Community Economic Development Census -- Deadline Extension
'Tis the season for giving! The National Alliance of Community Economic Development Associations (NACEDA) wants to give you an iPod shuffle or iTunes gift cards for completing the NACEDA census. Four prizes for each drawing.
NACEDA has extended the deadline to December 22nd!
The survey is now available directly from the web site www.naceda.org. If you are the Executive Director of your organization, complete the survey today.
As of December 11, 2008 603 surveys have been completed. IACED members completed the most surveys, 60. Florida is close on our heels. If you have not completed the survey, please do so today. Thank you, to everyone who has completed the survey!
NACEDA is collecting this data to inform policymakers about the expanse of the community economic development industry. The data collected will be the foundation for national policy initiatives. It will provide the critical information necessary to present the case for community development investments and public policy attention.
Questions? For more information, please contact NACEDA at 703-741-0144. |
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Shaun Donovan Surprise Pick to Head HUD.
A former Clinton Assistant Secretary and current New York City Housing Commissioner has been chosen to lead HUD.
Shaun Donovan is credited with innovative leadership in his current position and has produced affordable housing with a coalition of government, nonprofits and foundations. He also served as Interim FHA commissioner during the transition to the Bush Administration. President-elect Obama was impressed with his creativity and new ideas, news services reported. |
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State of the Housing Counseling Industry: 2008 Report
Approximately 1.7 million individuals and families throughout the country received housing education and counseling from HUD-approved nonprofit housing counseling agencies in 2007, according to this study, commissioned by HUD's Office of Policy Development and Research, which explores the types of education and counseling services provided by housing counseling agencies, organizations that work with intermediaries and state housing finance agencies, the funding sources and costs of housing counseling, characteristics of clients and their housing counselors, and client outcomes. Housing counseling industry challenges are also discussed.
Find the full report here. |
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| Greetings!
As 2008 draws to a close, IACED is pleased with another successful year and is gearing up to embrace the opportunities and challenges presenting themselves in 2009. I am pleased to report ninety-seven percent of IACED members renewed their membership in 2008. The 2009 membership campaign will begin next month - look for your membership letter near the end of January! I encourage each of you to renew your membership and continue participating in our work. IACED is committed to providing the services members need in troubling economic times and ensuring your membership investment is money well spent.
To help IACED serve you, do not hesitate to communicate with me or any of the staff. By directly connecting with you, the issues and concerns you bring to us help focus our training, technical assistance, and advocacy efforts on the most relevant topics.
In 2009, IACED will be hiring a Deputy Director. I am excited about adding this capacity to our staff. The Deputy Director supports the development, design, and delivery of IACED's technical assistance and training programs, fee for service consulting, public policy advocacy, and special projects. IACED services will benefit from new perspectives and additional supports.
2009 will also bring new work with funding from the U.S. Department of Agriculture through the Rural Community Development Initiative (RCDI) and the U.S. Department of Housing and Urban Development (HUD) Community Housing Development Organization Technical Assistance (CHDO TA).
RCDI is an opportunity to provide training and technical assistance to Vevay, Washington, and Loogootee, Indiana to assist with downtown development. Community leaders will gain skills in financial management, housing activities, community economic development activities, planning, and resource development. Business leaders in the community will receive technical assistance to strengthen and grow their businesses. CHDO TA always provides an excellent opportunity for IACED to strengthen community housing development organizations and enhance their productivity. A CHDO TA recipient last year remarked that her organization would not be where it is today without the assistance provided through IACED. New training opportunities may include a flexible budget for a few 'electives', which allows IACED to choose training topics in response to unanticipated needs and changing circumstances. If you have ideas about trainings, contact Naila Carnagua. In addition to technical expertise, additional training topics will strengthen member capacity in the areas of leadership, comprehensive community economic development strategies, and asset building. 2009 is a budget session at the Indiana General Assembly. A state revenue shortfall will lead to immediate spending reductions and budget cuts. The Kernan-Shepard Commission report on local government reform will also receive attention. This report makes recommendations to reform local government structure. Also, the General Assembly will take up a constitutional amendment which writes property tax caps into the state constitution. Member input through IACED's public policy questionnaire at the 2008 regional member meetings identified the following top priority issues for members: � Maintain/increase the state community development trust fund � Additional mortgage and foreclosure prevention regulations � Maintain/increase Indiana's investment in Individual Development Accounts (IDA) In the 2009 General Assembly, IACED will focus on preserving and enhancing the tools of community development such as homeownership counseling, affordable housing development, individual development accounts, and microenterprise. IACED will also focus on strategies which promote sustainable community-based organizations and programs. Finally, IACED will pursue legislation dealing with the increasing tide of mortgage foreclosures. These efforts will be directed at mitigating the effect of foreclosure on borrowers at risk of foreclosure, mitigating the impact of foreclosure on neighborhoods and communities, preventing a recurrence of the crisis, and establishing sound, long-term policies to create and preserve affordable housing. Thank you for continuing to support IACED and for being an active member. Happy Holidays!
