The Housing Choice and Community Investment Act of 1994 : joint hearings before the Committee on Banking, Housing, and Urban Affairs, United States Senate, and the Subcommittee on Housing and Urban Affairs, One Hundred Third Congress, second session ... April 28 and May 3, 1994
258 pages
English

The Housing Choice and Community Investment Act of 1994 : joint hearings before the Committee on Banking, Housing, and Urban Affairs, United States Senate, and the Subcommittee on Housing and Urban Affairs, One Hundred Third Congress, second session ... April 28 and May 3, 1994

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258 pages
English
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S. Hrg. 103-672 THE HOUSING CHOICE AND COMMUNITY INVESTMENT ACT OF 1994 ~klD 103-67HRG.S,B 22/3;4,Y HEARINGS ^«-and ConnunitjChoiceTbe Housins .^otiethe COMMITTEE ON ANDURBANAFFAIRSBANKING, HOUSING, UNITED STATES SENATE AND THE SUBCOMMITTEE ON ANDHOUSING URBANAFFAIRS ONE HUNDRED THIRD CONGRESS SESSIONSECOND ON CITIES AND TOIDENTIFYING THE NEEDS OF OUR NATION'S EXAMINE PROPOSED AMBITIOUS AND COMPREHENSFVETHE ADMINISTRATION'S AGENDA TO REVITALIZE COMMUNITIES AND CREATE REAL OPPOR- TUNITY FOR RESIDENTS APRIL 28 AND MAY 19943, Printed for the use of the Committee on and Urban AffairsBanking, Housing, t^^OF; •^^&«t,^ OCT tGOVERNMENT PRINTING OFFICEU.S. WASHINGTON :82-317 CC sale the U.S. GovernmentFor by Printing Offic™'#lCj|fyJJr*«'»7/|f9V Sales DCofDocuments, Office,Superintendent Congressional Washington, MAmO/fQj'^'.f^,^ ISBN 0-16-044781-X S. Hrg. 103-672 THE HOUSING CHOICE AND COMMUNITT INVESTMENT ACT OF 1994 103-672S. HRG,4 B 22/3;Y HEARINGS I» Jnd ConnonityChoiceThe Hooslns ^po^j, ^he COMMITTEE ON ANDURBANAFFAIRSHOUSING,BANKING, UNITED STATES SENATE AND THE SUBCOMMITTEE ON ANDHOUSING URBANAFFAIRS THIRDONE HUNDRED CONGRESS SECOND SESSION ON THE NEEDS OF OUR NATION'S CITIES AND TO EXAMINEIDENTIFYmG PROPOSED AMBITIOUS AND COMPREHENSIVETHE ADMINISTRATION'S AGENDA TO REVITALIZE COMMUNITIES AND CREATE REAL OPPOR- TUNITY FOR RESIDENTS APRIL 28 AND MAY 19943, Printed for the use of the Committee on and Urban AfTairsBanking, Housing, «^^. °"'GOVERNMENT PRINTING OFFICEU.S. w.

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S. Hrg. 103-672
THE HOUSING CHOICE AND COMMUNITY
INVESTMENT ACT OF 1994
~klD
103-67HRG.S,B 22/3;4,Y
HEARINGS
^«-and ConnunitjChoiceTbe Housins .^otiethe
COMMITTEE ON
ANDURBANAFFAIRSBANKING, HOUSING,
UNITED STATES SENATE
AND THE
SUBCOMMITTEE ON
ANDHOUSING URBANAFFAIRS
ONE HUNDRED THIRD CONGRESS
SESSIONSECOND
ON
CITIES AND TOIDENTIFYING THE NEEDS OF OUR NATION'S EXAMINE
PROPOSED AMBITIOUS AND COMPREHENSFVETHE ADMINISTRATION'S
AGENDA TO REVITALIZE COMMUNITIES AND CREATE REAL OPPOR-
TUNITY FOR RESIDENTS
APRIL 28 AND MAY 19943,
Printed for the use of the Committee on and Urban AffairsBanking, Housing,
t^^OF;
•^^&«t,^
OCT
tGOVERNMENT PRINTING OFFICEU.S.
WASHINGTON :82-317 CC
sale the U.S. GovernmentFor by Printing Offic™'#lCj|fyJJr*«'»7/|f9V
Sales DCofDocuments, Office,Superintendent Congressional Washington, MAmO/fQj'^'.f^,^
ISBN 0-16-044781-XS. Hrg. 103-672
THE HOUSING CHOICE AND COMMUNITT
INVESTMENT ACT OF 1994
103-672S. HRG,4 B 22/3;Y
HEARINGS

