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Urban Mass Transportation Act of 1970

From Wikipedia, the free encyclopedia

The Urban Mass Transportation Act of 1970 (Pub.L. 91–453) added to the Urban Mass Transportation Act of 1964 by authorizing an additional $12 billion of the same type of matching funds.

The laws, while the first major federal investments in urban transit, have been criticized[by whom?] both for going too far (is transit a federal or local responsibility?) and not going far enough (the 50:50 match was much less than the 80:20 match provided for new highway construction). It is also thought[by whom?] that these capital funds distorted the priorities of transit agencies to building new capital projects (rails) rather than more cost effective projects that required less capital (but perhaps more operating) outlay (buses). Thus since the 1970s the United States has seen a large number of new rail starts while bus service continues to deteriorate.[not specific enough to verify]

Earlier legislative attempts at establishing a federal transit funding program were opposed by labor unions because they did not protect unionized workers, and thus failed to gain sufficient support in Congress. The unions feared that public entities would take over failing privately held transportation companies and cease to recognize the union (the National Labor Relations Act does not apply to public employers). The version that finally did pass included provisions that require public entities receiving federal transit money to enter into protective agreements (often referred to as "Section 13(c) agreements") that would be approved by the Department of Labor. The Secretary of Labor must certify that the transit authority has made a "fair and equitable" labor protective arrangement before the authority can receive assistance.

Although the Federal Government is prohibited from dictating labor standards of public employees directly (see, e.g., National League of Cities v. Usery), it can use the "power of the purse" and refuse to grant funds to states who don't enter into these protective arrangements.

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  • ✪ HUD at 50: History in the Making
  • ✪ Improve Vocabulary ★ Sleep Learning ★ Listen To Spoken English Conversation, Binaural Beats Part 24✔
  • ✪ Improve Vocabulary ★ Sleep Learning ★ Listen To Spoken English Conversation, Binaural Beats Part 25✔

Transcription

>> THIS IS A VERY RARE, VERY PROUD OCCASION. WE'RE BRINGING INTO BEING TODAY THE VERY NEW AND NEEDY INSTRUMENT TO SERVE ALL THE PEOPLE OF AMERICA. THIS LEGISLATION ESTABLISHES THE 11TH DEPARTMENT OF OUR FEDERAL GOVERNMENT, THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. >> HE KNEW WHAT HE WANTED TO DO. HE LIVED IT. REMEMBER, HE WAS ELECTED TO CONGRESS IN 1938. IN 1938, THERE WAS NO RUNNING WATER AND THERE WAS NO ELECTRICITY IN THE HILL COUNTRY WHERE HE GREW UP FOR THE FIRST 20 YEARS OF HIS LIFE. >> WE CAN ARGUE OR TALK ABOUT VOTING RIGHTS AND WE CAN TALK ABOUT SCHOOL RIGHTS AND EMPLOYMENT RIGHTS, BUT ONE OF 2 THE THINGS THAT TOUCHES AMERICANS MOST DEEPLY WAS HOUSING, WHERE THE PEOPLE LIVE. A GREAT DEAL OF EMPHASIS WAS PLACED ON THE UNREST IN CITIES BECAUSE THERE WERE RIOTS IN DETROIT, WASHINGTON, D.C., CITIES WERE BURNING, SO IT WAS A DIFFICULT PERIOD THROUGH WHICH THIS COUNTRY MOVED. >> I CAME TO HUD AND REALLY LOVED THE PLACE. THE FIRST PIECE OF LEGISLATION THAT THE PRESIDENT SIGNED WAS HOUSING AND COMMUNITY DEVELOPMENT ACT, AND HE REALLY BELIEVED, AND I THOUGHT HE WAS RIGHT, THAT THE BLOCK GRANT PROGRAM WAS EXACTLY WHAT THE COUNTRY NEEDED THAT WE WOULD WASTE NO ASSETS. WE COULDN'T WASTE A NICKEL. >> SOMETIMES I THINK THE H IN HUD DOESN'T GET ENOUGH BILLING RELATIVE TO THE U. THE HOUSING THAT HUD IS RESPONSIBLE FOR IS IN EVERY COMMUNITY ACROSS THE COUNTRY. >> HUD IS MORE THAN JUST HOUSING. IT'S EDUCATION AND TRANSPORTATION. IT'S ECONOMIC DEVELOPMENT AND A CLEAN ENVIRONMENT. IT'S ABOUT GIVING FOLKS THE TOOLS THEY NEED TO BUILD A BRIGHTER FUTURE. >> IN LESS THAN MY OWN 57 YEARS AMERICA HAS BECOME A HIGHLY URBANIZE DOLLARS NATION AND WE MUST FACE THE NEW MEANINGS OF THIS NEW AMERICA. BETWEEN NOW AND THE END OF THIS CENTURY, OUR URBAN POPULATION WILL DOUBLE. CITY LAND WILL DOUBLE. 