Andy Fraizer
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IACED Training Updates
Project Development Training
Rental Development Toolbox, January 14-16 Capital Access, Inc. will teach the most critical components of affordable rental project development.
Indiana Historical Society
450 West Ohio Street
Indianapolis, IN 46202
Remember laptops and your flashdrives from the December training are required for this training!
Freddie Mac's Alternative to Foreclosure for Housing Counselors Webinar Training
December 9, 2008: 1:00-2:30pm
January 7, 2009: 1:00-2:30pm
1.5 CEUs Available
This workshop provides housing counselors with an understanding about analyzing default situations to determine possible alternatives to foreclosure and it includes case studies. It has information about workout options (with an emphasis on short payoffs and mortgage modifications), applying Freddie Mac requirements, and exploring options that can help keep borrowers in their homes or avoid foreclosure. You do NOT need to be a CounselorMax user to attend this class.
Freddie Mac is pleased to extend this invitation to you. Below is the link to the web site with all the information. Click on the link for the Alternatives to Foreclosure for Housing Counselors Webinar Training, click on the "Course Availability" button at the bottom of the page, and follow the instructions on the next page to register online. Click the"Register" button corresponding to the date you plan to attend. On the Customer Verification page, select the "All other registrants (prepayment required)" link. There will be no charge.
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Mortgage Foreclosure Forum
Indiana Family Services is organizing a community forum focusing on the mortgage foreclosure crisis. The forum will be held on on Wednesday, January 7, 2009. The start time is 10:00 a.m. This two hour forum will be an official meeting of the Indiana House of Representatives Financial Institutions Committee. The forum will take place in the chambers of the Indiana House of Representatives. All members of the Indiana General Assembly will be invited to attend this special committee meeting / community forum.
The forum will include a review of foreclosure statistics and information, a discussion regarding recent legislative actions and current governmental policies related to the mortgage lending industry, and facilitated input from forum participants regarding additional actions and policies that should be considered by Indiana policymakers and a prioritization of such policy recommendations.
A representative group of low-income homeowners, plus local agency staff, board members, and key volunteers will be invited to participate in the forum. Additionally, appropriate state policymakers related to the issue (Office of the Attorney General, Office of the State Securities Commissioner, Department of Financial Institutions, Department of Insurance, Housing and Community Development Authority, Professional Licensing Agency, Real Estate Commission) will be invited to attend.
While policymakers will be solicited for data and information, they, along with state legislators, will be observers in the portion of the forum which focuses on possible solutions and public policy recommendations. Representative Jeb Bardon, Chair of the House Financial Institutions Committee, will seek to encompass some (if not all) of the recommendations resulting from the forum into legislation being considered by the 2009 Indiana General Assembly.
Partners in this community forum include the Alliance for Children and Families, the Indiana Association for Community Economic Development, AARP Indiana, the American Federation of State, County and Municipal Employees (AFSCME), and the Indiana AFL-CIO. |
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Innovation in Changing Times Conference
April 22-24, 2009, St. Louis
Participants will discover new ideas about innovation and how to bring them to bear on the world of community development in changing times. Innovation is essential to sustain progress in the community economic development industry and to provide solutions to extremely complex issues.
