no fault of their own – seen the value of their homes drop low enough to make them unable to access these lower rates. As a result, the Obama Administration is announcing a new program that will help as many as 4 to 5 million responsible homeowners who took out conforming loans owned or guaranteed by Fannie Mae or Freddie Mac to refinance through those two institutions.

· Reducing Monthly Payments: For many families, a low-cost refinancing could reduce mortgage payments by thousands of dollars per year:

o Consider a family that took out a 30-year fixed rate mortgage of $207,000 with an interest rate of 6.50% on a house worth $260,000 at the time. Today, that family has about $200,000 remaining on their mortgage, but the value of that home has fallen 15 percent to $221,000 – making them ineligible for today’s low interest rates that now generally require the borrower to have 20 percent home equity. Under this refinancing plan, that family could refinance to a rate near 5.16% – reducing their annual payments by over $2,300.

2. Stability: Create A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners

Helping Hard-Pressed Homeowners Stay in their Homes: This initiative is intended to reach millions of responsible homeowners who are struggling to afford their mortgage payments because of the current recession, yet cannot sell their homes because prices have fallen so significantly. Millions of hard-working families have seen their mortgage payments rise to 40 or even 50 percent of their monthly income – particularly those who received subprime and exotic loans with exploding terms and hidden fees. The Homeowner Stability Initiative helps those who commit to make reasonable monthly mortgage payments to stay in their homes – providing families with security and neighborhoods with stability.
No Aid for Speculators: This initiative will go solely to helping homeowners who commit to make payments to stay in their home – it will not aid speculators or house flippers.
Protecting Neighborhoods: This plan will also help to stabilize home prices for all homeowners in a neighborhood. When a home goes into foreclosure, the entire neighborhood is hurt. The average homeowner could see his or her home value stabilized against declines in price by as much as $6,000 relative to what it would otherwise be absent the Homeowner Stability Initiative.
Providing Support for Responsible Homeowners: Because loan modifications are more likely to succeed if they are made before a borrower misses a payment, the plan will include households at risk of imminent default despite being current on their mortgage payments.
Providing Loan Modifications to Bring Monthly Payments to Sustainable Levels: The Homeowner Stability Initiative has a simple goal: reduce the amount homeowners owe per month to sustainable levels. Using money allocated under the Financial Stability Plan and the full strength of Fannie Mae and Freddie Mac, this program has several key components:
- - A Shared Effort to Reduce Monthly Payments: For a sample household with payments adding up to 43 percent of his monthly income, the lender would first be responsible for bringing down interest rates so that the borrower’s monthly mortgage payment is no more than 38 percent of his or her income. Next, the initiative would match further reductions in interest payments dollar-for-dollar with the lender to bring that ratio down to 31 percent. If that borrower had a $220,000 mortgage, that could mean a reduction in monthly payments by over $400. That lower interest rate must be kept in place for five years, after which it could gradually be stepped up to the conforming loan rate in place at the time of the modification. Lenders will also be able to bring down monthly payments by reducing the principal owed on the mortgage, with Treasury sharing in the costs.
  - “Pay for Success” Incentives to Servicers: Servicers will receive an up-front fee of $1,000 for each eligible modification meeting guidelines established under this initiative. They will also receive “pay for success” fees – awarded monthly as long as the borrower stays current on the loan – of up to $1,000 each year for three years.
  - Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.
  - Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.
  - Home Price Decline Reserve Payments: To encourage lenders to modify more mortgages and enable more families to keep their homes, the Administration — together with the FDIC — has developed an innovative partial guarantee initiative. The insurance fund – to be created by the Treasury Department at a size of up to $10 billion – will be designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. Holders of mortgages modified under the program would be provided with an additional insurance payment on each modified loan, linked to declines in the home price index.
Institute Clear and Consistent Guidelines for Loan Modifications: Treasury will develop uniform guidance for loan modifications across the mortgage industry, working closely with the bank agencies and building on the FDIC’s pioneering work. The Guidelines will be used for the Administration’s new foreclosure prevention plan. Moreover, all financial institutions receiving Financial Stability Plan financial assistance going forward will be required to implement loan modification plans consistent with Treasury Guidance. Fannie Mae and Freddie Mac will use these guidelines for loans that they own or guarantee, and the Administration will work with regulators and other federal and state agencies to implement these guidelines across the entire mortgage market. The agencies will seek to apply these guidelines when permissible and appropriate to all loans owned or guaranteed by the federal government, including those owned or guaranteed by Ginnie Mae, the Federal Housing Administration, Treasury, the Federal Reserve, the FDIC, Veterans’ Affairs and the Department of Agriculture.
Other Comprehensive Measures to Reduce Foreclosure and Strengthen Communities
Require Strong Oversight, Reporting and Quarterly Meetings with Treasury, the FDIC, the Federal Reserve and HUD to Monitor Performance
Allow Judicial Modifications of Home Mortgages During Bankruptcy for Borrowers Who Have Run Out of Options
Provide $1.5 Billion in Relocation and Other Forms of Assistance to Renters Displaced by Foreclosure and $2 Billion in Neighborhood Stabilization Funds
Improve the Flexibility of Hope for Homeowners and Other FHA Programs to Modify and Refinance At-Risk Borrowers

3. Supporting Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac:

Ensuring Strength and Security of the Mortgage Market: Today, using funds already authorized in 2008 by Congress for this purpose, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac to ensure the strength and security of the mortgage market and to help maintain mortgage affordability.
- Provide Forward-Looking Confidence: The increased funding will enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners, and provide forward-looking confidence in the mortgage market.
- Treasury is increasing its Preferred Stock Purchase Agreements to $200 billion each from their original level of $100 billion each.
Promoting Stability and Liquidity: In addition, the Treasury Department will continue to purchase Fannie Mae and Freddie Mac mortgage-backed securities to promote stability and liquidity in the marketplace.
Increasing The Size of Mortgage Portfolios: To ensure that Fannie Mae and Freddie Mac can continue to provide assistance in addressing problems in the housing market, Treasury will also be increasing the size of the GSEs’ retained mortgage portfolios allowed under the agreements – by $50 billion to $900 billion – along with corresponding increases in the allowable debt outstanding.
Support State Housing Finance Agencies: The Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving homebuyers.
No EESA or Financial Stability Plan Money: The $200 billion in funding commitments are being made under the Housing and Economic Recovery Act and do not use any money from the Financial Stability Plan or Emergency Economic Stabilization Act/TARP.

H/Tip Wayne Marr

New Standard Helps Developers Go Green

2009-02-25T10:25:00.002-05:00

Source: Globe St.com
by Sule Aygoren Carranza

WASHINGTON, DC-Multifamily developers who want to take their projects green now have a set of guidelines to refer to, with the recent approval of the National Green Building Standard by the American National Standards Institute. The ANSI endorsement, which lends credibility to the standard, was the last necessary hurdle in its development process.

The NGBS--also known as ICC 700-2008--is the first and only agreed-upon standard that covers residential properties, including apartments, condos and the residential portions of mixed-use developments, as well as land development and remodeling and renovation. Until now, multifamily firms interested in sustainable development have had to follow guidelines designed for high-rise commercial properties or single-family homes.

Expected to be published this spring, the standard was crafted according to ANSI’s strict guidelines by the National Association of Home Builders and the International Code Council, with input from a consensus committee comprised of builders, architects, product manufacturers, regulators and environmental experts. The NAHB Research Center directed the work of the committee and provides certification for green projects.

The certified body of the NGBS, the NAHB Research Center has a set fee for green multifamily projects that’s $200 per building and another $20 for each green unit in the building. Builders can team with accredited verifiers who can score the project.

But, green development is nothing new. NAHB’s Carlos Martin points out that the organization’s members had been looking at how to make projects environmentally friendly for some time, though much of the focus had been on energy efficiency. The increased concentration on the holistic approach to sustainability "is not revolutionary," says the assistant vice president. "It’s evolutionary."

In 2005, the NAHB had actually introduced the NAHB Model Green Home Building Guidelines, giving developers the first national platform to understand green techniques and incorporate them into the single-family homes they were building. Those guidelines were also meant to serve as a baseline so builders could develop local green building programs.

With the intention of "having an approved rating system that’s flexible, dynamic and practical," says Martin, the NAHB and ICC started their work with the consensus council two years ago, using those 2005 guidelines as a starting draft. The groups worked on the standard for over a year, holding four public hearings and analyzing more than 3,000 public comments, before presenting it to the Standards Institute.

"ANSI certification confirms that this standard is not an ‘industry-generated' document, but was developed through a rigorous process requiring public input, a diversity of participants, consensus and due process," says Eileen Lee, vice president of energy and environmental policy at the National Multi Housing Council.

And because the NAHB worked with the ICC to develop the standard, it is the only green rating system specifically written to be compatible with existing building codes. Not only will the NGBS give apartment developers set guidance on how to approach environmentally friendly projects, says Lee, "it is also important for the growing number of states and localities considering mandatory green building requirements. The NGBS offers a more appropriate alternative for residential properties than other non-standardized green rating systems like the US Green Building Council’s LEED criteria."

It was the option of having broader choices that spurred NAHB to become involved in this effort, explains Martin. The organization has been promoting not only "change in the way we build, but also how our building is interpreted and valued by appraisers, realtors, lenders and underwriters and even insurers. We believe that any builder who wants to go green should be able to, and having credible, practical and universally agreed-upon options is part of that process. Builders need to be able to choose options that will allow them to reach a given level of greenness that is appropriate for their practice and makes sense practically. Choice will move mountains, but in a metaphoric, environmentally friendly way."

There has indeed been a proliferation of green building initiatives nationwide, points out Paula Cino, director of energy & environmental policy for the NMHC. To date, there are 31 states, 112 cities and 12 federal agencies that have some sort of green building statutes. However, she points out, "It’s important to note that these numbers include many jurisdictions that are either incentivizing green building or only mandate green building in public projects or publicly funded buildings."

Only one state and 18 cities currently mandate sustainability in private construction, but that figure is expected to rise in coming years. That shows "we’re pretty early in the game when it comes to green building requirements in private construction, which means there are good opportunities for discussion and education at the state and local level, as mandates are proposed and considered," Cino relates.

That is where the NGBS comes into play. "We strongly believe that this standard is a better tool for green building in the multifamily sector than other green building programs currently available," she says. "Our goal is to have the NGBS specify, as a compliance option, every time legislation or an incentive program says that residential construction has to follow some kind of green building criteria."

In fact, a number of housing bills brought forward last year sought to tie federal requirements with green building. Among the federal proposals in 2008, there were new green building requirements for Hope VI projects and more energy efficiency requirements for building codes in several HUD programs. The 2009 stimulus package has a large allocation to green, and requires that states receiving grant money must update their building energy codes. And this year, comprehensive energy and climate change bills are expected to be brought to Congress.

Structured like LEED and Green Globes, some of the aspects of the NGBS are mandatory while others are point-based options that allow developers to pick and choose what features make the most sense for their projects. Builders must achieve a minimum number of points in each of the six categories of the standard, but its crafters made an effort to tie the mandatory requirements with building code requirements.

"This structure can cause some anxiety for some people, but it’s really not warranted," says Cino. "There are some point options that are more suited for single-family construction but not multifamily, and vice versa. The development committee ultimately decided that was fine, so long as there were enough points available collectively for each type of residential building to comply." Plus, the fact that the standard applies to both single-family and multifamily projects helps developers who build both types of projects in terms of time savings and efficiency. More HERE

Slums of Hope

2009-02-24T11:57:00.002-05:00

By Howard Husock
For displaced peasants, the world’s vast urban ghettos are a gateway to a better future.

Marie Hippenmeyer/AFP/Getty Images

In the favelas of São Paulo, the World Bank is making incremental improvements, like sewers and potable water.

Close to 120 years have passed since Jacob Riis published How the Other Half Lives: Studies Among the Tenements of New York. Using stereoscopic camera, magnesium flash powder, and riveting language, the Danish-born onetime crime reporter seared bleak, iconic images of New York’s low-income neighborhoods into the American consciousness. Though today Riis is almost universally celebrated—new biographies continue to appear—he helped set housing policy on a course that would prove tragically misguided. In particular, he inspired a range of government policies that viewed slums as bleak wastelands that transformed their residents into paupers and criminals and therefore had to be radically changed or eradicated.

The problems that Riis and the housing-reform movement sparked are still relevant today, since slums, unlike many ills that worried nineteenth-century social reformers, remain very much with us. Indeed, their scale in the developing world dwarfs that of Riis-era New York. The United Nations estimates that in 2001, 924 million people, or 31.6 percent of the world’s urban population, lived in slums; the number today surely exceeds 1 billion. As Planet of Slums author Mike Davis writes, residents of the new slums constitute the “fastest-growing and most unprecedented social class on earth.”

The harrowing descriptions of the conditions in Third World slums in a tide of recent books on the subject, including Davis’s, are in the Riis tradition. But the books’ overall assessments and reform prescriptions often are decidedly not. A relative consensus has formed about how best to address the new slums’ problems, and surprisingly, it appreciates what the UN calls the “positive” elements of slum life, shaped by a population characterized not as oppressed and helpless but as resourceful and creative. Journalist Robert Neuwirth, for instance, extols slums as places where “squatters mix more concrete than any developer. They lay more brick than any government. They have created a huge hidden economy. . . . [They] are the largest builders of housing in the world—and they are creating the cities of tomorrow.” In keeping with this encouraging trend, the UN even describes the Third World’s informal settlements as “slums of hope.”

What, exactly, are slums? Some, especially in the developed world, are once-affluent neighborhoods gone to ruin; others were once public housing. But most are gigantic, tightly packed concentrations of flimsy shacks and shanties that rural migrants have built on the outskirts of cities—what the UN calls “vast informal settlements that are quickly becoming the visual expression of urban poverty.”

Most of these settlements are in the developing world. Of the 924 million slum dwellers worldwide in 2001, 554 million lived in Asia, in such cities as Mumbai and Kolkata in India and Karachi in Pakistan. Another 187 million lived in Africa, in places like Cairo, Durban, Johannesburg, and Nairobi. And 128 million lived in Latin America and the Caribbean (famously, in the favelas of Rio de Janeiro and São Paulo). Only 54 million were in developed countries.

The UN blames the massive migrations from rural areas either on population growth that the countryside cannot sustain or on economic prescriptions said to emphasize commercial agriculture over small farming, thus driving the poor off the land. Whatever the cause, this “urbanization of poverty” has resulted in the large-scale erection of primitive forms of shelter, either on public land or on private land owned by absentee landlords. Water, sanitation, and other utilities are usually lacking, making the incredible overcrowding even harder to bear.

One doesn’t forget visits to such places. When, during the late apartheid era, I traveled through black townships outside the beautiful seaside city of Port Elizabeth, South Africa, I met families living in what reportedly were converted Boer War–era British-built huts with dirt floors. Water poured only from a communal tap, and there was no electricity. UN official Naison Mutizwa-Mangiza recalls his first trip to Nairobi’s Kibera, Africa’s largest slum and home to 700,000: “There is the poor physical quality of the environment, overcrowding, houses so close together, tin-roofed, walls often of mud, with just a very small window. But it is the smell from lack of sanitation that hits you in the face. You have to jump over numerous small trickling drains, filthy and filled with smelly water mixed with other types of waste, including feces. There are no toilets; people use plastic bags in the night for defecation and then throw these out in surrounding dumps and streams.”

Riis’s Manhattan, even at its roughest, was never that squalid. True, some 20,000 shacks once squatted on the site of what became Central Park. And certainly the Lower East Side was terribly crowded. But even the worst Orchard Street tenements were actual buildings, not tin-roofed shanties with dirt floors.

