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HomeMy WebLinkAbout2002-05-07 Correspondence ~Nr<X'~AT,~N r~ u~s ~N~mONS Richard L, Ferguson P~esident May 1, 2002 Ernest Lehman Mayor City of Iowa City Civic Center 410 East Washington Street Iowa City, IA 52240 Dear Mayor Lehman: As you know, ACT approached the Iowa City Council last summer with a request to use municipal bonds to finance the building project on our campus. The Council's approval of that request enabled the project to proceed last fall. We appreciate the many challenges that the Councilors face in deciding requests like ours. We suspect that, while you receive a great deal of information at the beginning of projects, you are far less likely to be kept abreast of events that follow on your actions. It occurred to us, therefore, that you might enjoy an update on our project. Since we last met with you, ACT has issued $40MM in municipal bonds. The closing on those bonds took place within minutes of the initial offering on December 13, 2001. We are grateful to the Council for facilitating this approach to our financing of the project, as it's unlikely that we would have proceeded with a project of the magnitude of the one now underway had the Council not acted favorably on our request. As a drive through the ACT campus will reveal, our building project is well underway. The general shape of the new buildings becomes more apparent with each passing day. We're pleased to report that MoComas/Lacina, a locally owned contractor, has kept our project on schedule, increasing our optimism that we'll be able to occupy the new buildings about this time next year. A few photos of the building site accompany this letter. Most projects of this magnitude require the collaboration of many parties. Our project is no exception. In that regard, all of us at ACT wish to thank you and the Council for your support. We would be most grateful if you would extend our thanks to the Council and to the City staff for their assistance with this project. We greatly appreciate the efforts of everyone who have made our project possible. S' ely,, Richard L. Ferguson President Enclosures cc: Steve Atkins 2201 North Dodge Street RO. Box 168 Iowa Ci~ Iowa 52243-0168 319/337-1079 fax 319/337-1059 ferguson@act, org www. act. org THE IOWA,, CITY/CORALVlLLE JAYCE,, Leadership Through Invoh, ement P.O. BOX 2358 -- IOWA CITY, IOWA 5224,t May 1, 2002 The Iowa City/Coralville Jaycees Iowa City Area Chamber of Commerce P.O. Box 2358 Iowa City, Iowa 52244 Mayor Lehman and the Iowa City Council City Hall 410 E. Washington St Iowa City, Iowa 52244 RE: 2002 Fireworks Funding Dear Mayor Lehman and Council Members: On behalf of the members of the Iowa City/Coralville Jaycees, 1 would like to thank you for the $5,000 funding approval in support of the 2002 4t~ of July Fireworks celebration. We are very excited to be able to bring this event to our community for the 43*a consecutive year. Pride in our community and pride in our nation are at a height that we haven't experienced for some time. Therefore, we would like to make this 4th of July celebration the best that we can make it. The Jaycees and local businesses and citizens have stepped up as leaders to make this happen. If additional City funding were available for contribution, we would appreciate the support. As noted in the donation approval letter we received from the City, we will look for the donation check in July. The check from the City should be made out to "J & M Displays", the pyrotechnic company supplying the fireworks for the show. As J & M are providing services for a city event, sales tax will not be applied. The donation should be mailed to: Iowa City/Coralville Jaycees Iowa City Area Chamber of Commerce C/O 2002 Fireworks Festival P.O. Box 2358 Iowa City, IA 52244 If you have any questions, please feel free to contact me at 319-665-7905 (daytime number). The Junior Chamber of Commerce and the citizens of Iowa City thank you for your support and we hope that you enjoy this year's fireworks display in your beautiful City Park. Sincerely, Amy D.L. Jennings 2002 Vice President. Iowa City Coralville Jaycees 4~ of July Co-chair Marian Karr From: jjehle [jjehle@mymailstation.com] Sent: Wednesday, May 01, 2002 10:34 AM To: Cou ncil@iowa-city.org Subject: Groundbreaking IOWA VALLEY HABITAT FOR HUMANITY cordially invites each of you to our 2nd groundbreaking of 2002 ..... Sunday, May 5th at 1 o'clock at 2432 Whispering Meadow Drive in Southeast Iowa City This address is about 2 blocks from the Indigo Court houses that Habitat previously built. The purchase of these lots has been made possible by City-funding from CDBG or other grants. Please come to join the celebration with our partner family, Lonne and Cathleen Loney and their 3 year old daughter, Katie. The building of their new home has been made possible by build sponsor, Wells Fargo Housing Foundation and the Wells Fargo Bank in Coralville. Funds were donated as a result of the Black and Gold Shootout(s) held at Carver Hawkye Arena this past winter. Thank you for approving the funding to purchase these lots. We appreciate this partnership between the City of Iowa City and the Iowa Valley affiliate of Habitat for Humanity. Sincerely, Joan Jehle, IVHFH Board Member Marian Karr From: Matthew McGrath [mcgrath_matthew@hotmail.com] Sent: Tuesday, April 30, 2002 10:26 PM To: cou ncil@iowa-city.org Subject: Concern over New Law Considerations Dear Iowa City Council, I just saw the presentation on the news about the "Iowa City Taskforce", I think was the name they called it. What they are trying to do is not right. Students go to the University of Iowa so that they can get a good education, but they need a little bit of freedom to relax when they would like. I'm not saying to let them get out of hand, but imposing permits on kegs, parties, occupancy rules at houses. That's going to far and is ridiculous. I am a veteran of the United States Marine Corps and for the last four years I have been living on my own and doing things most people would consider pretty dangerous. Now I move back home to Iowa to go to the University of Iowa and I'm being told through the news that I am going to get babysat for the next 4 years?? If these new proposals go into effect, I think that withdrawing my application to the U of I and attending a school in a community that is a little more laid back wouldn't sound like that bad of an idea. I think many other students would feel the same. I love the Iowa City area and the U of Iowa and would love for the community to wake up and smell the coffee. I in no way mean for there to be no rules and enforcement but to enforce rules they already have and not see everything in such a negative way. The proposals are ludicrous. What are the students to do to relax or have fun if they are scared to step foot out the door for fear of getting a ticket. THESE PROPOSALS WOULD ALSO MEAN THAT for parents to have a graduation party for their high school seniors they would have to get permits wouldn't they??? Permits for the kegs, permits to have over so many people in their house at one time, permits for the party?? I urge you, the city council, to seriously way these proposals. Thank you for your time. Sincerely, Matt McGrath Send and receive Hotmail on your mobile device: http://mobile.msn.com Marian Karr From: Heather MacDonald [heather-macdonald@uiowa.edu] Sent: Tuesday, April 30, 2002 5:47 PM To: cou ncil@iowa-city.org Subject: EHP Feasibilib~ Study Application Dear Members of the Council, I am on the Board of the Emergency Housing Project. I am also Chair of the Graduate Program in Urban and Regional Planning at the University of Iowa, and have done a substantial amount of research for the State of Iowa on both housing and homeless needs. I am writing in support of EHP's application for CDBG funds for a feasibility study for a new homeless facility. EHP currently serves as the sole shelter for homeless families, and single men and women, in Johnson County. As the estimated numbers of people refused shelter show (approximately 1,820 individuals annually), the current facility is inadequate to the existing need. A new facility would serve several purposes. It could provide safe shelter for the various groups of people EHP serves, it could serve more of the current demand, and it could provide a more intergrated set of supportive services as well as shelter. Moving the shelter to a less residential location could also address the concerns of Northside neighborhood residents. A new facility will represent a major investment. A careful pre-development feasibility study that would identify the appropriate size and mix of related uses, the appropriate location, and the sources of construction and permanent financing, is an essential first step in developing this much-needed new facility. Without a thorough feasibility study, EHP will be unable to move forward with its relocation and expansion plans. While this use of CDBG funds would not provide any additional housing directly, in my opinion it would be a wise investment of public funds. EHP's new facility should be developed in the most efficient, cost effective way, and should be based on extensive involvement of Iowa City residents in determining how to meet this urgent public need. A feasibility study by a well-qualified professional consultant is the best starting point for such a development process. Without an expanded set of services and shelter for the people who are homeless in this community, the effects will soon begin to be felt in increasing rates of visible homelessness, increased pressure on the jail and other public facilities, and increased pressure on the public school system to meet the needs of children without a stable living environment. I am on the Board of EHP because I believe in the organization's mission - not just its mission to serve those who fall through the cracks of our economy, but also its mission to meet an (unfortunately) inescapable public need. I would strongly recommend CDBG funding for this first step in the development process. Heather MacDonald 3923 Stewart Road Iowa City, IA 52240 Heather MacDonald Assoc. Professor and Chair Graduate Program in Urban and Regional Planning University of Iowa 319-335-0501 (voice) 319-335-3330 (fax) Marian Karr ~ From: Jeff Goldman riaginc@erols.com] Sent: Friday, April 26, 2002 9:51 AM To: cou ncil@iowa-city.org Subject: Beautiful Sculpture Looking for some incredible sculptures? Check out our beautiful web site at http;//~.jaggall~ry.com/to view our wide selection of some of the country's finest sculptures. We offer a fantastic range of styles including Classical, Modem, and Abstract. Sincerely, Jeff Goldman *** eSafe scanned this email for malicious content *** *** IHPORTANT: Do not open attachments from unrecognized senders 4/26/02 Marian Karr From: Marquee123@aol.com Sent: Monday, April 22, 2002 5:29 PM To: joe.bolkcom@legis.stateia,us; robert.dvorsky@legis.state.ia.us; vicki.lensing @legis.state.ia.us; mary. mascher@legis.state.ia, us; richard.myers@legis.state, ia.us; council@iowa-city.org; Marquee123@aol,com; susan- futrell@uiowa.edu; dave@frohwein.com; dsummerwill@isbt,com; btibbets@avalon.net; mollie.schlue@thomsonlearning.com; mikep@partridgesystems.com; LDWicklund@aol.com; bskamer@mchsi,com; jo-jones@uiowa.edu; Jfull@aol.com; jeremy-faden@uiowa.edu; rahamel@prodigy, net; shawarch@zeus,[a.net; SandrEskin@aol,com; rosenber@avalon.net; hd-hoover@mchsi.com; cthompso@co.johnson.ia.us; pharney@co,johnsonia,us; mlehman@co.johnsonia,us; tneuz[l@co.johnsonia,us; sstutsma@co.johnson.ia.us; vcupp@iowacityarea,com; Ifiebelkorn@iowacityarea.com; khilby@iowacityarea.com; jmurphy@iowacityarea.com; amurphy@iowacityarea.com; dsmith@iowacityarea.com; dvolk@iowacityarea.com; chamber@iowacityarea.com; dta@iowacity, net Subject: Englert Civic Theatre/Vision Iowa Hello, As you may already know, The Englert Civic Theatre will be applying for Vision Iowa Funds under the Com~nunity Attraction and Tourism Program (CAT). This program supports smaller projects than those outlined in the larger scale Vision Iowa Fund. The Englert Civic Theatre is asking for $1,635,000 from the CAT program We have passed the first round of the evaluation process. The grant will now be passed onto the CAT review committee (comprised of 5 members of the Vision Iowa Board). On Hay 8th there is a Vision Iowa Board meeting in Dubuque Iowa at Bricktown. I believe the meeting begins at 10:30. The Englert Theatre will be on the agenda sometime in the morning. We will answer any questions the CAT review committee has about the application at this time. The process could take up to 15 - 20 minutes depending on how many questions they have. It is very important that we have a representation of the community at this meeting. The Vision Iowa Board only supports projects that have broad community and political support. Ideally, they like to see representation from both the City and the County. Any other community entities such as Cha~ber of Commerce, DTA and CVB, that benefit from and support this project would be most welcome as well. I know that you all have busy schedules and that going to Dubuque for a meeting with a vague time line is asking alot. But if you could possible block some time off that morning I believe it would be most beneficial to the project and to our community. We can't help but make a positive impression on the Vision Iowa Board if they see a line of faces and hear the titles associated with them, all in support of this project. If you cannot attend, I ask that you please take the time to write a brief letter of support or make a phone call on behalf of the Englert to members of the Vision Iowa Board. ( http://www.visioniowa.org/contacts.html ) If you can stay in Dubuque a little longer we have been invited to tour the Grande Theatre in Dubuque in the afternoon. They are further along in their renovation process. They have been very helpful and are anxious to collaborate with us on several projects in the future. The $1,635,000 that we are asking for is crucial to the timely completion of the Englert Civic Theatre. Not only will we have an 800 seat live performance venue in the heart of downtown Iowa City, but the theatre will also house a gallery/reception/performance space on the second floor in conjunction with Arts Iowa City. The third floor under the auspices of the Iowa City Cultural Incubator will house and support a variety of non-profit cultural entities such as the Iowa City Jazz Festival, the Iowa Arts Festival, Iowa City Community Theatre, Friends of Historic Preservation and the Downtown Association. These concepts fit in well with Governer Vilsack's Image Iowa 2010 initiative. In supporting this project we are investing in the future, health and economic viability of our community and of Iowa. Thank you for your consideration. Please let me know if you can/cannot attend the CAT meeting. If there is anything I can do to make it easier for you to attend please let me know as well. I appreciate your time and support! Sincerely, Justine Zimmer Executive Director Englert Civic Theatre, Inc. {319} 688-2653 FII. ED APR 24 PIll2: Ok April 22, 2002 FI_ .~'7 ~. 3223 Shamrock Dr. .,.i:.:2 _.~, 214 Al'Il Iowa City IA 52245 Cilx~ ' [- ~' "~,[-: ':7 Iowa City Ci~ Council IOWA . .~. t. Civic Center Iowa City IA 52240 De~ Members of the Ci~ Council: I m shocked, though not s~rised, by ~e i~esponsible ~d d~gerous events ~at took place last week at the "etc." b~ in do~to~ Iowa City. I c~l upon the City Co~cil to do all it c~ in t~ee areas: 1 ) Shut dow~ "etc." ~d prevent the Pohls from opening ~y more driving establis~ents in Iowa City, 2) As soon ~ possible, p~s ~ ordin~ce ~at allows only persons over the age of 21 entr~ce into b~s in Iowa City, 3) ~ediately begin ag~essive investigations into ways to limit ~e nmber ofb~s in the do~to~ ~ea, ~d begin an ove~ campaign to reclaim do~to~ Iowa Ci~ for its ~aditional stren~hs. Put simply, the number of b~s do~to~ ~d ~e immat~e, d~gerous activities that t~e place in ~em ~e ~ emb~assment to ~is fine co--unity. The downto~ I used to ~ow ~d love is becoming a shme~l blight, and we are quickly losing much of what is positive and good about our town. I anended graduate school at The University of Iowa from 1986-1991 and fell in love with Iowa CID'. For eight ye~s, I sought a way to retm to this to~ to live pendently, work productively, and raise our children. I felt very fortunate that this drem becme possible in 1999. However, I was sorely disappointed during my first stroll t~ough the Pedestri~ Mall to see ~at College Street, while always having its fair shoe of bars, had become simply a b~ ghe~o. The increase in the nmber ofb~s du~ng the eight ye~s I was away w~ shocking, ~d I m appalled that the situation has only gouen worse. As interesting, indigenous retail flees domto~ Iowa City, the w~ton proliferation ofb~s that replaces it is simply ou~ageous. More ~d more, do~to~ Iowa City is becoming a place I do not w~t to t~e my children. Regarding my t~ee calls for action above: 1) Shut down "etc." and prevent the Pohls from opening any more drin~ng establishments in Iowa CID'. I call upon the CiW Co~cil to t~e a stud ~d asseg~ t~ough law. t~ough specific action, ~d through the bully pulpit~that our co~ity will not tolerate the type of illegal, reckless, ~d dangerous behavior and activity that is typical of Pohl establishments. The essential problem so readily illustrated by "etc." ~d the Pohl bars is that environments laden with alcohol and that are not properly managed are dangerous and destructive. They lead to violence and injury, not to mention sexual assault and vandalism. This is hardly the stock-in-trade for which I imagine the Iowa City business community and citizenry want to be known. Ihe Pohls in particular have shown time and again that they are incapable and/or unwilling to run well-managed bars, and they have repeatedly lied to this city about their intentions and actions. 