Housing Affairs Letter

Change Sought In Proposed HOME Rule

The Council of State Community Development Agencies wants HUD to change its proposed HOME Investment Partnership Program plan to require Community Housing Development Organizations to have paid employee staff with experience rather than using consultants.

HUD proposed this and other reforms to HOME in December. The agency is concerned that CHDOs have relied too much on consultants for development experience, while not improving their own internal capacity to function as developers.

COSCDA officials, in comments submitted to HUD, say the proposed requirement would leave CHDOs unable to meet the demonstrated capacity requirements. The provision, COSCDA says, would end participation of many CHDOs in the HOME program. COSCDA wants HUD to instead allow CHDOs to remain in the program if they can demonstrate they have plans to develop staff capacity, or have financial reasons for not carrying paid development staff.

COSCDA contends that allowing CHDOs to use consultants provides them with flexibility and especially helps CHDOs located in rural communities.

Another leading issue in COSCDA's comments centers on HUD's proposal to convert to rental projects any homebuyer units not sold six months after being rehabilitated or built. COSCDA officials tell us that they want the conversion deadline to be 12 months with provisions for extension requests.--Thomas Harman

Info: www.cdpublications.com/docs/7528

Login to read the full story or Subscribe now!

Other Recent Stories

Wisconsin U.S. Sen. Ron Johnson (R) becomes the first lawmaker to openly reject the income tax reform legislation wending its way at uncustomary speed through Congress, accusing colleagues of ramming legislation to completion that would only benefit large corporations.
The House Financial Services Committee clears four housing proposals for a floor vote, and at least three have a chance of clearing the House and Senate and being enacted into law.
An abrupt fall in the Federal Housing Administration’s flagship Mutual Mortgage Insurance Fund, despite HUD’s frequent assurances to the contrary, rules out any insurance premium cuts for 2018. The FHA annual report to Congress portrays a capital reserve fund that ultimately
Following months of bargaining between conservatives and largely liberal coastal area lawmakers, the House endorses a renewal of the National Flood Insurance Program along a strict 237-189 party-line vote. The acrimony surrounding the move guarantees the bill will met
Homebuilders are grappling with labor shortages and spiking costs of building materials as they attempt to regroup following the devastation wrought by hurricanes Harvey, Irma and Maria. The post-storm turmoil likely will impact housing construction across the country, costs that will
Rates for home mortgage loans increase to the highest level since July as investors shed Treasury bonds in anticipation of tax reform that would inflate the budget deficit by forcing more federal borrowing. “The 10-year Treasury yield ticked up 6 basis points, while the 30-year
House Speaker Paul Ryan (R-WI) is hinting at the possibility of a second stopgap spending law to avert what congressional conservatives fear could be a last-minute rush to enact a “Christmas tree” spending bill for FY 2018. The far right Freedom Caucus, while meager in
The City of New York Department of Investigation issues a scathing report accusing the chairwoman of the New York City Housing Authority of falsifying reports over lead paint safety inspections. The report says Shola Olatoye knew in the summer of 2016 that the NYCHA’s
With the Republican congressional majority putting its primary legislative focus on income tax reform, debate over the FY 2018 spending authorization takes a back seat and that may force lawmakers into a second stopgap spending law in December.
A deal among congressional lawmakers to renew the National Flood Insurance Program fell flat at the last minute, and the House leadership postponed a vote on the agreement until the week of Nov. 13 at the earliest.