For Riis, the slum’s biggest problem wasn’t population density, lack of sunlight, or even disease. It was what it did to the character of its residents. Slums were “nurseries of pauperism and crime that fill our jails and police courts; that throw off a scum of forty thousand human wrecks to the island asylums and workhouses year by year; that turned out in the last eight years a round half a million beggars to prey upon our charities . . . because, above all, they touch the family life with deadly moral contagion.” The “contagion,” Riis warned, included a lack of “domestic privacy”—meaning the potential exposure of children to adult sexuality. “His entire book,” writes Daniel Czitrom in Rediscovering Jacob Riis, “could be read as a plea for understanding how the tenement environment itself deformed character.” The slum dweller’s grim surroundings kept him from developing bourgeois virtues.

This “environmental determinism,” as housing historian Alexander von Hoffman calls it, led reformers to try to improve the behavior and prospects of the poor by replacing the slum environment altogether. A better living environment, it was felt, would produce better people. Riis himself promoted the “model tenement”: privately built apartments for the poor, constructed to higher standards made possible by investors’ willingness to forgo normal profits. No wonder Riis has wound up cast in the company of heroic reformers of the Gilded Age and early Progressive Era, such as Upton Sinclair and Ida Tarbell. In his new biography, Tom Buk-Swienty gushes: “Riis forced Americans to confront the squalor of immigrant conditions, and he demanded that those immigrants not be treated as second- or third-class citizens.”

But this uncritical view ignores how Riis’s environmental determinism led, gradually but inexorably, to the advent of large-scale public housing, which would have destructive unintended consequences. Public authorities and idealistic architects would demolish the slums and replace them with publicly financed and operated buildings that—or so it was hoped—would uplift, not degrade, by providing a clean, cheerful, well-lit environment.

With terrible irony, the replacement housing itself gradually became a blighted locus of social problems, but for seldom-understood reasons. Conventional wisdom still blames the projects’ design mistakes (the high-rise architecture criticized by Jane Jacobs and Oscar Newman) and so-called concentration of poverty. So the government keeps looking for the public-housing philosopher’s stone. HOPE VI projects, pushed by the Clinton administration (and perhaps to be revived by President Obama), replaced “distressed” public housing and mixed the middle class and the poor in indistinguishable townhouses. HUD’s Moving to Opportunity program uses housing vouchers to relocate public-housing residents to middle-class suburban neighborhoods. Such approaches still assume that an improved environment—one where poor families have both sufficient amenities and better neighborly examples to emulate—will somehow inspire uplift, and thus they continue the Riis reform impulse.

All such bestowed benefits, however, turn out to discourage beneficiaries from behaving constructively—saving money and accumulating assets, say, or making the prudent life choices, such as marriage and education, that truly help households “move up” to better neighborhoods. In other words, improved housing is an effect, not a cause, of the bourgeois virtues that Riis held dear.

That so many Americans could rise from slums into the middle class shows, moreover, that the Lower East Side was filled with such virtues. The neighborhood was a beehive of effort, including that of immigrant entrepreneurs who built and ran apartment buildings. In Riis’s book, writes Czitrom, “the complex day-to-day negotiations and textured lives of tenement dwellers simply disappear into a riot of pathology.” Czitrom quotes historian Jared Day, who described “the tenants who scraped together small sums to buy leases; they were the grocers, butchers, boarding house keepers and barbers who pooled their resources . . . and they were the immigrant bankers . . . who took the savings of average ethnic workers and invested them in local housing.” In Riis’s view, “the tendency of the tenements and of their tenants is all the time, and rapidly, downward,” as he wrote in How the Other Half Lives. But in a dynamic economy, it turned out, he had things exactly wrong. New York’s Tenement House Museum now refers to its historic building, tellingly, not as slum housing but as an “urban log cabin”—a starting point for upward mobility.

This is also how we should think of the sprawling new slums of the developing world: not as doomed, deforming environments but as the low-cost housing built for (and by) displaced, formerly rural, people drawn into the modern urbanized economy and energetically aspiring to a better life.

In Hong Kong—hardly impoverished but a powerful magnet for China’s rural poor—I was once taken to the top of one of the city’s ubiquitous four-story apartment buildings. There I found one of Hong Kong’s 50,000-plus “unauthorized building works”: three tiny boxes housing families that stole electricity from the floors below. In the event of a stairwell fire, they could escape this high-rise shantytown only by jumping off the roof. But aspiration was abundantly evident, too: I saw school uniforms neatly laid out on tiny mattresses and a kitchen table with a hot plate. In the South Africa township that I visited, similarly, one saw plenty of shacks, but also larger, self-built homes with their own Honda electric generators.

The Economist captured this atmosphere of activity and hope in a December 2007 article about Dharavi, a Mumbai slum. Dharavi had “maybe a million residents crammed into a square mile of low-rise wood, concrete and rusted iron,” yes, but its residents were also “thriving in hardship.” Small “hutment” factories, for instance, exported leather belts directly to Wal-Mart. Dharavi, the magazine observed, was “organic and miraculously harmonious. . . . intensely human.” The FinMark Trust, a South African housing think tank, has found no fewer than 335,000 businesses in one Johannesburg slum, one in seven home-based. They include everything from hairdressers and bars to welders and furniture makers.

These informal sprawls, for all their problems, may well prove to be a source of new products—and refinements and improvements of existing products—helping to fire future economic growth. Jane Jacobs envisioned this transformative churning in her landmark book The Economy of Cities—a process in which the poor, making the best of their circumstances, create substitutes for expensive imports and eventually develop superior products for export.

Happily, the debate about slums is no longer dominated by the project of replacing or eradicating them—in fact, that approach has become politically incorrect. “There is no drive to replicate the bureaucratic welfare-state housing-policy approaches of the mid-twentieth century,” observes Columbia University’s Elliott Sclar, a lead author of the UN’s 2005 Improving the Lives of Slum Dwellers. Even the Harvard Graduate School of Design—once led by followers of the architect Le Corbusier, the father of high-rise public housing—sponsored an approving exhibit last winter on the “nonformal cities of the Americas.”

Policy has shifted toward improving slum conditions incrementally, helping residents gradually become better off, even if still living within the slums. South Africa’s Reconstruction and Development Programme, for instance, has subsidized over 1 million modest, 344-square-foot single-family structures that families own and, over time, are expected to improve. The World Bank, too, whose work in developing countries long emphasized grand infrastructure projects like dams and bridges, is now financing modest but significant improvements in the world’s informal settlements. In Brazil’s favelas, it helped some 900,000 people obtain “potable water piped directly into their homes,” and about 1 million receive sewer services. Cost: just $84 per capita. Similarly, the bank has invested $192 million in the Mumbai slums to build privately managed pay toilets, used by more than 400,000 people. The UN’s Top Ten list of “slum upgrading actions” ranks “installing or improving basic infrastructure” first and makes no reference to government-subsidized replacement housing.

The incremental approach mitigates the risk of the kind of dependency that welfare states had unwittingly fostered in the poor in the past. After all, cities provide regular neighborhoods with sewage and water systems, too, so giving slums such services doesn’t give their residents an incentive to stay put. Further, incrementalism doesn’t undermine slum dwellers’ sense of personal agency. Living in a shanty that you can call your own and improve over time is preferable to moving into a spirit-killing welfare-state Potemkin village of “affordable housing.” More HERE

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2009-02-21T20:52:00.007-05:00

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American Recovery and Reinvestment Act of 2009 - Construction Breakdown

2009-02-21T20:47:00.002-05:00

The waiting went on and on as anxious construction industry and state officials watched for months for glimmers of progress in Washington on a bill that they hoped would ease the recession’s tightening grip. On Feb. 17, the long wait ended as President Obama traveled to Denver and signed what he called "the most sweeping economic recovery package in our history," the $787.2-billion American Recovery and Reinvestment Act of 2009.

It was good news for construction, because the measure contains about $130 billion for highways, buildings and other public works. "How can you not be happy?" asks Stephen E. Sandherr, the Associated General Contractors’ CEO. "This is the most significant investment in infrastructure in my lifetime."

As industry officials scrutinize the voluminous bill, they are looking for how much money it allocates for key programs and for details on how and when the funds will be disbursed.

"It’s not a perfect package by any means," says Steve Hall, American Council of Engineering Companies’ vice president for government affairs. "But it’s hard to deny that this doesn’t represent a major, major expansion of federal investment in infrastructure across the board."

The Congressional Budget Office, Capitol Hill’s official scorekeeper, estimates the measure’s price tag at $787.2 billion. Of that, $575.3 billion is appropriations and direct federal spending. Tax cuts account for the remaining $211.8 billion. Pennsylvania Gov. Edward Rendell (D), a public-works advocate, gives the package "a pretty strong B-plus." He says, "It’s a good bill under the circumstances...given the partisanship down in D.C." He adds, "To make it a great bill, I would have significantly increased the infrastructure spending [and] decreased the tax cuts."

For construction, the package has some pleasant surprises, particularly high-speed rail, which emerged with $8 billion for a new corridor program. An earlier Senate version had $2 billion, and a version the House passed in January had zero.

But construction did not get all it wanted. Probably the biggest disappointment was that the final package has no specified funding for school construction. As the bills moved out of committee, the House- version bill had recommended $20 billion for K-12 and college facilities while the Senate’s called for $19.5 billion.

But Sen. Susan Collins (R-Maine), a pivotal player in shaping the final package, was opposed to a new federal school-construction program. To help win her vote, lawmakers stripped out the school-construction line-item funding.

House and Senate negotiators did permit school modernization projects to be eligible for some of the $39 billion in "state fiscal-stabilization" funds set aside for a broad range of educational purposes. It would be up to local school-district officials to determine how much of their shares of that $39.5 billion would go for such uses as hiring or retaining teachers or upgrading buildings. New construction would not be eligible.

Fast-Moving

The bill moved swiftly, by Capitol Hill standards. The first detailed proposal, in the House, was unveiled on Jan. 15. Final congressional action came on Feb. 13, when the House passed the measure, 246-183, and the Senate cleared it that night 60-38, the bare minimum needed for passage. Republicans lined up almost solidly against the stimulus. It got no GOP votes in the House and just three in the Senate: Collins, Olympia Snowe of Maine and Arlen Specter of Pennsylvania.

Even though much of the stimulus talk was on having the bill fund "shovel-ready" projects, only $34.8 billion, or 11% of the bill’s $308.3 billion in actual appropriations outlays, will occur by Sept. 30, the end of fiscal 2009, CBO says. After that, the pace will pick up. CBO estimates that 2010 will be a much bigger year, with $110.7 billion in appropriations-related outlays.

Some federal agencies have laid the groundwork to move the money out. At the Dept. of Transportation, Secretary Ray LaHood announced he had set up an internal Transportation Investment Generating Economic Recovery (TIGER) team. The aim, he said, is "to make sure that DOT’s portion of recovery funding goes out to states and localities as quickly as possible in order to immediately create jobs and strengthen our economy and transportation systems."

The stimulus gives DOT only 21 days to formally apportion highway-stimulus funds to the states, but LaHood may move even faster. "We’re hearing from the DOT that within seven days the money can clear Washington to the states," says Nick Yaksich, Association of Equipment Manufacturers’ vice president for global public policy. States then would put projects out for bids.

For the infrastructure stimulus money, the bill sets a goal of using at least 50% of those funds on work that can be started within 120 days of the bill’s signing. But the rules are tougher for highway and transit funds. States or localities that get the money face use-it-or-lose-it mandates. If they don’t obligate at least 50% of their allotments within 120 days after DOT apportions the money, the bill directs DOT to take away the unused money and redistribute it to other states.

The Defense and Veterans Affairs departments must report to Congress within 30 days on how they plan to spend their stimulus construction allocations. The General Services Administration has 45 days to produce its spending report but must include a list of projects it plans to fund. The bill does not penalize DOD, VA or GSA if they do not obligate money in 120 days.

Source: Engineering News Record

HOUSING/HUD [$9.6 billion]

HUD Public Housing Capital Fund: $4 billion
HUD redevelopment of abandoned and foreclosed homes: $2 billion
HUD energy retrofits, "green" projects in HUD-assisted housing projects: $250 million
HUD Community Development Block Grants (housing, services, infrastructure): $1 billion
HOME investment partnerships: $2.25 billion
Lead-paint abatement: $100 million

The American Recovery and Reinvestment Act of 2009

2009-02-21T20:42:00.001-05:00

As reported by Americablog: This is the final package reached by negotiators from the House and the Senate.

United States Congress

The American Recovery and Reinvestment Act of 2009
Creating Jobs, Supporting the States and Investing in Our Country’s Future

The United States is facing its deepest economic crisis since the Great Depression, one that calls for swift, bold action. The goals of this legislation are the same as they have been from day one: to strengthen the economy now and invest in our country’s future.

This legislation will create and save jobs; help state and local governments with their budget shortfalls to prevent deep cuts in basic services such as health, education, and law enforcement; cut taxes for working families and invest in the long-term health of our economy. We do all of this with unprecedented accountability, oversight and transparency so the American people know their money is being invested responsibly.

To accomplish these goals, The American Recovery and Reinvestment Act provides $311 billion in appropriations, including the following critical investments:

Investments in Infrastructure and Science - $120 billion
Investments in Health - $14.2 billion
Investments in Education and Training - $105.9 billion
Investments in Energy, including over $30 billion in infrastructure - $37.5 billion
Helping Americans Hit Hardest by the Economic Crisis - $24.3 billion
Law Enforcement, Oversight, Other Programs - $7.8 billion

Investments in Infrastructure and Science include:

Infrastructure Improvements
- $7.2 billion for Broadband to increase broadband access and usage in unserved and underserved areas of the Nation, which will better position the U.S. for economic growth, innovation, and job creation.
- $2.75 billion for the Department of Homeland Security to secure the homeland and promote economic activity, including $1 billion for airport baggage and checkpoint security, $430 million for construction of border points of entry, $210 million for construction of fire stations, $300 million for port, transit, and rail security, $280 million for border security technology and communication, and $240 million for the Coast Guard.
- $4.6 billion in funding for the Corps of Engineers.
- $1.2 billion for VA hospital and medical facility construction and improvements, long-term care facilities for veterans, and improvements at VA national cemeteries.
- $3.1 billion for repair, restoration and improvement of public facilities at on public and tribal lands.
- $4.2 billion for Facilities Sustainment, Restoration and Modernization to be used to invest in energy efficiency projects and to improve the repair and modernization of Department of Defense facilities to include Defense Health facilities.
- $2.33 billion for Department of Defense Facilities including quality of life and family-friendly military improvement projects such as family housing, hospitals, and child care centers.
- $2.25 billion through HOME and the Low Income Housing Tax Credit program to fill financing gaps caused by the credit freeze and get stalled housing development projects moving.
- $1 billion for the Community Development Block Grant program for community and economic development projects including housing and services for those hit hard by tough economic times.
- $1 billion for the Bureau of Reclamation to provide clean, reliable drinking water to rural areas and to ensure adequate water supply to western localities impacted by drought.

Transportation
- $27.5 billion is included for highway investments
- $8.4 billion for investments in public transportation.
- $1.5 billion for competitive grants to state and local governments for transportation investments.
- $1.3 billion for investments in our air transportation system.
- $9.3 billion for investments in rail transportation, including Amtrak, High Speed and Intercity Rail.

Public Housing
- $4 billion to the public housing capital fund to enable local public housing agencies to address a $32 billion backlog in capital needs -- especially those improving energy efficiency in aging buildings.
- $2 billion for full-year payments to owners receiving Section 8 project-based rental assistance.
- $2 billion for the redevelopment of abandoned and foreclosed homes.
- $1.5 billion for homeless prevention activities, which will be sent out to states, cities and local governments through the emergency shelter grant formula.
- $250 million is included for energy retrofitting and green investments in HUD-assisted housing projects.

Environmental Clean-Up/Clean Water
- $6 billion is directed towards environmental cleanup of former weapon production and energy research sites.
- $6 billion for local clean and drinking water infrastructure improvements.
- $1.2 billion for EPA’s nationwide environmental cleanup programs, including Superfund.
- $1.38 billion to support $3.8 billion in loans and grants for needed water and waste disposal facilities in rural areas.

