By Eugene T. Lowe
June 19, 2006

The Community Development and Housing Committee met June 3 to consider 15 policy resolutions. Carmel (IN) Mayor James Brainard, Vice Chair of the Committee, chaired the meeting. Out of the 15 resolutions, two drew special attention, “Supporting the Community Development Block Grant (CDBG)” and “Expanding HUD’s Definition of Homelessness.”

Targeted for a deep cut in the administration’s FY07 budget request, HUD also released a legislative proposal to reform the program May 25. In general, the reform package would change the current formula that is used to allocate CDBG funds. A computer run program to determine the impact of the proposed formula on entitlement communities show some cities with increased allocations while others receive fewer dollars. In addition, because the new formula creates a minimum grant threshold for entitlement communities to be eligible for an annual allocation, more than 300 communities would no longer receive direct allocations. The reform package also establishes performance measures, challenge grants, and the consolidation of such programs as Section 108 loan guarantees and Brownfields within the overall CDBG program.

The Committee did not take a position on the HUD reform package, but will evaluate it over the next several months. The Committee did, however, approve a resolution that called for the CDBG formula grant program to be funded in FY07 at least at the $4.3 billion level.

The resolution receiving the most discussion was “Expanding HUD’s Definition of Homelessness.” Introduced by Anchorage Mayor Mark Begich and supported by 21 mayors, the resolutions asked that HUD “...include within its definition of homelessness people who are sharing the housing of others due to loss of housing, economic hardship, or similar reasons, and those who are staying in motels because of the lack of adequate alternative accommodations.” After considerable debate, it was moved and accepted by the Committee to table the resolution.

The Committee heard brief remarks from the following speakers:

Cardell Cooper, Executive Director of the National Community Development Association (NCDA), recently appointed, spoke of the association’s goal to build a stronger relationship between mayors and community development directors. L. Carter Cornick, Acting Assistant Secretary for Congressional and Intergovernmental Relations of the U.S. Department of Housing and Urban Development gave an overview of HUD’s new CDBG Reform package. Philip F. Mangano, Executive Director of the U.S. Interagency Council on Homelessness, gave an update of the progress being made across the nation to reduce chronic homelessness.

The following resolutions were adopted by the Community Development and Housing Committee:

Supporting the Community Development Block Grant (CDBG)

Supporting the HOME Investment Partnerships (HOME) Program

Endorsing innovative policies to successfully end chronic homelessness across the nation

Improving homelessness programs and continuum of care

Local approval of housing tax credits in Katrina disaster areas

Full funding of Section 8 Housing Choice Voucher Program

Support for federal legislation to strengthen homeowner protections from abusive and predatory lending

Improving housing opportunities: Endorsing more federal funds for senior housing

Improving housing opportunities: Maximizing federal housing funding

Promoting stable homeownership: Endorsing more federal funds for housing counseling

Modernization and reform of FHA to promote affordable housing

Resolution of support for modernizing FHA: Expanding american homeownership

Resolution of support for affordable housing preservation by extension of HUD’s Mark-to-Market Program