The conference will be attended by lenders, policy makers, donors, investors, bankers, and representatives of government, foundations, academia, non-profit and for-profit organizations, and others who are interested in innovative ideas, policies, and programs which advance community development.
The conference is designed to:
- illustrate how innovation in both organizations and programs can improve performance and positively impact communities
- highlight industry best practices, state-of-the-art policies and innovative thinking; problem solving through an interactive dialogue with conference participants;
- create an ongoing dialogue where input from conference participants shapes conference content;
- facilitate learning for conference participants through a variety of methods, accommodating diverse learning styles and teaching techniques;
- connect individuals from diverse sectors and organizations; and
- serve as a catalyst for future discussions and dialogues around topics of significant importance to community development
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Community Action Agencies Help Working Hoosiers Reach Economic Self-Sufficiency
Many Hoosiers are struggling to make ends meet, especially with rising unemployment and the slowing national economy. The Indiana Community Action Network, provided services to over 517,000 Hoosiers last year to address needs in these challenging times. Community Action Agencies help low-income citizens improve their economic condition.
Included in the mix of programs offered by Community Action Agencies are Individual Development Accounts (IDAs). IDAs are matched savings accounts designed to help low- to moderate-income individuals obtain assets and build wealth. IDAs can be used to: purchase a home; do home rehabilitation; start a small business; or to pursue higher education or job training programs. For every dollar saved by an IDA participant, the participant will receive a $3 match on their deposit from the State. The State program match cap is $4,800. All IDA participants must save for a minimum of six months before they may make their first withdrawal for a qualified asset purchase. To open an IDA you must fill out an application and bring it to your local IDA provider.
IDAs are available to assist working Hoosiers making less than 175% of the Federal Poverty Guidelines ($21,200 for a family of four in 2008) in achieving their dreams and building assets.
On December 9, the Indiana Community Action Association held an event, "Community Action - Growing the Middle Class," to honor past program participants who received support through their local Community Action Agency and have achieved success and increased economic self-sufficiency as a result. Below are some of the compelling stories shared at this event.
Holly Lee, who worked with the Interlocal Community Action Agency (ICAP) located in New Castle, Indiana, wanted to own her own home and get an education. Holly utilized services from ICAP, including an IDA to pay for her college education and has earned an Associate's degree in accounting from Indiana University - East. She's continuing with her studies and hopes to receive her Bachelors Degree in accounting soon. In addition, with the assistance of Habitat for Humanity, Holly's dream of becoming a homeowner came true. She moved into her new home last year.
Another participant, Nina Thompson, who received services from Community Action of Southern Indiana located in Jeffersonville used her IDA to purchase a new home. This program enabled this single-mother of three to move from public housing and enabled her to provide a brighter future for her and her three children.
Charly Sholty, who worked with the Area Five Agency on Aging and Community Services located in Logansport used her IDA funds to start her own business, selling purses from her home. She was also able to use her IDA to do home rehabilitation making her home more energy efficient.
Scott Donavan worked with the Community Action Program, Inc. of Western Indiana (CAPWI), located in Covington, Indiana. Scott was a local building contractor who owned his own business in Darlington, Indiana. He created a business plan and received a micro loan from CAPWI, and, as a result, he was able to expand his business, purchase additional equipment, and is now able to offer additional services through his business. |
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Studies Link Education, Housing, and Community Economic Development
A recent study by the 21st Century School Fund, the Brookings Institution, and the Urban Institute concludes neighborhood schools are inextricably linked to local housing conditions. Family friendly housing policies can strengthen neighborhood schools, and innovative public education in urban neighborhoods can yield results for community economic development.
This policy report summarizes analysis from the Quality Schools and Healthy Neighborhoods: Research Report that describes the relationships between education, housing, and neighborhood development in the District, as well as provides policy recommendations for how to make the District of Columbia a more family-friendly city. These recommendations will also be of interest to community economic development practitioners because of the described link between education, housing, and community economic development.
An article in the Journal of Housing and Community Development discusses the community economic development benefits of charter schools. Indiana charter schools provide examples of these connections between neighborhoods and community economic development benefit. Since Indiana passed legislation allowing charter schools in 2001, the number has grown to 49 throughout the state, serving more than 11,000 students. Charter schools are public schools freed from certain regulations governing traditional schools to foster innovation and high levels of academic achievement.