Science
- $1 billion total for NASA.
- $3 billion total for National Science Foundation (NSF).
- $2 billion total for Science at the Department of Energy including $400 million for the Advanced Research Projects Agency—Energy (ARPA-E).
- $830 million total for the National Oceanic and Atmospheric Association (NOAA).

Investments in Health include:

- $19 billion, including $2 billion in discretionary funds and $17 billion for investments and incentives through Medicare and Medicaid to ensure widespread adoption and use of interoperable health information technology (IT). This provision will grow jobs in the information technology sector, and will jumpstart efforts to increase the use of health IT in doctors’ offices, hospitals and other medical facilities. This will reduce health care costs and improve the quality of health care for all Americans.
- $1 billion for prevention and wellness programs to fight preventable diseases and conditions with evidence-based strategies.
- $10 billion to conduct biomedical research in areas such as cancer, Alzheimer’s, heart disease and stem cells, and to improve NIH facilities.
- $1.1 billion to the Agency for Healthcare Research and Quality, NIH and the HHS Office of the Secretary to evaluate the relative effectiveness of different health care services and treatment options.

Investments in Education and Training include:
- $53.6 billion for the State Fiscal Stabilization Fund, including $39.5 billion to local school districts using existing funding formulas, which can be used for preventing cutbacks, preventing layoffs, school modernization, or other purposes; $5 billion to states as bonus grants for meeting key performance measures in education; and $8.8 billion to states for high priority needs such as public safety and other critical services, which may include education and for modernization, renovation and repairs of public school facilities and institutions of higher education facilities.
- $13 billion for Title 1 to help close the achievement gap and enable disadvantaged students to reach their potential.
- $12.2 billion for Special Education/IDEA to improve educational outcomes for disabled children. This level of funding will increase the Federal share of special education services to its highest level ever.
- $15.6 billion to increase the maximum Pell Grant by $500. This aid will help 7 million students pursue postsecondary education.
- $3.95 billion for job training including State formula grants for adult, dislocated worker, and youth programs (including $1.2 billion to create up to one million summer jobs for youth).

Investments in Energy include:

- $4.5 billion for repair of federal buildings to increase energy efficiency using green technology.
- $3.4 billion for Fossil Energy research and development.
- $11 billion for smart-grid related activities, including work to modernize the electric grid.
- $6.3 billion for Energy Efficiency and Conservation Grants.
- $5 billion for the Weatherization Assistance Program.
- $2.5 billion for energy efficiency and renewable energy research.
- $2 billion in grant funding for the manufacturing of advanced batteries systems and components and vehicle batteries that are produced in the United States.
- $6 billion for new loan guarantees aimed at standard renewable projects such as wind or solar projects and for electricity transmission projects.
- $1 billion for other energy efficiency programs including alternative fuel trucks and buses, transportation charging infrastructure, and smart and energy efficient appliances.

Help for Workers and Families Hardest Hit by the Economic Crisis includes:

- $19.9 billion for additional Supplemental Nutrition Assistance Program (SNAP), formerly Food Stamps, to increase the benefit by 13.6 percent.
- Child Care Development Block Grant: $2 billion to provide quality child care services for an additional 300,000 children in low-income families who increasingly are unable to afford the high cost of day care.
- Head Start & Early Head Start: $2.1 billion to allow an additional 124,000 children to participate in this program, which provides development, educational, health, nutritional, social and other activities that prepare children to succeed in school.
- State and Local Law Enforcement: $4 billion total to support law enforcement efforts.
- $555 million to expand the Department of Defense Homeowners Assistance Program (HAP) during the national mortgage crisis.

Unprecedented Oversight, Accountability and Transparency

The American Recovery and Reinvestment Plan provides unprecedented oversight, accountability, and transparency to ensure that taxpayer dollars are invested effectively, efficiently, and as quickly as possible.

- Funds are distributed whenever possible through existing formulas and programs that have proven track records and accountability measures already in place.
- Numerous provisions in the bill provide for expedited but effective obligation of funds so that dollars are invested in the economy as quickly as possible.
- The Government Accountability Office and the Inspectors General are provided additional funding for auditing and investigating recovery spending.
- A new Recovery Act Accountability and Transparency Board will coordinate and conduct oversight of recovery spending and provide early warning of problems.
- A special website will provide transparency by posting information about recovery spending, including grants, contracts, and all oversight activities.
- State and local whistleblowers who report fraud and abuse are protected.

Source: AmericaBlog

Stimulus Plan and Public Housing

2009-02-21T20:09:00.004-05:00

Economic Stimulus Legislation - Housing Included

Section 502, NSP, Other Housing Funds Included in Final Stimulus Bill. February 17, 2009. President Barack Obama signed into Law H.R. 1, the American Recovery and Revitalization Act of 2009, as passed by the Congress on February 13. The final bill would fund $1 billion in direct Section 502 loans and $10.472 billion in Section 502 guaranteed loans, as well as numerous HUD programs and rural community facilities, business, and water/wastewater programs. Details are in the table below.

The final bill requires that at least 10 percent of the spending for each of the RD community facilities, business, and water/waste programs in the bill must be allocated to persistent poverty counties. These are defined as counties with poverty rates of 20 percent or more in the 1980, 1990, and 2000 decennial censuses. (This does not apply to Sec. 502 funding.)

List of persistent poverty counties (PDF)

Updated February 19.

Program	H.R. 1 Final version
USDA Sec. 502 direct	$1 billion
USDA Sec. 502 guaranteed	$10.472 billion
HUD HOME	$2.25 billion
HUD CDBG	$1 billion
HUD Native Amer. Block Grants	$510 million
HUD Public Hsg. Capital Fund	$4 billion
HUD Neighbrhd Stablztn Prog.	$2 billion
HUD Emergency Shelter Grants Prog.	$1.5 billion
HUD Lead Hazard Reduction	$100 million
HUD SHOP	0
Energy refrofits for HUD-assisted rental housing	$250 million
USDA Rural Cmnty. Facilities	$1.171 billion loans $63 million grants
USDA Rural Water and Waste Loans and Grants	$2.82 billion loans $968 million grants
USDA Rural Business Loans and Grants	$2.99 billion loans $20 million grants

The following table summarizes the differences between the House and Senate bills regarding assisted housing spending.

Program	H.R. 1 passed by House 1/28/09	Collins-Nelson Amdt. in Senate 2/9/09
USDA Sec. 502 direct	$4 billion	$1 billion
USDA Sec. 502 guaranteed	$18 billion	$10.5 billion
HUD HOME	$1.5 billion	$2.25 billion*
HUD CDBG	$1 billion	0
HUD Native Amer. Block Grants	$500 million	$510 million
HUD Public Hsg. Capital Fund	$5 billion	$5 billion
HUD Neighbrhd Stablztn Prog.	$4.19 billion	0
HUD Emergency Shelter Grants Prog.	$1.5 billion	$1.5 billion
HUD Lead Hazard Reduction	$100 million	$100 million
HUD SHOP	$10 million	0
HUD Proj.-Based Section 8**	$2.5 billion	$2.25 billion
USDA Rural Broadband	$6 billion	$3.3 billion
USDA Rural Cmnty. Facilities	$1.2 billion	***
USDA Rural Water and Waste Loans and Grants	$3.8 billion	$3.8 billion
USDA Rural Business Loans and Grants	$2 billion	$3 billion
Homebuyer tax credit	0	$35 billion

A more detailed table is available on the National Housing Conference's Open House blog.

Obama Has 'Solid' Housing Plan

2009-02-17T11:51:00.005-05:00

The Wall Street Journal reports, The Obama administration this week will announce a "good, solid" plan with the goal of stemming mortgage foreclosures and putting a floor under falling real estate prices, a senior White House aide said on Sunday.

David Axelrod speaks on "Meet the Press." Mr. Axelrod pressed the Obama administration's housing plan on the Sunday morning talk shows.

Speaking on "Fox News Sunday," senior adviser David Axelrod said the plan that President Barack Obama plans to announce on Wednesday will aim to stem foreclosures, provide immediate help to homeowners who are "right on the edge" of foreclosure, and ultimately help in "raising home values that have been plummeting."

Mr. Obama plans to unveil his housing plan during a visit to Phoenix. As part of his swing through western states, he is set to stop in Denver Tuesday, when he will sign the $787 billion economic-stimulus plan just passed by Congress.

Mr. Axelrod provided few details of the housing plan, but said a government investment of $50 billion to $100 billion to fund foreclosure prevention "is obviously a necessary part." He promised that the plan would contain "a lot of aspects."

In a later appearance on NBC-TV's "Meet the Press," he cited a letter Mr. Obama recently read from an Arizona homeowner as an illustration of the problem. "He showed me a letter the other day that was just heart wrenching from a woman in Arizona whose husband lost his job," Mr. Axelrod said. "He now has a job that's one-third the pay and they're really struggling to make their payments and meet their responsibilities. And she was emblematic of people all over this country."

One likely element of the plan would reduce Americans' payments on troubled mortgages, people familiar with the discussions said late last week, possibly through a cut in the interest rate, the costs of which would be shared by the government and mortgage servicers. Government officials would make the reduction available to people who are at risk of defaulting. A loan-modification program at government-backed Fannie Mae and Freddie Mac currently calls for holding monthly housing-related payments to 38% of pretax income. The new formula is likely to be as low as about 31%, according to some people.

In addition, the administration is expected to endorse a plan to allow judges to modify mortgages during bankruptcy proceedings in some circumstances, a move long opposed by the mortgage industry. And it could push measures that would remove some contractual obstacles that hinder mortgage servicers from modifying troubled loans. Pending any announcement, the country's three largest mortgage lenders are putting a temporary halt on foreclosures. MORE HERE

State by State Stimulus Plan Analysis

2009-02-15T15:05:00.006-05:00

The American Progress.org is reporting on the House and Senate version of the Economic Recovery and Reinvestment Act. They are reporting on the scale and breadth necessary to begin tackling the economic chaos that President Barack Obama has inherited from former President George W. Bush. The various spending programs and tax cuts contained in the bills will help communities across the entire nation. These maps show state-by-state allocations for the aspects of the plan for which we could establish where the money is going. This constitutes 66 percent of the total cost of the package for the House plan and 68 percent for the Senate plan. The maps also show the proportion of the funds that will help each state balance their budgets rather than providing additional funding for specific programs.

These state and local funds include direct tax cuts for working families; increased unemployment insurance and food stamps to help those most in need; new funding to equip the education system for the 21st century; additional funds for existing clean energy programs; state-level infrastructure projects; and assistance that is necessary to protect vital services such as Medicaid. More HERE

Who is getting the money? The Stimulus Plan - State by State

2009-02-15T14:37:00.004-05:00

Earlier this week the Center for American Progress, a liberal think tank, estimated how much money in the House of Representatives’ $825 billion Economic Recovery and Reinvestment Act (passed yesterday) would go to each state.

Today, Nicholas Beaudrot, blogging for The American Prospect, used those estimates to calculate how many dollars per capita would go to each state:

By this analysis, Rhode Island — which in December had the second highest unemployment rate of any state, at 10 percent — gets the most money per person. Utah gets the least amount of money per capita; by comparison, the state had a relatively low unemployment rate of 4.3 percent. (Alaska and Hawaii seem to have been left out of the calculations.)

States Plan Their Own Stimulus Package to Aid Small Businesses

2009-02-15T14:28:00.002-05:00

As reported by Raymund Flandez at the Wall Street Journal, while the economic-stimulus package is being hammered out in Congress, some states are proposing or enacting their own stimulus packages, with many of the plans targeted toward small-business development.

Compiled by the National Conference of State Legislatures through various media and government reports, the chart below lists several states with stimulus plans that could potentially help small-business owners:

Arizona: In response to tight fiscal conditions, Arizona’s stimulus plan focuses on tax incentives, rather than public-works projects. Changes and increases to the enterprise-zone program, which includes tax incentives on business property and income, have also been proposed.

Colorado: A pending Senate bill would create a loan fund for small business. A pending House bill would give small businesses dealing with clean energy technology certain tax breaks. Republicans are pushing to phase out the personal property tax for business, which is a big accounting headache for small firms. Gov. Bill Ritter Jr. wants to start a $5 million fund called the Colorado Credit Reserve, which should back banks that give small-business loans.

Florida: The main component of Florida’s stimulus program is loans to small businesses. Small businesses with 10 to 99 employees would be eligible for 2% interest rate loans of up to $250,000 to be used in expansion for their enterprise. This could include capital purchases, employee training and new position salaries.

Maryland: Gov. Martin O’Malley, in his state of the state, said his proposed budget plan includes $70.3 million for business-development programs that assist small and minority businesses, plus $15 million for small-business health insurance.

Minnesota: Gov. Tim Pawlenty is calling for business tax cuts that includes tax-free zones for companies that create “green jobs.” He is also pushing for a 25% refundable tax credit for small-business owners who reinvest in their business. In addition, he wants a 100% exemption on sales tax for equipment purchases by all small businesses.

New Jersey: Stimulus plan includes grants and tax incentives for small businesses to hire and expand. Small businesses that hire and retain a new employee for at least one year are eligible for grants of $3,000 per position. In addition for the grants, small businesses may be eligible for sales tax credits for capital investments over $5,000.

Link to story HERE

How the economic stimulus plan will affect Americans

2009-02-15T14:23:00.003-05:00

An examination of how the economic stimulus plan will affect Americans.

Source: AP

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Taxes:

The recovery package has tax breaks for families that send a child to college, purchase a new car, buy a first home or make the ones they own more energy efficient.

Millions of workers can expect to see about $13 extra in their weekly paychecks, starting around June, from a new $400 tax credit to be doled out through the rest of the year. Couples would get up to $800. In 2010, the credit would be about $7.70 a week, if it is spread over the entire year.

The $1,000 child tax credit would be extended to more low-income families that don't make enough money to pay income taxes, and poor families with three or more children will get an expanded Earned Income Tax Credit.

Middle-income and wealthy taxpayers will be spared from paying the Alternative Minimum Tax, which was designed 40 years ago to make sure wealthy taxpayers pay at least some tax, but was never indexed for inflation. Congress fixes it each year, usually in the fall.

First-time homebuyers who purchase their homes before Dec. 1 would be eligible for an $8,000 tax credit, and people who buy new cars before the end of the year can write off the sales taxes.

Homeowners who add energy-efficient windows, furnaces and air conditioners can get a tax credit to cover 30 percent of the costs, up to a total of $1,500. College students — or their parents — are eligible for tax credits of up to $2,500 to help pay tuition and related expenses in 2009 and 2010.

Those receiving unemployment benefits this year wouldn't pay any federal income taxes on the first $2,400 they receive.

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Health insurance:

Many workers who lose their health insurance when they lose their jobs will find it cheaper to keep that coverage while they look for work.

Right now, most people working for medium and large employers can continue their coverage for 18 months under the COBRA program when they lose their job. It's expensive, often over $1,000 a month, because they pay the share of premiums once covered by their employer as well as their own share from the old group plan.

Under the stimulus package, the government will pick up 65 percent of the total cost of that premium for the first nine months.

Lawmakers initially proposed to help workers from small companies, too, who don't generally qualify for COBRA coverage. But that fell through. The idea was to have Washington pay to extend Medicaid to them.

COBRA applies to group plans at companies employing at least 20 people. The subsidies will be offered to those who lost their jobs from Sept. 1 to the end of this year.

Those who were put out of work after September but didn't elect to have COBRA coverage at the time will have 60 days to sign up.

The plan offers $87 billion to help states administer Medicaid. That could slow or reverse some of the steps states have taken to cut the program.

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Infrastructure:

Highways repaved for the first time in decades. Century-old waterlines dug up and replaced with new pipes. Aging bridges, stressed under the weight of today's SUVs, reinforced with fresh steel and concrete.

But the $90 billion is a mere down payment on what's needed to repair and improve the country's physical backbone. And not all economists agree it's an effective way to add jobs in the long term, or stimulate the economy.

