News from the Enterprise Foundation

 

May 27, 2010
	Capitol Express Newsletter Read the Capitol Express Newsletter in its Entirety   NEWS ITEMS HUD Unveils Transforming Rental Assistance Legislation   President Obama's 2011 budget request to Congress asked for authorization and $350 million in initial funding to begin a multiyear process of changing HUD's rental assistance programs to make them more responsive to market forces and allow for more resident choice. HUD has drafted legislation called The Preservation, Enhancement, and Transformation of Rental Assistance Act of 2010 (PETRA). Congress will hold hearings and consider HUD's proposal this year, but the outlook is uncertain.    HUD's proposal is voluntary, but it would allow public housing authorities and owners of HUD assisted housing to convert to property-based contracts to access private sector financing. The proposal is intended to create more uniform policies across all HUD-funded rental assistance programs and increase administrative efficiency.    Read more about the proposal and the full text of the legislation on HUD's website.     HUD's Five-Year Strategic Plan Aims to Tackle Affordable Housing Challenges   HUD Secretary Shaun Donovan presented his agency's strategic plan for fiscal years 2010-2015, which is intended to achieve HUD's mission to "create strong, sustainable, inclusive communities and affordable homes for all." The plan articulates five goals: strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; build inclusive sustainable communities free from discrimination; and transform the way HUD does business.   View the press release and full strategic plan on HUD's web site.       Hearings   Senate Hearing Examines Federal Housing Administration Reform     The Senate Appropriations Transportation, Housing and Urban Development Subcommittee held a hearing May 13 on the Federal Housing Administration's (FHA) role in the housing market. The topics discussed included proposals to change FHA programs to reduce the risk of fraud and losses, issues of concern that would be addressed in an FHA reform bill (H.R. 5072) that recently passed the House and is pending in the Senate.     FHA Commissioner David H. Stevens said that FHA's current market share (30 percent of new mortgages) and market share prior to the financial crisis (2 percent) are not ideal. While declining to give a specific target, he stated that a 10 percent market share was typical for periods of housing market stability.   For more information, including written testimony and the hearing webcast, visit the Senate web site.   A.C.T.I.O.N. Campaign Update    Enterprise expects that the House and Senate will continue work on the tax extenders bill (H.R. 4213), which includes the 9 percent exchange and the extension of the placed-in-service deadline for the Gulf Opportunity Zone Low-Income Housing Tax Credits.  Congressional leaders have announced that they would like to take final action on the bill before Memorial Day. Visit the A.C.T.I.O.N. Campaign website for more information on efforts to revitalize the LIHTC program.   New York Times Editorial Urges Congress to Bring Investors Back to LIHTC   A May 14 editorial in The New York Times urged Congress to move quickly to restructure the Low-Income Housing Tax Credit (LIHTC) program and ensure continued investment in the most effective financing tool for affordable housing in the nation. Read the editorial here.     Reports   Brookings Institution Reports Focus on Issues Facing Cities   The Metropolitan Policy Program (MPP) at the Brookings Institution launched a new interactive database and report, The State of Metropolitan America, foreshadowing the 2010 Census results. The MPP has also released a report reviewing federal policy on land use in older industrial cities. Read The State of Metropolitan America and Facing the Urban Challenge on the Brookings Institution web site.     PolicyLink Report Features Neighborhood Stabilization Strategies   PolicyLink's  When Investors Buy Up the Neighborhood examines more than 35 different strategies used to effectively stabilize neighborhoods facing large numbers of foreclosures.           Connect with Enterprise on:     Thank you for reading this edition of Capitol Express. Please add policy@enterprisecommunity.org to your address book or safe sender list to ensure uninterrupted delivery. © 2010 Enterprise Community Partners, Inc. - Public Policy Office 10 G Street NE, Suite 450, Washington, DC 20002 www.enterprisecommunity.org