Jnd ConnonityChoiceThe Hooslns ^po^j, ^he
COMMITTEE ON
ANDURBANAFFAIRSHOUSING,BANKING,
UNITED STATES SENATE
AND THE
SUBCOMMITTEE ON
ANDHOUSING URBANAFFAIRS
THIRDONE HUNDRED CONGRESS
SECOND SESSION
ON
THE NEEDS OF OUR NATION'S CITIES AND TO EXAMINEIDENTIFYmG
PROPOSED AMBITIOUS AND COMPREHENSIVETHE ADMINISTRATION'S
AGENDA TO REVITALIZE COMMUNITIES AND CREATE REAL OPPOR-
TUNITY FOR RESIDENTS
APRIL 28 AND MAY 19943,
Printed for the use of the Committee on and Urban AfTairsBanking, Housing,
«^^.
°"'GOVERNMENT PRINTING OFFICEU.S. w.
WASHINGTON : 1'82-317 CC
For sale the U.S. Governmentby Printing Office'*"llC^^ij:j^»^|^y
Sales DCof Documents, Office, tfSuperintendent Congressional Washington, 3,.2040?Eypr^
ISBN 0-16-044781-XCOMMITTEE ON AND URBAN AFFAIRSBANKING, HOUSING,
ChairmanDONALD W. RIEGLE, JR., Michigan,
PAUL S. ALFONSE M. New YorkSARBANES, Maryland D'AMATO,
Connecticut PHIL TexasCHRISTOPHER J. DODD. GRAMM,
JIM Tennessee CHRISTOPHER S. MissouriSASSER, BOND,
RICHARD C. Alabama CONNIE FloridaMACK,SHELBY,
JOHN F. Massachusette LAUCH North CarolinaKERRY, FAIRCLOTH, H. Nevada ROBERT F. UtahBRYAN, BENNETT.
BARBARA California WILLIAM V. DelawareBOXER, ROTH, JR.,
BEN NIGHTHORSE Colorado PETE V. New MexicoCAMPBELL, DOMENICI,
CAROL IllinoisMOSELEY-BRAUN,
PATTY MURRAY, Washington
Steven B. Director and CounselHarris, Staff Chief
Howard A. DirectorMenell, Republican Staff
JEA>fNINE S. StaffMemberJaCOKES, Professional
Edward M. EditorMalan,
Subcommittee on Housing and Urban Affairs
PAUL S. ChairmanSARBANES, Maryland,
JOHN F. Massachusetts CHRISTOPHER S. MissouriKERRY, BOND,
RICHARD H. Nevada PETE V. New MexicoBRYAN, DOMENICI,
BARBARA California CONNIE FloridaMACK,BOXER,
CAROL Illinois LAUCH North CarolinaMOSELEY-BRAUN, FAIRCLOTH,
CHRISTOPHER J. Connecticut WILLIAM V. DelawareDODD, ROTH, Jr.,
Paul DirectorWeech, Staff
Jonathan/SubcommitteeKaMARCK, Republican Staff
on and UrbanHousing Affairs
MemberFaLUE E. CaLDER, Professional Staff
(II)
if-^y'-
:4t
-'-'
'«,'» \CONTENTS
APRIL 1994THURSDAY, 28,
Page
statement of Chairman 1Opening Riegle
or statements of:statements, comments, prepared
Senator 3Murray Sarbanes 4
statement 31Prepared
Senator Dodd 31 Bond 32
Senator D'Amato 33
WITNESSES
G. of and UrbanCisneros, Secretary, Department Housing Develop-Henry
bv Marsha ofment, DC; accompanied Dodge, DepartmentWashington,
and Jeannieand UrbanHousing Development, Washington, DC; Engel,
Assistant FederalSecretary, Housing Administration, Washington,Deputy
DC 6
Marsha 18Dodge
Jeannie 28Engel
statement 34Prepared
Overview of the of the Choice and Commu-key provisions Housing
Investment Act of 1994 36
nity
1: homelessness 36Priority Reducing
2: around 37 Turning housingpublic
3: affordable 37Priority Expanding
4: fair 38 Enforcing housing
5: communities 38Priority Empowering
Fiscal 1995 new initiatives 50year top
to written of:Response questions
Senator Sarbanes 55
Senator D'Amato 57 Bond 60
MAY 19943,TUESDAY,
Sarbanes 137statement of SenatorOpening
or statements of: statements, comments, prepared
Senator 138Bond 173Riegle
WITNESSES
Albert C. vice onEisenberg, chairman, Virginia County Board,Arlington,
behalf of the U.S. Conference of the National ofMayors, League Cities,
and the National Association of DC 140Counties, Washington,
statement 173Prepared
to written ofSenator Bond 229Response questions
(III)IV
Page
Richard G. executive Missouri Commis-Grose, director, Housing Development
on behalf of the National Council of State Kansassion, Housing Agencies,
MO 143City,
statement 173Prepared
Maintain the authorization level forHOME 176
NCSHA additional HOME 176provisionssupports
FHA 178single-iamily proposals
of Act homeless 178Reorganization programsMcKinney
FHA/HFA 179multifamily risk-sharing program
National Fund Demonstration 179Homeownership
Preservation 179
in modernization 180Public-private partnerships public housing
Section 8 issues 180
reforms 180Management
