Hearings of Interest
House Holds Hearing on CDBG Need-Targeting Formula
On Tuesday, April 26, the House Committee on Government Reform’s Subcommittee on Federalism and the Census held the first in a series of hearings on reforming the CDBG need-targeting formula. Roy Bernardi, HUD Deputy Secretary, two officials from the Government Accountability Office (GAO) and Saul Ramirez, Jr. from the National Association of Housing and Redevelopment Officials (NAHRO) all testified before the subcommittee.
In his opening statement, Subcommittee Chairman Rep. Michael Turner (R-OH) declared that the purpose of the hearing was to determine if the CDBG formula, last modified in 1981, is still applicable today and if not, “what changes to the formula would be appropriate?” Deputy Secretary Bernardi outlined four alternative formulas to improve need-targeting, to which Mr. Ramirez replied that all four alternative formulas would hit New England communities in particular especially hard, and advocated for keeping the formulas as they currently are.
OMB Budget Hearing Held in Senate
On Thursday, April 21, the Senate Committee on Appropriations’ Subcommittee on Transportation, Treasury, The Judiciary, Housing and Urban Development, and Related Agencies concluded a hearing to examine proposed budget estimates for the Office of Management and Budget (OMB) for fiscal year 2006. Joshua Bolten, Director of OMB, testified before the subcommittee. During the hearing, on the topic of the proposal to eliminate CDBG, Subcommittee Chairman Kit Bond (R-MO) admonished Director Bolton, asserting that “Essentially you are saying you don’t want a Department of Housing and Urban Development.” Chairman Bond also expressed to Director Bolten that, in his view, “community development is very different than economic development.” Director Bolton responded that “the question is how best to use resources.”
Later in the hearing, Director Bolten was asked by Chairman Bond where OMB was expecting to get their proposed $2.5 billion rescission from HUD, stating that there would be no leftover money from past HUD budgets now that the Section 8 program is run on a budget-based system. Mr. Bolten replied that OMB believes there will be “substantial unobligated balances” that “may not be exactly $2.5 billion.” The line of questioning ended when Chairman Bond stated that he didn’t believe the funding from HUD was there, but no methodology was provided by OMB.
House and Senate Agree on 2006 Budget Resolution
On Thursday, April 28, the House and Senate passed a Conference Agreement on the fiscal year 2006 budget resolution. According to the House Budget Committee website, the agreement provides “increases above the President’s request for Community Development Block Grants.” Details on the 2006 budget resolution will be forthcoming from NAHMA.
NAHMA Meets With Rep. Barney Frank
On Thursday, April 21, NAHMA met with House Financial Services Ranking Member Rep. Barney Frank (D-MA). Rep. Frank expressed to NAHMA and other industry representatives that he feels the Administration is giving up on moving CDBG to the Commerce Department but that it is “serious” about Section 8 reform, stating that Secretary Jackson is personally making the rounds to build support. Rep. Frank identified five “poison pills” he urged advocates to fight in the Section 8 reform bill: income targeting, portability restrictions, block granting, time limits, and the limitations on enhanced vouchers.
On the topic of proposed voucher portability restrictions, Rep. Frank asserted that giving PHAs the ability to veto voucher portability amounted to segregation. He felt local jurisdictions could use these provisions to keep poor people out of their neighborhoods. He also stated that once Congress understands that proposed one-year caps for enhanced vouchers will mean tenant evictions, he believes that they will not approve it. Rep. Frank’s stated goal is to have a “socially responsible voucher program.”
Legislation
On Thursday, April 28, Rep. Jim Gerlach (R-PA) introduced a bill (H.R. 1984) to amend the Internal Revenue Code of 1986 to extend the low-income housing credit for certain buildings in high cost areas. The full text of this bill is not yet available from the Government Printing Office. H.R. 1984 has been referred to the House Committee on Ways and Means.
On Thursday, April 28, Rep. Gary Miller (R-CA) introduced a companion bill to Sen. Wayne Allard’s (R-CO) Section 8 reform legislation in the House. The full text of Rep. Miller’s bill (H.R. 1999) is not yet available from the Government Printing Office. H.R. 1999 has been referred to the House Committee on Financial Services.
On Tuesday, April 19, Rep. Carolyn Maloney (D-NY) introduced a bill in the House (H.R. 1694) that seeks to authorize the Secretary of HUD to make grants to nonprofit community organizations for the development of open space on municipally-owned vacant lots in urban areas. Under the act, entitled, “The Revitalizing Cities Through Parks Enhancement Act,” the Secretary of HUD would be able to grant a nonprofit group that demonstrates a history of community improvement in a particular city up to $250,000 per year for development of public space. H.R. 1694 has been referred to the House Committee on Financial Services.
