By Dave Gatton
June 23, 2003

The Council for Investment in the New American City, chaired by Detroit Mayor Kwame M. Kilpatrick, held its summer meeting at the 71st annual U.S. Conference of Mayors in Denver, June 7.

The Council reviewed the release of its latest U.S. Metro Economy Report showing that job losses in America's metro economies were far more severe in 2002 than the Council had previously reported. The report, prepared by Global Insights, Inc, showed job losses to exceed 1.15 million. 2003 job growth projections for the nation's top twenty metros were also revised downward from .9 percent to .1 percent. Job levels are not expected to reach their pre-recession levels until the first quarter of 2005.

Kilpatrick told the Council's members, including the nation's leading financial institutions, developers, mortgage bankers, and non-profit research organizations, that citizens were most concerned about jobs. "We must speak out as metro leaders to give voice to those concerns," he said. But he added, "We must always come back to the underlying reality of our U.S. Metro Economy Reports: that our metro economies are extremely strong; they will grow this year in economic output; they are economies that will drive our economic prosperity for the future; and they are resilient."

International Council of Shopping Centers Vice President Herb Tyson reviewed the successful Town Meeting on Public/Private Retail Development held jointly by the Investment Council in Las Vegas, NA, that brought developers together with mayors to discuss investment opportunities. Conference President Hempstead (NY) Mayor James A. Garner charged the Investment Council to expand it partnership with the Shopping Centers group. "Under my presidency, we will give top priority to expanding the number of mayors participating in this important shopping centers event," he said.

Gary Mayor Scott L. King reported on a Homeownership Summit he held in his city in conjunction with the Mortgage Bankers Association of America. "We brought together community organizations, banking institutions, realtors, national non-profits, and city agencies to develop strategies on increasing homeownership," he said. Among the issues identified was the need to help individuals and families improve credit ratings before they purchase a home.

Nehemiah President and CEO Scott Syphax expanded King's remarks to suggest that the Council develop strategies to help families who have bought homes to retain the equity through sound financial practices. "Home equity is how most Americans build wealth in this country," Syphax said, "and we need to educate families on how to retain it." Kilpatrick assigned a working headed by King, Syphax, and Mortgage Bankers Chair John Courson to develop recommendations on how to address the issue for the Council.

Fannie Mae Partnership Office Director Tony Hernandez updated the Council on models for Employer Assisted Housing and George Griffin of the National Association of Realtors reported on Realtor initiatives to support affordable housing initiatives at the local level.

Courson of MBA reviewed the Council's efforts to support passage of single family homeownership tax credits, downpayment assistance tax credits, reform of the Federal Housing Administration procedures, and preservation of the 203(k) single family insurance program. Freddie Mac representative Anna Smith reported on the organizations financial literacy initiatives, including its Don't Borrow Trouble Campaign and its corresponding Credit Smart program.

The Council next major event will be sponsorship of a Metro Economy Day in July, when it releases its annual listing of the Gross Metropolitan Product numbers for the nation's 319 metro areas.