2) As soon as possible, pass an ordinance that allows only persons over the age of 21 entrance into bars in Iowa City. It is simple foolishness to believe that the vast majority of underage patrons who enter Iowa City's bars are not drinking. Our city should be ashamed that it facilitates placing underage drinkers in the dangerous situations described above. While it is true that 19- and 20-year-olds should exercise good judgment themselves, it is naive, and reckless, to think that the vast majority of these young people xvill exercise that judgment well in an environment and culture that aggressively promote a lifestyle exemplified by "etc." and its ilk. Our city--and our leadership in City Hall--should take upon themselves the responsibility of helping to keep our young student population safe--not to mention practicing legal behavior--by actively and aggressively promoting positive and legal activities. Establishing a 21-only law would be the first, yet absolutely crucial, step in this process. Limiting bars to 21- and-over only will certainly not solve all of the problems in our town, and in our culture at large, related to alcohol. But such a limitation will cut down significantly on the behaviors that are endangering our young people and embarrassing this community. And there's also the "no-brainer" part of this request--limiting drinking to those 21 and over is simply the law. 3) Immediately begin aggressive investigations into ways to limit the number of bars in the downtown area and begin an overt campaign to reclaim downtown Iowa City for its traditional strengths. Frankly, I am impatient with Council's constant refrain that it can "do nothing" about the proliferation of bars downtown. I was encouraged to see some slight flickering of interest recently in looking into ways to make zoning a tool for stemming the cancer of so many new bars. Certainly Council can pursue this avenue aggressively, and certainly it can engage its imagination to investigate other methods, direct or indirect, if an outright cap on liquor licenses is legally impossible. It is true that "supply and detained" can control much of what happens in a business environment. But "the market," if left to its own devices, can result in public disaster just as much as it can lead to public good. What needs to direct the market is visionary leadership that helps create an environment in which the market will let the types of business that leadership wants grow. Downtown Iowa City's positive characteristics are the encouragement of public gathering in the beautiful Pedestrian Mall, public programming that encourages community gathering and cultural uplift, the presence of great cultural organizations like the Public Library and soon the Englert Theater, and the presence of interesting and unique local retail and restaurants. All of those are threatened by the proliferation of bars. Council is to be congratulated on the efforts it takes to support these positive aspects of downtown Iowa City, but I urge an even more aggressive "Positively Downtown" type of campaign to create a stronger demand for the area's traditional strengths. A 21-and-over ordinance will certainly eliminate much of the demand for alcohol in the central city and--let's be realistic-- close a lot of bars downtown, but our community needs leadership that will reclaim the cultural vitality that alcohol is currently displacing, and that will work hard to replace the lost economic activity that fewer bars will cause. I love this city. I love it more than any other city I have ever lived in. I want my children to love this city, and I want them to be proud of it, not embarrassed by it. The proliferation of bars in downtown Iowa City is creating a city to be ashamed of. An alcohol fireball as a result of a moronic, juvenile stunt that injured six people~some of them underaged--should send the clearest signal possible that my rhetoric is not overblown and that, indeed, the sky is falling. Please restore dignity to downtown Iowa City. Sincerely, Thomas K. Dean c: Stephen J. Atldns, City Manager Eleanor Dilkes, City Attorney Marian Karr From: RhysBJones@aol.com Sent: Saturday, April 20, 2002 8:42 AM To: cou ncil@iowa-city.org Subject: Outrage and the Bars lC Council: We have never been more outraged about a story than the fire incident at the Etc. bar. Now let me get this straight. The bar was packed with 300 people. Underaged students were burned in the fire. There is an ordinance against open fires in building. One of the underaged students is suing. Another who spat alcohol on the fire is thinking about suing. Is she going to be charged with underaged drinking? Or do we all feel sorry for her?? Full charges should be filed on all those involved - the students, bartenders, and bar owners. Suspend the bar license immediately. Find evidence on other bars that are apparently doing the same thing (Summit was in the paper), and charge them. A special session of the council should be held immediately after charges are filed and at that session pass a strong ordinance banning under 21's in bars as has been recommended by the RWJ Stepping Up project. If Madison, WI can do it, IC can do it. Quick dinking around with these ineffective ordinances. You don't need to debate it for another day. The models of successful communities are presented by Stepping Up. My wife is the owner of a downtown business that has had damage by weekend drunk students. She is horrified to learn that bartenders in IC are setting their bars on fire. Act Now. Sincerely, Rhys B. Sones Valerie Chittick 708 McLean St. Iowa City, IA 52246 319-351-2144 Marian Karr From: jaswilso [jaswilso@blue.weeg. uiowa,ed u] Sent: Saturday, April 20, 2002 7:26 PM To: council@iowa-city.org Subject: Underage drinking in Iowa City April 20, 2002 Dear Iowa City Council Members, I am writing in regard to what occured at Etc. I agree with Connie Champion when she stated, "I~m done waiting". My question is why are people under the age of 21 allowed into bars. Iowa City is the only place I'm aware of that allows people who are not 21 into bars. The City Council cannot be naive enough to think that once a person is allowed into a bar they are not going to drink. What Iowa City has c~eated is a place for students to go to school, and by the way, you don~t have to be 21 to get into "our" bars. If you know someone is underage and allow them into a bar, they are going to drink. Every time something horrible happens at a bar with underage drinkers the bar is blamed, well the City Council should just get on with it and make a law not allowing anyone under the age of 21 into bars. Students take advantage of the fact that they don't need a fake i.d. to get into bars, they can show that their 19 and drink all they want. Why then when a person is caught drinking underage in a bar the person is blamed, the bar should be liable right? They let them in and they have to be aware of reality. I would guess that more than 70% of students at the U of I are under 21. I propose that the City Council stops waiting for the next incident to happen, instead the City Council should change the law and see how much underage drinking lowers in the bars and how much binge drinking lowers as well. I realize that if this were to change, other facets of college life would worsen, i.e. more house parties. Does the City Council allow underage people into bars because it attracts more students to come to Iowa? I hope not. The City Council cannot tell me that they are not aware of the fact that once an underage person is allowed into a bar they are not going to drink. You know the answer, and so does everyone else. The only people who do not agree with this solution are the bar owners, people under 21, and anyone else who benefits from allowing underage people into bars ..... City of Iowa City? Please write back to my concerns and questions. I appreciate your time and look forward to hearing from you. Sincerely, Jason Wilson 319-341-6194 jason-wilson-l@uiowa.edu Marian Karr From: IDS, Inc. [indisys-inc@mchsi.com] Sent: Sunday, April 21, 2002 9:34 PM To: council@iowa-city.org Subject: In Support of Iowa City's Airport (Note: This was returned to me as "undeliverable" when sent to Ms. Champion's email address; I am therefore sending it to the council as a whole. - JH) Dear Ms. Champion, Re: Your stance in opposition to providing our municipal airport with financial assistance. The local newspapers have presented your position as being appalled and surprised at the current state of affairs at our airport. Further, they say that you're opposed to the city paying $100K this year to support the airport. I find neither of these positions supportable by the facts. First, our airport is a major gateway to our city. Any day of the week you will see corporate jets and smaller aircraft lining the tarmac. The people who arrive and depart on these planes are the "movers and shakers" in our area, and our airport is our first chance to positively influence these folks. And these folks mean jobs for our community, and your constituents. Please be aware that my wife and I moved our business (Innovative Distribution Systems, Inc.) to Iowa City in 1997 primarily because of the marvelous general aviation airport located here. It is truly one of the best general aviation airports in the nation, with three long, wide runways to use, making landing in Iowa City safe and easy in virtually any wind conditions. Innovative Distribution Systems (IDS) provides part-time jobs for nearly 100 people in the Iowa City area. We would not be here today without the airport, guaranteed. Second, to say that you are "surprised" by the problems at the airport seems implausible. When Iowa City Flying Service (really PSAir, out of Cedar Rapids) pulled out of their lease, it was front-page news in both papers. The long and difficult battle to find a viable fixed-base operator (FBO) to run Iowa City Municipal has also been reported often in both the local media, and by the Airport Commission. Then, September llth hit, literally knocking the wind out of general aviation's sails. When the National Security Council grounded all aircraft in the wake of the terrorist's attack, literally dozens (perhaps hundreds?) of FBOs nationwide went bankrupt in the weeks that followed. This little-known fact (the airlines grabbed all the media attention) has nearly crippled general aviation in many parts of the country. Thus, our airport has been hit with two very bad problems in the same year. Neither of these could be foreseen, but, in retrospect, it is disingenuous to say that you hadn't heard of them. Finally, the fact that the city council can seriously discuss spending $500K "beautifying" Market and Linn Streets (for the enjoyment of non-tax-paying college students), while balking at supporting our local airport, is truly appalling to me. Most cities look at their airport as one of their "Crown Jewels", something 1 to be proud of and lovingly tended. In my nearly five years as an Iowa City resident and business owner, I have grown weary of hearing our city fathers constantly berate and minimize the positive impact our airport has on Iowa City. It is time for you folks on the city council to start appreciating what you've got here, and to support it and promote it. In closing, I've been told that Iowa City lost airline service back in the 1970s because of similar city government intransigence. The council members at that time simply didn't want to extend the runways to allow larger and more modern airplanes to land here -- so the airlines packed their bags, and moved to Cedar Rapids, never to return. Please don't make the same mistake your predecessors did over 30 years ago. Put our tax money where it will be spent best -- on our gateway, our Crown Jewel -- on the Iowa City Municipal Airport. That money will be returned ten-fold, in the long run. Sincerely, Jay Honeck 203 Friendship St Iowa City, IA 52245 337-3504 2 Marian Karr ~ From: Mark Kuhn [mkuhn@cdpublications.com] Sent: Thursday, April 18, 2002 2:27 PM To: cou ncil@iowa-city.org Subject: Article on CDBG Innovative Uses April 18, 2002 Hi, my name is Mark Kuhn and I'm the editor of a national, semi-monthly newsletter called Community Development Digest. The Digest mainly covers community-economic development issues, particularly the community development block grant and HOME programs administered by the Dept. of Housing & Urban Development. I'm contacting state and local officials for a series of articles I'm doing in the April 16 and May 7 issues of the Digest on innovative uses of CDBG funds. Past CDBG-innovation articles include descriptions of how Pierce County, Wash., officials used $185,000 in CDBG money to create a receiving center for children whose parents have been arrested for manufacturing methamphetamine. It's the only facility of its type in the state. Another article describes how the Cumberland County Redevelopment & Housing Authority in Carlisle, Pa., used CDBG money and a Sec. 108 loan guarantee from HUD to build a 105-room downtown hotel and conference center to help lure visitors. The hotel is 75% occupied all year round and has become the cornerstone of a downtown revitalization effort. Residents of a nearby public housing complex live within walking distance of the Carlisle Comfort Suites Hotel and work there. Through a self-sufficiency program, the residents are able to save money without their rents increasing so they can eventually move to private rental housing or purchase affordable homes. Another CDBG-funded project recently featured in the Digest describes how Bremerton, Wash., used $26,500 block-grant money to launch a Nursery/Landscaping Certificate Training Program at the local public housing authority. The program provides 2,000 hours of instruction, after which participants become state-certified horticulturists. Graduates, most of them public housing residents, often get horticulture jobs paying $14/hr. and become financially self-sufficient In Tuba City, Ariz., state CDBG money helped convert a dilapidated, 100-year old sandstone building to a new community library. Before the conversion, the structure had been a trading post for settlers, a Mormon laundry and an indoor shooting range. Meanwhile, Baltimore, Md., spends about $40,000 annually for a community-mediation program he[ping resolve conflicts between family members, neighbors, landlords and tenants, and businesses and local residents. The program has resulted in police getting an average nine fewer calls per conflict over six months and a significant drop in court cases. I'm hoping you'll take a moment to tell me about your community's innovative uses of CDBG funds. To do so, just answer some or all of my questions below for the articles I'm preparing. Thanks for any help you can provide. My questions are: (1) Describe one of your most innovative uses of CDBG funds in the past few years? (2) What other types of funding was involved? (3) What advice would you give to others who use CDBG funds for the same purpose--do's and don'ts? (4) What is your name, title, agency and phone number? You can respond to me at me at my e-mail address: mkuhn@cdpub!icat!ons,com, or MKuhn120~5@aoi,c0m. Or, you can call me at 301/588-6380, ext. 138; fax a response to me at 301/588-6385; or you can use snail mail: Mark Kuhn, editor, Community Development Digest, 8204 Fenton St., Silver Spring, MD 20910. I've attached a copy of a recent issue of the Digest in case you're not familiar with the newsletter. It's in Microsoft Word format under the file name "cdd4u.doc." If you would like more information on the Digest or its publisher, CD Publications, check out our Website: http://www.cd publications.com Again, thanks for any help you can provide. See ya *** eSafe scanned this email for malicious content *** *** IMPORTANT: Do not open attach/~ents from unrecognized senders **~ 4/18/02 Marian Karr From: Steven Nasby Sent: Monday, April 22, 2002 2:48 PM To: 'MKuhn~12055@aol.com' Cc: *City Council; Lisa Mollenhauer; Karin Franklin Subject: Response to Your Questions - re: innovative uses of CDBG funds Mr. Kuhn: Your e-mail requesting information about Iowa City's use of CDBG funds was forwarded to my office for a response. The following is a listing of your questions and a response. (1) Describe one of your most innovative uses of CDBG funds in the past few years? In FYO1 the City of lows City worked with the Mid-Eastern Council on Chemical Abuse (MECCA), a local non-profit, to develop a mixed use facility. This new facility provides offices and transitional housing. When completed the facility will enable MECCA to have a secure, afier-rehab housing option for their clients that is designed to reduce the number of re-admits. Due to the use of CDBG and HOME funds in reducing the debt service, MECCA is hoping that the rental income generated from the transitional housing units will help off-set the on-going case management and treatment expenses that they provide to the tenants. In addition, the facility will remain affordable for 99 years according to the terms of the funding agreement benveen the City of lows City and MECCA. (2) What other types of funding was involved? MECCA provided the land, obtained a private loan and used some other public funding through their programs, ln sum, these sources accounted for $1,205,202 or 78% of the total projeet cost. The City of lows City provided CDBG funds totaling $138,650 and HOME funds totaling $206,350. The total project cost is estimated to be $1,550,202. (3) What advice would you give to others who use CDBG funds for the same purpose--do's and don'ts? Since many non-profits (non-CHDOs) do not have a great deal of development experience they need to work with qualified professionals (e.g. architects, builders, etc.) early on in the process, This early involvement helps the non-profit get a handle on the costs and bring forward a strong CDBG or HOME application that is more likely to be funded in a competitive environment. (4) What is your name, title, agency and phone number? City of Iowa City Steven Nasby, Community Deve/opment Coordinator 410 East Washington Street Iowa City, IA 522't0 31g-$56-52't8 31g-356-5009 (fax) NOTICE: This e-mail transmission contain~ confidential info~uation belonging to the sender which may be legally privileged. The info,nation is intended only for the u~e of the recipient named. If you are not the intended recipient, you are hereby notified that any disclosure, copying or distribution of this e-mail information is strictly prohibited. If you have received this e-mail message in error, please notify me /~med/ately. Community Development Digest Semimonthly Report on Development, Planning, Infrastructure and Financing WASHINGTON, APRIL 2, 2002 NO. 02-7 INSIDE THIS ISSUE CD Block Grants: SuperNOFA Offers Hundreds Of Millions States Get Extra Unemployment Funds ........................................ 