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Energy:

Homeowners looking to save energy, makers of solar panels and wind turbines and companies hoping to bring the electric grid into the computer age all stand to reap major benefits.

The package contains more than $42 billion in energy-related investments from tax credits to homeowners to loan guarantees for renewable energy projects and direct government grants for makers of wind turbines and next-generation batteries.

There's a 30 percent tax credit of up to $1,500 for the purchase of a highly efficient residential air conditioners, heat pumps or furnaces. The credit also can be used by homeowners to replace leaky windows or put more insulation into the attic. About $300 million would go for rebates to get people to buy efficient appliances.

The package includes $20 billion aimed at "green" jobs to make wind turbines, solar panels and improve energy efficiency in schools and federal buildings. It includes $6 billion in loan guarantees for renewable energy projects as well as tax breaks or direct grants covering 30 percent of wind and solar energy investments. Another $5 billion is marked to help low-income homeowners make energy improvements.

About $11 billion goes to modernize and expand the nation's electric power grid and $2 billion to spur research into batteries for future electric cars.

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Schools:

A main goal of education spending in the stimulus bill is to help keep teachers on the job.

Nearly 600,000 jobs in elementary and secondary schools could be eliminated by state budget cuts over the next three years, according to a study released this past week by the University of Washington. Fewer teachers means higher class sizes, something that districts are scrambling to prevent.

The stimulus sets up a $54 billion fund to help prevent or restore state budget cuts, of which $39 billion must go toward kindergarten through 12th grade and higher education. In addition, about $8 billion of the fund could be used for other priorities, including modernization and renovation of schools and colleges, though how much is unclear, because Congress decided not to specify a dollar figure.

The Education Department will distribute the money as quickly as it can over the next couple of years.

And it adds $25 billion extra to No Child Left Behind and special education programs, which help pay teacher salaries, among other things.

This money may go out much more slowly; states have five years to spend the dollars, and they have a history of spending them slowly. In fact, states don't spend all the money; they return nearly $100 million to the federal treasury every year.

The stimulus bill also includes more than $4 billion for the Head Start and Early Head Start early education programs and for child care programs.

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National debt:

One thing about the president's $790 billion stimulus package is certain: It will jack up the federal debt.

Whether or not it succeeds in producing jobs and taming the recession, tomorrow's taxpayers will end up footing the bill.

Forecasters expect the 2009 deficit — for the budget year that began last Oct 1 — to hit $1.6 trillion including new stimulus and bank-bailout spending. That's about three times last year's shortfall.

The torrents of red ink are being fed by rising federal spending and falling tax revenues from hard-hit businesses and individuals.

The national debt — the sum of all annual budget deficits — stands at $10.7 trillion. Or about $36,000 for every man, woman and child in the U.S.

Interest payments alone on the national debt will near $500 billion this year. It's already the fourth-largest federal expenditure, after Medicare-Medicaid, Social Security and defense.

This will affect us all directly for years, as well as our children and possibly grandchildren, in higher taxes and probably reduced government services. It will also force continued government borrowing, increasingly from China, Japan, Britain, Saudi Arabia and other foreign creditors.

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Environment:

The package includes $9.2 billion for environmental projects at the Interior Department and the Environmental Protection Agency. The money would be used to shutter abandoned mines on public lands, to help local governments protect drinking water supplies, and to erect energy-efficient visitor centers at wildlife refuges and national parks.

The Interior Department estimates that its portion of the work would generate about 100,000 jobs over the next two years.

Yet the plan will only make a dent in the backlog of cleanups facing the EPA and the long list of chores at the country's national parks, refuges and other public lands. It would be more like a down payment.

When it comes to national parks, the plan sets aside $735 million for road repairs and maintenance. But that's a fraction of the $9 billion worth of work waiting for funding.

At EPA, the payout is $7.2 billion. The bulk of the money will help local communities and states repair and improve drinking water systems and fund projects that protect bays, rivers and other waterways used as sources of drinking water.

The rest of EPA's cut — $800 million — will be used to clean up leaky gasoline storage tanks and the nation's hazardous waste sites.

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Police:

The stimulus bill includes plenty of green for those wearing blue.

The compromise bill doles out more than $3.7 billion for police programs, much of which is set aside for hiring new officers.

The law allocates $2 billion for the Byrne Justice Assistance Grant, a program that has funded drug task forces and things such as prisoner rehabilitation and after-school programs.

An additional $1 billion is set aside to hire local police under the Community Oriented Policing Services program. The program, known as COPS grants, paid the salaries of many local police officers and was a "modest contributor" to the decline in crime in the 1990s, according to a 2005 government oversight report.

Both programs had all been eliminated during the Bush administration.

The bill also includes $225 million for general criminal justice grants for things such as youth mentoring programs, $225 million for Indian tribe law enforcement, $125 million for police in rural areas, $100 million for victims of crimes, $50 million to fight Internet crimes against children and $40 million in grants for law enforcement along the Mexican border.

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Higher Education:

The maximum Pell Grant, which helps the lowest-income students attend college, would increase from $4,731 currently to $5,350 starting July 1 and $5,550 in 2010-2011. That would cover three-quarters of the average cost of a four-year college. An extra 800,000 students, or about 7 million, would now get Pell funding.

The stimulus also increases the tuition tax credit to $2,500 and makes it 40 percent refundable, so families who don't earn enough to pay income tax could still get up to $1,000 in extra tuition help.

Computer expenses will now be an allowable expense for 529 college savings plans.

The final package cut $6 billion the House wanted to spend to kick-start building projects on college campuses. But parts of the $54 billion state stabilization fund — with $39 billion set aside for education — can be used for modernizing facilities.

There's also an estimated $15 billion for scientific research, much of which will go to universities. Funding for the National Institutes of Health includes $1.5 billion set aside for university research facilities.

Altogether, the package spends an estimated $32 billion on higher education.

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The Poor:

More than 37 million Americans live in poverty, and the vast majority of them are in line for extra help under the giant stimulus package. Millions more could be kept from slipping into poverty by the economic lifeline.

People who get food stamps — 30 million and growing — will get more. People drawing unemployment checks — nearly 5 million and growing — would get an extra $25, and keep those checks coming longer. People who get Supplemental Security Income — 7 million poor Americans who are elderly, blind or disabled — would get one-time extra payments of $250.

Many low-income Americans also are likely to benefit from a trifecta of tax credits: expansions to the existing Child Tax Credit and Earned Income Tax Credit, and a new refundable tax credit for workers. Taken together, the three credits are expected to keep more than 2 million Americans from falling into poverty, including more than 800,000 children, according to the private Center on Budget and Policy Priorities.

The package also includes a $3 billion emergency fund to provide temporary assistance to needy families. In addition, cash-strapped states will get an infusion of $87 billion for Medicaid, the government health program for poor people, and that should help them avoid cutting off benefits to the needy.

Link to Story

Obama Will Sign Stimulus Bill

2009-02-15T14:18:00.001-05:00

The Washington Post is reporting that President Obama will sign the $787 billion economic stimulus plan in Denver on Tuesday, the White House said today, as he continues his efforts to communicate directly to the American public about the economic crisis.

Obama had already announced a trip to Colorado and Arizona on Tuesday and Wednesday. He plans to announce his latest plans for reducing the number of housing foreclosures on Wednesday in Phoenix.

Obama's decision to sign the stimulus bill in Denver is a striking departure from his first few weeks in office, when he held several signing ceremonies in the East Room of the White House. More HERE

Company Offers Oahu Public Housing Rehab Plan

2009-02-15T14:13:00.001-05:00

HONOLULU - According to a MSNBC report, A California affordable housing development company is proposing a $239 million rehabilitation of two Honolulu public housing projects.

The proposed renovation of Kuhio Park Terrace and Kuhio Homes would cost the state nothing up front and keep 75 percent of the 748 units for the neediest.

Public housing officials are not actively considering the unsolicited proposal from Santa Ana-based development firm Urban Housing Communities because they don't want to lose any public housing units in any redevelopment. Read More HERE

Obama Mortgage Plan to Focus on Lowering Payments

2009-02-15T14:07:00.002-05:00

Rich Miller and Matthew Benjamin at Blomberg report: The White House is willing to spend more than the $50 billion already pledged to stem home foreclosures and intends to focus its efforts on reducing monthly mortgage payments, rather than principal, said Lawrence Summers, the president’s top economic adviser.

“We’re prepared to do what is necessary,” Summers said in an interview on Bloomberg Television’s “Political Capital with Al Hunt” yesterday. “Going directly at the problem means addressing affordability by addressing payments.”

Mounting foreclosures have hammered an already weakened housing market, helping to drive the economy deeper into recession. Economists surveyed by Bloomberg News forecast that gross domestic product will contract 2 percent this year, its biggest decline since 1946.

President Barack Obama will outline his proposal to deal with the housing crisis next week. The announcement will come after lawmakers voted on Obama’s $787 billion fiscal stimulus that’s aimed at restarting growth and providing for 3.5 million jobs.

Summers, who is director of the White House’s National Economic Council, said the economy will be in for a rough time for a while and that unemployment will continue to rise, even with the stimulus package.

“I fear the economy will probably be showing decline and jobs will probably be being lost for some time going forward,” Summers said. He added that the stimulus will probably prevent the unemployment rate from going above 10 percent, after it reached 7.6 percent in January.

Financial Plan

The U.S. has been in a recession since December 2007 and a financial crisis is making banks less willing to lend to consumers and businesses. The Obama administration this week laid out a multi-pronged strategy to address the issue, including the establishment of a public-private partnership to buy illiquid assets clogging banks’ balance sheets.

Summers, 54, brushed off the stock market’s initial reaction to Treasury Secretary Timothy Geithner’s Feb. 10 unveiling of the financial plan, saying the administration is focused on the long term rather than day-to-day market movements. The Standard & Poor’s 500 Stock Index dropped 4.9 percent the day of Geithner’s announcement, the steepest decline in three weeks.

Some investors had expected Geithner to signal that the government would be willing to pay more for the illiquid assets than they are worth. “There had been some leaks that had built up expectations for things that didn’t happen and shouldn’t happen,” he said.

Investor Interest

He added that “there have been many expressions of interest in providing some of that private capital” to buy the toxic assets.

He left open the possibility that foreign investors will be allowed to join the fund and take advantage of government financing. “We don’t want to be nationalistic about the approaches that we take,” Summers said.

As part of the administration’s approach to the crisis, regulators will subject about 20 of the country’s largest banks to stress tests to determine whether they can weather future shocks.

“Frankly, we don’t have as accurate an assessment of the situation of a number of institutions as we’d like to because we haven’t really done the stress test against a range of scenarios,” said Summers, a former Treasury secretary in the Clinton administration. More HERE

Highlights of Stimulus Recovery Plan.

2009-02-15T14:00:00.002-05:00

Source: Associated Press

Highlights of a $787 billion compromise version of President Barack Obama's economic recovery plan. Additional debt costs would add about $330 billion over 10 years. Many provisions expire in two years.

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Spending

AID TO POOR AND UNEMPLOYED

_ $40 billion to provide extended unemployment benefits through Dec. 31, and increase them by $25 a week; $20 billion to increase food stamp benefits by 14 percent; $4 billion for job training; $3 billion in temporary welfare payments.

DIRECT CASH PAYMENTS

_ $14.2 billion to give one-time $250 payments to Social Security recipients, poor people on Supplemental Security Income, and veterans receiving disability and pensions.

INFRASTRUCTURE

_ $48 billion for transportation projects, including $27.5 billion for highway and bridge construction and repair; $8.4 billion for mass transit; $8 billion for construction of high-speed railways and $1.3 billion for Amtrak; $4.6 billion for the Army Corps of Engineers; $4 billion for public housing improvements; $6 billion for clean and drinking water projects; $7.2 billion to bring broadband Internet service to underserved areas; $4.2 billion to repair and modernize Defense Department facilities.

HEALTH CARE

_ $24.7 billion to provide a 65 percent subsidy of health care insurance premiums for the unemployed under the COBRA program; $86.6 billion to help states with Medicaid; $19 billion to modernize health information technology systems; $10 billion for health research and construction of National Institutes of Health facilities; $1 billion for prevention and wellness programs.

STATE BLOCK GRANTS

_ $8.8 billion in aid to states to defray budget cuts.

ENERGY

_ About $50 billion for energy programs, focused chiefly on efficiency and renewable energy, including $5 billion to weatherize modest-income homes; $6.4 billion to clean up nuclear weapons production sites; $11 billion toward a so-called "smart electricity grid" to reduce waste; $6 billion to subsidize loans for renewable energy projects; $6.3 billion in state energy efficiency and clean energy grants; and $4.5 billion make federal buildings more energy efficient; $2 billion in grants for advanced batteries for electric vehicles.

EDUCATION

_ $44.5 billion in aid to local school districts to prevent layoffs and cutbacks, with flexibility to use the funds for school modernization and repair; $25.2 billion to school districts to fund special education and the No Child Left Behind law for students in K-12; $15.6 billion to boost the maximum Pell Grant by $500 to $5,350; $2 billion for Head Start.

HOUSING

_$4 billion to repair and make more energy efficient public housing projects; $2 billion for the redevelop foreclosed and abandoned homes; $1.5 billion for homeless shelters; $2 billion to pay off a looming shortfall in public housing accounts.

SCIENCE

_ $3 billion for the National Science Foundation for basic science and engineering research; $1 billion for NASA; $1.6 billion for research in areas such as climate science, biofuels, high-energy physics and nuclear physics.

HOMELAND SECURITY

_ $2.8 billion for homeland security programs, including $1 billion for airport screening equipment.

LAW ENFORCEMENT

_ $4 billion in grants to state and local law enforcement to hire officers and purchase equipment.

___

Taxes

NEW TAX CREDIT

_ About $116 billion for a $400 per-worker, $800 per-couple tax credits in 2009 and 2010. For the last half of 2009, workers could expect to see about $13 a week less withheld from their paychecks starting around June. Millions of Americans who don't make enough money to pay federal income taxes could file returns next year and receive checks. Individuals making more than $75,000 and couples making more than $150,000 would receive reduced amounts.

ALTERNATIVE MINIMUM TAX

_ About $70 billion to spare about 24 million taxpayers from being hit with the alternative minimum tax in 2009. The change would save a family of four an average of $2,300. The tax was designed to make sure wealthy taxpayers can't use credits and deductions to avoid paying any taxes. But it was never indexed to inflation, so families making as little as $45,000 could get significant increases without the change. Congress addresses it each year, usually in the fall.

EXPANDED COLLEGE CREDIT

_ About $14 billion to provide a $2,500 expanded tax credit for college tuition and related expenses for 2009 and 2010. The credit is phased out for couples making more than $160,000.

CHILD TAX CREDIT

_ About $15 billion to provide the $1,000 child tax credit to more families that don't make enough money to pay income taxes.

EARNED INCOME TAX CREDIT

_ $4.7 billion to expand the Earned Income Tax Credit for low-income families with three or more children.

HOMEBUYER CREDIT

_ $6.6 billion to repeal a requirement that a $8,000 first-time home buyer tax credit be paid back over time for homes purchased from Jan. 1 to Nov. 30, unless the home is sold within three years.

AUTO SALES

_ $1.7 billion to makes sales taxes on paid on new cars, light trucks, recreational vehicles and motorcycles tax deductible through the end of the year.

RENEWABLE ENERGY INCENTIVES

_ About 20 billion in tax incentives for renewable energy and energy efficiency over 10 years, including extending tax credits for energy produced from wind, geothermal, hydropower and landfill gas; grants to build renewable energy facilities; tax credits for purchases of energy-efficient furnaces, windows and doors, or insulation; tax credit for families that purchase plug-in hybrid vehicles.

BONUS DEPRECIATION

_ $5 billion to extend a provision allowing businesses buying equipment such as computers to speed up its depreciation through 2009.