3 IN THE NEXT 35 YEARS, WE MUST LITERALLY BUILD A SECOND AMERICA. >> FAIR HOUSING FOR ALL, ALL HUMAN BEINGS WHO LIVE IN THIS COUNTRY, IS NOW A PART OF THE AMERICAN WAY OF LIFE. >> I THINK THE FAIR HOUSING ACT HAS TAUGHT A COUPLE OF GENERATIONS OF AMERICANS, AT LEAST LEADERS, THAT THIS IS PART OF THE AMERICAN DREAM. >> AND IT SEEMS ELEMENTARY TO HAVE FAIR HOUSING, BUT HUD IS OUT THERE, DAY IN, DAY OUT, TRYING TO ENFORCE OUR FAIR HOUSING LAWS, AND TRYING TO MAKE SURE THAT PEOPLE GET TREATED FAIRLY WHEN THEY GO RENT OR BUY. >> WELL, I CAME INTO HUD AT A PRETTY SIGNIFICANT PERIOD OF TIME. THE HOUSING MARKET WAS BLOWING UP, THE WORLD WAS IN THE MIDDLE OF A FINANCIAL CRISIS, AND HUD'S PLACE IN HISTORY WAS VERY IMPORTANT AT THE TIME. >> FHA, THE DEVASTATION WE SAW IN OUR COMMUNITIES, OUR HOUSING MARKET, WITHOUT IT IT WOULD HAVE BEEN DRAMATICALLY WORSE, I HAVE NO DOUBT ABOUT THAT. >> THE MEN AND WOMEN THAT LIVE ON OUR STREET, IT'S NOT THEM AND US, BUT IT'S WE. IT'S NOT THEY ARE THERE AT THE GRACE OF GOD -- IT'S IMPORTANT TO REFLECT IN 50 YEARS OF THE INCREDIBLE WORK OF HUD. THE REASON I'M SAYING THAT IS PREVIOUSLY, BEFORE THERE WAS HUD, IT WAS UNIMAGINABLE IN OUR COUNTRY THAT MEN, WOMEN AND CHILDREN WOULD BE HOMELESS. IT WAS JUST UNTHINKABLE. 4 >> THANKS TO PRESIDENT JOHNSON, THE CONGRESS OF THAT ERA, SOME OF THE EXPERTS AND LEADERS ACROSS THE COUNTRY, THEY TOOK TO ASSEMBLY ALL OF THE DISPARATE PIECES THAT MIGHT EXIST OUT THERE SUCH AS FHA, LEADING THE WAY, BUT THEN ALL OF THE OTHER THINGS WE WERE DOING RELATED TO URBAN, RURAL, AND COMMUNITY DEVELOPMENT, AND RENTAL HOUSING AND MORTGAGES, AND PULLED IT ALL TOGETHER IN A DEPARTMENT THAT I THINK HAS PROVEN TO BE AN IMPORTANT PART OF THE AMERICAN SOCIETY. >> HUD IS THE DEPARTMENT OF OPPORTUNITY. EVERYTHING THAT WE DO. EVERYTHING THAT WE DO, WHETHER IT'S WORKING WITH A LOCAL COMMUNITY TO REVITALIZE THEM OR HELPING ENSURE THE RESPONSIBLE BORROWERS CAN GET THEIR FIRST HOME OR HELPING AFTER A DISASTER HAS STRUCK, WE ENSURE THAT AMERICANS CAN REACH THEIR AMERICAN DREAM. LADIES AND GENTLEMEN, PLEASE WELCOME, NANO COLE RATIE -- COLORETTI, HUD'S DEPUTY SECRETARY. >> >> [APPLAUSE] >> GOOD AFTERNOON. GOOD AFTERNOON. WASN'T THAT A GREAT VIDEO? SO WELCOME TO HUD AT 50, HISTORY IN THE MAKING, AND AS YOU KNOW, AND FROM THE VIDEO, WE ARE CELEBRATING OUR 50TH ANNIVERSARY THIS YEAR, AND IN FACT SEPTEMBER 9TH WAS HUD'S 50TH BIRTHDAY AND THAT WAS THE DAY IN WHICH PRESIDENT LYNDON JOHNSON CREATED HUD AS THE 11TH CABINET AGENCY AND WE'VE BEEN STUDYING THE PAST FEW MONTHS, HIGHLIGHTING WHAT 5 HUD HAS MEANT TO MILLIONS OF AMERICANS SINCE OUR FOUNDING. IT'S BEEN 50 YEARS OF HELPING FAMILIES SECURE QUALITY, AFFORDABLE HOUSING, CREATING VIBRANT COMMUNITIES AND NEIGHBORHOODS, AND ENSURING THAT PEOPLE, REGARDLESS OF THEIR BACKGROUND, HAVE ACCESS TO OPPORTUNITY. AND THE STATISTICS ARE REALLY IMPRESSIVE. WHETHER IT'S THE MORE THAN 44 MILLION MORTGAGES THAT HUD AND FHA HAVE INSURED SINCE 1934, OR THE MORE THAN 34 MILLION PEOPLE WE HAVE REACHED IN THE LAST 20 YEARS THROUGH OUR ASSISTED HOUSING PROGRAMS LIKE PUBLIC HOUSING, HOUSING CHOICE VOUCHERS, AND OTHERS, OR THE $144 BILLION OF INVESTMENT IN COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS IN COMMUNITIES ACROSS THIS COUNTRY, WE HAVE TOUCHED MILLIONS OF FAMILIES, COMMUNITIES AND AMERICAN DREAMS, SINCE OUR FOUNDING. BUT YOU HEARD A BIT IN THE VIDEO JUST NOW WHAT'S EVEN MORE AMAZING THAN THE STATISTICS ARE THE STORIES. AND THAT'S WHAT WE ARE HERE TO EXPERIENCE TODAY, THE STORY OF HUD AT 50, HISTORY IN THE MAKING. AND BEFORE WE GET STARTED, I WANT TO TAKE JUST A MOMENT TO THANK ALL THE STAFF IN THE ROOM TODAY, ESPECIALLY THOSE THAT ARE PART OF OUR 50TH ANNIVERSARY COMMITTEE AND THOSE IN OUR OFFICE OF POLICY DEVELOPMENT AND RESEARCH WHO HAVE MADE TODAY'S EVENT POSSIBLE, AND THANK YOU FOR YOUR TREMENDOUS WORK. I JUST WANT TO GIVE THEM A ROUND OF APPLAUSE. 