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NAHRO's CD Edge
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NAHRO's Homepage Implementing Risk Analyses for Monitoring Community Planning and Development Grant Programs in FY 2008 (Oct. 19, 2007): HUD states that the purpose of this new CPD notice is to "provide a consistent methodology for conducting risk analyses for Community Planning and Development formula and competitive grantees and establish monitoring priorities within available resources." Interim Reporting Requirements for the State Performance and Evaluation Report (PER) pending Re-engineering of the Integrated Disbursement and Information System (IDIS (Oct. 10, 2007): This notice provides guidance for submission of the PER for grantees under the State Community Development Block Grant program. It provides interim reporting guidelines pending the availability of electronic reporting via IDIS. Amendments to HUD's Environmental Regulations; Proposed Rule (Sept. 12, 2007): According to HUD, "This proposed rule would update HUD's environmental regulations to implement statutory changes and make environmental compliance easier." The proposed rule would also amend Consolidated Plan requirements in order to encourage jurisdictions to consult with non-profit and for-profit organizations and PHAs that receive HUD grant awards, in order to facilitate compliance with environmental review requirements. Comments due November 13, 2007. Federal Register Daily Digest (NAHRO Members): last 30 days of Housing and Community Development issues published in the Federal Register. NAHRO Resources Making a Difference: The Importance of Restoring Federal Community Development Funding: A new resource designed to help you make the case for increased funding for HUD's community and economic development programs, including the Community Development Block Grant (CDBG) program. This publication discusses the recent decline in funding and the impact funding cuts have had on the efforts of states and local governments to build stronger communities. NAHRO's Legislative
Agenda: A comprehensive overview of NAHRO's current legislative and regulatory
positions. NAHRO Staff Saul Ramirez, Executive Director NAHRO |
October
25 , 2007
Welcome to NAHRO's CD Edge, our new free e-newsletter focused on federal community development programs. Please feel free to forward this newsletter to your colleagues. If you're not already subscribed to NAHRO's CD Edge, click here to subscribe. In This Issue: NAHRO Urges Increased Funding for CDBG and HOME NAHRO Urges Increased Funding for CDBG and HOME
In an October 22 letter to the leadership of the House and Senate Appropriations Committees, NAHRO has reaffirmed its support for increased funding for CDBG and HOME. The letter also reflects NAHRO's ongoing support for Section 108, the Brownfields Economic Development Initiative, and the Rural Housing and Economic Development program. An excerpt from the letter follows: "Despite the CDBG program's proven record of success, the President's FY 2008 budget was the second in a row to propose slashing CDBG formula funding by 25 percent to $2.775 billion. Fortunately, both the House and Senate bills reject the administration's proposal and both bills demonstrate a willingness to restore CDBG funding. Nevertheless, NAHRO is concerned that an appropriation at or slightly above the current level of $3.711 billion may serve to solidify an inadequate programmatic funding level that is 14 percent below the FY 2004 level of $4.311 billion. NAHRO has consistently recommended $4.5 billion for CDBG formula grants, a funding level that better reflects the ongoing need for this critically important resource at the state and local level. HOME formula funding has been cut by nearly 10 percent since the FY 2004 funding level of $1.855 billion. Although there is widespread agreement concerning the program's effectiveness, the current funding level for the HOME program is the lowest since FY 2000. NAHRO has recommended $2 billion in formula funding for the HOME program for FY 2008. NAHRO members understand that HUD's community and economic development toolbox includes more than just CDBG and HOME. The Section 108 Community Development Loan Guarantee program, the Brownfields Economic Development Initiative (BEDI), and the Rural Housing and Economic Development (RHED) programs continue to play important roles in local community revitalization efforts. Despite the programs' successes, the administration has repeatedly proposed their elimination. We applaud your efforts to maintain these vital programs in the bill." For FY 2008 NAHRO recommends $25 million for both BEDI and RHED, and $6 million for Section 108 credit subsidy. The House-passed version of the FY 2008 spending bill provides $3.7 million for the Section 108 loan guarantee program, an amount that would subsidize up to $137.5 million in guaranteed community development loans. That bill also provides $9.9 million for the Brownfields Economic Development Initiative (BEDI) and $16.8 million for the Rural Housing and Economic Development (RHED) Program. The Senate bill provides $6 million for the Section 108 loan guarantee program and roughly the same amounts as the House bill for both BEDI and RHED. The complete letter from NAHRO to House and Senate appropriators also outlines NAHRO's funding recommendations for public housing and Section 8 and is available here. NAHRO members: For ongoing FY 2008 HUD appropriations coverage, be sure to visit NAHRO's Direct News. Direct News is NAHRO's members-only email service providing breaking news and information on federal housing and community development programs. NAHRO members can also access our recent Action Alert on impending congressional action on the FY 2008 HUD spending bill. Included in the Action Alert are potential talking points, a sample letter you may wish to e-mail to your legislators, and other resource materials.
The Government Accountability Office (GAO) recently released a report entitled "Formal Monitoring Approaches Needed to Help Ensure Compliance with Restrictions on Funding Employer Relocations." The report results from a study in which GAO identified 17 federal economic development programs (including CDBG) "that offer financial assistance and services that state and local governments can use as incentives to attract and retain jobs." The study focused on 9 programs (7 grant programs and 2 loan guarantee programs) that restrict the use of program funds to support employer relocation, commonly known as "job pirating." Although the federal agencies charged with administering those programs with employer relocation restrictions have procedures (including monitoring) in place to help ensure compliance, GAO's review found that "only one of the grant programs (HUD's Empowerment Zone program)�had written monitoring guidance that specifically addressed business relocation restrictions." Both of the loan guarantee programs identified by GAO have written guidance specifically addressing business relocation. The report recommends that the federal agencies that administer federal economic development programs take steps "to implement formal and structured approaches to monitor compliance" with anti-job pirating prohibitions. Both the Department of Labor and the Department of Agriculture provided either written or oral comments signaling agreement with GAO's recommendations, and both agencies reported taking steps toward implementation. HUD apparently did not provide GAO with a response after being provided with a draft copy of the report.
HUD's Office of Block Grant Assistance has announced a training opportunity for CDBG Grantees. According to the Community Planning and Development Training website, "Basically CDBG" will focus on key CDBG program topics including national objectives, eligible activities program administration, financial management, environmental review, acquisition/relocation, IDIS, performance measurement, reporting, and recordkeeping. HUD is targeting the training toward "grantee staff who are new to the CDBG Program and for experienced staff who wish a refresher on the program." According to HUD, the training focuses on the CDBG program for entitlement communities, although state program staff may also attend. The first training will be held November 6-8 in Washington, DC. Additional trainings will be held in January, February, and March in Boston, Chicago, Atlanta, and Fort Worth, Texas. A course agenda and information on hotelsis available online.
HUD has published the FY 2007 Notice of Funding Availabilityfor the Brownfields Economic Development Initiative (BEDI). The notice appears in the September 24 Federal Register. Approximately $32.9 million in BEDI funding is available through this notice, with the maximum award set at $2 million per project. The application deadline is December 24, 2007. The notice reminds potential applicants that a "BEDI grant award is conditioned upon, and must be used in conjunction with a new Section 108-guaranteed loan commitment." Under the Section 108 program, Community Development Block Grant (CDBG) grantees pledge future CDBG allocations as security for loans guaranteed by HUD. BEDI grant funds are intended to increase the viability of Section 108-assisted projects, thereby reducing the potential for repaying Section 108 loans out of future CDBG funds. Click here to join NAHRO. Click here to sign up to receive CD Edge. |
