Policy
AAHSA Advocates for Section 202 Program with Administration
Administration Releases New Flexible Voucher Legislation
OMB Called to Testify on CDBG Proposal and Administration’s Budget
Bush Announces His Choice for HUD Assistant Secretary Replacement

Operations and Management
HUD Publishes Final Rule on Electronic Submission of 2530

AAHSA News
Housing and Quality First
AAHSA Award Nominations Due By April 29!


New and Notable
New Fair Housing Report


Housing Report

Policy
AAHSA Advocates for Section 202 Program with Administration
With drastic budget cuts looming and the future of the Section 202 program in jeopardy, AAHSA CEO Larry Minnix met with key Administration offices to discuss the need for affordable, supportive housing for the elderly and the effectiveness of Section 202 program. Last week Minnix met with Joshua Bolten, Director of the OMB, whose office is responsible for the federal budget proposal and the administration’s analysis of HUD programs and the President’s Office of Faith-Based and Community Initiatives. The Section 202 Program is believed to be the largest funding stream to faith-based organizations within HUD.

Administration Releases New Flexible Voucher Legislation
Like last year, the Administration has drafted legislation to establish a Section 8 Voucher block grant program in the name of flexibility in order to reduce the long term costs of the program. Senator Wayne Allard (R-CO) introduced the legislation (S.771) and it is expected that a companion bill will be introduced in the House shortly. The legislation which applies only to tenant based voucher assistance alters many of the fundamentals of the Section 8 program, shifting the targeting away from the most vulnerable and virtually repealing the rent paying standards that for so long required residents to pay no more than 30% of adjusted income for rent. The bill would give the PHAs the authority to set a variety of rent structures, including flat rents, to establish payment standards without regard to HUD established fair market rents; to establish preferences for working families, to eliminate portability as we know it; to set a five year time limit except for seniors and disabled families; and to require a minimum rent. The bill also provides that enhanced vouchers that are available to tenants as protection in opt outs and are critical to preservation deals will only be available for one year as special vouchers, killing preservation in the future.

The good news is that if (and that is a big if) the legislation is enacted, it will not affect seniors until 2009. At that time the PHAs are supposed to have policies in place so that seniors will not be harmed by the new policies.

Read the legislation.
Read an analysis of the legislation Center of Budget and Policy Priorities.

OMB Called to Testify on CDBG Proposal and Administration’s Budget
While HUD Secretary Jackson continued to make the rounds on the Hill, testifying on the proposed FY 2006 HUD budget, Joshua Bolten, Director of the Administration’s Office on Management and Budget (OMB), testified before the Senate Appropriations Subcommittee on Transportation, Treasury, Judiciary and HUD. Last week Bolten was questioned by subcommittee members about the overall federal budget and a number of the Administration’s housing and community development proposals took center stage.

Chairman Bond (R-MO) and ranking member Murray (D-WA) expressed their displeasure with the proposal to eliminate CDBG in their opening statements and both questioned Bolten on where the proposed rescission of $2.5 billion from HUD’s budget would come from. Neither OMB nor HUD has been able to give Congress any indication where these cuts would be made or which programs would be affected except to say that the Administration’s housing related priorities were home ownership and homelessness. Bond also questioned the assault on the HOPE VI program and the plan to rescind the FY2005 funding that Congress had approved. Senator Bennett (R-UT) noted that those that rely on HUD programs are living year-to-year with uncertainty because each year Congress is called upon to "save" programs from severe cuts.

Bush Announces His Choice for HUD Assistant Secretary Replacement
President Bush has announced that he will nominate Brian Montgomery of Texas to the position of HUD Assistant Secretary of Housing / Federal Housing Commissioner. Mr. Montgomery’s current position is Deputy Assistant to the President and Cabinet Secretary. Prior to that he served on the Bush-Cheney 2000 campaign and earlier worked as the Communications Director for the Texas Department of Housing and Community Affairs. If confirmed by the Senate, Montgomery would replace Dr. John Weicher who will resign effective April 30.



Operations Managment
HUD Publishes Final Rule on Electronic Submission of 2530
On April 13, 2005 HUD released the final rule for Revised Guidelines for Previous Participation in the Federal Register. The rule, which becomes effective May 13, 2005, finalizes the HUD 2530 submission process for organizations participating in the HUD multifamily mortgage and project based subsidy programs. Organizations are required to submit a Previous Participation Certificate electronically through the APPS system in order to qualify for new or revised participation. Electronic submission of the HUD 2530 will not be required until October 11, 2005. Read more information on the Rule.



AAHSA News
Housing and Quality First
AAHSA has posted a new Quality First checklist, Aging Services Providers' Checklist for AAHSA Quality First to help members assess quality in their organizations. This easy-to-use checklist is based on the 10 elements of Quality First and will help you identify the strengths in your organization and areas for growth. For more information visit the Quality First on AAHSA.org or contact Colleen Bloom or Bruce Rosenthal.

AAHSA Award Nominations Due By April 29!
It is time to submit your nominations for the 2005 AAHSA awards. Awards are available to eligible individuals, organizations and boards. The awards honor those members that have demonstrated commitment to leadership, excellence, diversity, public trust, mentoring and advocacy. Winners receive free registration for our Annual Meeting & Exposition, Nov. 7-10, in San Antonio, where they will be honored and they will be recognized in FutureAge magazine and elsewhere. The award criteria are listed in the Call for Nominations at AAHSA's Awards and Innovations page. Nominations must be postmarked by April 29th.



New and Notable
New Fair Housing Report
The National Fair Housing Alliance has released the 2005 Fair Housing Trends Report citing an increase in the number of housing discrimination complaints with federal and state agencies. Among the 27,319 complaints filed the largest number were based on disability, race and familial status and occurred in the rental housing market. The report goes on to make a number of recommendations including increased enforcement, disparate impact litigation by the Department of Justice and establishing HUD’s Office of Fair Housing and Equal Opportunity as an independent agency. For more information visit National Fair Housing Alliance Webiste .