The impact of charter schools on community economic development is visible in three major ways. National evidence is growing that an increasing number of community-based organizations (CBOs) are starting charter schools. CBOs view charter schools as a means to expand their current services and provide one-stop shopping for their target population. Second, as neighborhood schools improve, fewer young, urban, middle-income parents are fleeing cities in search of quality education. As a result, classrooms become more diverse and the economic base remains steady. Finally, because charter schools are not provided with a building, they are purchasing or leasing vacant, dilapidated properties and renovating them into spectacular new schools and even community centers.
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Tough Talk for Tough Times
As the year winds down and your thoughts lead to 2009, ask yourself the following questions: Got Vision? It is time for a strategic plan to take optimal advantage of this opportunity. You need a three year plan that announces your vision for your community with clear, detailed, and accountable goals and objectives to get you there. You need to involve your clients, key partners, collaborators and funders. How do they want you to address this crisis and how can they help make your vision a reality? Here's a good resource to learn more. Grant Writing or Fund Development? You will be left in the dust if you continue to think of fund development as just writing grants. Sustainable organizations excel at cultivating, developing, and sustaining relationships - build a community of believers and the money will follow. The trick is to leverage your existing relationships, talents, and skills, and combine them with staff and Board training to create a culture of philanthropy and a plan and system for fund development. Ready to get started? Here is a good tool to assess your capacity in fund development.
"Can You Hear Me Now?" And don't bother if the plan doesn't include a communications strategy and tools that establish you as the leader in creating economic opportunity in unconventional markets.
Got Mission Impact? Mission impact is your tangible progress toward fulfilling your mission. What will your community look like five years from now as you fulfill your mission? The number of classes, clients, loans, business starts, and units alone won't cut it. Have clients moved out of poverty, experienced sizeable increases in assets, income and other relevant indicators? Organizations that can demonstrate these results get a seat at the table, increased funding, and support.
In the meantime, there are some tangible things you can do while you hunker down and invest in building capacity:
Work the Media: Weigh in with an op-ed or letter to the editor and discuss the importance of community development in the local economy. Better yet, call your local newspaper business editor/reporter and invite them to interview your clients or sit down with your local editorial board.
Start Working on Your Case Statement: Your case statement, or case for support, is your communications document targeted to a particular audience in order to raise money. Here is a good tool to walk you through developing one.
(Adapted from Jason Friedman's "All Things Microenterprise Development - Fall 2008) |
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Economic Recession to Increase Number of Americans in Poverty
A recent report published by the Center on Budget and Policy Priorities illustrates how the recent economic recession could affect the millions of Americans living in poverty. The study analyzes previous economic recessions and the subsequent increases in the number of Americans living in poverty, as well as provides a comparison between current social safety net programs and ones employed in prior recessions. The report also provides recommendations for policymakers in order to soften the impact of the recession. The current recession is projected to increase unemployment to 9 percent by the end of 2009, which translates into an increase of 7.5 million to 10.3 million people in poverty and an increase of 2.6 million to 3.3 million children in poverty. The study projects these figures using data from previous recessions in the early 1980s, early 1990s, and 2001. In addition, the recession is hitting people of low incomes the hardest, with unemployment rates for workers over 25 years old without a high school diploma increasing to 10.3 percent by October 2008. Food stamp caseloads are also on the rise, increasing 9.6 percent from August 2007 to August 2008. The author discusses the fact that the government safety net has weakened significantly since the 1980s, leaving many poor unemployed individuals without any programs to act as a basic cash assistance safety net. Today only 40% of eligible families actually receive cash assistance. This is the first recession in decades with both a weakened unemployment insurance system and a dramatically smaller cash assistance safety net. The report, Recession Could Cause Large Increases in Poverty and Push Millions into Deep Poverty, can be found here. |
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Family Unification Voucher NOFA Issued
On November 24, HUD issued a Notice of Funding Availability for $20 million in Family Unification vouchers. Family Unification Program (FUP) vouchers assist homeless families and families who are in the child welfare system to reunite children to their parents in safe and stable homes. FUP vouchers can also be used to prevent young people aging out of foster care from becoming homeless. The program is administered by public housing authorities (PHAs) in partnership with local public child welfare agencies. The FUP announcement can be found here. For more information on FUP, go to www.nchcw.org. |
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HUD Issues Notice on Denying Voucher Portability
HUD's Office of Public and Indian Housing issued a notice on December 3 regarding portability procedures for the Housing Choice Voucher program. Portability allows voucher-holding households to move to other jurisdictions and keep their vouchers. The notice refers to mobility as "one of the key features of the housing choice voucher program" and focuses specifically on the denial of requests to move under the voucher program's portability procedures.