6 >> [APPLAUSE] >> WHEN WE WERE TALKING ABOUT WHAT SHOULD WE DO FOR THE HUD 50TH, KATHY O'REAGAN HAD MANY IDEAS AND SHE HAS IMPLEMENTED THEM ALL, SO -- AND THIS IS ONE OF THEM. AND IN ADDITION TO HAVING THIS EVENT TODAY, I ACTUALLY HAD THE PLEASURE OF SPENDING A LITTLE BIT OF TIME WITH ALL OF THE PD & R STAFF THIS MORNING, BECAUSE THIS IS ALSO THEIR -- GATHERING, IT'S BEEN PULLED TOGETHER, AND TO JUST HEAR A LITTLE BIT ABOUT THE ACTION THAT THEY ARE TAKING AND THE ENERGY, TALENT, DEDICATION, THAT HUD EMPLOYEES BRING TO THIS WORK. IT'S REALLY FANTASTIC. SO WE ARE LUCKY TO BE JOINED TODAY BY SPECIAL PD & R ALUMNI AND SOMEONE WHO KNOWS MORE ABOUT HUD'S HISTORY THAN ALMOST ANYONE, OUR FRIEND AND COLLEAGUE, JILL KADURI IS GOING TO SPEND TIME WITH YOU THIS AFTERNOON, WALKING THROUGH HUD'S HISTORY, AND PROVIDING INSIGHTS ON THE KEY PROGRAMS, POLICES AND PERSONALITY THAT IS HAVE SHAPED HUD INTO THE DEPARTMENT OF OPPORTUNITY. AND JILL IS PARTICULARLY WELL-SUITED FOR THIS TASK. SHE SPENT A GREAT DEAL OF HER CAREER HERE AT HUD IN PD & R. SHE IS A POLITICAL SCIENTIST BY TRAINING AND SHE JOINED PD & R IN 1973 WHEN SHE WAS FIVE YEARS OLD, 10 YEARS LATER, SHE HAD BECOME THE SECOND DIRECTOR OF THE POLICY DEVELOPMENT DIVISION, AND THAT'S A ROLE SHE HELD UNTIL 2000, WHEN SHE LEFT HUD TO GO TO ACT SOCS AND SHE IS A FELLOW THERE. 7 SHE IS AN EXPERT ON HOMELESSNESS, HOUSING PROGRAMS AND STRATEGIES, AMONG THEM THE LOW INCOME HOUSING TAX CREDIT, HOUSING CHOICE VOUCHERS, AND PUBLIC HOUSING. AND JILL HAS BEEN PART OF MORE THAN JUST TODAY'S EVENT IN OUR CELEBRATION OF HUD'S 50TH. AS I MENTIONED, KATHY HAD A LOT OF GOOD IDEAS, AND ONE OF THE THINGS THAT WE ARE DOCUMENTING THIS YEAR IS HUD'S STORY IN A MULTI CHAPTER BOOK, HUD AT 50, CREATING PATHWAYS TO OPPORTUNITY, AND JILL IS FEATURED IN THAT BOOK, AND WE WILL BE GETTING A LIVE PREVIEW OF WHAT SOME OF THAT WILL BE IN TODAY, AND IT WILL BE IN THE BOOK THAT IS RELEASED THIS FALL. SO IT'S CLEAR THAT JILL HAS A WEALTH OF KNOWLEDGE ABOUT HUD'S STORY AND ITS CONNECTIONS TO OUR WORK TODAY. SO JUST A COUPLE OF HOUSEKEEPING. I KNOW THERE ARE A LOT OF US IN THE ROOM TODAY AND THERE ARE SOME PEOPLE THAT MIGHT BE JOINING US VIA WEBCAST FOR THIS EVENT. YOU CAN ACTUALLY FOLLOW US ON TWITTER, IF YOU DO THAT, USING THE HASHTAG HUD AT 50, AND THROUGH OUR HANDLES, AT HUD USER NEWS AND AT PDR EVENTS, AND JILL ALSO AGREED TO OPEN UP QUESTION AND ANSWER DURING HER PRESENTATION, AND IF YOU ARE IN THE FIELD OR NOT HERE IN THIS ROOM AND YOU ARE WATCHING VIA WEBCAST, YOU WILL BE ABLE TO E-MAIL THOSE 8 QUESTIONS IN SO WRITE THIS DOWN, PDR QUARTERLY UPDATE AT HUD.GOV, THE E-MAIL ADDRESS WILL ALSO APPEAR ON THE SCREEN WHEN WE GET TO Q & A TIME, IN CASE YOU DIDN'T WRITE DOWN WHAT I JUST SAID. WITH ALL OF THAT, I WANT TO WELCOME JILL BACK TO HUD TODAY, AS AN ALUM, A FRIEND AND COLLEAGUE, JILL, PLEASE COME OUT AND GET US STARTED! >> [APPLAUSE] >> >> THANK YOU VERY MUCH NANI. I AM DELIGHTED TO BE HERE AND I WAS DELIGHTED WHEN PD & R SUGGESTED I MIGHT WRITE THE FIRST CHAPTER OF THIS BOOK THAT THEY ARE ABOUT TO PUBLISH ON THE HISTORY OF HUD, AND I SPENT A LONG TIME DOING THIS OVER THE LAST YEAR. I MIND THE PUBLISHED LITERATURE, I DID EXTENSIVE INTERVIEWS, 30 ALL TOGETHER, MANY OF THEM LASTING AS LONG AS THREE HOURS. I DIDN'T INTERVIEW ANY OF THE LIVING HUD SECRETARIES, BUT I DID TALK TO AT LEAST ONE CLOSE ADVISER TO EVERY ONE OF THE HUD SECRETARIES, AND I ALSO INTERVIEWED SOME KEEN OBSERVERS OF VARIOUS POLICY AND PROGRAM AREAS, BOTH FROM INSIDE HUD AND FROM OUTSIDE HUD. THIS IS AN INSTITUTIONAL HISTORY OF HUD. IT'S VERY MUCH FOCUSED ON THE SUCCESS OF HUD SECRETARIES, MANY OF WHOM YOU'VE JUST SEEN DEPICTED. AND I WILL FOCUS ON SELECTIVELY POLICY CHANGES AND PROGRAM CHANGES THAT I THINK HAVE HAD LASTING IMPORTANCE. 9 WHILE THIS IS NOT AN ASSESSMENT OF THE EFFECTIVENESS OF HUD, I DO HAVE THE BENEFIT OF HINDSIGHT FOR KNOWING WHICH THINGS I THINK HAVE HAD LASTING IMPORTANCE. >> SO WHY WAS IT CONSIDERED IMPORTANT TO CREATE AN URBAN AGENCY IN THE MID '60S? WELL, REMEMBER WHAT WAS HAPPENING AT THAT POINT. THERE HAD BEEN . STARTING REALLY IN THE LATE 19TH CENTURY BUT ACCELERATING IN THE '30S AND EVEN MORE AFTER WORLD WAR II, IT WAS SEEN AS WEAKENING THE TAX BASE OF CITIES AS URBAN RESIDENTS DID NOT KEEP UP IN INCOMES, AND THE PERCEPTION WAS ALREADY IN THE '30S, BUT CERTAINLY EVEN MORE IN THE '60S, THAT FEDERAL HELP WAS NEEDED BY CITIES IN ORDER TO SOLVE THEIR PROBLEMS. >> THERE WERE CONCENTRATIONS OF SUB UBAN SEGREGATED GHETTOS IN THE CITIES HIGHLIGHTED BY THE RIOTS THAT TOOK PLACE