Short Takes

May/June 1996

Short Takes

HUD has responded to the rash of black church burnings by seeking legislation to authorize a $10 million loan guarantee fund under the Community Development Block Grant program. The fund would guarantee up to $10 million in loans from private financial institutions to help rebuild churches and other community centers damaged or destroyed by acts of arson or terrorism, the National Low-Income Housing Coalition reported. Almost 40 black churches have been burned down throughout the South and the Mid-Atlantic in the last 18 months. The HUD legislation "is part of the rebuilding effort" for the communities, which recognizes that "many of these churches serve important community functions in their jurisdictions." Information: NLIHC, 202-662-1530.
New York City tenants are protesting the Rent Guidelines Board's recent vote for a rent increase – the largest in seven years for the city's approximately one-million rent-stabilized apartments. Starting October 1, landlords are allowed a 5 percent increase for one-year leases and a 7 percent increase for two-year leases due for renewal, The New York Times reported. The board approved a 9 percent increase for vacant apartments rented during the year beginning October 1, 1996, and said that, under a law passed in 1993, apartments renting for $2,000 or more could be subject to vacancy decontrol. In addition, the board imposed a $20 sur-charge (which tenant advocates call a "poor tax") for tenants paying $400 or less for their apartments. "Twenty dollars a month may not mean much to you members of the board," said Leslie Holmes, a tenant representative on the board. "Maybe it's just a taxi ride. But for many people, it is the difference between feeding their children and remaining in their homes."
Cuba's Fidel Castro, the biggest draw at the June Habitat II conference in Istanbul, Turkey, lambasted the world's rich nations for not caring about shelter, jobs, and other basic needs of the poor, Earth Times News Service reported. One of only two visiting heads of government addressing the plenary session on the final day, Castro declared, "Those who have almost destroyed the planet and poisoned the air, the seas, the rivers, and the soils are presently showing little concern over saving mankind. How many heads of state and government from the developed countries are attending this meeting today?" Castro blamed the growing rich-poor gap on "centuries of colonialism, slavery, and economic exploitation. Many poor country governments view Castro as an ally, according to Earth Times News, and delegates clapped loudly as he finished his speech. The U.S., however, was not among the admirers. HUD Secretary Henry Cisneros, the top U.S. official in attendance, told the Associated Press that Castro represents "almost the antithesis" of Habitat's aspirations. "In Mr. Castro's Cuba, for too many people, his housing policy has meant a prison cell because they disagreed with him."
HUD has made some progress reforming its management problems, but still has a way to go, according to the recent Congressional testimony of Judy A. English-Joseph, director of Housing and Community Development Issues and Resources for the General Accounting Office. England-Joseph reported persistent problems, such as weak internal controls, an inefficient organizational structure, an insufficient mix of staff with the proper skills, and inadequate information and financial management. "We believe that, for the foreseeable future, the agency will be high-risk in terms of its programs' being vulnerable to waste, fraud, and abuse," England-Joseph said. The full report, Limited Progress Made on HUD Reforms, document T-RCED-96-112, can be ordered from the U.S. GAO, P.O. Box 6015, Gaithersburg, MD 20884-6015; phone: 202-512-6000; fax: 301-258-4066. To access GAO reports online, send an email message with "info" in the body to info@www.gao.gov
While policymakers once focused on attacking "pockets of poverty," the future success of American cities may lie in attracting middle-income households back to the urban core to nurture "pockets of prosperity," according to research presented at the Fannie Mae Foundation 1996 Housing Conference. "Our cities work best when they reflect the full breadth of American life," said Wendy R. Sherman, Fannie Mae Foundation President and CEO. The conference, held in Washington, DC, identified some successful strategies for inner-city revival. Proposals included using consumer marketing techniques to "sell" cities to carefully targeted suburban households, overhauling local policies to encourage mixed-use development, supporting efforts to end discriminatory real estate and lending practices, identifying and promoting mixed-income communities and diverse neighborhoods, and fostering community-based leadership on issues important to city dwellers. Research papers presented at the conference are available from the Fannie Mae Foundation, 4000 Wisconsin Ave., NW Washington, D.C. 20016-2800.
McAuley Institute has joined President Clinton's Housing Opportunities for Women Initiative, part of a collaboration with President Clinton, HUD Secretary Henry Cisneros, and 56 industry, government, and nonprofit organizations, including the U.S. Conference of Mayors, the National Association of Homebuilders, the National Cooperative Bank, and the National Urban League. The partnership, known as the National Partners in Homeownership, aims for the U.S. to reach an all-time high homeownership rate by the year 2000. McAuley's focus is increasing homeownership among women. Although last year the national homeownership rate reached its highest percentage in 15 years, working women have not had access to the benefits of homeownership, the McAuley Institute reports. While the number of households headed by women increased by 5.2 million between 1970 and 1990, women still lag far behind in homeownership rate. Information: Jeanne Reitz or Maggie Grieve, 301-588-8100.

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