The notice makes clear that portability moves can be denied only because of a household's noncompliance with voucher program rules. The notice also relays penalties for public housing authorities (PHAs) that improperly deny portability requests on the basis of insufficient funding.
According to the notice, legitimate reasons for the denial of portability include:
- The household is a non-resident applicant to the originating jurisdiction or the household has not lived in the initial jurisdiction for 12 months.
- The household is an applicant for a voucher and is not income-eligible in the area in which they wish to initially lease a unit.
- The PHA's policies on timing and frequency of moves would be violated.
- The PHA does not have sufficient funding for continued assistance.
HUD's last notice on the voucher program's portability procedures was published in July 2004, amidst HUD's assault on the voucher program's funding distribution system. Those changes would ultimately cause a loss of 150,000 vouchers nationally. Public housing agencies began restricting when they would allow vouchers to be ported outside of the originating jurisdiction.
HUD Notice PIH 2008 - 43 is available here.
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HUD Proposes Rule Changes For State CDBG Program
HUD on October 17 proposed administrative rule changes for the Community Development Block Grant (CDBG) program. The changes are designed to streamline the allocation, use, and reporting of funds by states, make changes to current requirements related to program income, and provide additional flexibility to states in implementing the CDBG program. Public comments on the proposed rule are due by December 16, 2008.
The rule would make several changes to the use of program income, which are funds generated by the CDBG program itself. Program income typically includes funds from repayments on principal and interest from loans made with CDBG funds. According to HUD, states cumulatively received $37.7 million in program income in FY07.
Statutory changes from 1992 that require extensive tracking of program income long after the originally funded activities were completed have proved problematic. In response to complaints from some states that tracking program income has become cumbersome, the proposed rule would allow states to comply with those requirements by working with local governments to track the income or suggesting alternative tracking to HUD. The rule would also increase, from $25,000 to $35,000, the amount of total program income per year per unit of local government that does not have to be tracked as program income.
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HUD Creates a Neighborhood Stabilization Program Relocation and Acquisition Web Site
HUD has created a new resource page on acquisition and relocation issues related to the NSP. The NSP provides $3.9 billion to state and local governments for the redevelopment of abandoned and foreclosed properties. Lawful occupants, such as renters, who are displaced because their home was purchased with NSP funds will generally be eligible for relocation assistance and payments under the Uniform Relocation Act. The new relocation and acquisition site provides direct links to the Uniform Relocation Act and to CDBG and HOME's relocation policies. Also posted are various forms and notices related to property acquisition and relocation. Access the site here. HUD also continues to update its NSP "frequently asked questions" resource. This can be found here. |
Fannie Mae Provides New Servicer Flexibility to Help Borrowers Avoid Foreclosure
On Monday, December 8, 2008, Fannie Mae announced a series of actions designed to help borrowers and loan servicers address potential mortgage problems and prevent unnecessary home foreclosures. The actions are designed to reach more borrowers earlier with foreclosure prevention options that provide greater flexibility, including specific direction to servicers to provide foreclosure prevention assistance as soon as a borrower demonstrates the need for help - even if a borrower is current but default is reasonably foreseeable. For more information on the announcement is available here. |
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Send us Your Stories!
IACED knows IACED members are doing great work - we'd like to spread the word! If you've had a successful project or remarkable experience, send your story to [email protected] or call 317-920-2300 ext. 17.
Don't have time to send the whole story now? Just send an email expressing interest, and an IACED staff member will follow up with you. | |
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