IN THE CITIES OF THE NORTH, STARTING IN 1964, AND THE 1930S RESPONSES DIDN'T SEEM TO BE WORKING. FIRST, THERE WAS SLUM CLEARANCE IN THE '30S, RENAMED URBAN RENEWAL IN 1954. IT WAS PERCEIVED AS NOT HAVING WORKED, AS HAVING BEEN DESTROYED THE FABRIC OF URBAN NEIGHBORHOODS. PUBLIC HOUSING WAS CREATED ALSO IN THE 1930S, IT WAS BASICALLY A JOB CREATION IN THE NEW DEAL, BY THE 1960S, PUBLIC HOUSING WAS ILLEGALLY SEGREGATED AND BY THE 1950S IT BECAME CLOSELY TIED TO URBAN RENEWAL SO THAT MUCH OF THE HOUSING 10 THAT WAS DESTROYED BY URBAN RENEWAL WAS REPLACED BY PUBLIC HOUSING. AND BY THE 1960SS, PUBLIC HOUSING HAD BECOME POORER BECAUSE OF THE MODEST DESIGN STANDARDS, BECAUSE OF THE LAGGING INCOMES OF AFRICAN-AMERICANS, PUBLIC HOUSING WAS ALREADY SHOWING SIGNS OF DISTRESS BY THE 1960S. HUD WAS CREATED BY RAISING AN EARLIER AGENCY THAT DID NOT HAVE CABINET STATUS, THE HOUSING AND HOME FINANCE AGENCY, TO THE LEVEL OF A CABINET LEVEL DEPARTMENT WITH A SECRETARY REPORTING DIRECTLY TO THE PRESIDENT. HHFA HAD HAD SEPARATE ADMINISTRATIONS FOR PUBLIC HOUSING, FOR URBAN RENEWAL, FOR FHA MORTGAGE INSURANCE. THE AGENCY ALSO RAN SOME SMALL DISCRETIONARY GRANT PROGRAMS. IN 1960, JOHN F. KENNEDY MADE A CAMPAIGN PROMISE THAT IF ELECTED PRESIDENT, HE WOULD CREATE AN URBAN AGENCY, AND HE RECRUITED ROBERT C. WEAVER, A DISTINGUISHED CIVIL RIGHTS LEADER AND EXPERIENCED PUBLIC SERVANT TO HEAD HHFA -- HFFA. WEAVER AGREED TO TAKE THE JOB AT HFFA ON TWO CONDITIONS: FIRST THAT KENNEDY SERIOUSLY CONSIDER HIM AS THE FIRST SECRETARY OF HUD SHOULD HUD BE CREATED, AND THEN THAT KENNEDY WOULD ISSUE AN EXECUTIVE ORDER BANNING DISCRIMINATION IN FEDERALLY SUPPORTED HOUSING. KENNEDY AGREED TO BOTH OF THOSE CONDITIONS. KENNEDY'S URBAN AGENDA LANGUISHED, AS DID MUCH OF 11 HIS AGENDA. REMEMBER WHAT THE POLITICAL LANDSCAPE OF THE U.S. WAS AT THAT POINT. KENNEDY HAD BEEN NARROWLY ELECTED PRESIDENT, CONGRESS WAS CONTROLLED BY DEMOCRATS, BUT THIS WAS STILL THE ERA OF CONSERVATIVE COALITION OF SOUTHERN DEMOCRATS AND CONSERVATIVE REPUBLICANS. JOHNSON THEN TOOK OVER FROM KENNEDY AFTER THE ASSASSINATION AND THEN WAS ELECTED PRESIDENT BY A FAIRLY WIDE MARGIN, AND MADE KENNEDY'S AGENDA INTO A WAR ON POVERTY AND STRUGGLED FOR A GREAT SOCIETY. JOHNSON WAS ABLE TO USE HIS CONSIDERABLE POLITICAL SKILLS TO ENACT MUCH OF THAT AGENDA, THE OFFICE OF ECONOMIC OPPORTUNITY WAS CREATED IN 1964 TO RUN SOME OF THE ANTIPOVERTY PROGRAMS, AND THEN HUD WAS CREATED AND THE LEGISLATION WAS SIGNED ON SEPTEMBER 9TH, 1965. JOHNSON DELAYED SOMEWHAT BEFORE APPOINTING WEAVER TO BE THE FIRST SECRETARY OF HUD, BUT HE DID IT IN PART BECAUSE OF EXPECTATIONS IN THE CIVIL RIGHTS COMMUNITY THAT JOHNSON WOULD APPOINT WEAVER AS THE FIRST AFRICAN-AMERICAN CABINET MEMBER. WEAVER WAS PAIRED WITH ROBERT WOOD, AN MIT PROFESSOR, WHO WAS MADE UNDERSECRETARY OF HUD, WHAT WE NOW CALL DEPUTY SECRETARY. WOOD HAD ALREADY WORKED FOR JOHNSON ON COMMISSIONS AND TASK FORCES. YOU MAY RECALL THAT LYNDON JOHNSON WAS VERY FOND OF USING COMMISSIONS AND TASK 12 FORCES THAT WERE OUTSIDE OF FEDERAL AGENCIES AS A VEHICLE FOR GENERATING IDEAS, BUT EVEN MORE FOR VALIDATING POLICES THAT JOHNSON KNEW THAT HE WANTED TO PROPOSE. WEAVER AND WOOD WORKED AS A VERY COLLEGIAL TEAM, SHARING STAFF. WEAVER WAS SEEN AS MORE OF A PRACTICAL ADMINISTRATOR, WHEREAS WOOD WAS MORE OF A VISIONARY. HE WAS ALSO THOUGHT TO BE GOOD WORKING WITH CONGRESS, PERHAPS A BIT BETTER THAN WEAVER AT WORKING WITH CONGRESS, AND WEAVER RESIGNED SHORTLY BEFORE THE END OF THE JOHNSON ADMINISTRATION IN ORDER TO PERMIT WOOD TO GET A RECESS APPOINTMENT AND BECOME HUD'S SECOND SECRETARY. NOW, JOHNSON ALSO SENT TO HUD DWIGHT INK, A NOTED AND SEASONED PUBLIC ADMINISTRATOR WHO HAD WORKED IN MORE THAN ONE ADMINISTRATION TO HELP UNIFY THE DEPARTMENT INTO THE NEW HUD. INK BECAME HUD'S FIRST ASSISTANT SECRETARY FOR ADMINISTRATION, NOT USUALLY A GLAMOROUS JOB, BUT ONE THAT WAS PARTICULARLY IMPORTANT AT THE BIRTH OF HUD, AND I'M DELIGHTED TO SAY THAT DWIGHT INK IS WITH US HERE TODAY, HE IS HERE IN FRONT OF THE AUDIENCE! >> SO THE MISSION OF THE NEW TEAM WAS TO TURN HFFA INTO A MORE UNIFIED ORGANIZATION. THIS WAS PRETTY CHALLENGING. FHA HAD CLOSE TIES TO THE HOUSING INDUSTRY AND 70 PERCENT OF HUD'S STAFF, SINGLE FAMILY FINANCE