11 In CDBG Setaside Money .............................................................. 1 Supplemental Reverses DOL Funding Rescission ....................... 11 SuperNOFA Deadlines Vary .......................................................... 2 Homeownershiu: FNMA Sets Home-Financing Record ................ 12 Inspection-Staff Training Reaps Cost Savings ................................ 3 Illinois Builders Get Accessibility Bonus ....................................12 CDBG Excess Estimated At $10 Billion ........................................ 3 Pa. Launches Homeownership Choice Initiative .......................... 12 HUD Seeks $750 Million More For N.¥ ........................................ 3 Rural DeveloPment: Democrats Hammer Housing Cuts ................ 12 Congress: Roukema Proposes HOME Setaside ................................. 4 Rural Empowerment Zone Rule Issued ........................................ 13 Funding Cushion Helps Move Farm Bill ........................................ 5 HUD: Meet New Boss, Same As Old Boss ..................................... 13 House Budget Resolution Backs CDBG Wealthy-Area Cuts ......... 5 HUD, Union Agree On Reassignments ........................................ 14 Nei£hborhoods: NRC Plans New Markets Tax-Credit Model ........... 6 IG Nominee Confirmed By Senate ...............................................14 Preservationists Meet In Cleveland ................................................ 6 Courts: One-Strike Becomes Law Of The Land .............................. 14 Associations: NAHRO Pushes CDBG, HOME Changes ................... 7 FTC Reaches Settlement In First Alliance Mortgage Case .......... 15 League Of Cities Sets Policy Agenda ............................................. 7 Community Reinvestment: ACORN Raps Fla. Law ...................... 15 Community Security: Agencies Must Coordinate Surveillance ........ 8 Fair Housine: State Sues Public-Housing Authority ...................... 16 Extra Airport-Security Funds Released ..........................................8 Employment Disability Law Can't Apply To Fair Housing ......... 16 Administration Shows Signs Of Backing Larger Share of Must Be Willing To Negotiate On Accessibility .......................... 16 Homeland Security Block Grant Funds For Localities ................... 9 Federal Judge Upholds $100,500 Award ..................................... 17 Homeland-Security Grants Offered For Volunteer Efforts ............. 9 Plannine: Plan Now, Or Lose To Growth Laws .............................. 17 Housing: PHAs Supportive, Wary Of HUD's Faith-Based Letter .....9 Build Commercial Space On Need ............................................... 17 GAO: Classify PHAs As High Risk ..............................................10 Smart Growth Hurting State Budgets? ......................................... 17 Senate Tax-Credit Bill Introduced ................................................ 10 States: Mich. Governor Signs 30 Anti-Terrorism Bills ................... 18 IG: OMHAR Not Completely Innocent In Grant Fiasco .............. 11 .Tourism: Minn. Campaign Stresses Stress Relief ........................... 18 Emnlovment & Training: DOL May Team Up With EDA ............ 11 Reeional Reoort: Mountain Region ............................................... 18 SuperNOFA Offers Hundreds Of Millions In CDBG Setaside Funds Application Deadlines Vary By Program HUD offers more than $300 million in community- million for Northern Plains tribes; $27.7 million for development block-grant funds under numerous setaside Southwest tribes; and $4.7 million for Northwest tribes. programs. Nearly $1 billion is available under the agency's Eligible activities include new housing and rehabilita- homeless continuum-of-care initiative, tion, land acquisition for housing, homeownership aid, HUD's so-called SuperNOFA (notice of funding avail- public facilities, economic development and microenter- ability) in the Federal Register, 3/25pl 3827, offers $2 bil- prise programs. lion with application deadlines beginning this month and Funds can be passed to commnnity-based development ending in July. Get application kits from HUD's Super- organizations and institutions of higher education. NOFA Information Center, 800/483-8929, 800/483-2209. The SuperNOFA offers $29 million for brownfield re- The largest share of CDBG money offered goes to In- development projects. Individual grants can't exceed $2 dian tribes and Alaskan Native Villages (see table on fol- million. CDBG entitlement areas are eligible. lowing page). The dollars support housing and economic Brownfield grant proposals must be accompanied by opportunities for low-to-moderate income people. Sec. 108 loan-guarantee funding requests. Sec. 108 appli- Funding includes $5.9 million for Eastern and Wood- cations can be brief summaries of proposed activities or land tribes, $12.6 million for Southern Plains tribes, $10.8 complete proposals. Unauthorized Reproduction Prohibited ~ 2002 · 8204 Fenton St., Silver Spring, MD 20g 10 * 301/588-6380 · www. cdpublications, com PAGE 2 COMMUNITY DEVELOPMENT DIGEST APRIL 2, 2002 The House Housing Financial Services housing sub- Fiscal 2002 SuperNOFA Deadlines committee has approved legislation (HR 2941) ending the Houeing & Community Development requirement brownfield-grant applications contain Sec. HOME Technical Aid ;5 Million June 7 108 loan requests (CDD, 3/19p4), which the full panel is Homeless TA $3 million June 7 expected to pass soon. Supporters say the bill will encour- HOPWA TA ;2 million June 7 CDBG for Indian Tribes and ;70 million June 6 age smaller communities to seek brownfield grants. Alaskan Native Villages Nearly $60 million in CDBG money is available under Community Outreach ;7.5 million June 20 the Youthbuild program providing on-the-job training in Partnership housing construction trades to high-school dropouts eh- Historically Black Colleges ;10.5 million June 20 and Univemities Program rolled in general diploma equivalency programs. Partici- Hispanic-Serving Institutions ;10.1 million June 20 pants will build homes for low-income families. Assisting Communities Alaska Natives & ;6 million June 20 HUD plans to use a portion of the money for eligible Native Hawaiians applications not funded in previous years. Qualified appli- Tribal Colleges and ;3 million June 20 cants include state and local governments and public and Universities private nonprofits. Fair Housing Youthbuild has three funding categories: (1) $10 million Fair Housing - Private ;11.82 million May 22 Enforcement Initiative for proposals not previously funded with grants of up to Fair Housin[! Education and ;6.32 million May 22 $400,000; (2) $37.75 million for previously funded appli- Outreach Imtiative cants with grants of up to $700,000; and (3) $10 million Fair Housing Organizations ;2.1 million May 22 Initiative for applicants in rural areas, with grants of up to $400,000. Housing Counseling The SuperNOFA offers $950 million in Continuum of Housing Counseling-Local ;6.6 million May 17 Care Homeless Assistance money. Funds are provided un- Housing Counseling Agencies der three programs: Supportive Housing, Sec. 8 Moderate Counseling Not'l, Regional ;10.4 million May 17 Rehabilitation Single Room Occupancy and Shelter Plus intermediaries Care. The notice doesn't say how much money is offered Housing Counseling $1 million May 17 State Housing Finance under each component. This will be detenmned by local Agencies priorities and overall demand. Housing Counseling- $250.000 May 17 HUD is particularly interested in proposals for develop- Colonies lng seamless services systems to help move chronically Healthy Homes Lead Hazard Control $80 million June 14 homeless individuals from emergency shelter and transi- Program tional housing to permanent living arrangements and self- Healthy Homes and Lead- $3.5 million June 14 sufficiency. Grantees must create such continuum-of-care Technical Studies Healthy Homes $5 million June 14 networks through community-wide and region-wide coop- Demonstration eration, including coordination among government agen- Economic Development cies, nonprofits, public-housing authorities, faith-based Brownfields Economic De- $29 million July 9 groups, law enforcement and the business sector, velopment Initiative SHOP $22 million June 19 Obtain the SuperNOFA £rom HUD's lntcmet Websitc, YouthBuild $59.75 million May 30 http.'//www, hudclips, org (click on "What's New," then Rural Housing and Eco- $25 million April 26 "Discretionary Grants for Fiscal 2002"). nomic Development ROSS Programs Resident Management and i $6 million May 14 Community Development Digest Business Development Copyright © 2002 by CD Publications, est. 1961. Communiiy Develop- Capacity Building $5 million May 14 ment Digest (ISSN 0094-2324) is an independent news service published Resident Service Models $21 million June 18 twice monthly, 8204 Fenton St., Silver Spring, MD 20910. E-mail: Service Coordinator $20 million May 14 cdd2~rnailexcite, com; Web: http.'/Aa~vw, cdpublications, com. Editorial Renewals questions: 301/588-6380; Subscription questions: 800/666-6380 (8:30 a.m.- Neighborhood Networks $15 million July 10 5:30 p.m. Eastern Time); Fax: 301/588~6385. $497/yr., $944/two yr. in Homeownership $11.2 million July 10 US; Canada, plus $I0; Iht'l, plus $40 (U.S. funds). Single issue: $18 pre- Homeless Assistance paid; $13 each for two or more. Publisher: Mike Gerecht; Managing Edi- tor: Steve Kidney; Editor: Mark Kuhn. Continuum of Care $950 million June 21 *CDS-Community Document Service: CDS will supply any document Homeless Assistance Supportive Housing we reference with a CDS number (for subscribers only). $7 per item, plus Shelter Plus Care 25 cents per page, prepaid only (check, MC/Visa/AmEx). For one-day Section 8 Moderate Rehab service, double fees, plus $15 express charges; one-day fax service, triple Housing fees. No billing. Mailed to subscriber addresses only. Service Coordinators in Mul- $25 million July 3 Notice: Photocopying or reproduction prohibited without permission of tifamily Housing publisher or through Copyright Clearance Center, 978/750-8400. To report violations, contact Mike Gerecht, 800/666-6380. Sec. 8 Family Self- $46.4 million May 21 Sufficiency Coordinators Unauthorized Reproduction Prohibited © 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/588-6380 · www. cdpublications, com APRIL 2, 2002 COMMUNITY DEVELOPMENT DIGEST PAGE 3 Inspection-Staff Training Generates billion in unspent funds. Cost Savings For Lead-Paint Activities HUD requires communities to have no more than 1.5 times their annual block grant allocations unspent 60 days Aurora, Colo.--Providing adequate training to housing before the end of their program years. Overall, this permits rehabilitation staff on lead-based paint inspections and risk block-grant entitlement communities to have about $6 bil- assessments can save big bucks. That's what Aurora's lion in unspent funds annually. Community Development Division discovered, we're told. The 1.5 standard accounts for time needed by grantees The city authorized $49,000 in CDBG money for lead- to assess, approve and implement projects, along with de- based paint training for staff in its single-family rehabilita-lays caused by litigation, local-government red tape and tion-loan program. Additional funding came from Federal HUD slowness getting funds to them. A memo from Roy Home Loan Bank Board grants and donations by real- Bemardi, assistant secretary for community development, estate associations, warns entitlement areas HUD will start recapturing money The city initially planned to hire contractors to do lead- exceeding this standard in May (CDD, 1/22p4). based paint assessments. But it had to do a double take Questions raised when seeing the high prices contractors charged, says Jo- seph Garcia, division manager. Subcommittee Chairman Walsh (R-Colo.) and Rep. "Perhaps because of HUD's new lead-based paint re- Sununu (R-N.H.) ask Secy. Martinez during a budget quirements, some private risk assessors saw a cash cow hearing about HUD's efforts to recapture unobligated and and raised their schedules substantially," he tells CDD. unspent capital money. They say HUD has ignored re- Thus, the city decided to train its own in-house staff, peated requests to provide Congress and the General Ac- The division now has three state-certified risk assessors counting Office with sufficient information on grantees' to do standard rehab inspections, including dust wipes and not complying with spending timetables. taking paint samples. The samples are hand delivered to Martinez tells Walsh "it's a very serious and startling the lab with the results received within two working days, problem" but shifts much of the blame to mayors and other Garcia says. The expense of collecting samples is ab- local officials. The problem lies with HUD's partners, he sorbed into the employee's regular salaries, says. "We have to force partners to do right or lose funds." During the past six months, division staff have done a In addition to unused CDBG funds, Walsh estimates dozen risk assessments at an average cost of $400--$200 HUD hasn't spent $6.9 billion in economic development for initial lab work and $200 for clearance lab work. Had money, $6.8 billion in thc public-housing authority capital- contractors done the assessments, it would have cost an improvement funds, $3.9 billion in homeless aid, $3.2 bil- average $1,400 per home, Garcia estimates, lion in HOPE VI assistance and $4.5 billion in HOME In- Aurora was one of the first in the nation to include HUD vestment Partnership money. lead-based paint containment and abatement procedures in its single-family rehab program, he says. Its community- HUD Seeks $750 Million More For N.Y, development staff are helping train other agencies across the country. New York City would get an additional $750 million in Last year the rehab-loan program received 39 applica- community-development block-grant money under Presi- tions and completed 29 projects. Dangerous lead levels dent Bush's fiscal 2002 supplemental appropriations re- were found in 12 homes. Lead was contained or abated in quest. This is in addition to $2.7 billion in CDBG money five homes at a cost of $72,400. in this year's HUD and Defense Dept. appropriations for Info: Garcia, 303/739-7900 recovery from the Sept. 11 terrorist attacks. Many program rules have been waived to give the city more flexibility in using the CDBG money for recovery ef- CDBG Excess Estimated At $10 Billion forts. The waivers speed CDBG citizen-participation re- Pressure mounts on HUD to follow through on its quirements and ease job-creation requirements for eco- threats to take back community-development block-grant nomic-development activities. money entitlement areas haven't spent in a timely manner. Other N.Y. assistance requested includes $2.75 billion The chairman of the House Appropriations VA/HUD for the Federal Emergency Management Agency to further subcommittee estimates CDBG entitlement areas have $10 assist terrorism-recovery efforts. The Treasury Dept. would receive $2 billion in N.Y. rebuilding aid. Unauthorized Reproduction Prohibited © 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/588-6880 · www. cdpublications.com PAGE 4 COMMUNITY DEVELOPMENT DIGEST APRIL 2, 2002 I lack of real money attached to it," says Sheila Crowley, CONGRESS I