By Eugene T. Lowe
July 2, 2012

HUD Secretary Shaun Donovan spoke to the Community Development and Housing Committee, chaired by Newton Mayor Setti Warren on June 14 during the Conference of Mayors Annual Meeting in Orlando. The Committee also heard from Barbara Poppe, Executive Director of the United States Interagency Council on Homelessness, and Ed Kleiman, Chief Executive Officer of Concord Management, Ltd. of Orlando, who represented the National Apartment Association. Before hearing the speakers, the Committee adopted nine resolutions.

Donovan said that real progress has been made in the housing market during a challenging financial crisis. "We have had the best winter and spring in the housing market since the crisis began," he said. But we must do more. The Secretary asked the mayors' help on two issues: 1) the $25 billion mortgage settlement agreement, and 2) families underwater with their housing mortgages who are not able to take advantage of the historic low mortgage interest rates.

Debates are still going on in the states about how to use the money from the $25 billion mortgage settlement. Donovan said," We don't know where the money is going to go." He added, " Some of the money should be put into counseling. Otherwise, the money may go to neighboring states." Donovan asked the mayors to become engage with this issue in their states.

As for low interest mortgages, we need to do more refinancing, according to the Secretary. He said that barriers have been removed from Fannie Mae and Freddie Mac. This policy change is having an impact on the housing market.

In addition the Federal Housing Administration (FHA) has dramatically cuts fees. But, Donovan said, "This is not enough. We need universal refinancing. This is critically important." There are three bills in the Senate that mayors should support including a bill introduced by Senators Robert Menendez (NJ) and Barbara Boxer (CA) to help responsible homeowners. Passage of Project Rebuild would also be a plus and in addition help create 200,000 jobs. The Secretary said, "We know this because Project Rebuild is modeled after NSP. And we know NSP works." Donovan urged the mayors to host roundtables to get the bills passed by July 4."

The Secretary expressed strong support for CDBG and the HOME Investment Partnerships program. The House is approving CDBG at $3.34 billion in FY13, which is $400 million above current funding. HOME is being approved at $1.2 billion, $200 million above its present funding level. The Secretary also asked the mayors to support funding for the Sustainable Communities Initiative.

Poppe described a broad range of programs and policies that the U.S. Interagency Council is pursuing to eliminate homelessness. Specifically, she talked about the success in the reduction of veterans' homelessness; the nation has had a 12 percent reduction. Poppe encouraged mayors to get involved and sign onto the federal plan — Opening Doors — that has as its goal the elimination of homelessness in the nation. Finally, she talked about a new effort of reducing the criminalization of homeless people. There are two reasons to stop the criminalization of homeless people: it doesn't work and it costs the cities a lot of money. Three basic approaches are used to reduce criminalization: a comprehensive approach, working with law enforcement, and working with the criminal court system. Poppe asked mayors to make use of the Interagency Council through online media, webinars, and staff assistance.

Kleiman spoke on the emerging trends in the apartment industry and the benefits that multifamily housing can provide communities. He said that renters make up one-half of the housing market. "More Americans are choosing to rent," he added. Demographics are changing: young adults and baby boomers are finding that renting is a better fit. More work force housing is also needed. Rental housing, Kleiman said results in direct economic benefits both during the time of the construction of the apartments and after when people reside in them.

• Support for CDBG and Home Funding

• In Support of the HUD Sustainable Communities Initiative

• Supporting Municipal Ordinances Confronting Vacancies and Nuisance Houses Due to the Foreclosure Crisis

• In Support of Project Rebuild

• Calling on Congress and the Administration to Support Residential/Commercial Property Assessed Clean Energy (PACE) Programs

• Support for the Green and Healthy Homes Initiative and Efforts to Expand the Nation's Stock of Affordable, Green, Healthy, and Sustainable Housing

• Resolution to Promote the Greening of the Retail Community

• Promotion of Economic Development through the Visitors Industry

• Supporting Searching Out Solutions: Constructive Alternatives to the Criminalization of Homelessness