WAS NOT PARTICULARLY PART OF THE IMPETUS BEHIND THE CREATION 13 OF HUD. FHA HAD PLAYED A VERY IMPORTANT ROLE IN THE HOMEOWNERSHIP BOOM FOLLOWING WORLD WAR II, PARTICULARLY IN THE SUBURBS. AND FINANCIAL ASSOCIATION OF HOME BUILDERS WAS THEN, AS IT HAS REMAINED, A POWERFUL ORGANIZATION, AND AT THE REQUEST OF NAHB, HUD BECAME THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, RATHER THAN THE DEPARTMENT OF URBAN AFFAIRS. SO HFFA WAS A COLLECTION OF DISPARATE PROGRAMS, SEPARATE COMMISSIONERS. ONE COMMISSIONER TITLE LIVED ON AND LIVES ON UNTIL THIS DAY, AGAIN, AT THE REQUEST OF THE HOME BUILDERS INDUSTRY. THE TITLE OF FHA COMMISSIONER REMAINED, AND NOW THE ASSISTANT SECRETARY FOR HOUSING IS ALSO THE FHA COMMISSIONER. SO THEIR MISSION WAS TO BREAK DOWN STOVE PIPES, AND THEY BEGAN TO DO THAT BY DECENTRALIZING AUTHORITY TO THE FIELD, AND ALSO BY CENTRALIZATION OF FUNCTIONS AT HEADQUARTERS, INCLUDING A SINGLE OFFICE OF GENERAL COUNSEL FOR THE WHOLE DEPARTMENT, AND A BUDGET PROCESS IN WHICH THE PROGRAM OF ASSISTANT SECRETARIES WOULD SIT IN ON EACH OTHER'S BUDGET PROPOSALS AND CRITIQUE THEM. AND THEN THE HUD BUILDING, WHERE WE ARE RIGHT NOW, OPENED BEFORE WEAVER AND JOHNSON LEFT OFFICE, IN PART BECAUSE DWIGHT INK WORKED VERY HARD TO MAKE SURE THAT THAT HAPPENED, AND PEOPLE WHO WERE THERE AT THE TIME TELL 14 ME THAT BRINGING PEOPLE FROM A WHOLE BUNCH OF DIFFERENT ADDRESSES IN DOWNTOWN D.C. TO A SINGLE BUILDING WAS VERY IMPORTANT FOR CREATING THE SENSE OF A UNIFIED AGENCY. THIS CONTEMPORARY CARTOON SHOWS LYNDON JOHNSON PUTTING ALL OF THE WOES OF URBAN AMERICA, STUFFING THEM ALL INTO A BOX CALLED THE DEPARTMENT OF URBAN AFFAIRS AND TURNING TO WEAVER TO DO SOMETHING ABOUT IT. >> WHILE JOHNSON WAS STILL PRESIDENT, AND WEAVER WAS STILL SECRETARY, AN IMPORTANT NEW PROGRAM WAS ENACTED. ROBERT WOOD HAD CHAIRED THE TASK FORCE THAT HELPED DESIGN THE MODEL CITIES PROGRAM. AND THIS WAS AN EFFORT TO MOVE FROM SIMPLY BULLDOZING SLUMS AND BUILDING SOME PUBLIC HOUSING TO REPLACE THEM TO A MORE COMPREHENSIVE APPROACH TO REBUILDING NEIGHBORHOODS. IT WAS A COMPETITIVE PROGRAM, NOT A FORMULA GRANT. ON THE OTHER HAND, IT WAS IN SOME SENSE A FORERUNNER OF COMMUNITY DEVELOPMENT BLOCK GRANTS BECAUSE IT GAVE THE MAYOR A MORE FLEXIBLE POT OF MONEY TO USE IN TRYING TO CARRY OUT A NEIGHBORHOOD REBUILDING AGENDA. URBAN RENEWAL HAD BEEN RUN BY REDEVELOPMENT AGENCIES THAT WERE LARGELY OUTSIDE THE MAYOR'S CONTROL, AND SOME OF THE SMALLER GRANT PROGRAMS LIKE GRANTS FOR WATER AND SEWER HAD ALSO GONE TO CITY AGENCIES THAT WERE ESSENTIALLY INDEPENDENT OF THE MAYOR. SO THIS WAS A BIG BOOST TO THE MAYOR'S CONTROL. 15 ON THE OTHER HAND, THERE WERE PLANNING PROCESSES THAT MEANT THAT MODEL CITIES WAS NOT ENTIRELY UNDER THE MAYOR'S CONTROL, INCLUDING A NEW CITIZEN PARTICIPATION PROCESS, WHICH HAD BEEN PIONEERED AT THE OFFICE OF ECONOMIC OPPORTUNITY AND WAS SEEN AS AN IMPORTANT THING IN ORDER TO OVERCOME THE NEIGHBORHOOD DESTROYING ASPECTS OF URBAN RENEWAL. IT DID SLOW THE PROGRAM DOWN. ANOTHER CHALLENGE FOR THE MODEL CITIES PROGRAM WAS THAT THE VISION WAS NOT JUST A HOUSING VISION, IT WAS A VISION FOR CROSS-AGENCY COOPERATION, BRINGING ALL FEDERAL RESOURCES, MULTIPLE FEDERAL RESOURCES, TO BEAR ON PROBLEMS. BUT HUD HAD LIMITED ABILITY TO FORCE COOPERATION ACROSS AGENCIES, AS IS A FAMILIAR AND RECURRING THEME ACROSS THE HISTORY OF HUD, AND HUD DIDN'T EVEN CONTROL SOME OF THE KEY PROGRAMS. COMMUNITY ACTION AGENCIES REMAINED AT OEO, JOHNSON HAD CONSIDERED MOVING THEM TO HUD BUT DECIDED NOT TO AND IN 1966 WAS THE CREATION OF THE DEPARTMENT OF TRANSPORTATION, THE URBAN MASS TRANSIT ADMINISTRATION WAS MOVED OUT OF HUD AND INTO THE NEW DOT. IMPLEMENTATION OF MODEL CITIES WAS STILL AT AN EARLY STAGE AS OF THE 1968 ELECTION. TWO IMPORTANT PIECES OF LEGISLATION OCCURRED IN THE LAST YEAR OF THE JOHNSON ADMINISTRATION. FIRST, THE 1968 HOUSING ACT. THE 1968 ACT IMPORTANTLY TOOK FANNIE MAE OUT OF HUD AND 16 MADE IT A PRIVATE CORPORATION, EXPANDING THE RANGE OF LOANS THAT IT WAS ABLE TO BUY. AND FREDDIE MAC WAS CREATED A COUPLE OF YEARS LATER IN 1970. THE CREATION OF THE GOVERNMENT-SPONSORED ENTERPRISES HAD LONG-TERM IMPLICATIONS FOR HOUSING FINANCE AND FOR HUD, BUT IN 1968, THE MOST IMPORTANT THING THAT THE HOUSING ACT OF '68 