coalition president. Thc coalition wonders how many poor families could af- Roukema Proposes HOME Setaside; ford to rent in HOME-produced units since the bill doesn't use HUD fair-market rents to detemfine apartment prices. Advocates Question Funding Mechanism Crowley wants a provision added to HR 3995 letting A new HOME Investment Partnership setaside would public housIng agencies raise Sec. 8 rent subsidies to fund low-cost rental housing for very low-income families 120% of the fair market rent without approval from head- in legislation (HR 3995) introduced by Rep. Roukema (R- quarters, Sec. 8 vouchers don't work in some communities N.J.), head of the House Financial Services housing sub- without a higher payment standard, she says. committee. But the proposal barely has bipartisan support Vouchers attached to units as Democrats say they're still studying the proposal. A HOME participating jurisdiction must use at least half The bill would create a thrifty-production rent-aid of funds to house extremely low-income households de- voucher local public-housing authorities could attach to fined by the bill as households with annual incomes at or new and substantially rehabilitated multifamily housing below 30% of area median. HUD may adjust this for un- projects. The vouchers could be used only when projects usually high or low cost housing markets, don't displace extremely low-income households and Unspent Sec. 8 rent aid would be recaptured by HUD to won't result in concentrations of poor families. fund the HOME initiative. Sixty percent of funds would go Vouchers could be attached to up to 25% of units in a to localities and 40% to states. Grants may be provided to development. They would have an initial 15-year subsidy religious groups. HUD's fair market rent would no longer term, which HUD has the right to extend to 40 years. be used to determine rent levels for HOME projects. Thrifty-vouchers couldn't be attached to units with rents 75% higher than what a PHA would normally pay for a Need-based formula used comparable market-rate apartment or the fair-market rent Funding allocations would be based on areas' need for for the area, whichever is higher. extremely and very-low income housing. Need would be PHAs could use up to 5% of their annual funding to as- determined by measures of inadequate housing supply, sist hard-to-serve families through the housing-choice low apartment-vacancy rates and low turnover of rental voucher program. These funds could be used for housing units with prices below HUD fair-market rents, counseling, Sec. 8 down-payment assistance, rental secu- HUD will consider the cost of housing production, the rity deposits and other activities. amount of substandard rental housing units and similar factors when allocating funds. Participating HOME juris- CDBG funds for storm shelters dictions must use the funds within 18 months. Another provision in the bill permits use of community- Grantees would provide matching funds, except when development block-grant funds for construction and ira- serving rural and severely economically distressed com- provement of tornado and storm-safe shelters for manu- munities. Subgrantees' contributions would be counted factured housing parks. CDBG money could be spent on toward participating jurisdictions' matching funds, property acquisition for shelters through loans and grants to nonprofit and for-profit entities. Token support from Dems The CDBG-funded storm shelters would have to be lo- The bill has 23 cosponsors, only two of them Demo- cated in low-to-moderate income neighborhoods. Shelters crats. The legislation was introduced before being thor- would be open to all neighborhood residents, not just those oughly reviewed by Democrats, which partly accounts for in mobile-home parks. the party's low number of sponsors, staff say. Key advocacy groups generally approve of the legisla- Homeless programs reauthorized tion but reserve final judgment until closer review. The HUD's main homeless programs would be reauthorized. Nat'l Low-Income Housing Coalition, for instance, praises The bill sets aside at least 30% of annual funding to pro- Roukema for proposing the HOME housing-production vide permanent housing for the homeless. component but prefers funding it with new appropriations Other provisions in Roukema's bill would: instead of Sec. 8 recaptures. · Strengthen and provide the FHA program with additional sources to increase homeownership and the supply of affordable "The value of the proposal is diluted significantly by the rental housing. Unauthorized Reproduction Prohibited © 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/58~-6380 · www. cdpublications, com APRIL 2, 2002 COMMUNITY DEVELOPMENT DIGEST PAGE 5 · Reauthorize and reform HOPE VI to allow eligibility for small and $17.4 billion in outlays for community and regional PHAs. development in fiscal 2003, nearly a 26% decrease from · Establish a demonstration program for nonprofit-sponsored Sec. fiscal 2002. 236 elderly-housing properties for modemization puqaoses. The Senate budget resolution (S. Con. Res. 100) pro- . Reduce dom-payment requirements for loans for teachers and poses no cuts in CDBG money and appears not to support public-safety officers and offer police the opportunity to buy the wealthy-community reductions. It recommends $15.8 HUD-held single-family properties at a discounted rate. billion budget authority and $16.3 billion in outlays for · Reauthorize the Indian Housing Block Grant programs, community and regional development. · Permanently extend the FHA streamlined down-payment formula. It calls for a $269 million increase in CDBG spending, which likely will fund congressional pork-barrel projects. Funding Cushion Helps Move Farm Bill Language in the Senate resolution not contained in the House version provides $100 million for the Treasury Senate and House negotiators propose creating a $2.6 Dept's. Community Development Financial Institutions billion spending reserve to help ease agreement on a final Fund for fiscal 2003, $32 million more than the admini- 10-year farm-subsidy authorization bill (HR 2646). stration requests. The move brightens hopes legislation will be approved The Senate further recommends $45 million for Round soon after Congress returns from its spring recess next II urban Enterprise Zones next year and $15 million for m- week. The Senate's $79 billion version of the bill author- ral EZs. The administration requests no Round II money. izes a Rural Empowerment Program providing $75 million The Senate rejects the administration's proposed cuts in in federal grants for community development in small Small Business Admin. programs. The administration's towns and a Nat'l Rural Cooperative & Business Equity reductions include $17 million less for disaster loans and Fund insuring bank loans for rural-business development elimination of the One-Stop-Capital Shop program and (CDD, 2/19p 13; 3/5p5). Program for Reinvestment in Microentrepreneurs, which The Senate budget resolution includes funding for the got $31 million this year. farm bill's rural-development initiatives (see related arti- cle below). The House's $73.5 billion version doesn't include simi- Community Development Digest lar language, but the conference committee is considering Subscriber Services Coupon a somewhat scaled-down version of the Senate proposals, rn I'm MOVING. My new address is shown below. The funding reserve would be tapped if HR 2646 falls (Please attach mailing label or prior address.) short of demand for farm subsidies. Negotiators see it as a Q I'm NEW Q RENEWING:rn 1 Year, $497. IZI 2 years, $944. way to close the spending gap between the bills, although n Please bill me. 13 Include a binder, $10 some senators are concemed aid for young farmers will be cl Check enclosed (Md. residents add 5% sales tax) cut to create the setaside. CHARGE rn Visa [3 MasterCard C] AMEX Card # Expires __ House Budget Resolution Backs Name & Title: CDBG Cuts For Wealthy Areas OrgamaUon: Address: The House approves a budget resolution endorsing the administration's plan to cut community development City, State, Zip: block-grant aid to wealthier entitlement areas to help sup- Phone: ( ) port a proposed new program serving Colonias conununi- Signature: ties along the U.S.-Mexican border. It further reduces E-mail: CDBG spending by about $200 million. Members of both parties heavily criticize the admini- Get More Information By Going To: stration's proposal, which HUD says it won't implement www. cdpublications.com without first consulting Congress on the details (CDD, CD Publications, 8204 Fenton St., Silver Spring, MD 20910 3/19p3; 2/19pl; 2/5p3). Or Call Toll Free: (800) 666-6380 FAX (301) 586-6385 The nonbinding House budget resolution (H. Con. Res. 353) recommends $14.7 billion in new budget authority Unauthorized Reproduction Prohibited ~ 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/588-6380 * www. cdpublications, com PAGE 6 COMMUNITY DEVELOPMENT DIGEST APRIL 2, 2002 I I The idea is to pump corporation resources into filling NEIGHBORHOODS I gaps, while building on NeighborWorks' street expertise, Tansey says. That way it stays within its means as it pro- NRC Plans New Markets Credit Model motes innovation. The congressionally chartered Neighborhood Reinvest- Weighing in on economic development ment Corp. is developing a model to help its Neighbor- The corporation expects to make some concrete deci- Works members obtain money generated from the New sions by the end of the year on how it will expand its in- Markets Tax Credit to build single-family homes for low- volvemant in economic development, says Ellen Lazar, to-moderate income families, executive director. New Markets will provide $15 billion in credits over the "We see that economic development is key to neighbor- next six years to community-development entities, which hood revitalization," she says. Housing has formed the ba- will sell them to investors. Funds generated from the sales sis of NeighborWorks' activities. But the corporation is will mainly promote business development in poor census increasingly aware how economic development can make tracts (CDD, 2/5p8). But NRC believes the New Markets a significant difference. statute law offers an opening for some of its 225 Neigh- "We'll be led by our NeighborWorks organizations and borWorks affiliates to get funds for housing construction, the work they're doing," she tells us. It won't be a situa- "We read [the statute] pretty carefully and somebody tion of setting agendas and mandating programs for who is in the business of developing subdivisions~single- NeighborWorks. The corporation will determine the types family house--s perfectly eligible," says Charles Tansey, of technical assistance, training and risk management it NRC senior policy advisor, can offer to strengthen existing local efforts, says Lazar. "In fact, there is an allocating entity out there that's "We want to see what the appetite is within our network looking for housing development," he says. "They're and make sure we develop products and services useful to working on a financing mechanism to promote it, using the them," she adds. Creating a New Markets model is an ex- New Markets tax credit." ample of affiliates asking for specific guidance. Tax credits aren't going to be a deciding factor in most Tansey estimates about 30% of NeighborWorks mere- deals, "but they're certainly going to make them a lot more bers are fairly sophisticated about economic development attractive and put it over the top," Tansey tells CDD in an and putting together deals. interview. A case in point is Affordable Housing Education & De- Multifamily housing can be built with the tax credits, but velopmant in Littleton, N.H. It was a catalyst for down- it must be combined with commercial space as mixed-use town revitalization by working with an array of partners, development. Overall, there are considerable restrictions including the state housing finance agency, Northern on using the credits for rental projects, Tansey says. Community Investment Corp., Federal Home Loan Bank So far, the corporation has been approached by a large of Boston, the Agriculture Dept.'s Rural Business- NeighborWorks affiliate wanting to create a for-profit Cooperative Service and a local community-loan fund. community-development entity to apply for New Market "This is an example of brilliantly layered financing" tax credits. A model will be designed that other network NRC wants to foster among other affiliates, Tansey says. members can use, says Tansey. Info: NRC, 202/220-2300 Don't duplicate efforts Whenever possible, NRC tries not to reinvent the wheel, Tansey says. Try A Trial Subscription The corporation is willing to design a model for mem- bers wanting to tap into the New Markets tax credit since Sign up for a risk-free trial subscription to COD toflay~ none currently exists. But often it will point members to Your complete satisfaction is guaranteed, or you pay organizations having more expertise than NRC when giv- nothing. You'll receive three issues of the Digest to lng them advice and technical assistance, examine before deciding whether to subscribe. To or- Thus, a network member wanting to use New Market der, call Subscriber Services, at 8001666-6380. tax credits to develop small businesses may be sent to a national organization with special expertise in that area. Unauthorized Reproduction Prohibiteri © 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/588-6380 · www. cdpublications, corn APRIL 2, 2002 COMMUNITY DEVELOPMENT DIGEST PAGE 7 I I Concerned aboutpublic-housing study ASSOCIATIONS NAHRO recommends Congress provide $4 billion for public-housing operating subsidies next year. It's particu- NAHRO Pushes CDBG, HOME Changes larly concerned about a pending public-housing operating- The Nat'l Assn. of Housing & Redevelopment Officials cost study HUD is preparing. Researchers will use FHA cost data to approximate the urges Congress to fund the community-development block-grant program at $5 billion next year without seta- cost of public housing. But it's unclear how an adjustment factor will be devised to translate FHA data to cost figures sides--an amount not too off the mark from the Bush ad- ministration's fiscal 2003 budget request, for public housing, the association says. The administration seeks $4.715 billion in block grants NAHRO seeks $410 million under the public-housing for fiscal 2003, a $285 million cut (CDD, 2/5pl). The pro- capital improvement fund for security needs. Another $50 million is sought to help local housing authorities convert posed reduction would eliminate congressional setasides. During its Washington legislative conference, NAHRO some of their units to assisted-living facilities for the eld- calls upon Congress to require HUD to redistribute back to erly and disabled. Info: NAHRO, 202/289-3500 CDBG entitlement communities any block-grant funds re- captured from those not spending them in a timely mauner. HUD plans to start recapturing money in May from enti- League Of Cities Sets Policy Agenda tlement communities exceeding its timeliness standard of having no more than 1.5 times the annual CDBG distfibu- The Nat'l League of Cities is developing a 2002 policy tion unspent 60 days before the end of an area's program agenda evaluating the current state of local emergency year (CDD, 1/22p4). preparedness. It's Public Safety Technology Committee is Congress should amend the CDBG program to allow spearheading the review, which will include an evaluation grantees to use 2% of their annual allocations for technical of liability and civil-liberties implications for cities using assistance, the group says in a 2002 legislative agenda un- profiling to identify potential terrorists. The committee's assessment will include a look at the veiled at the conference. Another amendment is needed to Patriot Act. Signed by President Bush last October, the give housing units with children less than six years old priority for CDBG-funded lead-based paint abatement, law provides new investigative powers to police and intel- ligence agencies eliminating many checks and balances Change the HOME program previously given courts. The league will study its impact NAHRO wants $2 billion for the HOME Investment on public safety, technology and surveillance. Partnerships Program, the amount the administration re- Airport security may be addressed and a policy will be quests. It seeks technical changes allowing HUD to pay developed on security of the nation's railroads, highways, participating jurisdictions administrative fees and creating tunnels and bridges. The league will recommend possible a loan-guarantee program similar to the CDBG Sec. 108 protection measures and funding sources. program, which funds large urban projects. The group's Community & Economic Development Other changes in the HOPE VI program sought by Committee will update its policy on the community- NAHRO would redefine severely distressed housing rede- development block-grant program, particularly regarding veloped by the initiative to include projects where resi- HUD's new policy of recapturing funds not spent in a dents experience "social and community distress." The timely manner. This will include a look at the consistency amount of relocation occurring at HOPE VI developments of agency standards for the program, federal housing poi- should be reduced and