By Eugene T. Lowe
July 16, 2007

Vice Chair Green Bay Mayor James J. Schmitt led the consideration of more than twenty policy resolutions, followed by presentations from four speakers, before the Conference of Mayors Community Development and Housing Committee on June 23. Multiple resolutions were submitted in several policy areas including homelessness, mortgage foreclosures, public housing, and the national housing trust fund.

Susan Bass Levin, Commissioner of the New Jersey Department of Community Affairs, spoke to the mayors about several housing and neighborhood initiatives created by her state to better work with cities and local governments. Some of the programs cited by the commissioner included the creation of a program for the preservation and rehabilitation of 100,000 affordable housing units over ten years; a rental assistance program that now provides 2500 vouchers and has a goal of 3700 vouchers; and a neighborhood revitalization tax credit program that would provide tax credits to businesses contributing up to one million dollars a year for neighborhood non-profits with an approved redevelopment plan for a particular neighborhood.

Brian Montgomery, Federal Housing Administration (FHA) Commissioner of the U.S. Department of Housing and Urban Development (HUD), focused his remarks on the uncertainty and confusion that presently exists in homeownership due to an increasing number of mortgage foreclosures. Montgomery said that HUD would vigorously pursue all predatory lenders who account for many homebuyers losing their homes. But, he noted, there are also exotic, sub prime loans that become problematic for homeowners leading to significantly higher monthly payments than the payments at the beginning of the loan. An alternative to this situation, according to Montgomery, is the modernization of FHA which would allow loan limits to be increased and more flexibility for down payment assistance. FHA refinancing would be especially beneficial to subprime borrowers who face mortgage foreclosure.

Carl Greene, Executive Director of the Philadelphia Housing Authority, spoke on the deep funding cuts to the Public Housing and Housing Choice Voucher programs. He also commented on HUD’s Asset Management Plan that exacerbates the cuts and “undermines the historic mission of public housing.” Greene said that congress cut $2.6 billion in public housing operating assistance over the period FY2003 to FY2008; the congressional cut in the capital program was nearly $1 billion over the period 2001 to 2008. As for asset management, Greene said that by HUD’s call for “making a profit” at each site, very low-income households are effectively “locked out” of public housing in favor of higher income tenants.

Greg Davies, Deputy Director of the Columbus (OH) Development Department, briefed the mayors on his city’s approach to the mortgage foreclosure problem. In addition to the city’s financial support of pre-purchase education that gives first time homebuyers the information needed to keep from falling victim to predatory lenders, there is also a mortgage assistance program that directly assists homebuyers by providing dollars to save their homes. City officials realize that, while it cannot prevent “the other causes of foreclosure such as loss of job, or other unforeseen circumstances, the city can provide resources to those agencies that have the capacity and expertise to help if and when these events befall a homeowner.”

The Community Development and Housing Committee adopted the following resolutions:

• Increasing Funding for the Community Development Block Grant (CDBG)

• Supporting the HOME Investment Partnerships (HOME) Program

• Endorsing Innovative Policies to Successfully End and Prevent Chronic Homelessness Across the Nation

• Endorsing the Innovation of National Project Homeless Connect to End Homelessness

• Ending Homelessness for Veterans by Increasing Permanent Supportive Homeless Resources

• Supporting the Creation of a National Housing Trust Fund

• In Support of Public Housing Authorities

• Support for HOPE VI Program

• In Support of the Moving to Work Program

• Foreclosure Prevention and FHA Reform Resolution

• Protecting Against Predatory Lending and Financial Services

• Increasing Working Families’ Financial Literacy and Access to Banking Services

• Resolution on Down Payment Assistance Programs

• Saluting Cities United for Science Progress, Dorothy Height and Calling for Increased HUD Funding for Lead-Safety Efforts

• A Resolution to Develop New Models Strengthening Low-Income Home Ownership Integrating Weatherization, Home Rehabilitation and Related Program Resources

• Strengthening Neighborhood Economic Development

• In Support of the Preserve America Act of 2007

• Creating a Comprehensive Integrated National Catastrophe Fund