Congratulations to the City of Greensboro- Winners of the Strong Cities, Strong Communities Challenge Grant

Yesterday, the Obama Administration announced the winners of the Strong Cities, Strong Communities Challenge, a grant competition designed to generate innovative ideas to develop long-term economic and job growth plans. Advocacy Associates congratulates the City of Greensboro for the recognition of their hard work to foster economic development in the area and the opportunity to expand their projects.

The City of Greensboro was selected to allow the city to access additional resources to develop a comprehensive plan that will incorporate several on-going economic development projects. The comprehensive plan will better leverage five major industry clusters in and around the region, and will influence the next 50 years of growth in the city.

The Strong Cities, Strong Communities Program, launched in July of 2011, is an interagency program to foster economic development in neighborhoods, towns, cities and regions by giving communities extra capacity to develop and execute economic strategies.

The Strong Cities, Strong Communities Challenge is being administered by the Economic Development Administration. The award is divided into two phases.  First, grantees will seek economic development proposals from teams comprised of a range of transportation, planning, economic, business, and engineering experts, which will be voted on by a city-appointed panel. Then, the winning teams will develop and submit comprehensive, strategic economic development plans, and the panel will select a winning plan. The cities will receive technical assistance from the Economic Development Administration throughout the entire process. Hartford, CT and Las Vegas also received grants. More information about the awards and the program is available here.

Advocacy Associates provides the City of Greensboro with legislative monitoring, strategic advice, and advocacy network assistance services.

Romney’s Housing Plan Could Make Homeownership More Difficult

Recently, candidate Mitt Romney released his vision for the future of the American housing market. Included in his proposal to fix the housing market is a combination of economic growth strategies and a strikingly vague list of how he’s going to stop foreclosures, dispose of vacant homes, and reform regulation. Some of these proposals sound familiar, such as his idea to “facilitate creative alternatives to foreclosure for those who cannot afford to pay their mortgage,” which  in theory is extremely similar to  Making Home Affordable (HAMP), a current Obama Administration program.

Unsurprisingly, he also supports the privatization of Fannie Mae and Freddie Mac, a popular position among Republicans since the Government Sponsored Enterprises were placed under conservatorship in 2008. What many people don’t realize is that if the GSEs are transitioned to the private market, this means that all mortgages will transition to standards set by the private market. While having high lending standards is certainly important and could have gone a long way to prevent the very housing woes we are experiencing now, the private market has responded with credit standards that are too tight even for responsible, credit-worthy borrowers. Eliminating the GSEs will likely make it even more difficult for Americans to obtain mortgages; without the financial backing of the Federal government, lenders will be even less likely to lend to borrowers who don’t have pristine credit scores and a 20% down payment.

His plan is more worrisome when taking into consideration his proposal to eliminate the Department of Housing and Urban Development. When asked what government departments he would eliminate if elected to office, Romney said, “Things like Housing and Urban Development, which my dad was head of, might not be around later.” In addition to providing housing vouchers for the lowest income Americans and funding for community development projects, HUD also operates the Federal Housing Administration. If his plan is to eliminate all of HUD, presumably it would also include eliminating the FHA. For many Americans without the means to make a 20% down payment, FHA loans are the only way to achieve homeownership. This is particularly true for first-time homebuyers, who haven’t yet built up home equity and don’t have access to the amount of cash necessary to make a 20% down payment. As the private market tightens lending standards, the FHA has frequently been the only alternative for legitimately credit worthy borrowers, growing from only 2% of mortgages prior to the housing crisis to 30% today. The FHA is crucial for many Americans trying to transition into the middle class; eliminating both the FHA and the GSEs could make the dream of homeownership suddenly unattainable for a very large percentage of Americans.

There is no quick fix for the housing industry or the overall economy, but Romney’s position seems to suggest that there are easy, step-by-step solutions that President Obama refuses to take. Preserving the ability of middle class Americans to achieve the goal of homeownership should be an important aspect (though, not the only component) of any candidate’s housing plan. Unfortunately, Romney’s plan, while well-intentioned, appears as though it will make that dream even more difficult for Americans to achieve. 

HUD Seeks Comments on Critical Survey of Nation’s Housing Stock

Do you have thoughts on how housing data is collected? If so, HUD wants to hear from you.

Sponsored by HUD and conducted by the Census Bureau, the American Housing Survey is the largest, most comprehensive housing survey in the country. It focuses specifically on individual housing units over long periods of time, gathering information on occupancy, vacancy, costs, and conditions on the same units every two years. The American Housing Survey is comprised of both a National survey, which is conducted every other odd-numbered year, and a Metropolitan survey, which is conducted in selected areas on a rotating basis. The data collected sheds light on the supply and demand in the housing marketplace and the condition of the nation’s housing stock. It also helps HUD develop policies and design programs for different types of needs, such as the elderly and first-time homebuyers.

HUD is seeking comments on the necessity of the survey and the accuracy of its data, along with suggestions on quality improvements and ways to make the process more efficient. and Comments are due on October 19. More information is available here http://www.gpo.gov/fdsys/pkg/FR-2012-08-20/pdf/2012-20420.pdf. 

Work on FY 12 Spending Bills Moves Slowly as Congress Tackles Debt Limit before Deadline

The federal government is on track to reach the $14.3 trillion debt ceiling two weeks from today. The looming August 2 deadline means that most other issues on Capitol Hill are taking a backseat. Even the Fiscal Year 2012 appropriations process is partly on hold as everyone waits to see what deal congressional leaders will make to avoid the projected fallout of defaulting on federal debt. The current fiscal year will end September 30th, but this deadline is not always met by Congress. (Remember the near shutdown before a budget deal was reached in April for the current fiscal year? That was more than 6 months late.)

To date, only five of the twelve annual appropriations bills have been approved by the House and only one has been formally taken up by the Senate. Three bills—dealing with transportation and housing; the State Department and foreign aid; and labor, health and education spending—have not been introduced at all. What these three bills have in common is the likelihood of being targets for major reductions in funding if spending cuts are part of the debt deal.

Negotiations on a variety of proposals for handling our nation’s debt and future budgets are expected to continue right up until the August 2 deadline. Only after a short- or long-term compromise is reached, will we see final agreements on spending for FY 12. In the meantime, if you are confused about the deficit and what it means in terms of national spending, check out Five truths about the deficit and national debt.