REPEAL BANK CREDIT

_ Repeal a Treasury provision that allowed firms that buy money-losing banks to use more of the losses as tax credits to offset the profits of the merged banks for tax purposes. The change would increase taxes on the merged banks by $7 billion over 10 years.

___

Debt Limit

DEBT LIMIT INCREASE

_Increases the statutory limit on the national debt by $789 billion, to $12.1 trillion.

HOPE VI - We Keep Giving Fish Expecting Different Results

2009-02-06T07:55:00.002-05:00

Source: blogger, K Nicole Jones Presents: Crib Notes

When I lived in DC, my friends and I called the neighboring suburbs in Prince George County, ‘Greater Southeast’ (a reference to Southeastern D.C). Southeast D.C., was for, generations ubiquitous with urban decay—high poverty, high crime, and high blight with few exceptions. Prince George, on the other hand, was known for having the largest population of upper middle class African American residents. The most obvious reason for the population shift was the rising cost of living associated with gentrification.

But it was while I was an evaluator for a D.C.HOPE VI project (a HUD program started under the Clinton administration to raze physically and socially obsolete housing projects and turn them into mixed income communities), the reason for the shifting crime pattern became even more evident. It was not just gentrifications, but use of HOPE VI, as an urban renewal tool rather than a an inclusive “neighborhood revitalization” tool that was creating a storm of long term disaster.

Under the program, Housing Authorities are authorized to use Section 8 vouchers to help relocate tenants. While housing authorities are merely “required to provide eligible residents with relocation benefits and community and supportive services.”, there was little incentive to provide comprehensive support to residents looking to return or successfully integrate into new neighborhoods. The challenge of taking apart social networks and asking residents to move to places without them has been largely ignored. Instead, Housing authorities have shifted the pervasiveness of poverty out of the projects and scattered it about.

As it stands, less then 10% of former residents actually return to after construction is complete. Less than 20% of the new residents in most of these projects are even low to moderate income (less than 80% of area median income). Instead, former residents move to new communities with no support network and no means of figuring out how to create a new one. Though the legislation requires such support, providing it with families scattered across counties and cities is nearly impossible, and many families become invisible again–except this time without a social network.

Since HOPE VI began, crime has been exploding in the relatively stable near-in suburbs of many mid-sized cities like Mecklenburg(Charlotte) and North Memphis(Memphis); Maywood(Chicago) while it is subsiding substantially in many inner-cities. A study recently conducted by husband and wife team, Richard Janikowski, a criminologist with the University of Memphis, and Phyllis Betts, a housing expert also at the University of Memphis, drives the speculation toward fact. Betts and Janikowski put together a map of crime patterns and a map of section 8 rentals, and voila—they almost perfectly matched.

HOPE VI could be so much. But it is not. HUD should be incentivizing projects to figure out creative ways to re-integrate greater numbers of poor and moderate income residents into the new development (say at least 25%, for example) It should require housing authorities to design comprehensive, multi-tiered strategies to address joblessness, childcare, and eduation while also incentivizing the “step-up” from fully sibsidized housing to possible homeownership. Instead, it gives Section 8 vouchers and permission to housing authorities to simply say “go away.”

Don’t get me wrong, the goal of turning physically obsolescent, blighted public housing into modern, decent housing is of great importance, but the program should be more about creating economically and socially healthy communities and less about the beautification of real estate.

Its high time we time we stopped giving people fish and asking them to go away. Perhaps, its time we, at both the non-profit and public sector levels spend some more time teaching people how to fish instead. K Nicole Jones Presents: Crib Notes

Michelle Obama Visits HUD

2009-02-04T20:36:00.001-05:00

Source: The Washington Post

Michelle Obama greets Department of Housing and Urban Development employees today during a visit to the department's headquarters. (Photo by Saul Loeb/AFP/Getty Images)

First Lady Michelle Obama continued her tour of Federal agencies and departments today, stopping by the Department of Housing and Urban Development to thank staffers and remind them that their work is critical as Americans face housing troubles.

Today’s visit, coupled with a stop at the Department of Education earlier this week, was partly designed as a “listening tour,” a public thank you to the department's workforce and partly an effort to “rally the troops” as the Obama administration sets priorities. The order of her visits to federal offices is based on her schedule, not her policy priorities, aides stressed.

Both the physical set up and tone of today’s event resembled the hundreds of campaign appearances she made last year, to mostly welcoming crowds. Her remarks were mixed with serious comments and casual jokes.

Here are a few of the highlights:

-- “It’s of critical importance that we stem the tide of foreclosures and find a way to keep people in their homes,” she told several hundred HUD staffers at the department’s Washington headquarters.

-- “Homeownership, at least as I knew it growing up on the South Side of Chicago, has always been one of the building blocks for strong neighborhoods, for strong schools and for strong families. People who own their homes and take care of their homes, it leads to the well-being of the entire community. It’s critical.”

-- “The Department of Housing and Urban Development is going to play a critical role in implementing elements of the Economic Recovery and Reinvestment Plan that will help our communities,” she later said.

-- “Barack and I always believed that investing in the community that you live in first and foremost you live in is critical. And for the people here at this agency, we are now your neighbors,” she said to cheers.

-- “Many of you have been here for decades, working hard on these issues,” she said to cheers from the mostly African American crowd. “I can get an Amen on that,” she joked with a smile. More HERE

Boston housing sites land $11M from HUD

2009-01-30T15:34:00.000-05:00

Dallas.BizJournals.com reports: Two affordable-housing projects in Dorchester and West Roxbury will receive a total of $11.3 million in federal funding.

The federal funds will help pay for 110 new, affordable housing units for local residents. The funding is part of a U.S. Department of Housing and Urban Development (HUD) program which supports low-income elderly housing in rental developments.

In Dorchester, the Nuestra Comunidad Development Corp. received $5.3 million for the Quincy Commons development at the corner of Quincy Street and Blue Hill Avenue. The project will create 40 new units of affordable housing for elderly residents with income at 30 percent to 60 percent of the area’s median income, as defined by HUD. The project, which is awaiting approval from the Boston Redevelopment Authority (BRA), will also include 5,000 square feet of commercial space.

In West Roxbury, the 70-unit Cheriton Heights development received $6 million in HUD funds. The project’s developers are the Arab American Benevolence Association and The Community Builders. Forty of the 70 units will be reserved for low-income seniors and people earning at or below 30 percent of the area’s median income as defined by HUD. Twenty-three units will be rented to seniors earning at or below 60 percent of area median income and another seven units will be rented at market rates.

The project is awaiting final design approval from the BRA and Boston’s Department of Neighborhood Development. HERE

The Senate Appropriations Committee approves Obama Plan

2009-01-30T10:01:00.003-05:00

The Senate Appropriations Committee today approved its portion of the American Recovery and Reinvestment Plan, preparing the legislation for action by the full Senate. Further details of the legislation are available below. Link HERE

Please note: The following is a summary of the highlights of the proposed legislation only -
not a complete listing of all the programs or spending included in the legislation.

Highlights include:

Top line spending of approximately $142 Billion

Infrastructure Improvements:

• School Modernization: $16 billion to repair, renovate and construct public schools in
ways that will raise energy efficiency and provide greater access to information
technology, and $3.5 billion to improve higher education facilities.

• Broadband: A total of $9 billion for the National Telecommunications and Information
Administration’s (NTIA) Broadband Technology Opportunities Program. This
competitive grant funding will increase broadband access and usage in unserved and
underserved areas of the Nation, which will better position the U.S. for economic growth,
innovation, and job creation. Fifty percent of the funds are to be used for projects in rural
areas.

• Public Parks: $3.4 billion for repair, restoration and improvement of public facilities at
parks, forests, refuges and on other public and tribal lands.

• Department of Defense Facilities: The stimulus includes $2.4 billion for quality of life
and family-friendly military construction projects such as family housing and child care
centers. Based on estimates by the Army Corps of Engineers and the Navy Facilities
Engineering Command, and when combined with another $613 million in energy-related
military construction and upgrades, military construction funding provided in the
stimulus will create or sustain as many as 85,870 construction and construction-related
jobs in 47 states and the District of Columbia. 95 per cent of these funds will flow to the
private sector. Military Construction funding includes the following:

o Child Development Centers: $353.8 million for child development centers at U.S.
military installations.

o Health and Dental Clinics: $314.5 million for military family health care clinics.

o Warrior Transition Complexes: $505 million to meet the medical and social
service needs of wounded military personnel and their families.

o Military Family Housing construction, repair, and upgrades: $135 million to
improve housing conditions and speed the availability of housing to military
families.

o Barracks and Dormitories: $831.5 million to provide needed new and
replacement housing for America’s military troops.

o Army National Guard $150 million for community-based readiness centers.

o Air National Guard: $110 million, including funding for operational readiness,
energy upgrades, and alternative energy projects.

• $3.2 billion for Facilities Sustainment, Restoration and Modernization to be used to
invest in energy efficiency projects and to improve the repair and modernization of
Department of Defense facilities to include Defense Health facilities.

• The package includes $3.7 billion for VA hospital and medical facility construction and
improvements, long-term care facilities for veterans, and improvements at VA national
cemeteries. This funding includes $329 million in energy-related construction. The VA
estimates that this level funding will create an average of 102,823 jobs in all 50 states and
the District of Columbia. VA construction funding includes the following:

o Hospital and cemetery construction: $994 million to begin construction of new
hospitals and expedite the construction of projects already underway, and $111.5
million for national cemetery construction.

o Minor construction: $939.8 million for construction projects, repairs and
expansion of VA medical facilities, VA national cemeteries, and Veterans
Benefits Administration facilities and to initiate energy conservation projects.

o Medical facilities repair and maintenance: $1.37 billion to address the backlog of
maintenance and repairs at VA medical facilities.

o Grants for State Extended Care Facilities: $258 million for the repair and
construction of State long-term care veterans’ homes.)

o National cemetery infrastructure repair: $60 million repairs to national cemeteries
and monuments.

• $5.1 billion for the Department of Homeland Security to secure the homeland and
promote economic activity, including:

o $1.2 billion to accelerate procurement and installation of baggage screening and
checkpoint security equipment at airports across the country. For baggage
screening, a TSA investment study concluded that $8.2 billion over 20 years is
necessary to procure new optimal screening systems at airports. Today, only 25
percent of airports are fully equipped with optimal screening systems. These
funds will allow TSA to address high priority projects at approximately 20
airports. These funds will also allow TSA to purchase new checkpoint
technologies necessary to improve its explosive detection capabilities and respond
to newly identified threats. An insufficient number of air passengers today are
screened by technology that can identify explosive threats.

o $813 million for the Coast Guard, including construction and repair of shoreline
facilities, bridges that are a danger to navigation and for other critical assets.

o $800 million to reduce the $6 billion construction backlog for points of entry on
our borders, which will improve security and facilitate commerce.

o $500 million to secure high risk critical infrastructure such as dams, tunnels, and
bridges.

o $500 million for competitive grants to build fire stations.

o $398 million to secure our ports and rail and transit systems.

o $200 million for technology to help secure our borders.

o $250 million for competitive grants to construct state and local emergency
operations centers and fusion centers.

o $248 million for the consolidation of the Department of Homeland Security
Headquarters.

• Federal Buildings: $1.4 billion to GSA for construction and repairs for federal buildings
and courthouses. Projects are to be selected based upon their ability to be awarded within
120 days so that construction can begin as soon as possible.

• Border Stations: $1.2 billion to GSA for construction and repairs for GSA border stations
to improve border security.

• The bill includes $4.6 billion in funding for the Corps of Engineers: This funding is
anticipated to create as many as 37,000 direct new private sector jobs and as many as
102,000 indirect jobs for industries supplying the funded activities and providing goods
and services to the workers and their families. The funding provided includes:

o $2 billion is provided for a nationwide program of construction of major
rehabilitation of inland waterway locks and dams; dam safety/scour
repair/seepage stability correction measures; deep draft and coastal navigation
projects; flood control and storm damage reduction projects; major rehabilitation
of Corps owned and operated hydropower facilities; environmental restoration
projects; environmental infrastructure projects; and small projects under the
Continuing Authorities Program.

o $1.9 billion is provided for operation and maintenance activities across the nation
and will consist of dredging Federal harbors and waterways to authorized widths
and depths; major maintenance of flood control, navigation and public use
facilities (including improving energy efficiency at Corps owned buildings);
major maintenance of Corps owned and operated hydropower facilities;
environmental and cultural stewardship activities at Corps owned facilities; and to
continue the inventory and evaluation of our Nation’s flood control infrastructure.

o $500 million is provided for studies, construction, and maintenance of projects
along the mainstem and tributaries of the Mississippi River and Tributaries
Project.

o $100 million is included to accelerate clean-up activities at some of the Nation’s
early atomic energy facilities.

o $50 million is provided to pre-place materials and equipment for emergency
operations in preparation for natural disaster response.

o $25 million is provided to accelerate high priority flood control, navigation and
storm damage reduction studies.

o $25 million is included to address additional Regulatory permitting issues
generated by the additional work funded in the Bill.

• $1.4 billion in funding for the Bureau of Reclamation. This funding is anticipated to
create as many as 11,500 direct new private sector jobs and as many as 31,000 indirect
jobs for industries supplying the funded activities and providing goods and services to the
workers and their families. The funding provided includes: an inventory and analysis of
existing infrastructure, especially canals that could potentially impact population centers;
maintenance or replacement of Reclamation owned and operated infrastructure; drought
preparation and emergency response activities; improving energy efficiency at Bureau of
Reclamation owned facilities as well as for maintenance and rehabilitation of Bureau of
Reclamation owned and operated hydropower facilities; tribal and nontribal rural water
projects; water reclamation and reuse projects; construction of water delivery projects.

• The Department of Energy’s National Nuclear Security Administration Weapons
program gets $1 billion for maintenance and general plant project backlogs, construction
activities, decommissioning and disposition activities, various energy projects throughout
the complex, as well as funding for advanced computing development.

• $2.25 Billion for the HOME Investment Partnerships Program block grant to enable state
and local government, in partnership with community-based organizations, to acquire,
construct, and rehabilitate affordable housing and provide rental assistance to poor
families. Since 1990, this flexible block grant program has provided key financing for the
acquisition, construction, and rehabilitation of over 887,000 units and provided rental
assistance to over 200,000 poor families. HOME’s track record of success makes it the
ideal vehicle to help jump-start affordable housing projects in desperate need of ‘gap
financing’ due to the collapse of the Low Income Housing Tax Credit (LIHTC) market,
and to ensure that vulnerable families obtain and maintain stable housing during the
economic downturn. Additionally, the bill authorizes the Secretary of the Department of
Housing and Urban Development (HUD) to distribute up to 20% percent of authorized
funding ($450 million CONFIRM FIGURE) to incentivize investments of HOME funds
in projects that promote energy efficiency and green technologies.
Transportation:

• Highways: $27 billion is included for highway investments. The vast majority of this
funding will be distributed as grants using a formula set in current highway authorization
law. The vast majority of this funding will be distributed as grants using a formula set in
current highway authorization law. The funding can be used on activities eligible under
Federal-aid Highway Program’s Surface Transportation Program. Eligible activities
could also include rail and port infrastructure activities at the discretion of the states. The
grants will be provided in two parts:

o The first half of the funding will be provided to state governments, and must be
obligated within 180 days of the grants’ distribution. Any funds left unobligated
by the states after 180 days will be reallocated by the Federal Highway
Administration among the other states.

o The second half of the funding will be available for obligation for a full year from
the date of enactment. Of that funding 20 percent will be distributed to states and
80 percent will be distributed to local governments. Any unobligated balances
remaining after one year will be transferred to the competitive grants program
discussed below.

o Taken together, roughly 60 percent of the formula funding provided for highway
investments will be directed to states while 40 percent will be sub-allocated to
local governments.

• Within the $27 billion for highways, the bill includes the following set-asides:
o $320 million for grants to Indian tribes for transportation investments.
o $180 million for transportation improvements at national parks, forests, and
wildlife refuges.