DID WAS TO CREATE TWO PROGRAMS IN RESPONSE TO THE IMMEDIATE URBAN CRISIS. IT'S HARD FOR US TO REMEMBER THIS NOW, BUT -- BECAUSE WE'VE BEEN SO FOCUSED ON THINGS LIKE HOUSING AFFORDABILITY, QUALITY OF THE LOCATIONS OF HOUSING, BUT AS OF THE MID '60S, PEOPLE WERE STILL VERY FOCUSED ON THE BAD PHYSICAL QUALITY OF HOUSING, AND THERE WAS A WIDESPREAD BELIEF THAT ONE OF THE CAUSES OF THE URBAN RIOTS OF THE 1960S WAS, INDEED, POOR HOUSING CONDITIONS. A KAISER COMMISSION CREATED OR MADE THE RECOMMENDATIONS THAT LED TO MANY OF THE IMPORTANT PROVISIONS OF THE '68 ACT. WEAVER AND WOOD WORKED CLOSELY WITH THE COMMISSION. AND ONE OF THE THINGS RECOMMENDED AND ENACTED WAS A PRODUCTION GOAL TO BUILD 6 MILLION NEW UNITS OF AFFORDABLE HOUSING IN 10 YEARS. THE KAISER COMMISSIONS EMPHASIZED PRIVATE SECTOR PRODUCTION OF HOUSING, A MOVE AWAY FROM PUBLIC HOUSING, IN EFFECT. THIS HAD BEGUN ALREADY IN 17 1961, WITH AN ENACTMENT OF A PROGRAM WHICH IS STILL AROUND TODAY, IT WAS THE -- THE PROJECTS ARE STILL AROUND TODAY, CALLED 221D3, BELOW MARKET INTEREST RATES, OFTEN KNOWN AS BEAMER. BEAMER HAD BEEN A FAIRLY SMALL PROGRAM, 236, WHICH WAS WHAT CAME OUT OF THE HOUSING ACT OF '68, WAS TO BE A MUCH BIGGER PROGRAM. THE IDEA OF A HOMEOWNERSHIP COMPONENT, OF THE 235 PROGRAM WHICH CREATED LOW INCOME HOMEOWNERS, DIDN'T COME FROM THE KAISER COMMISSION OR FROM HUD. IT CAME FROM CONGRESS. AND, INDEED, WEAVER WAS SKEPTICAL OF LOW INCOME HOMEOWNERSHIP. THIS IS A CONTINUING DEBATE, WHETHER IT'S A GOOD IDEA TO TURN POOR PEOPLE INTO HOMEOWNERS. WEAVER THOUGHT THAT THERE WAS A LOT OF RISK IN DOING THAT, BECAUSE OF THE CHANCES THAT LOW INCOME PEOPLE WOULD LOSE JOBS, WOULD HAVE HEALTH CRISES, AND WOULDN'T -- AND THAT HOMEOWNERSHIP WOULD ACTUALLY TURN OUT TO BE NOT A GOOD THING FOR THEM. BOTH OF THESE PROGRAMS WERE BASED ON FHA INSURANCE, WITH A LARGE INTEREST SUBSIDY ATTACHED. NOW, THE OTHER BIG ACT OF 1968 WAS TITLE EIGHT OF THE CIVIL RIGHTS ACT OF 1968, ALSO KNOWN AS THE FAIR HOUSING ACT. KENNEDY HAD WAITED UNTIL 1962 TO ISSUE THAT EXECUTIVE ORDER THAT MADE DISCRIMINATION AND FEDERAL -- IN FEDERALLY INVOLVED HOUSING ILLEGAL, BUT HE DID IT, AND UNDER JOHNSON, 18 TITLE SIX OF THE 1964 CIVIL RIGHTS ACT REINFORCED THE EXECUTIVE ORDER. NEITHER WAS MUCH USED BY THE FEDERAL GOVERNMENT AS OF 1968. HOWEVER, THE 1964 ACT CREATED A PRIVATE RIGHT OF ACTION, AND LED TO SOME VERY IMPORTANT LITIGATION BY PRIVATE PARTIES, MOST NOTABLY THE GELTRO LITIGATION, DOROTHY GELTRO VERSUS THE CHICAGO HOUSING AUTHORITY WAS -- WHICH PROBABLY EVERYBODY IN THIS ROOM KNOWS ABOUT THAT. IT'S HAD A LONG REACH. UNDER TITLE EIGHT, HUD COULD ONLY INVESTIGATE COMPLAINTS AND ENCOURAGE PARTIES TO CONCILIATE. WHAT LATER SECRETARY PAT HARRIS CALLED AN INVITATION TO INTRANSIGENCE. BUT THE '68 ACT DID SOMETHING ELSE. IT CREATED AN OBLIGATION FOR HUD NOT TO SIMPLY AVOID DISCRIMINATING AGAINST PROTECTIVE CLASSES, BUT TO AFFIRMATIVELY FURTHER FAIR HOUSING, THAT IS TO SAY, TO PROMOTE INTEGRATION. WE ARE STILL WORKING ON WHAT THAT MEANS AND HOW TO MAKE IT HAPPEN. THE '68 ACT ALSO CREATED AN ASSISTANT SECRETARY FOR FAIR HOUSING AND EQUAL OPPORTUNITY, REPORTING DIRECTLY TO THE SECRETARY OF HUD. SO NOW IN 1968, RICHARD NIXON WAS ELECTED PRESIDENT, AND HE MADE ONE OF THE HIGHEST PROFILE APPOINTMENTS EVER TO BE SECRETARY OF HUD. THINKING BACK OVER IT, NOTABLY, GEORGE ROMNEY IS THE 19 ONLY FORMER GOVERNOR EVER TO BE -- THE ONLY ONE WHO HAD ALREADY BEEN THE GOVERNOR OF A MAJOR STATE TO BECOME SECRETARY OF HUD. ROMNEY CONTINUED TO UNIFY THE DEPARTMENT. HE TOOK OFF WHERE WEAVER AND WOOD AND INK HAD STARTED. HE FURTHER CENTRALIZED ADMINISTRATIVE FUNCTIONS, HE MADE REGIONAL ADMINISTRATORS THE MAIN POINT OF CONTACT WITH STATE AND LOCAL OFFICIALS. HE ALSO WAS COMMITTED TO CIVIL RIGHTS. HE USED PROGRAM RESOURCES FOR THE NEW MANDATE FOR AFFIRMATIVELY FURTHERING FAIR HOUSING. HE WAS WILLING TO OVERRULE PROGRAM ASSISTANT SECRETARIES WHEN THE ASSISTANT SECRETARY FOR FHEO MADE A CASE WITH MERIT, SOMETHING THAT IN MY OBSERVATION HASN'T ALWAYS HAPPENED THROUGH THE HISTORY OF HUD. AND HE CREATED -- THIS IS ROMNEY, CREATED PROJECT SELECTION CRITERIA, LATER TO BE CALLED SITE AND NEIGHBORHOOD STANDARDS, THE PURPOSE OF WHICH WAS TO AVOID CONCENTRATIONS OF MINORITIES, CONCENTRATIONS OF SUBSIDIZED HOUSING, IN PARTICULAR NEIGHBORHOODS. HE ALSO CREATED AFFIRMATIVE MARKETING REQUIREMENTS THAT BOTH FOR SUBSIDIZED HOUSING AND FOR FHA-INSURED HOUSING WERE INTENDED TO MAKE SURE THAT WHEN HOUSING WAS BUILT OUTSIDE OF AREAS OF MINORITY CONCENTRATION, MINORITIES WOULD FIND OUT ABOUT IT AND KNOW THAT THEY HAD THE OPPORTUNITY TO LIVE THERE. 