production of more public-housing icy's impact on local zoning laws, and cities' ability to di- units should be allowed, the group says. vest public housing. NAHRO urges HUD to streamline HOPE VI through The group's Finance, Administration & lntergovem- program and processing changes while finding ways to mental Relations Committee will examine the roles of fed- open funding to smaller public-housing authorities. Grants eral, state and local government in using debt financing for should be awarded to previously approved, but unfunded, infrastructure. Attention will focus on e-commerce, too, to applicants to ensure all worthwhile projects are funded, the determine the league's position on federal legislation. organization says. Info: NLC, 202/626-3176 Unauthorized Reproduction Prohibited ~ 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/598-6380 * www. cdpublications, com PAGE 8 COMMUNITY DEVELOPMENT DIGEST APRIL 2, 2002 I I strike a balance between protecting individuals' privacy COMMUNITY SECURITY I and electronically surveying for terrorists, says Deputy Mayor Margaret Kellems. The criteria will define the types Local Agencies Must Coordinate of surveillance used, at what times, who will do the sur- veillance, how long videotape is stored and who will have When Doing Video Surveillance access to surveillance video and information. There must be coordination among the city police, ABA recommendations used mayor and council when setting up closed-circuit televi- sion surveillance to guard against terrorism, says the head The guidelines are being developed partly with recom- of the House Government Reform District of Columbia mendations from the American Bar Assn., Assn. of Inter- subcommittee, national Chiefs of Police and foreign cities with well- It's especially critical to have a set of coordinated poli- developed CCTV surveillance programs, such as London ties and procedures in place before police start videotap- and Sydney, Australia. ing, Rep. Morella (R-Md.) says. The American Bar Assn. stresses communication and The Bush administration's proposed $3.5 billion home- permission before using cameras, which will be a key part land-security block grant likely will help cities purchase of the draft guidelines, Ramsey says. Obtain the group's CCTV equipment. At least $2 billion of block-grant funds Standards on Technology-Assisted Physical Surveillance would help buy equipment (CDD, 3/19p7). online, http://www, abanet, org/crirnjust/standards. D.C. Police Chief Charles Ramsey says a CCTV sur- Some D.C. neighborhood groups have asked for cam- veillance system can be especially important in spotting eras to deter crime, Ramsey tells Norton. About 10% of ar- traffic bottlenecks and deploying officers for mass rests in Sydney are from CCTV surveillance, he says. evacuations after terrorism events. This became evident Cameras have generated 800 assault arrests in two years. during the Sept. 11 terrorist attack on the Pentagon, he But the D.C. chapter of the American Civil Liberties tells a subcommittee hearing. Union is concerned CCTV surveillance is too open to But Ramsey reveals in subcommittee questioning the abuse, even when neighborhoods request it. The cameras mayor and city council don't know specifics about the 22 undermine individual privacy and can't replace putting cameras deployed around the city since Sept. to watch for more officers on the street when it comes to fighting crime and respond to terrorism. He promises to submit drafl or watching for possible terrorists, says Johnny Barnes, the policies and practices for the mayor's approval in the chapter's executive director. coming weeks. The police didn't seek neighborhoods' permission be- Surveillance hasn't included video recording, Ramsey fore installing the current cameras, he says. D.C. seems tells Morella. That won't happen until the mayor signs off intent on modeling its surveillance system after London's on the draft policies, where 2.5 million surveillance cameras are installed and Other cities may want to use CCTV to patrol public the average citizen can be filmed up to 300 times a day, spaces, but it's critical elected officials and the public haveBarnes tells the subcommittee. input before police begin making and storing videotape, Morella says. Extra Airport Security Funds Released D.C. Delegate Norton (D) tells Ramsey CCTV guide- lines must include how to notify residents before cameras The Federal Aviation Admin. awards $175 million in are installed in their neighborhoods, not afterward. "And supplemental fiscal 2002 airport security funds provided in don't put any cameras in my neighborhood," she says. the defense appropriations act. Norton expresses dismay over how the D.C. police About $111 million goes to 66 large and medium-hub seemed to act independently when putting up its cameras, airports, nearly $36 million goes to 184 non-hub facilities City Councilwoman Kathleen Patterson says she knew po- and remaining funds are awarded to 67 small-hub airports. lice were using CCTV, but only informally. The money will help defray the costs of additional police The city council will probably want to review the poli- and security staff and surveillance equipment mandated cies and practices after the mayor's approval, Patterson after the Sept. 11 terrorist attacks. Some small and medium-sized airports say they're get- says. It may seek public input and make its own recom- mendations to the mayor and police, ting less sophisticated baggage scanning equipment than The D.C. standards could assist other cities wanting to large metropolitan airports. They're more likely to receive Unauthorized Reproduction prohibited © 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/588-6380 · www. cdpublications.com APRIL 2, 2002 COMMUNITY DEVELOPMENT DIGEST PAGE 9 so-called trace-detection systems for spotting residue from Community-Service Corp. Offers Funds explosive substances. But to be completely safe, the air- For Local Homeland-Security Initiatives ports believe they need the cutting-edge X-ray machines the Transportation Security Agency is testing at Baltimore- Apply by May 8 for $11 million from the Corp. or Nat'l Washington International Airport. and Community Service under a new homeland-security The agency says there is no final plan on which airports initiative. Grants of up to $750,000 are available. will receive trace-detection systems. Some security experts Eligible applicants are state commissions on national expect most airports to eventually have trace-detection and and community service, nonprofits serving more than one X-ray devices as technology improvements lower the cost. state, consortia of nonprofit and faith-based organizations A list of airports receiving grants is on the FAA's Web- and state and local agencies. site, http://wwwfaa.gov/arp/51Ohome, htrn. Grants support use of volunteers for disaster prepared- Info: FAA, 202/267-3831 ness and public health and safety. Disaster-preparedness activities include using volunteers to assess communities' vulnerability to terrorist attack and for manning emergency Administration Shows Signs Of Backing shelters, assisting police, running food and clothing drives More Security Funds For Localities for victims and developing public-awareness materials. A Federal Emergency Management Agency official in- Other grant activities include volunteers helping with dicates the administration supports localities getting a immunizations against bioterrorism and organizing neigh- larger share of homeland-security block-grant funds, borhood watches, helping police with fingerprinting and President Bush seeks $3.5 billion this year for the block providing victim assistance. Obtain grant information and grant initiative. Funds will mainly support equipment and applications online, http://www, nationalservice, org. training for police, fire fighters, rescue and other first re- Info: Nancy Talbot, 202/606-5000, ext. 470; Peter He- sponders to terrorist attacks. His fiscal 2003 budget sets nam, ext. 302; John Keller, ext. 554 aside 75% of funds for localities and 25% for state emer- gency-management agencies. I HOUSING I But a special assistant says FEMA Director Joe All- bangh strongly favors most of the money going to locali- ties, even 80% of it. PHAs Supportive, Wary Tod Well, FEMAs intergovernmental-affairs liaison, Of HUD's Faith-Based Letter tells a Nat'l Assn. of Regional Councils policy conference Public-housing officials say HUD's letter urging them to Allbangh envisions localities spending most, if not all, of use faith-based organizations to provide services to resi- the $2 billion earmarked for equipment to improve and co- dents helps clarify policy. But some wonder if HUD will ordinate communication systems. The administration is under pressure from the Nat'l use greater participation by religious groups to justify cuts in public-housing drug-elimination funds. Assn. of Connties, U.S. Conference of Mayors and other HUD's letter instructs the nation's 3,200 local PHAs to powerful groups to amend its proposal to give all of the institute an open-door policy for faith-based groups. It block-grant money directly to localities without passing it cites case law on church-state separation and encourages through the states (CDD, 2/5p8). Wells' statement seems PHAs to seek help from faith-based groups in improving to reveal a softening in the administration's position, residents' quality of life and economic opportunities. which previously demanded a 25% share for the states. Current regulations don't prohibit religious displays in Wells says Allbaugh supports a state pass-through but wants most funding to reach localities, public settings provided equal opportunity is given to or- Allbaugh seeks comments from regional governments ganizations of any faith, the letter adds. Melanie Fohl, PHA director in Morris, Minn., "appreci- about including them as eligible block-grant recipients, ates having an official comment on the issue." Her agency Wells adds. "FEMA takes a regional perspective on things," he tells the meeting. Disasters, whether man-made has "had a sense of paranoia concerning anything related to a faith-based organization," although it has always wel- or natural, don't stop at city or county borders. This should comed such groups doing specific events with tenants. make regional authorities valid grant recipients, he says. Info: NARC, 202/457-0710 Another PHA official plans to distribute the letter to his residents and invite them to post it at their churches. Ten- Unauthorized Reproduction Prohibited ~ 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/558-6380 · www. cdpublications, com PAGE 10 COMMUNITY DEVELOPMENT DIGEST APRIL 2, 2002 ants are a PHA's best msoume for recruiting faith-based tem to identify troubled PHAs and advise field offices on organizations, the official says. which to monitor the closest. PHAs' conditions are mainly determined by the physical Been there, done that and fmancial condition of their projects, management ef- Louis Riccio, executive director of the Madison PHA in fectiveness and resident satisfaction. The center grades a N.J., says HUD's letter probably wasn't necessary for his troubled PHA as a low, moderate or high risk. agency. "We have always operated in this manner and do Field staff devote less time and effort to those consid- not selectively prohibit any group," he tells CDD. ered Iow and moderate risk. But GAO finds 11 troubled Likewise, Bill Dotson, an official with the Huntington agencies designated as Iow risk having serious deficiencies Housing Authority in W.Va., says his agency has worked needing tight monitoring. with faith-based groups since 1975. "All faiths preach Classifying every troubled PHA as high risk will ensure goodness and light and we just need to monitor their pro- each gets sufficient attention by field offices, GAO says. grams to ensure we don't have hate and prejudice being HUD agrees and is revamping its risk assessment system. advocated," he says. Public Housing: New Assessment System Holds Promise But Dotson and others are concerned about HUD using for Evaluating Performance (GAO-02-282) is free from its open-door policy as a substitute for drag-elimination GAO, 441 G. St. NW, Rm. LM, Washington, DC 20548. funds PHAs use for an army of resident programs and Info: GAO, 202/512-6000 services. At HUD's request, Congress ended the $320 million drug-elimination program, replacing it with an ad- ditional $150 million in PHA operating subsidies. Senate Tax-Credit Bill Introduced "I suspect that will be where they go next, saying we Sen. Graham (D-Fla.) introduces legislation (S 2006) didn't need this money anyway" because faith-based making technical corrections to the Low Income Housing groups will provide resident services, Dotson says. Tax Credit program. A similar measure was introduced in Words of advice the House (HR 3324) late last year. PHAs may want to set a policy for sharing and protect- Graham's bill attempts to clear up questions raised by ing confidential information about residents assisted by the Internal Revenue Service and encourage more devel- faith-based and other community organizations, Fohl says. opers to use tax credits for low-cost rental housing. PHAs must implement an open-door policy, not a one- The proposal defines "associated development costs" for door policy, by "looking to every possible helping hand in calculating projects' tax-credit benefits. These would in- the community," she says. clude expenses incurred in preparing a site for develop- The housing authority should set a policy outlining per- ment, along with state and local fees. mitted uses of public-housing community rooms and in- Other associated development expenses would include demnify itself against losses, says Riccio. Give residents professional fees and construction financing costs that an opportunity to revigw the policy for 30 days before im- must be capitalized, without regard to source. plementing it, he advises. The bill covers tax credits allocated and buildings put in "It would also be appropriate for the resident association service after Dec. 31, 2001. or resident-management organization to take the initia- Meanwhile, the IRS Bulletin (2002-10, p614) says im- tive," Riccio says. They could develop an open-door pol- pact fees incurred by a developer during construction of icy for PHA management to review, tax-credit assisted rental projects will be considered capi- Make sure you have a staffer to act as liaison with faith- talized costs allocable to the buildings. based groups, Dotson says. The notice reverses the IRS's previous treatment of im- pact fees, which localities use for infrastructure and public facilities (CDD, 3/19p 12). GAO: Classify PHAs As High Risk Developers wanting to change their accounting methods It might be better to classify all troubled public-housing to conform to the ruling must follow accounting proce- agencies as high risk so each gets sufficient oversight and dures described in the IRS Bulletin (2002-3, p327). assistance, recommends the General Accounting Office. Obtain the bulletins online from the IRS Intemet Web- HUD uses a Public & Indian Housing Information Cen- site, http://www, irs.gov/pub/irs-irsb. ter and an experimental Public Housing Assessment Sys- Info: IRS, 202/874-6748 Unauthorized Reproduction Prohibited ~ 2002 · 8204 Fenton St., Silver Spdng, MD 20910 · 301/588-6380 · www. cdpublications, com APRIL 2, 2002 COMMUNITY DEVELOPMENT DIGEST PAGE 11 IG: OMHAR Not Completely Innocent of Regional Councils meeting. EDA can help localities prepare such plans so communities have a clearer idea of The Office of Multifamily Housing Assistance Restruc- what types of jobs and skills the emergency grants will turing didn't violate the Anfideficiency Act when award- support, he explains. lng competitive grants to nonprofit tenant groups. But it's guilty of weak management controls making it appear Good isn't good enough violations occurred, the HUD inspector general says in an EDA must be more careful about who gets grants and audit report (2002-DE-0801). how the money is used because of the agency's declining Charges of Antideficiency Act violations delayed for budget, says Sandy Baruah, senior policy adviser. "We're months more than $1 million in Intermediary Technical moving beyond what's a good investment to what's the Assistance Grant and Outreach & Training Grant funds for best investment." tenant organizations participating in the Mark-to-Market EDA would get $317 million next year under the presi- program preserving Sec. 8 housing (CDD, 3/19p12). The dent's fiscal 2003 budget, a 5% cut (CDD, 2/19p10). This act prohibits agencies from spending funds left from prior is 24% below the $421 million it got two years ago. years without congressional approval. The agency seeks grant proposals looking beyond the HUD didn't fully follow agency accounting policy or the immediate horizon by anticipating economic changes and General Accounting Office's Principles of Federal Appro- a need to diversify the local and regional economy. priations Law when awarding the grant funds. This caused Grant proposals with the highest probability of being the Office of Management & Budget to reapportion them, funded will offer state, local and private-sector matching which led to further accounting errors and confusion, funds. They must create higher-skilled, higher-wage jobs. HUD stopped payment of grant funds