• Mass Transit: The bill includes $8.4 billion for investments in public transportation. This
funding will be distributed by formula to local areas using formulas set in current transit
authorization law. Like the highway formula grants, the transit formula grants will be
provided in two parts: The first half of the funding must be obligated within 180 days of
their distribution, with any unobligated balances being redistributed among the other
grantees. The remaining funds must be obligated within one year of their distribution.
Any unobligated balances will be transferred to the competitive grants discussed below.
The funding for public transportation includes $200 million for grants to public transit
agencies for capital investments that will reduce the energy consumption or greenhouse
gas emissions of their public transportation systems.

• Competitive Grants for Transportation: The bill includes $5.5 billion for competitive
grants to state and local governments for transportation investments. These grants will go
to a many different kinds of transportation investments – including highway, transit, rail,
or port infrastructure – but the bill requires that projects must have a significant impact
on the nation, a region, or a metropolitan area. Grants for this funding will be made from
the $5.5 billion appropriated directly to the program, as well as any amounts transferred
as a result of the “use-it-or-lose-it” provisions applied to the highway and transit formula
grants.

• Aviation: The bill includes $1.3 billion for investments in our air transportation system.
This total funding level includes:

o $1.1 billion for grants to airports for capital investments. Airports use these
grants to improve safety and increase capacity. The investments made with this
funding will create jobs in communities across the country.

o $200 million for the facilities and equipment of the Federal Aviation
Administration (FAA). FAA facilities are in disrepair, including the buildings
where the agency manages our domestic airspace. Replacing or repairing these
facilities will create nonfederal jobs.

• Railroads: The bill includes $3.1 billion for investments in rail transportation. This total
funding level includes the following amounts:

o $2 billion for grants for investments in high speed rail corridors. This funding
will be provided through an authorized program for capital investments in
designated high-speed rail corridors.

o $250 million for grants to states for investments in intercity passenger rail. Such
investments are expected to maintain, improve, or expand existing intercity
passenger rail service.

o $850 million for capital grants to Amtrak. The grants will support a national
system for passenger rail, and no more than 50 percent of the funding provided in
the bill may be used on the Northeast Corridor.

• Maritime Transportation: The bill includes $160 million for investments in maritime
transportation. This total funding level includes the following amounts:

o $100 million for grants to small shipyards. These grants will allow shipyards to
make the necessary investments and improvements to make small domestic
shipyards more competitive in the shipbuilding industry. This funding will assist
shipyards in increasing capacity and creating jobs.

o $60 million for grants to states for the construction of ferry transportation
systems, an authorized program under current highway authorization law.

• Public Lands Roads: The bill includes $830 million for repair and restoration of roads on
park, forest, tribal and other public lands.
Public Housing:

• Public Housing Capital Fund: The bill provides $5 billion to the public housing capital
fund to enable local public housing agencies to address a $32 billion backlog in capital
needs -- especially those improving energy efficiency in aging developments -- in this
critical element of the nation’s affordable housing infrastructure. $3 billion will be
distributed by formula and $2 billion competitively to incentivize innovative and largescale
projects. The investment will also yield significant economic benefits, including
generating $2.12 cents in local economic activity for every dollar and creating or
preserving 140,000 jobs in the housing construction sector devastated by the current
recession.

• Project-Based Stability: The bill provides just over $2.1 billion for full year payments to
owners receiving Section 8 project-based rental assistance. By providing funding for a
full year, it will send a signal to these owners and others thinking of investing in
affordable housing that the government can pay their bills on time and in full. In
addition, owners that want to participate in the energy retrofit program will have to agree
to additional periods of affordability and it is important that they have confidence in the
government’s ability to pay their bills.

• Neighborhood Stabilization Program: The bill includes $2.25 billion for the
redevelopment of abandoned and foreclosed homes. In addition to states and cities, nonprofits
will also be able to compete for this funding. The funding will be used to support
communities across the country hardest hit by the foreclosure crisis.

• Homelessness Prevention Fund: The bill includes $1.5 billion for homeless prevention
activities, which will be sent out to states, cities and local governments through the
emergency shelter grant formula. The funding will be used for prevention activities,
which include: short or medium-term rental assistance, first and last month’s rental
payment, or utility payments. As such, most of this funding will go directly into the
economy of local communities as the funds will be used to pay housing and other
associated costs in the private market.
Environmental Clean-Up/Clean Water:

• $6.4 billion is directed towards environmental cleanup of former weapon production and
energy research sites. These projects will be of limited duration aimed at decreasing the
overall site footprint and reducing recurring annual costs. This work will move toward
decreasing the footprint at some sites by up to 90%. The footprint reduction will free up
these lands for other economic purposes. This funding will not only spur the economy
through job creation now, but it will save the tax-payers money in the future by resulting
in over $8 billion in life-cycle cost savings. Significantly, the majority of the funding
will go out through existing contracts at sites across the country assuring the timely
impact of the funding.

• $6 billion for local clean and drinking water infrastructure improvements, including
$4 billion for the Clean Water State Revolving Fund and $2 billion for the Drinking
Water State Revolving Fund. The bill includes provisions to allow broad eligibility for
Clean and Drinking Water State Revolving Funds, including the authority for States to
offer negative interest loans and principal forgiveness for up to 100 percent of the cost of
projects.

• $1.4 billion for EPA’s nationwide environmental cleanup programs, including Superfund.

• $1.4 billion to support $3.8 billion in loans and grants for needed water and waste
disposal facilities in rural areas. A substantial and longstanding backlog exists of
approved applications for clean water and waste disposal projects in rural communities.
These funds would help alleviate that backlog and are estimated to create 87,000 private
sector jobs. Not only will the installation of water and waste disposal systems provide
long-term economic benefit to rural communities, the short term benefit of construction
activity will also benefit those local economies.
Science:

• National Science Foundation (NSF) Research: $1.4 billion total for NSF including: $1 billion
to help America compete globally; $350 million for scientific infrastructure; and $50 million
for competitive grants to improve the quality of science, technology, engineering, and
mathematics (STEM) education.

• National Aeronautics and Space Administration (NASA): $1.5 billion total for NASA
including: $500 million for Earth science missions to provide critical data about the Earth’s
resources and climate; $250 million to enable research and testing of environmentally
responsible aircraft and for verification and validation methods for complex aerospace
systems and software; $500 million to reduce the gap in time that the U.S. does not have a
vehicle to access the International Space Station; and $250 million for repair, upgrade and
construction at NASA facilities.

• National Oceanic and Atmospheric Administration (NOAA): $1.2 billion total for NOAA,
including $772 million to construct and repair NOAA facilities, equipment and vessels; to
$80 million to reduce the Nation’s coastal charting backlog; $70 million for supercomputer
infrastructure for climate research; and $300 million to restore critical habitat around the
Nation.

• National Institute of Standards and Technology (NIST): $575 million total for NIST
including: $357 million for renovation of NIST facilities and new laboratories using green
technologies; $218 million for scientific and technical research at NIST to strengthen the
agency’s IT infrastructure; provide additional NIST research fellowships; provide substantial
funding for advanced research and measurement equipment and supplies; increase external
grants for NIST-related research.

• The Department of Energy’s Science program sees $430 million for laboratory infrastructure,
for construction, and for advanced computing development.

Education and Training

In order to compete in the 21st century, Americans must have a well-educated workforce, capable of adapting to an ever-changing economic environment. Investing in education now will ensure that the next generation of American workers is ready and able to meet the challenge of global competition. In the near-term, millions of workers have seen their jobs disappear, and find
themselves unable to match their skill sets with existing opportunities. Providing job training in
new and expanding fields will help to lower the unemployment rate and help today’s workers
better compete against foreign competition. Highlights include:

Top line spending of approximately $125 Billion

Education:

• $79 billion State Fiscal Stabilization Fund includes $39 billion to local school districts
and public colleges and universities, distributed through existing State and federal
formulas; $15 billion to States as incentive grants as a reward for meeting key education
performance measures; and $25 billion to States for other high-priority needs such as
public safety and other critical services, which may include education.

• Title I: $13 billion to help close the achievement gap and enable disadvantaged students
to reach their potential.

• Special Education/IDEA: $13 billion to improve educational outcomes for disabled
children. This level of funding will increase the Federal share of special education
services to its highest level ever.

• Pell Grants: $13.9 billion to increase the Pell Grant maximum award and pay for
increases in program costs resulting from increased eligibility and higher Pell Grant
awards. The bill supports an increased Pell Grant maximum award of $281 in the 2009-
2010 academic year and $400 in the 2010-2011 academic year. This aid will help 7
million students pursue postsecondary education.

Training:

• Training and Employment Services: $3.4 billion for job training including State formula
grants for adult, dislocated worker, and youth programs (including $1.2 billion to create
up to one million summer jobs for youth). The training and employment needs of workers
also will be met through dislocated worker national emergency grants, new competitive
grants for worker training in high growth and emerging industry sectors (with priority
consideration to “green” jobs and healthcare), and increased funds for the Job Corps and
YouthBuild programs. Green jobs training will include preparing workers for activities
supported by other economic recovery funds, such as retrofitting of buildings, green
construction, and the production of renewable electric power.

• Vocational Rehabilitation State Grants: $500 million for state formula grants to help
individuals with disabilities prepare for and sustain gainful employment.

• Employment Services Grants: $400 million to match unemployed individuals to job
openings through state employment service agencies and allow States to provide
customized reemployment services.

Energy

The bill provides investments in areas critical to the development of clean, efficient, American
energy, including modernizing energy transmission, research and development of renewable
energy technologies, and modernizing and upgrading government buildings and vehicles.
Highlights include:

Top line spending of approximately $49 Billion

• The Bill provides $40 billion to the Department of Energy for development of clean,
efficient, American energy. The Bill invests in boots-on-the-ground projects and
activities that get people back to work as well as energy research, demonstration, and
deployment that will provide for our future and assure a cleaner environment.
o A total of $2 billion is provided in grant funding for the manufacturing of
advanced batteries systems and components and vehicle batteries that are
produced in the United States, including advanced lithium ion batteries, hybrid
electrical systems, component manufacturers, and software designers. Batteries
are central to our efforts to decrease the oil dependence of our vehicles.

o An additional $2.6 billion is for energy efficiency and renewable energy research,
development, demonstration and deployment activities to accelerate the
development of technologies that will diversify the Nation’s energy portfolio and
contribute to a reliable, domestic energy supply. Biofuels, geothermal, water,
wind, solar, and efficiency projects will be deployed to demonstrate and improve
our use of renewable energy.

o $4.2 billion is provided for Energy Efficiency and Conservation Grants.

o $1.6 billion is provided for grants to make schools and hospitals, significant users
of energy, more energy efficient.

o $2.9 billion is available for the Weatherization Assistance Program.

o There is $4.6 billion for Fossil Energy research and development, including $2
billion for one or more near-zero emissions, $1 billion for the Department’s Clean
Coal Power Initiative Round III Funding Opportunity Announcement and $1.6
billion for a competitive solicitation for projects that demonstrate carbon capture
from industrial sources.

o The Bill provides $350 million for grants administered through the Clean Cities
program of the Department for acquisition and alternative fuel or fuel-cell
vehicles once again decreasing our dependence on foreign oil.

o The Bill provides $200 million for grants to states to plan and deploy electrical
infrastructure projects that encourage the use of plug-in electric drive vehicles and
for near term large-scale electrification projects aimed at the transportation sector,
including seaports.

o The State Energy Programs are provided $500 million.

o The bill has a significant focus on the transmission system. This is in recognition
of the fact that over the past decade electricity demand has grown by 20%, but
transmission capability has only increased 5%. Further, as we push to get more
renewable energy sources on line we will need to build out our bulk transmission
lines to get stranded renewable energy on line. These stranded renewable
resources are mainly in the west and the Great Plains.

o With this recognition the bill includes $4.5 billion for smart-grid related activities,
including work to modernize the electric grid, enhance security and reliability,
perform energy storage research, development, demonstration and deployment,
and provide worker training. A smart-grid will help create greater energy
efficiency, reliability, and security.

o A total of $10 billion is provided for new loan guarantees aimed at standard
renewable projects such as wind or solar projects and for electricity transmission
projects.

o $6.5 billion of increased borrowing authority is provided to the Bonneville and
Western Area Power Administrations ($3.25 billion each) to pursue the
construction of new transmission and upgrading of electric power transmission
lines and related facilities necessary to deliver power generated by renewable
energy resources. WAPA and BPA will be critical entities in our push to bring
large new sources of renewable energy on to the grid.

• GSA Federal Fleet: $600 million to replace older motor fleet vehicles owned by the
Federal Government with alternative fuel automobiles that will save on fuel costs and
reduce carbon emissions.

• Green Buildings: $6 billion for repair of federal buildings to increase energy efficiency
using green technology. Funding will help eliminate the backlog of $8.4 billion in
building repair projects.

• $1.3 billion for grants or loans to owners of the Department of Housing and Urban
Development’s assisted housing for energy and green retrofit investments. In order to
receive this funding these owners must meet certain standards and agree to certain terms
and conditions. Most importantly, they must agree to an additional period of
affordability of at least 15 years.

• $613 million for energy efficiency upgrades and construction of alternative energy
projects, including wind and solar power and photovoltaic roof systems, at Department of
Defense facilities... The Department of Defense is the largest consumer of energy in the
Federal government, and has made energy conservation a key component of new
construction. As well as contributing to energy efficiency and innovation within the
Department of Defense, energy-related military construction funding has the potential to
stimulate construction and manufacturing jobs in the energy and alternative energy
industry. Defense Department energy construction funding includes the following:

o Energy Conservation Investment Program: $118.5 million for energy
conservation projects, energy upgrades, and construction of alternative energy
projects such as wind power and photovoltaic systems at military installations
Department-wide.

o Navy Energy Construction and Improvements: $494.4 million for Navy energy
efficiency upgrades and construction of alternative energy projects, including
wind and solar power and photovoltaic system installation.

• $400 million for rural business initiatives including development of renewable energy.

o Biorefinery Assistance: $200 million for loans and grants to assist in the
development of new and emerging technologies for the development of advanced
biofuels.

o Rural Business Programs: $150 million to support $3 billion in loans and grants
to support income and employment expansion through improved business
opportunities in rural areas. These programs serve as the primary USDA tools for
business development in the rural sector and are made available to rural areas
with a population of 50,000 or less. As sources of private credit have become
more restrictive the demand for these programs has gone up. Additionally, the
Small Business Administration has reduced its lending, shifting interest to these
programs. It is estimated these funds will create 34,600 private sector jobs.

o Rural Energy for America Program: $50 million for loans and grants to promote
energy efficiency and renewable energy development for agricultural producers
and rural small businesses. These funds are used by agricultural producers, rural
small businesses, and rural schools to become more energy efficient and to use
renewable energy technologies and resources through investments in renewable
energy systems and other energy efficient systems. It is estimated these funds
will create 1,600 private sector jobs.

Protecting the Vulnerable:

The current economic crisis has affected all Americans, but none more so than the most
vulnerable among us. The spending proposed here will serve to lessen the blow of the current
recession, providing immediate relief for children, the poor, and others who may find themselves
struggling to put food on the table or a roof over their head. It will also address the urgent need
to provide safe and secure places to live, even in neighborhoods that are struggling with high
unemployment and surging foreclosure rates.

Top line spending of approximately $25 Billion
*utrition:

• $16.5 billion for additional Supplemental Nutrition Assistance Program (SNAP),
formerly Food Stamps, benefits. According to a USDA Economic Research Service
study, $5 billion in SNAP spending triggers $9.2 billion in economic activity.