20 HE ALSO ATTEMPTED TO CONDITION HUD GRANT ASSISTANCE ON SUBURBAN COMMUNITIES, ACCEPTING A FAIR SHARE OF SUBSIDIZED HOUSING. THAT'S PROBABLY THE LEAST SUCCESSFUL OF ROMNEY'S EFFORTS. NOW, ROMNEY SUPPORTED THE CONTINUATION OF MODEL CITIES, AND HE ALSO WAS AN AGGRESSIVE IMPLEMENTER OF THE NEW PROGRAMS. YOU REMEMBER THAT THEY HAD JUST BEEN ENACTED AT THE END OF THE JOHNSON ADMINISTRATION. HE SET PRODUCTION TARGETS FOR 235 AND 236, CREATED AN ASSISTANT SECRETARY FOR HOUSING PRODUCTION AND MORTGAGE CREDIT. THAT IS SORT OF THE HALLMARK OF HIS EMPHASIS ON PRODUCTION. ON THE OTHER HAND, AFTER A COUPLE OF YEARS, HE BEGAN TO HAVE SECOND THOUGHTS ABOUT PRODUCTION, AND HE WAS CONCERNED ABOUT SOME OF THE THINGS THAT REVERBERATE LATER, AS SOME OF THE WEAKNESSES THAT PEOPLE THINK THAT HOUSING PRODUCTION -- PRODUCTION OF RENTAL HOUSING MAY HAVE. ONE IS THAT WHEN BUILT IN FRAGILE NEIGHBORHOODS, SECTION 236 PROPERTIES MIGHT HAVE BEEN DRAWING TENANTS AWAY FROM OTHER HOUSING, CREATING VACANCIES IN THOSE NEIGHBORHOODS. ANOTHER WAS THAT ALTHOUGH IT WAS QUITE EXPENSIVE ON A PER-UNIT BASIS, SECTION 236 WAS AN INTRASUBSIDY, NOT A RENT SUBSIDY, SO IT WROTE DOWN RENTS TO AN AFFORDABLE LEVEL IN SOME SENSE, BUT NOT 21 A LEVEL IN WHICH THE POOREST HOUSEHOLDS COULD AFFORD TO LIVE IN 236 PROJECTS. SO ROMNEY STARTED EXPERIMENTING WITH HOUSING ALLOWANCES. HOUSING ALLOWANCES WHICH WE NOW CALL VOUCHERS. HE FIRST, UNDER HIM, FIRST A COUPLE OF DEMONSTRATION PROJECTS WERE IMPLEMENTED IN A COUPLE OF CITIES, AND THEN WITH CONGRESSIONAL SUPPORT, PARTICULARLY FROM MASSACHUSETTS SENATOR EDWARD BROOK, CREATED THE EXPERIMENTAL HOUSING ALLOWANCE PROGRAM, ONE OF THE MOST FAR REACHING RESEARCH PROJECTS EVER TO BE UNDERTAKEN BY HUD. NOW, ROMNEY DIDN'T STAY FOR THE SECOND TERM. HE WAS REPLACED BY A LAWYER NAMED JAMES LYNN, WHO HAD BEEN AT THE DEPARTMENT OF COMMERCE DURING NIXON'S FIRST TERM, AND HUD HAD BEGUN TO BE SWEPT UNDER ROMNEY, BUT NOW EVEN MORE, WAS SWEPT INTO A BROAD WHITE HOUSE AGENDA FOR RATIONALIZING DOMESTIC POLICY. THE COMMON THEME WAS REMOVING FEDERAL BUREAUCRATS FROM DECISION MAKING. DEVOLVING RESPONSIBILITY FOR USING FEDERAL FUNDS TO STATES AND LOCAL GOVERNMENTS. AND AS FAR AS PROGRAMS FOR THE POOR WENT, GIVING THE POOR MORE CONTROL OVER THEIR OWN BUDGETS. HOUSING VOUCHERS ARE AN EXAMPLE OF THIS, AND SO IS THE FOOD STAMPS PROGRAM, WHICH IT'S EASY TO FORGET WAS ACTUALLY CREATED IN THE NIXON ADMINISTRATION AND WAS A MOVE AWAY FROM DISTRIBUTING FOOD 22 TO THE POOR, TO GIVING THE POOR PURCHASING POWER. THIS IS WHEN PD & R WAS CREATED. IT WAS CREATED BY MERGING AN EARLIER RESEARCH OFFICE, THE OFFICE OF RESEARCH AND TECHNOLOGY, WHICH HAD DONE MANY THINGS, INCLUDING BEGINNING THE IMPLEMENTATION OF THE HOUSING ALLOWANCE EXPERIMENTS, WITH A POLICY OFFICE THAT REPORTED TO THE UNDERSECRETARY, MERGING THEM INTO A SINGLE POLICY AND RESEARCH OFFICE, WITH A MISSION TO CREATE AN EMPIRICAL BASIS FOR POLICY. NIXON N. A BREAK WITH THE JOHNSON ADMINISTRATION, ABOLISHED THE OFFICE OF ECONOMIC OPPORTUNITY. THE PROGRAMS WENT TO WHAT WAS IN HEW, NOW HHS. FOR EXAMPLE, THE COMMUNITY ACTION AGENCIES WERE ULTIMATELY -- ULTIMATELY BECAME PART OF AN HHS BLOCK GRANT, BUT THE RESEARCH STAFF OF OEO WAS MOVED OVER TO HUD AND BECAME PART OF THE NEW PD & R. AND IN ADDITION, PD & R STAFFED UP VERY FAST AT THE TIME. THAT WAS WHEN I WAS HIRED. I DIDN'T REALLY HAVE ANY HOUSING BACKGROUND. I HAD A PHD IN SOVIET STUDIES. BUT I HAD A PHD IN SOMETHING, AND I WAS A WOMAN. AT THIS POINT, THE NIXON ADMINISTRATION WAS MAKING A BIG EFFORT TO HIRE WOMEN. I THINK THERE WAS ALREADY A PERCEPTION THAT THERE WAS A GENDER GAP THAT REPUBLICANS WERE SUFFERING FROM. IN ANY CASE, THAT'S WHEN I 23 CAME TO PD & R. PD & R WAS GIVEN A MANDATE TO CONDUCT EVALUATIONS ACROSS THE AGENCY OF ALL HUD PROGRAMS, AND ALSO TO DO OTHER THINGS TO CREATE THE EMPIRICAL BASIS FOR POLICY, NOTABLY IMPLEMENTING THE ANNUAL