Policy
Reserves to be Available for 202 Refinancing Upfront Costs
More Groups, Including PHAs, Oppose Administration’s Voucher Legislation
AAHSA Submits HUD Testimony on the FY2006 Budget
Department of Commerce Holds Hearings on CDBG Initiative

Operations and Management
Management Review Form Revisions in the Works; Your Comments Needed

New and Notable
HUD Releases 202 Predevelopment Grants
Emergency Capital Repair Grants Update
Fair Housing Report Released


Housing Report

Policy
Reserves to be Available for 202 Refinancing Upfront Costs
Stillman Knight, Deputy Assistant Secretary for Multifamily Housing, has let it be known that HUD will soon permit 202 owners to use reserves to pay upfront costs of refinancing their 202/8 mortgages. Thus far use of the reserves which would be reimbursed upon refinancing has been "a field office by field office" decision. Scott Moore, President of Lancaster Pollard Mortgage Company, believes this will be a huge boon for sponsors who may have been unable to meet the upfront costs of refinancing, in some instances as high as $20,000, and who have shied away from refinancing as a result. So help is on the way. As soon as there is a formal notice we will let you know. For more information, contact Nancy Libson.

More Groups, Including PHAs, Oppose Administration’s Voucher Legislation
Even as Cong. Gary Miller (R-CA) introduced the Administration’s voucher legislation in the House (HR 1999) along with Representatives Tom Feeney, (R-FL), Katherine Harris (R-FL), Peter King (R-NY), Ann Northrup (R-KY), Rick Renzi, (R-AZ) and Dave Weldon, (R-FL), opposition to the legislation is mounting. The House bill is a companion to the Senate version introduced by Senator Wayne Allard (R-CO), S. 771. Both housing advocates and housing providers, including the public housing associations, have expressed their concerns and, in some cases, outright opposition to the legislation, including AAHSA.

The Housing Committee on Financial Services has invited Secretary Jackson to testify on the legislation on Wednesday May 11, at 2:00 pm. He may advise the Committee that they are willing to revisit the enhanced voucher provisions in their bill which could have a chilling effect on the preservation of affordable senior housing – a positive step.

For a detailed analysis of the legislation, see the Housing Report of April 22.

AAHSA Submits HUD Testimony on the FY2006 Budget
AAHSA has submitted testimony for the record on the HUD FY2006 budget emphasizing the need for affordable, supportive housing for low-income seniors. This year the Administration called for a number of cuts to HUD programs including the elimination of Section 811 disabled housing development program and cuts and the transfer of the CDBG program, in addition to cuts from unspecified programs. Testimony was submitted to the House Appropriations Subcommittee on Transportation, Treasury, the Judiciary and HUD and urged Congress to preserve funding for all HUD programs. read the testimony.
For more information contact Alayna Waldrum, (202) 508-9476

Department of Commerce Holds Hearings on CDBG Initiative
The Department of Commerce is currently holding field hearings on the Administration’s proposed "Strengthening America’s Community Initiative" (SACI). The program was pitched as a workable replacement for the Community Development Block Grant program (CDBG), but the new program would shift the focus on community development and low to moderate income communities to an economic development program targeted to distressed communities. In particular, SACI would not cover those serving low-income communities in non-distressed or "affluent" areas; and it is still questionable if the new program would offer funding for public or supportive services. The 25 member SACI Advisory Committee will report its recommendations to the Secretary of Commerce in late May. The first hearing was held in Fresno in April and a second one will be held in Kansas City, Missouri on May 13, 2005. The public is invited to give oral testimony and learn more about the proposed programs. For more information visit http://www.commerce.gov/SACI/index.htm.



Operations Managment
Management Review Form Revisions in the Works; Your Comments Needed
On March 28, HUD issued a request for comment for proposed changes to the HUD Form 9834 Management Review for Multifamily Housing used for annual management occupancy reviews (MORs). Member feedback is critical to enable AAHSA housing staff to help prepare a comprehensive response. Don’t miss out on this opportunity to impact the final Management Review Form. See the draft document.



New and Notable
HUD Releases 202 Predevelopment Grants
HUD has announced the Section 202 predevelopment grants, providing over $20 million in funds to 104 sponsors throughout 38 states. The maximum grant awards $400,000 with a limit of $800,000 per sponsor. The goal of the predevelopment grants is to help FY2004 202 awardees reach closing within the allotted 18 months. The grants provide funding for costs such as architectural costs, engineering work and site control. Congratulations to all the AAHSA members that received awards. Click here for more information.

Emergency Capital Repair Grants Update:
According to communications between AAHSA and HUD last week, "The last of the awards are being finalized now and once this is completed a list of all of the awards will be compiled and made available. … based on the number of approved applications awaiting funding and the funding still available, all of the 2004 funds will be used. Therefore, HUD is not accepting any new applications and a few will be returned due to lack of funding." HUD hopes to announce the availability of $25 million from the FY 2005 omnibus within the next couple weeks. For more information, see the new ECR Fact sheet.

Fair Housing Report Released
As a part of Fair Housing Month, HUD issued the 2005 State of Fair Housing Report on March 31. The report cites that HUD and its state and local partners received a combined 9,187 housing discrimination complaints in FY04, 13% more than in FY03. The report also lists the FY04 accomplishments of HUD and its partners to combat housing discrimination. Among the FY04 accomplishments was the allocation of $1.7 million to address discrimination against Hispanics in specific areas with an increasing Hispanic population. The report cites that HUD has found that Hispanics face discrimination in 25% of rental transactions. According to the report, the most common discrimination complaints are based on race or disability. HUD also announced the upcoming release of the results of a disability discrimination study. The study is the first nationwide study of housing discrimination because of disabilities. See the fair housing report and a list of recent discrimination cases.