when discovering Future grantees must make fundamental differences in the mistakes and asked the inspector general to investigate the economic health of their areas. "lunovation is vital," possible violations of the federal law. Obtain the report says Baruah. Projects must have the potential to produce online, http://www, hud. gov/oig/ig280801.pdf prosperity, not just economic recovery. "They must be Info: IG, Rocky Mountain, 303/672-5452 proactive," not just reactive. Info: NARC, 202/457-0710 1 EMPLOYMENT & TRAINING I States Get Extra Unemployment Funds Labor May Team Up With EDA The Labor Dept. allocated $8 billion in additional un- employment benefits to states to extend benefits to work- To Help Recovering Communities ers losing jobs during the economic slump sharpened by Most of the $750 million for the Labor Dept. in the ad- the Sept. 11 terrorist attacks. ministration's $27 billion fiscal 2002 supplemental- The money from the emergency economic stimulus act appropriations request would fund a program linking job (PL 107-147) will reimburse states' unemployment- training to economic recovery, insurance programs, reduce payroll taxes and fund one- The depamnent plans to spend up to $550 million in stop employment-services centers assisting dislocated supplemental money working with the Economic Devel- workers and others without jobs. opment Admin. to improve targeting of the National California, Texas and N.Y. receive the largest shares, Emergency Grants for Dislocated Workers program, says $937 million, $596 million and $491 million, respectively. Mason Bishop, special assistant to the labor secretary. Info: DOL, 202-693-7773 National Emergency Grants provide supplemental dislo- cated-worker funds to state and local workforce invest- ment boards responding to plant and military-base clos- Supplemental Reverses Rescission ings, mass layoffs and economic disruptions caused by President Bush's supplemental funding request reverses natural and man-made disasters, a $110 million rescission in state dislocated-worker funds lt's not enough for the Labor Dept. to swoop down on (see related article above). The Labor Dept.'s regular fis- emergencies with job-training funds if communities lack cai 2002 spending act (PL 107-20) requires the recapture, comprehensive recovery plans, particularly following natu- which it hasn't implemented yet. States would keep the ral disasters or a terrorist event, Bishop tells a Nat'l Assn. money under the supplemental proposal. Unauthorized Reproduction Prohibited © 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/588-6380 · www, cdpublications, com PAGE 12 COMMUNITY DEVELOPMENT DIGEST APRIL 2, 2002 HOMEOWNERSHIP I I RURAL DEVELOPMENT I FNMA Sets Home-Financing Record Democrats Hammer Administration The Federal Nat'l Mortgage Assn. helped finance homes On Proposed Rural Housing Cuts for a record 4.2 million households last year, providing Democrats on the House Appropriations rural develop- $463 billion in financing. A record number of minority ment subcommittee politely but emphatically reject the families were served last year, too, FNMA reports, administration's proposed cuts in rural-housing spending. The federally chartered secondary mortgage market President Bush recommends Sec. 515 rental multifamily company's goal is to provide at least $2 trillion in financ- housing receive $60 million in fiscal 2003, a $54 million ing to 18 million families under an American Dream reduction. The money would be used only for housing re- commitment initiative launched two years ago. pair and rehabilitation, not construction, while the admini- FNMA's 2001 gains in minority lending include serving stration does a $2 million study on alternative funding 153,000 black families with nearly $17 billion in financ- sources for maintaining the existing low-cost multifamily ing, 273,000 Hispanic households with almost $33 billion housing (CDD, 2/19p12). in financing and 253,000 other minorities with $38 billion. The emphasis is on repairing what's already built be- It provided $402 million in f'mancing to more than 2,500 cause the current Sec. 551 rental stock is aging, says Mi- immigrant families and assisted 46 Indian tribes with $81 chael Nemda, the Agriculture Dept.'s deputy undersecre- million in home loans, troy for rural development. Constructing new Sec. 515 Info: FNMA, 202/752-2131 units eventually would add to the maintenance and repair problem while the department's study searches for fi- Illinois Builders Get Accessibility Bonus nancing solutions, he tells the subcommittee. "That's a noble defense of the indefensible," responds Springfield, Ill.--The state's Housing Development Rep. Hinchey (D-N.Y.). Producing new units will not add Authority will give developers $5,000 for each single- to housing units needing rehabilitation, he says. family home they build with wheelchair accessibility. Hinchey blames the proposed cuts on the Office of The $1 million Accessible Housing Demonstration Management & Budget, not the Agriculture Dept. "1 think Grant Program will distribute the money on a first-come, you're doing a terrific job," he tells Neruda. "Maybe first-served basis. Townhouses and condominiums are eli- someone just made a mistake and we can correct it," says gible, but not rental units. Hinchey, referring to OMB. The homes must have at least one exterior entrance with Ohio Rep. Kaptur, the panel's ranking Democrat, asks if a door width of at least 36 inches and no steps. Interior the department requested more money for Sec. 515 and doorways must be 32 inches wide, bathroom walls have to other housing and community-development programs than be reinforced for grab bars and electrical switches must be what OMB seeks in the fiscal 2003 budget. Neruda ac- low enough for people in wheelchairs to reach. Electrical knowledges his funding recommendation was larger. Still, outlets can be no lower than 15 inches from the floor, the amount OMB requests will be enough to adequately A developer may claim up to $30,000 in grants. The house the poor and revitalize communities, he says. program ends Dec. 2003. If approved, the president's budget would be the first Info: IHDA, 312/836-5230 time Sec. 515 hasn't provided money for construction, Hinchey says. It's the smallest amount sought for the pro~ Pa. Launches Homeownership Choice gram in 25 years. Harrisburg~Home construction begins in older city Outlays would be reduced neighborhoods under a $6 million state Homeownership Kaptur says the administration's request would cut fiscal Choice Program grant program to create communities with 2003 funding outlays for the rural utility services by 40%, incomes between 50% and 150% of area median, housing by 10%, business programs by 17% and the Rural Local housing agencies must apply by Sept. 3 for funds Advancement Program by 4%. Neruda explains Congress requiring 50% matching funds, provided extra money in fiscal 2002 to clear up growing Info: Pa. Housing Finance Agency, 717/780-0801 backlogs of grant and loan applications. Unauthorized Reproduction Prohibited ~ 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/588-6380 · www. cdpublications, corn APRIL 2, 2002 COMMUNITY DEVELOPMENT DIGEST PAGE 13 The fiscal 2003 request is sufficient to eliminate re- I maining backlogs and fund new grant and loan applica- I HUD I tions, he says. There's a $4.7 billion application backlog for electricity- Meet New Boss, Same As Old Boss project loans and a $1.5 billion backlog for rural water and waste-disposal systems. The larger fiscal 2002 appropria- Secy. Martinez tells the Senate Appropriations VA/HUD subcommittee his agency doesn't intend to cre- tions and fiscal 2003 amount will end application build- ate new positions because it has several hundred vacancies ups, says Hilda Legg, Rural Utilities Service administrator. to fill. But a HUD source tells CDD the secretary may be John Rosso, Rural Business-Cooperative Service ad- ministrator, says there was about an $800 million backlog using "fuzzy math." Martinez says he'll be too busy filling vacancies to con- of business loans at the end of fiscal 2001. A $440 million carryover of funds will be applied to this for fiscal 2002, sider creating new positions. He informs the subcommittee and fiscal 2003 funds will further reduce the application there's plenty of money in his salaries-and-expenses accumulation, he says. But there will always be a sizable budget to do this without getting a funding increase. backlog because of how the application review and ap- However, the secretary may be guilty of double count- proval process works, Rosso adds. ing, our source says. HUD is currently redeploying 800 Multifamily housing has no application buildup since staffers, most of whom were part nfthe department's now- proposals aren't accepted on an ongoing basis, says James defunct Community Builder program (CDD, 3/5p10). Alsop, Rural Housing Service acting administrator. But These appear to be the vacancies Martinez is talking about, the source says. the Sec. 502 single-family direct-loan program has an es- timated $5 billion backlog. There's no application backlog The Community Builders are being assigned to program in the Sec. 502 loan-guarantee program, and the Sec. 504 positions. Filling the slots they've vacated, a substantial home-repair loan program has a $120 million backlog, Al- number of which are at high grade levels, will result in a sop tells the panel, net gain of about 600 employees, we're told. It's not clear what the additional hires will do, although many may be assigned to field offices where existing staff Rural Empowerment Zone Rule Issued are overwhelmed by mounting workloads. Deputy Secy. Indian tribes will not have to hold broad-based elections Alphonso Jackson has put out the word field regional di- in certain instances to create boards governing rural rectors will oversee hiring and staffing decisions as part of the Martinez' policy to decentralize authority at HUD. Empowerment Zones under a final role published by the Agriculture Dept. Playing politics? Now, at least 51% of EZs' board membership must be There's concern politics may enter the hiring process determined by broad-based elections. But some tribes since regional directors are political appointments. Many question the department's authority to prescribe how their were high up in the Republican party before becoming di- EZ boards are selected. Others say appointments, rather rectors. For instance, Marcie Houston, Great Plains re- than elections, are better for selecting board members for gional director, is former chairwoman of the Kansas Black zones covering a group of distinct tribes with separate Republican Council, while Joseph Glavan, Midwest di- governing structures, disbursed populations and historical rector, was state chairman for the Illinois Hispanics for animosities. Bush Committee. Thus, the final rule waives the election requirement in The worry is regional directors will fill high-grade va- such circumstances to let tribes appoint EZ boards. How- cancies with political associates and allies. Congress shut ever, non-tribal EZs must use elections to pick board down the Community Builders over a similar concern for- members, the agency says. mer HUD Secy. Cuomo was using the program to fill Non-tribal EZ officials say they should be allowed to HUD with political associates. Martinez may do the same appoint board members, too, so communities' movers and "a few jobs at a time," our source says. shakers make zone decisions. The department says this Jackson has told management he wants many vacancies may result in boards not representative of the low-income to be filled from outside of HUD rather than by promoting communities they serve, current employees, the source says. Hiring from outside Info: Norman Reed, 202/690-0719 could help the agency recruit people having needed tech- Federal Register, 3/25p 13553 Unauthorized Reproduction Prohibited © 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/588-6380 · www. cdpublications, com PAGE 14 COMMUNITY DEVELOPMENT DIGEST APRIL 2, 2002 nical skills, but opens it to political associates, too. · Training: Where job qualifications were waived for the realign- But HUD is encountering particularly difficult problems ment, HUD will ensure the preparation ofindividual~developmant filling some policy-level positions at headquarters because plans within 30 days of the effective date of reassignment. Man- agement will give supervisors guidance on specific skills and candidates don't consider the pay high enough or they see knowledge employees will need to perform successfully in their HUD as an agency adrift, another agency source says. new positions. Individual-development plans will not extend for There have been some cases where people express inter- more than 1 year. Performance appraisals will take into account est in a position but back out after being selected for jobs, an employee's training status. the source says. Some union officials expect many employnaent-rights Meanwhile, Martinez seems to have further distanced complaints and possible legal action despite the Commu- himself from staff, He used to come in the front door of nity Builder agreement. Neither HUD nor the union got all the headquarters building but has started using the hack they wanted. Both sides "feel beat up" and more still has loading~dock entrance to avoid staff, CDD is told. to be hashed out, we're told. HUD, Union Agree On Reassignments HUD's IG Confirmed By Senate Kenneth Donohue is confirmed by the Senate as HUD's What HUD calls its latest staffreorganizatiun is critical under an agreement reached with its worker union, new inspector general responsible for overseeing waste, The pact bars HUD from using the term "redeployment" management and abuse of HUD funds and programs. since this legally may deny some employee rights in the Donohue comes to HUD from private law practice and future, CDD learns. Thus, the reshuffling of staff from the was former chief of investigations for the Resolution Trust agency's defunct Community Builder program is consid- Corp. and a member of the Federal Deposit Insurance ered a "reassignment" and "realignment" to avoid dimin- Corp.'s fraud unit. Senate confirmations include Vickers Meadows as ishing workers' rights under current contracts and rules. HUD's new assistant secretary for administration. Mead- Another key issue is how HUD will fill vacancies left by reassigned employees. The union wanted all positions at or ows was previously White House management director and a deputy director at the Transportation Dept. above GS 13 filled by existing workers, along with 1/3 of The White House may soon name Carolyn Peoples, ri- empty CS-12 jobs. But the agreement sets aside just half of advertised positions for internal applicants, rector of Jeremiah Housing Services in Baltimore, as its Some are concerned HUD will hire too many outsiders, nominee for fair-housing assistant secretary. Peoples ap- many of whom may be political favorites (see related arti- pears to have no previous experience in public service. Info: HUD, 202/708-0685 cle above). HUD and the union continue negotiations on upward mobility of existing staff. Other terms of the agreement include: ] COURTS I · Position Descriptions: Workers will be assigned to positions with classified position descriptions. They'll get copies of their new job definitions within 30 days of reassignment. Position descrip- One-Strike Becomes Law Of The Land tions will define duties and responsibilities consistent with em- ployees', grade levels. In no circumstance will it take more than Congress was sufficiently clear in a 1988 law letting 60 days to provide a properly classified description, public-housing agencies evict residents if live-in relatives or friends violate drug laws, even when residents are un- · Upward Mobility/Worker Trainees: Employees' upward mobility and worker-trainee status will not be adversely affected by the aware of their crimes, the U.S. Supreme Court says in a realignment, unanimous decision upholding HUD's one-strike eviction · Relocation. Seoaration and Down~rade: No employee will be in- policy. voluntarily relocated, separated or downgraded as a result of this Federal appeals courts had issued conflicting opinions realignment, on the policy. The U.S. 9th Circuit Court of Appeals struck · Earl? Retirement: HUD has early-out retirement authority through down one-strike in Rucker v. Davis. But the U.S. 11 th Cir- fiscal 2002. Management can pursue an extension from Congress cur Court subsequently upheld it in Burton v. Tampa for fiscal 2003. Housing Authority (CDD, 2/6/01p8; 3/20/01p10; · Reauests for Reassianments: Employees may request reassign- 9/18/01p9; 11/20/01p9). ment, including relocation at their own expense. A central issue in the appeals courts' decisions was Unauthorized Reproduction Prohibited © 2002 · 8204 Fenton St., Silver Spdng, MD 20910 · 301/588-6380 · www. cdpublications.com APRIL 2, 2002 COMMUNITY DEVELOPMENT DIGEST PAGE 15 whether Congress intended evictions to occur when pub- sumem, misrepresenting loan terms and packing loans with lic-housing residents don't know about their relatives' and optional fees to raise their costs. guests' criminal activity. In addition to the settlement, First Alliance's founder The Supreme Court says Congress spoke unambigu- and CEO, Brian Chisick, and his wife, Sarah, a board ously when permitting