Conclusion 180
to written ofSenator Bond 231Response questions
Marina of on behalfCarrott, commissioner, Chicago Department Housing,
of the National Association and the AssociationCommunity Development
of Local Finance IL 146Housing Agencies, Chicago,
statement 180Prepared
Block Grant 181Community Development [CDBG]Program
Home Investment 182[HOME]Partnerships Program
of the Stewart B. Homeless AssistanceReorganization McKinney
Act 185
Fair initiatives 187housing
Public and Indian 187housing
Federal Administration initiatives 187Housing
Conclusion 188
of record ofcommitments to HUD 194City Chicago's
Ricardo executive Milwaukee PublicDiaz, director, onHousing Authority,
behalf of the Council of PublicLarge Housing Authorities, Milwaukee,
WI 148
statement 196Prepared —A Detailed CLPHA comments on ofHUD'sAppendix provisions leg-
islative amendments to section 24 of theproposals concerning
Act of 1937 198Housing
to written ofSenator Bond 233Response questions
F. Barton The MD .. 159HI, chairman, Foundation, Columbia,Harvey, Enterprise
statement 200Prepared
The Foundation 200Enterprise
Sandtown-Winchester 200
HOME 202
andHOME 202Nonprofits
for 203Capacity building nonprofits
Fund 204Community Viability
Other tools 205financing
FHA 205Improving
market 206Expanded secondary activity
Conclusion 207
to written ofSenator Bond 236Response questions
N. National Low-IncomeDolbeare, Housing Coalition,Gushing president.
DC 161Washington,
statement 207Prepared
needs andHUD 207Housing proposals and Federal assistance 207housing
Federal Trust Fund 210HousingProposed
211HUD's specific proposals
authorization levels 211F*roposed
and consolida-The "ConPlan" (CHAS/HOME/CDBG plan application
213tion)
213Fair housing
Lead hazards 213paint
Conclusion 214
—A of needs 214Appendix summary housing
to written ofSenator Bond 238Response questionsV
Page
andBeddor, MSW, director, Services,Sandy Comprehensive Housing Family
on behalf of the National Alliance To End WheatTree, Inc., Homelessness,
CO 164Ridge,
statement 222FVepared
National Alliance To End Homelessness; Statutory changes:
226Supportive housing program
Room Section 8 Mod Rehab 226[SRO]Single Occupancy Program
National Alliance To End recommendations: Policy
Shelter Plus Care 227FVogram
Alternative authorization levels for fiscal 1995year by McKinney
Act 228strategies
to written ofSenator Bond 244Response questionsTHE CHOICE AND COMMUNITYHOUSING
INVESTMENT ACT OF 1994
APRIL 199428,THURSDAY,
U.S. Senate,
Committee on and UrbanBanking, Housing, Affairs,
DC.Washington,
The met in room of the Dirksen Senate Office538,
at 10:15 Senator Donald W. Jr. (ChairmanBuilding a.m., Riegle,
of the Committee) presiding.
OPENING STATEMENT OF SENATORDONALD W. JR.RIEGLE,
The Chairman. The Committee will come to order.
inLet me welcome all those attendance this We wantmorning.
and Urbanto Housing Development Secretaryespecially
Cisneros before our Committee.Henry again
of a number ofI want to the presence daughtersacknowledge
who are here with their with owntoday parents, starting my
and Sara who is here with Senator Mur-daughter, Ashley, Murray,
and I see some other women who are here with eitherray, young
their moms or and we're that all of aredads, just delighted you
here with us today.
What we're to be about is the wholegoing talking today question
of and in America because wehousing policy housing opportunities
know how it is to have a nice home to live in andall important
to own own home. aren't able to dopeoplehopefully your Many
inthat. don't have the or life has worked such aThey money way
that haven't had the kind of that the restthey opportunity maybe
of us have had.
inWe a lot of time the Government to outspend trying figure
how we can make it more for more to be able topossible people
have the chance to and own a home of their and to haveown,buy
inall of the that can co

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