• $500 million for the Special Supplemental Program for Women, Infants, and Children
(WIC). The Committee recommends a total of $500 million for WIC. In addition, the bill
provides $150 billion for Food Banks.
• Senior Meals: $100 million to help senior meals programs cope with steep increases in
food and fuel costs. Many programs are reducing meal deliveries to seniors or closing
meal sites. The funding in the bill will result in an additional 30 million meals served.
Helping Children:

• $4.6 billion to increase investments in early childhood programs.

o Child Care Development Block Grant: $2 billion to provide quality child care
services for an additional 300,000 children in low-income families who
increasingly are unable to afford the high cost of day care.

o Head Start & Early Head Start: $2.1 billion to allow an additional 124,000
children to participate in this program, which provides development, educational,
health, nutritional, social and other activities that prepare children to succeed in
school.

o IDEA Early Childhood Education: $500 million for formula grants to help states
serve children with disabilities age 2 and younger. Additionally, at least 15
percent of funds available from the $13 billion investment in Part B Grants for
Special Education must be used for services to pre-school age disabled children.
Other Programs:

• Community Development Financial Institutions: $250 million to immediately provide
capital to qualified community development financial institutions (CDFIs) to invest in the
development of underserved communities.

• Social Services Block Grant: $400 million for States and local non-profits to deliver critical
services to unemployed and low-income individuals struggling with the effects of the
recession.

• Community Services Block Grant: $200 million to local community action agencies (CAAs)
for services to the growing numbers of low-income families hurt by the economic crisis, such
as housing and mortgage counseling, jobs skills training, food pantry assistance, as well as
benefits outreach and enrollment.

• Homeowners Assistance Program: $410.9 million to expand the Department of Defense
Homeowners Assistance Program (HAP) during the national mortgage crisis. Currently, HAP
provides financial assistance to military and some civilian personnel who suffer severe
financial loss or face foreclosure when property values decline as a result of a base closure.
In the current nationwide mortgage crisis, it is virtually impossible to demonstrate a direct
connection between home values and base closures, and military families throughout the
country facing orders to relocate are suffering from the consequences of plummeting
property values. This funding temporarily extends HAP benefits to all BRAC 2005
relocations without requiring a direct link between home values and individual base closures;
temporarily extends HAP benefits to all military personnel who receive permanent orders to
relocate during the nationwide mortgage crisis; and expands HAP benefits to wounded
warriors who must relocate for medical treatment, or to surviving spouses.

• Rural Housing Programs. The Committee recommends $200 million to support $11.5 billion
in loans that will provide an estimated 105,000 very low to moderate-income rural
households the opportunity of homeownership or avoid the risk of foreclosure, especially
during this period of uncertainty in the housing market. Given the role of housing markets in
the current economic downturn, these housing loans will help ease the credit shortfall by
allowing current borrowers to refinance existing RHS loans, and to refinance non-RHS loans
if the borrower would now be eligible for a RHS direct loan. These funds will also assist
potential borrowers in achieving home ownership, thereby removing existing vacant housing
from the market which will help stabilize the overall housing market. Demand for this
program is rising at a substantial rate, especially for guaranteed loans and it is estimated these
funds will create 2,800 private sector jobs.

• $200 million for AmeriCorps to place national service members in community organizations
caught between dramatically expanding populations in need and diminishing donations.

Health

The bill provides investments in areas critical to immediate and long-term healthcare for millions of Americans. Improved information technology, research facilities, and health and wellness programs, will all provide a better foundation for providing quality healthcare to consumers.

Highlights include:

Top Line spending of approximately $16 Billion

Health Information Technology

• Health Information Technology: $5 billion to jumpstart efforts to computerize health records
to cut costs and reduce medical errors.
Research

• $3.5 billion to conduct biomedical research in areas such as cancer, Alzheimer’s, heart
disease and stem cells, and to improve NIH facilities.

• $1.1 billion to the Agency for Healthcare Research and Quality, NIH and the HHS Office of
the Secretary to evaluate the relative effectiveness of different health care services and
treatment options.

Treatment and Prevention

• Prevention and Wellness: $5.8 billion to fight preventable diseases and conditions with
evidence-based strategies, including:

o $750 million for immunization through the Section 317 program

o $1 billion for additional health screenings and education to prevent chronic
illnesses

o $400 million for grants to communities for health promotion

o $75 million for additional smoking cessation programs

o $600 million for training of health professionals including equipment,
scholarships and loan repayment

o $65 million for grants to States to upgrade newborn screening and vital statistics
equipment

o $400 million for HIV and STD testing programs

o $60 million for research and surveys on the current state of health and best ways
to reduce health care costs

• Pandemic Flu - $870 million to complete funding for pandemic flu preparedness.
Small Business, Law Enforcement, Other

• $110 Million for GAO and Agency Inspectors General in order to provide appropriate
oversight of spending contained in this bill.

• Loans for Small Businesses: $730 million to stimulate lending to small businesses, including

$630 million to support $20 billion in zero-fee or reduced-fee loans to small businesses and

$30 million for loans and critical technical assistance to “micro” borrowers. The dollar
amount of loans guaranteed under the SBA’s two largest business loan programs was down

40% in the first quarter of this year compared to last.

• State and Local Law Enforcement: $3.95 billion total to support law enforcement efforts,
including: $1.5 billion for Byrne Justice Assistance formula grants; $440 million for competitive grants to prevent crime and improve criminal justice; $1 billion for the COPS hiring grant program to put approximately 13,000 new cops on the beat and pay 75 percent of
the cops’ salaries for three years; $300 million for grants to fight domestic violence; $100
million for crime victims compensation and assistance; and $50 million grants to States to
track down cyber predators who prey on children. More HERE

Banned From Public Housing In Annapolis, MD

2009-01-29T14:07:00.003-05:00

The American Civil Liberties Union has threatened to take legal action if the city of Annapolis does not change its policy of banning people from public housing communities by month's end.

In a letter sent to the Housing Authority of the City of Annapolis this month, the ACLU and Washington law firm Orrick, Herrington and Sutcliffe said that policy "violates clearly established Maryland law, which provides that ... a public housing's tenant's invited guests ... [cannot] be guilty of criminal trespass." Full Story

Stimulus Package Funds would modernize housing

2009-01-29T13:43:00.002-05:00

Source: Seattle Housing.org

Puget Sound housing authorities (Seattle, King County and Tacoma) recently met with Congressional staff to urge them to add $5 billion to the Public Housing Capital Fund as part of the second emergency stimulus appropriations bill now being considered by Congress. This infusion would stimulate the local economy, create jobs, and modernize the region's public housing inventory.

Public housing currently serves about 3 million low-income residents nationwide. With an infusion of capital from the stimulus package, area housing authorities could begin immediately to address a combined $62 million backlog of projects.

"It simply makes sense to invest in public housing during this period of national economic turmoil," said Tom Tierney, executive director of the Seattle Housing Authority. "Public housing is a critical resource for low-income households and low-wage workers, the populations that are most seriously affected by the current financial crisis. But they are not the only beneficiaries. Investment in our public housing communities also benefits the wider community. By providing high quality, affordable housing to a low-wage workforce, employers also benefit."

"Making these funds available will have significant benefits for this region's economy," said King County Housing Authority Executive Director Stephen Norman. "These projects will generate construction-related jobs along with the related purchase of materials and durable goods. Addressing the backlog of deferred capital repairs, such as roofs and heating systems, will preserve and enhance our public housing stock, a significant public asset spread throughout the region. These projects will greatly increase energy efficiency, helping trim greenhouse gases and lower the operating costs of public housing over the long term."

The Council of Large Public Housing Authorities reports that momentum is building to include funding for public housing in an economic recovery bill. President-elect Obama's transition team has indicated that it is most interested in identifying "shovel-ready" projects. This means projects that could be underway in 120 days or less. Locally, the housing authorities envision being able to continue work on HOPE VI projects that has slowed due to the combined slowdown of the housing market and the credit markets. Work might also include renovation and addition of more energy-efficient systems in existing buildings.

Following recent discussions with House committee staff, housing sub-committee chair Maxine Waters (D-CA) wrote a letter to House Speaker Nancy Pelosi (D-CA) advocating for inclusion of $5 billion for the Public Housing Capital Fund in any economic stimulus package.

Groups such as the National Governors Association, the U.S. Conference of Mayors and the National Low Income Housing Coalition have also been working to include money for public housing in the stimulus bill. Congressional leaders have expressed their intent to have an economic recovery plan ready for President-elect Obama's signature on January 20 when he takes office. More HERE

House Passes Obama Stimulus Package $11 Billion For Public Housing

2009-01-29T09:55:00.005-05:00

Nearly $30 billion would go to increase food stamps, low-income heating assistance, assistance provided under federal Supplemental Security Income, aid for the homeless and Temporary Assistance for Needy Families block grants. A total of more than $11 billion would fund repair and modernization of public housing, help communities build and rehabilitate low-income housing using green technologies, and enable communities to purchase and rehabilitate foreclosed and vacant properties. More on the American Recovery and Reinvestment Plan unveiled on Jan. 15 by House Democrats.

House Votes For Obama Stimulus Plan

2009-01-29T08:51:00.001-05:00

No GOP Votes!

The Washington Post reports: The House approved an $819 billion stimulus package on a near party-line vote yesterday, a plan breathtaking in size and scope that President Obama hopes to make the cornerstone of his efforts to resuscitate the staggering economy.

Obama engaged in an all-out lobbying push for the bill, which is among the most expensive pieces of legislation ever to move through Congress, and marked a big victory for his presidency a little more than a week into his term. He will now turn his attention to the Senate, where Democrats are scheduled to begin debate on the measure on Monday and the price tag is likely to reach $900 billion.

Larger than the combined total cost of the wars in Iraq and Afghanistan so far, the two-year stimulus plan would provide up to $1,000 per year in tax relief for most families, dramatically increase funding for alternative energy production, and direct more than $300 billion in aid to states to help rebuild schools, provide health care to the poor and reconstruct highways and bridges.

But Obama's personal salesmanship effort failed to secure a single Republican supporter for the spending plan, which passed on a 244 to 188 vote. Just a day after the president spent more than an hour behind closed doors at the Capitol seeking their support, all 177 House Republicans opposed the measure, arguing that it would spend hundreds of billions of dollars on initiatives that would do little to stimulate the economy. Eleven Democrats opposed the bill.

In a statement issued after the early evening vote, Obama said he was "grateful" for the House action.

"There are many numbers in this plan," he said in the statement. "But out of all these numbers, there is one that matters most to me: This recovery plan will save or create more than 3 million new jobs over the next few years."

While Obama made no mention of the unanimous Republican opposition, a top adviser immediately warned of the political fallout GOP lawmakers could face from constituents struggling in tough economic times.

"There will be people in districts all over the country that will wonder why, when there's a good bill to get the economy moving again, while we still seem to be playing political gotcha," White House press secretary Robert Gibbs said in an interview.

Some moderate Republicans who opposed the bill left open the chance of supporting the final version if the White House and Senate address their concerns about spending. And Democrats remain hopeful of securing a more bipartisan result in the Senate, where committee action has driven up the cost as the amount of tax relief has increased, something Republicans have demanded before they will consider offering their support.

In addition to other tweaks to the tax portion of the package, the Senate Finance Committee added a $70 billion fix to the alternative-minimum tax to the chamber's version of the bill, a provision aimed at preventing the tax from being applied to middle-class households, pushing the total cost to at least $890 billion.

The Finance Committee also added a provision that would reduce taxes on businesses that buy back their own debt at a discount. Senators in both parties were readying amendments to make further changes, including a proposal that would dramatically reduce taxes, from 35 percent to 5.25 percent, on corporate profits earned abroad and brought back to the United States.

Advocates say that the measure, sponsored by Sens. Barbara Boxer (D-Calif.) and John Ensign (R-Nev.), would prompt companies to "repatriate" hundreds of billions of dollars, money that could be used to expand domestic operations and save jobs. Supporters estimate it could increase federal tax revenue by as much as $40 billion. More HERE

How They Voted: H.R.1

American Recovery and Reinvestment Plan - Housing Issues

2009-01-27T15:33:00.004-05:00

Source: Gotham Gazette

The version of the American Recovery and Reinvestment Plan unveiled on Jan. 15 by House Democrats is breathtaking in its scope and cost. Intended to retain and create 3.7 million jobs over the next two years, the $825 billion package of federal government investments includes dozens of spending measures ranging from $200 billion in fiscal relief to help state and local governments, to $6 billion to extend broadband to rural areas, a 21st century version of Depression-era rural electrification. Two thirds of the total value consists of spending, with one third for tax cuts.

Negotiated with President Barack Obama's transition team, the plan - a.k.a. Stimulus II or ARRP - is an important first step to halt the downward economic spiral triggered by last fall's financial meltdown. As large as it is, though-5 percent of gross domestic product-it is not sufficient to create a sustained recovery. Two other steps are essential. First, more dramatic action is needed to put the brakes on the collapsing housing market. Second, making a recovery sustainable will require a set of policies to lift wages and bolster the middle class. Without these two complementary steps, ARRP might provide temporary relief for our economic illness but not a cure.

Helping the States

Whatever its limitations as a long-term solution, ARRP will provide much-welcome short-term budget relief for New York and other states (45 states face budget gaps). The plan will increase the federal share of Medicaid spending and provide billions in education aid to states and school districts. Both of these measures will help to moderate the severe budget cuts proposed by Gov. David Paterson. New York State should receive upward of $10 billion - and possibly as much as $15 billion - over two years -- funds that will help close the state's budget gaps. Such federal relief will help states maintain their spending and prevent spending cuts or tax increases, both of which would have intensified the downward economic spiral.

Help for a Teetering Economy

A year ago, Congress and the Bush administration agreed to a $150 billion stimulus package that consisted largely of tax rebates. Most economists now agree that last year's stimulus was not up to the task because tax cuts provide less "economic bang for the buck" than most other forms of stimulus. Economic forecaster Mark Zandi, a former advisor to presidential candidate John McCain, estimates that every dollar in tax cuts generates only $1.01 in economic activity, much lower than the spending impact of increasing unemployment compensation ($1.63), state fiscal relief ($1.38) or spending on infrastructure ($1.59). Also, since the tax rebate checks were sent out in May and June, when gasoline prices were skyrocketing, many recipients spent the money to cover their gas costs.

The magnitude of a proposed second stimulus has mounted steadily since last September's financial market meltdown and the ensuing sharp collapse in the consumer spending that accounts for 70 percent of demand in the economy. The spending collapse was compounded by a credit market freeze as Wall Street firms and banks confronted a mountain of bad debts created by high-risk lending and unregulated gambling. The crash of the housing and stock markets destroyed literally trillions in home equity and retirement savings held by millions of middle class households. Along with steadily mounting job losses, this caused households to sharply reduce spending. The collapse of consumer spending is thought to have pulled GDP down by as much as 5 percent during the fourth quarter of 2008.

It is no exaggeration to say that this is the worst economy since the Great Depression. The 2.6 million jobs lost in 2008 were more than in any year since 1945. Overall unemployment could be 9 percent by the end of the year and 11 percent in 2010 in the absence of the recovery plan, according to economist Zandi. Already, unemployment among adult black men is 13.4 percent. Housing prices have fallen 25 percent on average. There were 2.25 million home mortgage foreclosures last year, and one out of every six homeowners owes more on their mortgage than their house is worth.

What Stimulus II Would Do

The proposed American Recovery and Reinvestment Plan is a 21st century version of a government-led recovery and investment program, combining some of the best elements of the Depression-era Works Progress Administration, the Eisenhower era commitment to build the Interstate Highway System, the Apollo Project, and the Great Society. The plan includes spending that will not only provide some short-term stimulus but will increase the long-term productive capacity or efficiency of the economy.

One of the biggest components is $52 billion for various "green jobs" programs from weatherizing public buildings (see related story) and homes to reduce energy demand, to developing a "smart" electric power grid that is both more reliable and better able to transmit clean, renewable energy.