such evictions. There is no serious member, will make a $20 million contribution to the fund. constitutional doubt Congress gave public-housing agen- The FTC calls the agreement one of the largest consumer- cies a right to no-fault evictions, it says. protection recoveries in the agency's history. The 9~ Circuit incorrectly concluded the law can cause The finn mainly focused on the subprime lending mar- absurd results, the high court says. "This statute does not ket. About $4 million will be contributed to the settlement require the eviction of any tenant who violated the [one- by insurers. strike] lease provision," it explains. Housing agencies use Litigation continues one-strike depending on the circumstances. The settlement preserves lawsuits still pending against Eviction is optional Lehman Brothers and other financiers of First Alliance Many PHAs tell CDD they don't automatically remove brought by other parties. It imposes a 1 O-year ban pre- tenants whose household members and guests are drag venting the Chisicks fi.om engaging in the residential- violators. Residents often get second chances with stipula- mortgage-loan-origination business in Ariz., Mass., and tions, such as requiring violators to vacate public-housing N.Y., and permanently bars them from doing such busi- projects or enter drag rehabilitation programs, ness in Calif., Fla., and Ill. An elderly tenant facing eviction in the 9th Circuit deci- Community-reinvestment advocates hail the settlement sion was allowed to remain in public housing after the but believe individual borrowers will receive too little. family member accused of illegal drag use left her unit. Each affected borrower could potentially receive $2,500- The 1988 law clearly allows no-fault evictions "when a $3,000, not enough to compensate for the financial and member of the household or a guest engages in drug- emotional harm caused, they contend. related activity, regardless of whether the tenant knew, or Mass. Attomey General Tom Reilly, who filed suit should have known," the Supreme Court concludes in against the finn, calls the settlement a wake-up call to sub- HUD v. Rucker (00-1770). prime lenders "from coast to coast." Lenders will know HUD calls the decision "a great victory for families in federal and state officials are watching them, he says. public housing who want to be free from those who infil- Nearly 300 borrowers in Massachusetts could benefit trate their community with drags or commit violent from the agreement. crimes." Obtain the court's opinion from us as *CDS 02459, 1 lpp--see p2 box to order. COMMUNITY REINVESTMENT ACORN Raps Florida Statute FTC Reaches First Alliance Settlement Tallahassee, Fla.--A bill passed by the Florida leg- Defunct First Alliance Mortgage Co. of Calif. will create islature probably will not offer home buyers much a $60 million settlement fund to compensate aboutl8,000 protection against predatory lenders, says the Assn. of mortgage borrowers in 18 states allegedly charged execs- Community Organizations for Reform Now. sive loan-origination and other fees. The measure essentially repeats existing federal law The fund will cover about 6,000 borrowers in California, covering loans in the state, ACORN claims. The bill 2,000 in New York, 1,000 in Florida, 600 in Arizona and further prevents localities from enacting their own hundreds more elsewhere. Many victims are elderly, anti-predatory statues, which likely would be stronger, Once one of the nation's largest subprime lenders, bank- the group says. rapt First Alliance was charged by the Federal Trade ACORN contends the ftnancial-services industry's Commission last year with deceptive and predatory lend- opposition pressured lawmakers into watering down ing practices (CDD, 3/20/01p8). their legislation. The industry "has so much power in The complaint in federal district court mainly involved the state legislature, what they want wins out over home-mortgage-refinancing loans. The company was what consumers need," it says charged with concealing essential infom~ation from con- Info: ACORN, 877/552-2676. Unauthorized Reproduction Prohibited ©2002. 8204 Fenton St., Silver Spring, MD 209'10 · 301/588-6380 · www. cdpublications, com PAGE 16 COMMUNfr'Y DEVELOPMENT DIGEST APRIL 2, 2002 i use boards, "which already face detailed procedural re- FAIR HOUSING quirements under state law." Obtain the court's opinion from us as *CDS 02462, State Sues Public-Housing Authority 29pp~see p2 box to order. Boston---The state sues the Chelsea Housing Authority for allegedly failing to stop the harassment of a tenant by a Must Be Willing To Negotiate neighbor. When Installing Wheelchair Ramps The state attorney general's office contends the resident was subjected to religious discrimination. It further alleges Refusing to compromise on the wording of a letter giv- the public-housing agency delayed in evicting a fellow lng permission to install wheelchair ramps at a private tenant accused of making religious slurs against the resi- rental project mounts to a failure to make reasonable ac- dent and in other ways attempted to drive him out. commodations for the disabled, a HUD administrative law An investigation by the Massachusetts Comtmssion judge roles in a N.J. case. Against Discrimination failed to f'md religious bias, but it The owners of Twinbrook Village Apartments and concluded the tenant might have suffered discrimination Woodshire Apartments in the city of Ocean proposed based on a physical handicap, moving wheelchair-confined residents to ground-level A housing authority official says the tenant's charges units so steps wouldn't be a barrier to their access. But lack substance and merit. It looked into the allegations, but elevated parking-lot curbs and doorway landings still could not substantiate them, the official says. posed accessibility problems. The state attorney general seeks compensatory damages Thus, disabled residents requested wheelchair ramps. In for the tenant and demands the housing agency establish one case, an apartment manager merely put down a ply- procedures for addressing residents harassing residems, wood board to help wheelchairs over curbs. Info: Mass. Attorney General, 617/727-2543 Subsequently, the county human services department of- fered to obtain zoning variances and install wheelchair ramps at no cost to the apartment complexes. It proposed Employment Disability Law Doesn't the project in a letter to apartment owners asking for per- Apply Fair-Housing Cases mission to start construction. But the owners' letter responding to the county's request The U.S. 3~ Court of Appeals says employment law added a key stipulation: "We are not responsible for any protecting the handicapped can't be applied to fair-housing liability for this ramp should anything occur." cases involving zoning waivers for housing projects for the The human-services agency asked the owners to remove disabled elderly, the stipulation by inserting the following: "It will be the A developer in Scotch Plains, N.J., seeking a zoning responsibility of Monmouth County to secure the neces- variance to build a 95-bed assisted-living facility says the sary permits and that its installation complies with all ap- 1973 Rehabilitation Act requires the local planning board plicable handicap and construction codes." to enter negotiations with him, just as it mandates a full The HUD administrative judge says the owner's "stub- dialogue between an employer and disabled employee bom refusal" to modify their permission letter constituted about reasonable workplace accommodations. a "refusal to reasonably accommodate" the tenants' handi- The developer further contends the same negotiations caps. Compensatory damages were awarded. are required under federal fair housing law because the Obtain HUD v. Twinbrook Village Apts. (02-00-0256-8; Rehabilitation Act effectively mirrors that statute. But the 0257-8; 0259-8) from us as *CDS 02463, 35pp~see p2 appeals panel upholds a lower federal court in rejecting box to order. such reasoning after finding little connection between em- ployment and land-use issues. Try A Trial Subscription Congress never intended for the Rehabilitation Act to Sign up for a risk.free trial subscription to CDD today~ apply to zoning cases, even those raising discrimination is- Your complete satisfaction is guaranteed, or you pay sues, the court says in Lapid-Laurel v. Scotch Plains Zon- nothing. You'll receive three issues of the Digest to ex- lng Board (00-3625). amine before deciding whether to subscribe. To order, The court further says it's inappropriate to apply reason- call Subscriber Services, at 8001666-6380. able-accommodation provisions of disability law to land- Unauthorized Reproduction Prohibited © 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/588-6380 · www. cdpublications, com APRIL 2, 2002 COMMUNITY DEVELOPMENT DIGEST PAGE 17 Federal Judge Upholds $100,500 Award it's presumed to be the industry standard, making anti- development model laws transplanted from the guidebook Fairfield--Federal District Judge Ginger Bercigan up- much harder to challenge. Key points in the guide include: holds a $100,500 award against a landlord for alleged · Vesting Rights: APA gives two recommendations for local gov- housing discrimination, emment to allow developers to solidify their legal rights: 1) Early A jury awarded an interracial couple $100,000 in puni- vesting- Builders receive their undisputed right to develop upon tive and $500 in compensatory damages after their apart- filing a complete development application; 2) Late vesting--Lo- ment application was rejected by landlord Walter Case. calities would have the right to delay vesting until significant de- Berrigan denied Case's motion to dismiss or reduce the velopment is under way. · Moratoria: Regarding what was once used in dire emergencies, damages because of the seriousness of the charges. Bauman says the APA model code allows for land-use moratoria The couple claims Case offered them an apartment over on development for up to 18 months, with room for extensions. the telephone but when they showed up to inspect the unit, · Standing: The model code proposes a wide-open standing rule. he told them a deposit had already been made on it. Unlike, in most cases, allowing only parties personally affected to An investigation by the Greater New Orleans Fair file suit, the code would permit anyone, from anywhere, to sue a Housing Action Center using black and white testers pos- developer. Builders' best bet is to petition their local representatives lng as rental applicants led to the charges against Case last to take the positive parts of the code and enact them before spring. It gathered evidence alleging Case routinely of- fered apartment units to whites, but not blacks, opponents do the same, says Bauman. --Tom Edwards Info: FHAC, 504/596-2100 Info: www.planning, org/guidebook/guidebook PLANNING I Build Commercial Space On Need I The Sept. 11 terrorist attack on New York offers the na- tion an opportunity to reexamine construction of national Plan Now, Or Lose To Growth Laws symbols, such as the World Trade Center and its twin tow- Be alert and proactive as local jurisdictions revise ers, a leading expert says. growth policies based on a controversial new model by the WTC was a symbol of American capitalism. But its de- American Planning Assn. or risk seeing legislation hurting struction calls into question whether commercial space builders, an expert advises, should be designed for need instead of symbolism, says While there are many good and useful parts to APA's Raymond Gastil, executive director of New York's Van 1,300-page, two-volume Smart Growth Legislative Guide- Alen Institute, in a seminar and latest issue of Nat'l book, many of the concerns with thc guidebook could cre- ate serious and lasting harm to builders if implemented as Building Museum's Blueprints Magazine. is, property-rights attorney Gus Bauman of Beverage & Gastil says the center's towers were "sealed boxes in the Diamond in Washington tells attendees of the Nat'l sky and thus inadequately humane." Workers high up and Apartment Assn. conference, inside were disconnected from the city below, contrary to The guide follows an eight-year effort to update model its being a metaphor for an open and fmc market. codes, many of which hadn't been revised since the advent Planners should return to designing buildings "that can of zoning in the 1920s, says Bauman. It provides model be proven to perform," Gastil says. As for security, design statutes for local governments to use for planning and safety and protection from real data, rather than installing authors' commentary, ineffective surveillance cameras, he says. The guidebook streamlines and clarifies the develop- ment process, as well as deems a land-use decision final Info: NBM, 202/272-2448 after one local government agency accepts a complete ap- plication. But in many key areas--including which parties Smart Growth Hurting State Budgets? have standing in lawsuits--the deck is stacked against de- velopers, says 13auman. Lawmakers in several states are postponing smart- The problem, he says, is the vast majority of localities growth initiatives because of declining budgets, the Natu- will use the guidebook as a blueprint for planning and ral Resources Defense Council reports. This could hurt lo- zoning. In some cases, it may be inserted word-for-word cai economies in the long nm, it warns in Smart Growth: into local laws. Weathering the Storm. Because the guidebook comes from APA, Bauman says Info: NRDC, 212/727-2700 Unauthorized Reproduction Prohibited © 2002 · 8204 Fenton St., Silver Spdng, MD 20910 · 301/588-6380 · www. cdpublications, com PAGE 18 COMMUNITY DEVELOPMENT DIGEST APRIL 2, 2002 Engler Signs Anti-Terrorism Bills Minnesota Campaign Stresses Stress Lansing, Mich.~Gov. Engler (R) signs 30 anti- St. Paul--The state's Tourism Office launches a cam- terrorism bills creating a new section to the penal code, in- paign targeting stressed-out travelers. The marketing effort creasing police powers and coordinating the state's emer- invites people to visit Minnesota as a "fun, refreshing anti- gency-preparedness system, dote to the stress of their daily lives." The legislative package provides life sentences without The promotion is a sharp departure from the past prac- parole for terrorists and penalties for people directly and tice of concentrating on state destinations and landmarks, indirectly assisting them. People making terrorists threats says John Edman, tourism director. Instead, the focus is on face stiff sentences, too. the individual as an overworked person needing to get Bills in the package include: away. It basically borrows from a similar campaign Florida · Senate Bill 730 permitting judges to suppress affidavits to protect used last year. witnesses and victims in ongoing investigations. "Explore Minnesota" billboards are being used through- · SB 936 exempting communication among law-enforcement agen- out the Midwest with the message: "Take your vacation cies from grand-jury secrecy provisions when involving terror/sm offenses, days, please---your coworkers." Another billboard mes- · SB 939 prohibiting obtaining and possessing blueprints and ar- sage says, "Vacation days are like aspiri~ey only work chitectural diagrams of structures considered terrorist targets, if you take them." These are being supported by print, fa- · SB 940 defining potential terrorist targets as stadiums, transpor- dio and TV ads running this month in the rog/on. tation structures, public-transit vehicles, airports, port facilities, Info: Tourism Office, 651/297-4714. power plants and electricity and water lines. · SB 942 prohibiting the use of computers and other electronic de- vices to intimidate government agencies and civilians. REGIONAL REPORT I · SB 943 allowing up to a year in prison for transporting hazardous materials without a license. · SB 948 removing the statute of limitations on terrorism offenses. This issue has community economic-development highlights from · SB 949 requiring terrorists to reimburse the government for their the Mountain region. Your next CDD covers the Central region. acts, including the expense of extradition. · ARIZONA · SB 994 requiring employers to rehire workers called to military Aviation Panel Appointed: Gov. Hull (R) forms an Advisory duty. Council on Aviation to evaluate communication among the Federal · SB 997 allowing terrorists to be prosecuted under state racket- Aviation Admin., state and local planning bodies. It will make fcc- coring laws. ommendations for improving coordination of commercial, military · SB 1005 instructing hospitals to develop biohazard detection and and private air traffic over metropolitan areas and linking other handling plans, transportation modes to air travel. The council begins meeting later · House Bill 4037 increasing penalties for possessing or delivering this month and will report to the governor in Dec. 2003. fake drivers' licenses. · COLORADO · HB 5270 letting government withhold information on search war- Almost Home Receives Large Grant: The state's Local Affairs rants and affidavits from the public. Dept. awards an $850,000 HOME Investment Partnerships grant to the nonprofit Almost Home developer to build 120 units of Iow-cost · HB 5295 permitting prosecution for offenses outside the state if rental housing. The grant is the largest this year. Earlier, a $750,000 crimes have a detrimental effect on Michigan. HOME grant went to the Colorado Coalition for the Homeless in · HR 5349 exempting terrorism-risk assessments and other sansi- Denver for housing construction and rehabilitation. The agency es- tive data from the Freedom of Information Act. timates more than 66,000 state residents need affordable housing. · HB 5496 giving the governor authority to declare a heightened · IDAHO state of emergency because of potential terrorism. State Names Technology Coordinator: The former chief execu- · HB 5501 offering immunity to Nat'l Guard members responding tire officer of Ore-Ida Foods is selected as the state's first science- to terrorist events, and-technology coordinator. John Glerum will head implementation · HB 5506 making it a criminal offense to own or install fake ex- of the governor's six-point strategy to expand the state's technology- plosive devices, business sector using recommendations from a 23-member task · HB 5513 requiring forfeiture of property used in terrorist acts. force formed in 2000. · HB 5507 making it a criminal offense to falsely report poisoning · UTAH of public water supplies and food. Commuter Rail Funded: Lawmakers provide $20 million to buy Info: Governor's Office, 517/335-6397. rights-of-way for commuter rail between Salt Lake City and Ogden. Unauthorized Reproduction Prohibited © 2002 · 8204 Fenton St., Silver Spring, MD 20910 · 301/588-6380 · www. cdpublications, com Marian Karr From: Stever~ Nasby Sent: Monday, April 22, 2002 2:48 PM To: 'MKuhn 12055(~aol.com' Cc: *City Council; Lisa Mollenhauer; Karin Franklin Subject: Response to Your Questions -- re: innovative uses of CDBG funds Mr. Kutm: Iowa City's use of CDBG response. The following is a listing of your q~ (!) Describe one of your most inn uses of CDBG funds in the past few years? In FYOI a local non-profit, to develop a mixed use faciliiy. This new offices and transitional housing. , will enable MECCA to have a secure, ' their clients that is des '. number of re-admits. Due to the use of CDBG and HOME funds in reducing the MECCA is hoping that generated from the transitional housing units will help off:set the on-going that they provide to the tenants. In addition, the facility will remain affordable for 99 to the terms of lows City and MECCA. (2) What other types of funding was involved? MECCA provided the land, obtained a ! through their programs. In sum, these sources accounted for $1,205,202 or 78%0 o The City of lows City provided CDBG funds totaling $138,650 and HOME funds totaling $206,350. The total project cost is , $1,550,202. (3) What advice would you give to others who use CDBG ~ for the same purpose--do's and don'ts? Since many non-profits (non-CHDOs) do not have a experience they need to work with qualified professionals (e.g. architects, builders, etc.) early on in ' early involvement helps the non-profit get a handle on the costs and bring forward a strong CDBG or HOME ~ ' likely to be funded in a competitive environment. (4) What is your name, title, agency and phone C/ty of Iowa City 5teven Nasby, Community Development 410 East Wash/ngton Street Iowa City~ IA 52240 319-356-5248 319-356-5009 (fax) NOTICE: This e-mail transmiss~ confidential info.nation belonging sender which may be legally privileged. The information is znc only for the use of the recipient named you are not the intended recipient, you are hereby not lied that any d~sclosure, copying or distribution e-mail info~tion is strictly p ve received this e-mail ssage in error, please me in~ed~ately. Marian Karr From: Gould, Renee [renee-gould@uiowa.edu] Sent: Tuesday, April 30, 2002 8:43 AM To: 'cou ncil@iowa-city.org' Subject: Smokefree restaurant ordinances Council Members Pfab, Kanner, Wilburn and Vanderhoef, Thought you might be interested in this study. Renee Gould, RN APN Iowa City Once again, another study shows smokefree laws increase restaurant profits. If you would like to send an ez-letter in support of smokefree air, go to www,smokefree~org Smokefree restaurants no drag on profits After ordinances, restaurant sales still climbing, study says by LAURA BEIL / The Dallas Morning News Source: Dallas Morning News (2002-04-25) URL: http://w~wv.dallasnews.com/latestnews/stories/042502dnmet foodsmoke.5 e489.html ATLANTA - Despite the fears of many restaurant owners, smokefree laws are good for business, according to a study of four Texas cities with some of the strictest rules in the state about lighting up while eating out. The study is the largest so far in Texas trying to examine whether tough smoking ordinances drive customers away. Researchers from the Texas Department of Health used tax data to track sales in Piano, Arlington, Wichita Falls and Austin before and after smoking rules went into effect. Total restaurant sales generally continued to climb in all four cities. "Clean indoor air ordinances do not adversely affect restaurant sales," said Dr. Phil Huang, chief of the Health Department's Bureau of Chronic Disease and Tobacco Prevention. "It's an unfounded fear." His study was presented Wednesday in Atlanta during a conference hosted by the U.S. Centers for Disease Control and Prevention. The study comes during a time when the Dallas City Council may consider strengthening its smoking policy. Currently, Dallas restaurants must have clearly designated smoking areas, and where possible, separate ventilation. Bars, bar areas and extremely small restaurants are exempt. In other cities, such as Plano, smoking is banned unless the smoking section has separate ventilation. Council member Lois Finkelman has asked the city's Environmental Health Commission to consider revising Dallas' ordinance. 4/30/02 Page 2 of 2 Previous attempts to further restrict smoking in Dallas have failed, largely out of concern that such laws will put restaurants out of business. Restaurant owners generally oppose strict smoking rules not because they want people to smoke, Ms. Evers said, but because they need flexibility to run their business. "We want restaurants to be able to meet the demands of their market." Public health officials, acknowledging these concerns, have tried to gather data to determine whether this occurs. A study from researchers at the University of California, San Francisco found that restaurant business in 15 towns that banned smoking did not differ from sales in 15 other towns with similar economic profiles that allowed smoking. The only previous study in Texas examined restaurant business in West Lake Hills, a small suburb of Austin. Dr. Jim Hayslett, who conducted the new study with Dr. Huang, said they chose four cities that had enacted some of the toughest restrictions. Also, to account for economic ups and downs, they examined both total restaurant sales and restaurant business as a percentage of total retail sales in each city. They found, for example, that restaurants in Plano accounted for about 11 percent of the city's retail sales from 1988 to 2000, and the percentage was virtually unchanged after smoking policies were enacted during the mid- 1990s. Restaurant sales in Arlington hovered around 12 to 15 percent during those 12 years. Dr. Huang said he believes that people who smoke continue to eat out even when they can't puff at the table. Movies last longer than a dinner, he said, and "smokers aren't saying, 'I'm excluded from going to movies.'" To send a letter of support for smokefree restaurant in NYS, go to www.smokefree.org/nys Joseph W. Cherner, President SmokeFree Educational Services, Inc. http://www.smokefree.org "Never doubt that a small group of thoughtful citizens can change the world. Indeed, it's the only thing that ever has." Margaret Mead If you would like to send an ez-letter in support of smokefree air, go to www~smgkefree.org To search the JoeChemer-Announce archives, go to: http://smokescreen,org/?JoeChemer-Announce To unsubscribe, send any message from renee-gould~uiowa.edu to JoeCherner-Announce-unsubscribe~smokescreen,org If you would like to help prevent another generation of tobacco addiction and disease, go to www. SmokefreeAir,o~ and send a smokefree EZ-letter to a key decision maker. Note: You are subscribed as renee-gould~uiowa.edu 4/30/02 May 1, 2002 TO: The Honorable Mayor and the City Council RE: Civil Se~ice Entree Exmination-Poliee Officer We, the undersigned members of the Civil Service Commission of Iowa City, Iowa, do hereby certify the following named person(s) as eligible for the position of Police Officer. Michael Kern Matthew McGeough Matthew Huber Ryan Rockafellow Nathan Bedford Todd Cheney Andrew Rich Zachary Diersen Dennis Kelly Scott Stevens Daine Trarmnell Kevin Wolfe IOWA CITY CIVIL SERVICE COMMISSION Ly~a W. Dickerson Jam~L. '~l~/erlik~- j°~ Marian Karr, City Clerk City of Iowa City MEMORANDUM Date: April 29, 2002 To: City Clerk From: Beth Pfohl, JCCOG Traffic Engineering Planner ~ Re: Item for May 7, 2002 City Council Meeting: Installation of 1 HOUR LIMIT 8 AM - 5 PM signs on the north side of the 100 block of Lafayette Street As directed by Title 9, Chapter 1, Section 3B of the City Code, this is to advise the City Council of the following action. Action: Pursuant to Section 9-1-3A(10), 1 HOUR LIMIT 8 AM - 5 PM signs will be installed on the north side of the 100 block of Lafayette Street. Comment: The action is being taken based on a survey of the business owners in the 100 block of Lafayette Street. Currently, there are 2 HOUR LIMIT 8 AM - 5 PM signs that will be replaced with the 1 HOUR LIMIT 8 AM- 5PM signs. Jccogtp\memos\agitm5-7-02 doc ~,~ City of Iowa City MEMORANDUM Date: April 24, 2002 To: City Clerk From: Beth Pfohl, JCCOG Traffic Engineering Planner ~F Re: Item for May 7, 2002 City Council Meeting: Installation of a stop sign at the intersection of Manchester Lane and Court Street As directed by Title 9, Chapter 1, Section 3B of the City Code, this is to advise the City Council of the following action. Action: Pursuant to Section 9-1-3A(5), a STOP SIGN will be installed at the intersection of Manchester Lane and Court Street. Comment: A STOP SIGN is warranted at this location because Manchester Lane is a minor street intersecting with a major street, Court Street, where the application of the normal right-of-way rule would not apply. Jccogtp\memos\ma nchesterstop doc City of Iowa City MEMORANDUM Date: April 22, 2002 To: City Clerk From: Beth Pfohl, JCCOG Traffic Engineering Planner~f~ Re: Item for May 7, 2002 City Council Meeting: Installation of NO PARKING 2 AM - 6 AM signs As directed by Title 9, Chapter 1, Section 3B of the City Code, this is to advise the City Council of the following action. Action: Pursuant to Section 9-1-3A(10), NO PARKING 2 AM - 6 AM signs will be installed on the north side of the 400 block of East Washington Street. Comment: The 2 am - 6 am parking prohibition is maintained in all metered on-street parking areas in the Central Business District and surrounding area. The purpose is to allow routine maintenance to be performed by the Streets Division. There is currentry no 2 AM - 6 AM parking prohibition signage in the 400 block of East Washington Street. jccogtp/mem/act comm4-22-02 doc City of Iowa City MEMORANDUM Date: April 24, 2002 To: City Clerk From: Beth Pfohl, JCCOG Traffic Engineering Planner ~/ Re: Item for May 7, 2002 City Council Meeting: Installation of a NO U-TURN Sign on southbound Iowa Highway 1 Near the 1-80 Eastbound Off-Ramp As directed by Title 9, Chapter 1, Section 3B of the City Code, this is to advise the City Council of the following action. Action Pursuant to Section 9-1-3A(9) of the City Code, a sign indicating NO U-TURN will be erected on southbound Iowa Highway 1 near the 1-80 eastbound off-ramp. Comment At the current time congestion for left-turning vehicles on the 1-80 eastbound ramp at Iowa Highway I is creating a situation where motorists desiring to turn left make a right turn and proceed to the end of the interchange median where the make a u-turn to then proceed northbound. This creates an unsafe situation for northbound vehicles on Iowa Highway 1 who are proceeding through the interchange at a high rate of speed. The Iowa Department of Transportation concurs with this action. jw/merNbp-agd doc City of Iowa City MEMORANDUM Date: April 24, 2002 To: City Clerk From: Beth Pfohl, JCCOG Traffic Engineering Planner~'~' Re: Item for May 7, 2002 City Council meeting: Installation of on-street metered parking spaces, establishment of parking meter terms, and modification to parking meter terms of existing parking meters As directed by Title IX, Chapter 1, Section 3. B. of the City Code, this is to advise the City Council of the following action. ACTION: Pursuant to Section 9-1-3A(17), new parking meters will be installed in the Mercy Hospital area as follows: 6 parking meters in the 400 block of East Bloomington Street; 11 parking meters in the 500 block of East Bloomington Street; 10 parking meters in the 100 block of North Johnson Street; 4 parking meters in the 200 block of North Johnson Street; 11 parking meters in the 10 block of North Van Buren Street; and 9 parking meters in the 100 block of Nodh Van Buren Street These meters will be of 5-hour meter term. Parking meter term will be modified from 10- hour to 2-hour on all parking meters in the following location: the 100, 200 and 300 blocks of E. Jefferson Street; the 100 block of E. Market Street; the 100 block of North Clinton Street; and the 100 block of North Linn Street; and the 400 block of Iowa Avenue. COMMENT: This action is being taken at the direction of the City Council. These decisions were made by the City Council at its January 10, 2002 work session. Jccogtp\memo\meterchange.doc Marian Karr From: Dougland [Dougland@blue.weeg.uiowa.edu] Sent: Friday, May 03, 2002 12:36 AM To: cou ncil@iowa-city.org Subject: etc fire Dear City Council, Upon reading your upcoming minutes on your website I became quite upset with a few concerns the community members were raising in regards to the Etc. fire. The Iowa City Police Department recently released a statement saying that one of the girls that was burned did not in fact spit liquor into an already flaming bar, but the bartender did pour more liquor on it. Personally it dumbfounds me that people are using this isolated incident as an excuse to change the age of the bars. Though a horrible incident, those at fault were not the underage drinkers, but the bartender and manager of the bar. This has nothing at all to do with drinking underage, just with the irrational actions of the employees of the bar. When these community members express their opinions that Etc. should be closed or lose its liquor license I completely agree. The incident that occurred is horrible and they should pay the price. However in this should note have any other affect on the age requirements of the bar. Sincerely, Doug Anderson 633 S. Dodge Apt #1 Iowa City, IA 52240 319-248-0050 ..i ~...) Page 1 of 1 Marian Karr From: Bob Thompson [thompbobson@mchsi.com] Sent: Sunday, May 05, 2002 10:37 AM To: Stepping Up; Ross_Wilburn@iowa-city.org; matt-blizek@uiowa.edu; ipfab~avalon.net; Ernie_Lehman@iowa- city.org; directpd@inav.net; Dee_Vanderhoef@iowa-city.org; Connie_Champion@iowa-city.org; andrew parrott; Anton Hatwich; Bob Paredes; Brent Sandy; Jeff Thorne; Jim Dreier; John Rapson; Mark Urness; Paul Cunliffe; Rich Medd; Saul Lubaroff; Steve Grismore; Woody; Stuart Wood; City Council Subject: collateral damage I may submit this as a letter to the editor, but I'm not exactly in the Press-Citizen's good graces right now, so I thought I'd send it out to some people who need to be concerned about it. Every war has its collateral damage. The local war on student drinking is no exception. The Etc. bar fire incident was an excellent propaganda vehicle for local Carrie Nation types; they are using it to push for a 21 bar ordinance. I'm sure they don't care, but there will be an innocent casualty if this ordinance actually happens: jazz education. Local live music venues (bars) have always been a valuable resource for this field of music education. UI jazz students probably learn as much in the clubs as they do at the music building; I know I did. If I had not been allowed to enter a bar as an undergrad, I would never have learned to play during those critical formative years. Dinking around in a practice room and playing a few concerts per semester is not enough performance experience for proper training in this field. The community offers these students a wonderful opportunity for real-world music education, as opposed to dingy practice rooms and sterile concert halls. I have never seen one of these students break the law in a music venue. "A bar is an educational resource? Surely you can't be serious," many will undoubtedly say. Yes, that's what I'm saying. I have some advice for jazz students in the event that the government takes away their right to utilize this vital resource. Run!!! Get out of this freaked-out town as fast as you can!!! Don't just stand there. Don't just walk. Run!!! As a former UI jazz student, I'm trying to imagine an Iowa City in which they can't go hear jazz at the Sanctuary, or book a gig for their group. That's what appears to be coming. Hey, here's an idea: at the rate things are going, we're going to need permits for everything we do in this town anyway. Why not have Jazz Permits? Bob Thompson 337-3543 1004 E. Church St Iowa City IA 52245 thompbobson@mchsi,com 5/6/02