The package would also create jobs by spending $67 billion for infrastructure. Because of the urgent need to boost jobs as quickly as possible, it emphasizes "shovel ready" projects, including mass transit systems, highways, bridges, airports, national parks, water and sewer systems, flood control, and environmental cleanup. The Metropolitan Transit Authority will be able to use some of these monies to fund some of the construction projects and equipment needs in its capital budget. Governor David Paterson submitted an extensive list of 1,922 "ready-to-go" projects to the Obama transition team.

This second stimulus package provides $12 billion to support forward-looking research and development investments that could be particularly important in the future, including biomedical, climate change and alternative energy research, and funds to modernize and expand government and university research facilities.

The ARRP includes $5 billion for job training and employment services, including $1.2 billion to create 1 million summer jobs for youth. It offers additional -- and substantial funds -- for worker training and education as part of the education, healthcare, and science and technology initiatives. There is $5 billion for early childhood development, including additional slots in subsidized childcare and Head Start.

A particularly critical part of ARRP is aid to the unemployed. The program includes $36 billion to extend and modestly increase unemployment benefits, and incentives to encourage states to expand unemployment insurance coverage for low-wage and part-time workers. An additional $30 billion would subsidize health coverage for unemployed workers and provide 100 percent federal funding (i.e., dropping the requirement for a state match) for two years for Medicaid-eligible workers who become unemployed.

Stimulus II and New York

New York's unemployed workers, their families, the state government and local governments and the broader New York economy will benefit significantly from this much-needed and unprecedented economic recovery plan. New York, though, must make sure that the billions of federal dollars it will receive for infrastructure, energy development and other projects lead to the creation of good jobs that provide decent wages, benefits and career development opportunities. This plan also presents New York with a golden opportunity to develop a strategic plan to revitalize the upstate economy and help the downstate economy adjust to a permanently smaller role for the finance sector.

Stopping the Housing Collapse

The Obama team has suggested ways to use some of the remaining funds from the $700 billion Emergency Economic Stabilization Act, the so-called "bailout" that was passed in early October, to address the housing crisis. In a Jan. 15 to Congress, Larry Summers, who is to be director of the National Economic Council, indicated the new administration would commit $50 billion to $100 billion to "reduce the number of preventable foreclosures," reform bankruptcy laws, revamp the modest Hope for Homeowners program, and require banks receiving bailout assistance to "implement mortgage foreclosure mitigation" programs.

These measures can only help but may well not be sufficient to ensure that banks renegotiate mortgages on the scale necessary to halt the slide in housing prices. Until that happens, housing prices may fall further and the value of the mortgages and mortgage-backed assets that dominate the balance sheets of the major financial institutions will remain questionable. Investor's suspicions about the "toxicity" of these assets have paralyzed credit markets for most of the past year.

Originally, the $700 billion financial "bailout" was supposed to take those toxic assets off the hands of the banks, under the Trouble Asset Recovery Program or TARP. Some of the remaining $350 billion could be used for this. Now, though, the incoming Obama administration appears to be considering whether to provide another round of massive funding ($1 trillion or more) to salvage bank portfolios.

Given the magnitude and character of the federal interventions so far, the banking system already has been effectively nationalized and is "private" in name only. While the government has allowed bank executives to remain in control, at some point, Washington leaders will have to decide whether taxpayers might be better served by completing the nationalization of the banking system rather than trying to revive banks that have impaled themselves on massive amounts of toxic assets. To date, the overall magnitude of taxpayer resources pledged to financial market rescue can only be described as "galactic" -- $7 trillion to $8 trillion in capital infusions, low-interest loans and federal guarantees.

Boosting the Middle Class

Along with the dual collapse of the housing and financial markets, the middle class squeeze played a major role the current economic precariousness. Wages have not kept pace with productivity or with the health and retirement security costs employers have shifted to workers. As a result, the average working family has been forced to take on substantial home equity or credit card debt in recent years to try to maintain living standards. The absence of a firm foundation for middle class prosperity meant that economic growth from 2003 to 2007 was possible only because of the economy's bubble tendency and the excessive reliance on borrowing at every level.

Boosting the middle class through higher wages and increased economic security involves such things as passage of the Employee Free Choice Act that will remove barriers imposed by the current labor law system that frustrate workers' efforts to join unions.

The American Recovery and Reinvestment Program is an essential step for the U.S. to take in pulling the economy out of this historic slump. As the House leadership's version of ARRP is negotiated in the House and with the Senate, it is critical that the provisions aiding states and low-income populations remain the centerpiece and that any business tax cuts be limited. To achieve a balanced and long-lasting prosperity, however, other actions will be needed to resolve the housing crisis and to rebuild the middle class. Without such policies, the recovery and reinvestment plan might create a short-term rebound but one that will fizzle out after two or three years.

The new administration gives every indication that it is aware of the need for these complementary actions. Time will tell whether it can achieve initial success on the economic recovery front and build the political support to turn recovery into sustained prosperity.

James Parrott is deputy director and chief economist of the Fiscal Policy Institute. He has been studying and writing about the New York economy since he landed in New York City a quarter century ago.Other Related Articles:
Can Obama Help Save New York? (2009-01-20)

Using This Crisis to Prevent the Next One (2009-01-20)

From Gas Guzzling Cars to Clean Buses (2009-01-20)

Infrastructure Investments that Make Sense (2009-01-20)

Paying Attention to Cities (2009-01-20)

A Federal Stimulus for City Parks (2008-12-22)

From Wall Street to Taxi Stand: The Recession Trickles Down (2008-12-15)

Stimulus Bill Sends Thrill Through Washington, D.C. Region

2009-01-27T11:07:00.003-05:00

As Reported by the Washington Post: Gov. Martin O'Malley said the stimulus bill could send as much as $2.9 billion to Maryland over 27 months and help the state avoid some budget cuts.

As Congress prepares legislation to pump more than $800 billion into the economy, governments in the Washington region are lining up for their share: dollars that could mobilize stalled projects to mend water mains, repave roads and rebuild schools, as well as plug other budgetary holes.

Maryland Gov. Martin O'Malley (D) said yesterday that a stimulus bill pending on Capitol Hill would bring the state as much as $2.9 billion over 27 months for Medicaid, education programs, worker training and "fiscal stabilization" and an additional $1 billion for transit, school construction and clean-water projects.

Virginia officials said the state could be eligible for as much as $800 million for highway projects alone.

"There are many, many projects that are ready to go as soon as we know the criteria and how much money we're getting," said Gordon Hickey, a spokesman for Virginia Gov. Timothy M. Kaine (D).

The stimulus plan is viewed in the two states and the District as something of a bailout. But it remains unclear how much money local governments will get and how many items on their wish lists will be funded, given the vagaries of funding formulas and the evolving nature of the legislation.

Governors and members of Congress are being deluged with inquiries and wish lists from local governments, which see the American Reinvestment and Recovery Plan as deliverance from a fiscal nightmare.

For state and local governments, the situation is deteriorating. Maryland is trying to close a $2 billion shortfall. Virginia has delayed more than $2 billion worth of road and transit projects statewide because of declining tax revenue. The District faces a shortfall of nearly $260 million.

O'Malley said the federal money might allow his state to forgo some cuts in a budget proposal he presented last week for the coming fiscal year. Among the cost-cutting measures in that budget was a proposal to lay off 700 state workers.

"The last thing in the world I would want to do is lay people off in the down economy," O'Malley said.

At a water treatment plant in Silver Spring yesterday, Sen. Barbara A. Mikulski (D-Md.) and Rep. Chris Van Hollen (D-Md.) pledged to seek $75 million to help repair a 5,500-mile system of aging water pipes in Montgomery and Prince George's counties.

The system has sprung 4,000 leaks in the past two years, and the Washington Suburban Sanitary Commission reported 252 breaks and leaks in the five days leading up to President Obama's inauguration. Memories are still fresh of the Dec. 23 rupture that briefly turned Bethesda's River Road into a river. At current levels of funding, it would take 200 years to repair and replace all the water lines, WSSC says.

"Senator Mikulski and I are here to say that help is on the way," Van Hollen told a cheering crowd.

More HERE

The American Recovery and Reinvestment Plan

2009-01-22T11:53:00.002-05:00

The Gotham Gazette.com reports: The version of the American Recovery and Reinvestment Plan unveiled on Jan. 15 by House Democrats is breathtaking in its scope and cost. Intended to retain and create 3.7 million jobs over the next two years, the $825 billion package of federal government investments includes dozens of spending measures ranging from $200 billion in fiscal relief to help state and local governments, to $6 billion to extend broadband to rural areas, a 21st century version of Depression-era rural electrification. Two thirds of the total value consists of spending, with one third for tax cuts.

Helping the States

Help for a Teetering Economy

What Stimulus II Would Do

Michael Kelly: Public housing vanguard

2009-01-22T11:45:00.002-05:00

Washington.BizJournals.com reports: Public housing in the District was so badly managed that it had gone into court-ordered receivership when Michael Kelly arrived in 2000 to take over as executive director of the D.C. Housing Authority. Eight years later, in December, he received an award from Kenneth Donohue, inspector general for the U.S. Department of Housing and Urban Development, who called the authority under Kelly “one of the best programs in the country.” Now Kelly is arguing that public housing should be included in an economic stimulus package.

You are president of the Council of Large Public Housing Authorities (CLPHA) and wrote congressional leaders to ask that any economic stimulus package include money for public housing upgrades. It’s a request for $5 billion nationwide to look at projects that would modernize or develop public housing.

The maintenance backlog for public housing nationally is $32 billion. How did you decide on $5 billion? I think we’re looking at it as a down payment toward the larger need. One of the things we are very aware of is the president-elect’s desire to have projects that can create jobs and money that can be put on the street quickly, with accountability, and that can have green and sustainable components to it. We think that this $5 billion is the range of dollars that large public housing authorities can utilize quickly.

D.C. has an estimated backlog of $150 million. How much might D.C. get and what could it be used for? We put in a submission for about $30 million that we could actually spend within the next 120 days. Across the country [public housing] received $2.4 billion for the capital fund for the year, so this request would be double an annual capital fund appropriation.

Executive Director, Peekskill Housing Authority

2009-01-22T11:40:00.000-05:00

The Peekskill Housing Authority is seeking an experienced housing professional for the position of Executive Director. The successful candidate will administer the current Public Housing. The program consists of two hundred eighty two (282) units. The Authority’s annual operating budget is approximately $2.6 million, and it has a Capital Fund annual allocation of approximately $479,500. The successful candidate will report to a seven (7) member Board of Commissioners and manage staff of nine (9). There is a competitive salary.

Minimum qualifications include: a Bachelor’s degree in Public Administration, Business Administration, Social Services, Urban Studies, City or Regional Planning, Public Policy, or related field; seven (7) to nine (9) years progressively responsible experience with a Public Housing Authority, a non-profit housing corporation, a public agency or private housing management or development firm, with at least 3 years experience at the CEO or Department Head level; proven leadership ability in working with an active board, staff, and residents with diverse backgrounds, government and community services organizations; excellent fiscal, planning, administrative, management, and communication skills; knowledge of HUD rules, regulations, policies, and procedures.

Interested candidates must request an application packet via mail, fax, or email:

Executive Director Search
Attention: Reneé Smith
Peekskill Housing Authority
807 Main Street
Peekskill, NY 10566
Telephone (914) 739-1704
Fax (914) 739-1787
Email: pha.peekskillha@yahoo.com.

RFP: HOPE VI Evaluation Services

2009-01-22T11:37:00.000-05:00

The Housing Authority of the City of Texarkana, Texas (HATT) is seeking written Proposals for Evaluation Services for the HOPE VI Program for the Authority over the next four years. The intent of this Request for Proposal (RFP) is to define the general specifications for the professional services required and to set guidelines for selection.

Proposals from perspective offerors for Evaluation Services shall be due no later than Friday, February 20, 2009 at 11:00 a.m. (CST). NO SUBMITTALS WILL BE ACCEPTED AFTER THIS DEADLINE. Submittals must be sealed and will be received at the following address: Housing Authority of the City of Texarkana, Texas, 1611 N. Robison Rd., Texarkana, TX 75501 Attn: Richard Herrington, Jr. The outer-most label of all submittals must be conspicuously marked: "HOPE VI Evaluation Services - Responses to RFP" and include the name of the Offeror(s).

Additional requirements pertaining to the submission package are detailed in this RFP. All questions regarding the RFP should be submitted in writing to: Richard Herrington, Jr., fax (903) 832-2899 or e-mail at rherrington@texarkanaha.org. All questions regarding the attached RFP should be received in writing by Mr. Herrington, no later than 11:00 a.m. (CST) on Friday, February 6, 2009. No verbal questions will be honored.

HATT reserves the right to accept or reject any or all responses, to waive informalities, and to award a contract(s) as it is deemed in the housing authority's best interest. If applicable, HATT reserves the right to award one or more contracts in response to this solicitation if it is to be determined to be in the best interest of the Authority. The finalists in the selection process may be required to participate in an oral interview in Texarkana, Texas.

No oral interpretations will be given to any response as to the meaning or intent of the RFP or to modify any provisions of the documents. No response shall be withdrawn for a period of ninety (90) days subsequent to the submission of offers, without prior written consent of HATT.

The successful candidate(s) shall be required to possess all applicable licenses, certifications, insurance and bonding.

HATT prohibits discrimination in any manner on the basis of race, color, creed, national origin, sex, sexual preference, age, or disability and will pursue an affimative policy of fostering, promoting and conducting business with minority owned enterprises. Submissions will be held in confidence and not released in any manner until after the award of a contract(s).

HATT reserves the right to reject any and all proposals and to waive any minor deficiencies in responses received, if it is in the public interest to do so.

Housing Authority of the City of Texakana, Texas
Richard Herrington, Jr.
1611 N. Robison Rd
Texarkana, TX 75501

RFP: Community and Supportive Services Case Management and Relocation Tracking Software

2009-01-22T11:34:00.001-05:00

The Housing Authority of the City of Texarkana, Texas (HATT) is seeking written Proposals for Community and Supportive Services (CSS) Case Management and/or Relocation Tracking Software from qualified firms to provide case management and/or relocation software products and services for the Authority over the next four years. The intent of this Request for Proposal (RFP) is to define the general specifications for the professional services required and to set guidelines for selection.

Proposals from perspective offerors for CSS Management and/or Relocation Tracking Software shall be due no later that Friday, February 20, 2009 at 11:00 a.m. (CST). NO SUBMITTALS WILL BE ACCEPTED AFTER THIS DEADLINE. Submittals must be sealed and will be received at the following address: Housing Authority of the City of Texarkana, Texas, 1611 N. Robison Rd., Texarkana, TX 75501, Attn: Richard Herrington, Jr. The outer-most label of all submittals must be conspicuously marked: 'CSS Case Management and Relocation Tracking Software - Responses to RFP" and include the name of the Offeror(s).

Additional requirements pertaining to the submission package are detailed in this RFP. All questions regarding the RFP should be submitted in writing to: Richard Herrington, Jr. fax (903) 832-2899 or e-mail at rherrington@texarkanaha.org. All questions regarding the attached RFP should be received in writing by Mr. Herrington, no later than 11:00 a.m. (CST) on Friday, February 6, 2009. No Verbal questions will be honored.

HATT reserves the right to accept or reject any or all responses, to waive informalities, and to award a contract(s) as it is deemed in the housing authority's best interest. Bidders may provide responses for with Case Management Tracking software and services or Relocation Tracking software and services or both Case Management and Relocation Tracking software and services. If applicable, HATT reserves the right to award one or more contracts in response to this solicitation if it is to be determined to be in the best interest of the Authority. The finalists in the selection process may be required to participate in an oral interview in Texarkana, Texas.

The successful candidate(s) shall be required to possess all applicable licenses, certifications, insurance, and bonding.

HATT reserves the right to reject any and all proposals and to waive any minor deficiencies in responses received, if it is in the public interest to do so.

Housing Authority of the City of Texarkana, Texas
Richard Herrington, Jr.
1611 N. Robison Rd
Texarkana, TX 75501