HOUSING SURVEY, WHAT'S NOW THE AMERICAN HOUSING SURVEY. I WAS UNABLE TO FIGURE OUT WHERE THE IDEA FOR THE AHS ACTUALLY CAME FROM. MAYBE SOMEBODY IN THIS ROOM CAN HELP ME OUT. BUT IN ANY CASE, IT WAS IMPORTANT FOR THE FURTHER CREATION OF THE EMPIRICAL BASIS FOR POLICY, BECAUSE IT'S A HOUSING UNIT SURVEY OF THE CHARACTER OF THE HOUSING STOCK AND ITS OCCUPANTS, AND CONFIRMED WHAT WAS ALREADY EVIDENT, WHICH IS THAT REALLY BAD HOUSING WAS DISAPPEARING. THE CENSUS HAD BEEN ABLE TO COUNT THE NUMBER OF UNITS THAT WERE DILAPIDATED OR LACKING COMPLETE KITCHENS AND BATHS, AND THEY WERE REALLY DISAPPEARING FROM URBAN AMERICA. IT WAS ONLY A RURAL PROBLEM ANYMORE. THE IMMEDIATE FIRST ASSIGNMENT, IN ADDITION TO THESE OTHER INHERITED THINGS FOR PD & R, WAS SOMETHING CALLED THE NATIONAL HOUSING POLICY REVIEW, AND THIS DISTINGUISHED URBAN ECONOMISTS TO REVIEW HUD PROGRAMS, CRITIQUE THEM AND CREATE THE FURTHER BASIS, IN EFFECT, THE FURTHER BASIS FOR A HOUSING POLICY THAT WOULD BE BASED ESSENTIALLY ON HOUSING ALLOWANCES OR VOUCHERS. 24 PD & R WAS ALSO MEANT TO PROVIDE INDEPENDENT ADVICE TO THE SECRETARY, THAT IS TO SAY, INDEPENDENT ADVICE FROM PROGRAM OFFICES. THE WHITE HOUSE WAS WORKING ON AN OPEN ENROLLMENT HOUSING ALLOWANCE PROGRAM FOR THE ELDERLY AT THE POINT WHEN NIXON RESIGNED IN 1974, IN THE WAKE OF THE WATERGATE SCANDAL. >> BUT IN JANUARY, 1974, NIXON HAD ANNOUNCED A MORATORIUM FOR THE 235 AND 236 PROGRAMS, CALLING PRODUCTION UNDER BOTH OF THOSE PROGRAMS TO A HALT, WITH EXCEPTIONS FOR SOME PROJECTS THAT WERE PRETTY FAR ALONG IN THE PROCESS. WHAT CAME OUT 20 MONTHS LATER, AFTER PROCEED TRACTED NEGOTIATIONS BETWEEN THE ADMINISTRATION AND CONGRESS AND THE HOUSING INDUSTRY AND OTHER INTEREST GROUPS, WAS COMPROMISED LEGISLATION, THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974. THE '74 ACT IS SOMETHING OF A WATERSHED. LARRY THOMPSON AND HIS VERY GOOD HISTORY OF HUD CALLS IT THE BEGINNING OF HUD'S MODERN ERA. CDBG, A FORMULA BLOCK GRANT TO THE MAYORS, IS ESSENTIALLY THE SAME PROGRAM THAT WE HAVE RIGHT NOW, ALTHOUGH FUNDING LEVELS ARE QUITE A BIT LOWER NOW THAN THEY WERE IN '74, EVEN PARTICULARLY IN REAL TERMS, AND THE RENT FORMULA THAT THE SECTION EIGHT FAMILY OF PROGRAMS USED TO MAKE HOUSING AFFORDABLE TO THE POOREST HOUSEHOLDS WENT MINUS -- RENT MINUS A PERCENTAGE OF INCOME, IS STILL BASICALLY 25 THE RENT FORMULA THAT IS USED FOR MOST OF HUD'S RENTAL ASSISTANCE PROGRAMS. THE ACT WAS A COMPROMISE, AND IT CREATED BOTH VOUCHERS AND FAMILY PRODUCTION PROGRAM, SECTION EIGHT. I'LL TALK ABOUT THEM IN THE NEXT SLIDE. SO NOT MUCH HAPPENED BETWEEN AUGUST 1974, WHEN NIXON RESIGNED OR TOOK OVER AS PRESIDENT. THE 1974 ACT WAS ENACTED, AND MARCH OF '75, WHEN FORD APPOINTED KARLA HILLS, WHO WE JUST SAW ON THE SCREEN, KARLA HILLS WAS AMONG THE FIRST WOMEN EVER TO HAVE CABINET RANK. I THINK THERE WAS ONE UNDER ROOSEVELT AND ONE UNDER EUZEN HOUR, BUT THIS WAS A PRETTY BIG DEAL. SHE HAD BEEN AT THE DEPARTMENT OF JUSTICE, SHE DIDN'T KNOW MUCH ABOUT HOUSING. AT HER CONFIRMATION HEARING, SHE LEARNED THAT THERE WAS A PERCEPTION THAT HUD WAS DRAGGING ITS FEET IN IMPLEMENTING THE NEW LAW, WHICH MAY OR MAY NOT HAVE BEEN TRUE. IT MAY HAVE JUST BEEN THE USUAL PROCESS OF WRITING REGULATIONS. IT TAKES A LONG TIME T. AS YOU ALL KNOW. BUT IN ANY CASE, HILLS CAME IN, DETERMINED TO SHOW THAT SHE WAS A STRONG MANAGER AND COULD RUN HUD AND COULD IMPLEMENT PROGRAMS, AND SHE DID. CDBG WAS A COMPROMISE BETWEEN REVENUE SHARING, BASICALLY JUST SENDING FEDERAL DOLLARS TO STATES OR LOCALITIES WHICH 26 HAD BEEN WITH THE NIXON ADMINISTRATION PROCESSED, AND PROGRAM WITH SPECIFIC RULES AND FEDERAL OVERSIGHT. KARLA HILLS TILTED MORE TOWARDS THE REVENUE SHARING SIDE OF THAT, AND THE REGULATIONS THAT GOT IMPLEMENTED WHEN SHE WAS SECRETARY. DID NOT HAVE A GREAT DEAL OF FEDERAL OVERSIGHT OF THE PROGRAM. SHE ALSO IMPLEMENTED THE NEW FAMILY OF SECTION EIGHT PROGRAMS. SECTION EIGHT EXISTING HOUSING, WHICH IS WHAT VOUCHERS WERE CALLED THEN, SECTION EIGHT NEW CONSTRUCTION, AND SECTION EIGHT SUBSTANTIAL REHABILITATION, AND A NEW TYPE LOAN MANAGEMENT. LOAN MANAGEMENT, AS ITS NAME SUGGESTS, HAD TO DO WITH FHA INSURANCE. THE IDEA WAS TO KEEP MULTI-FAMILY PROPERTIES THAT WERE FHA-INSURED FROM DEFAULTING ON THEIR MORTGAGES. REMEMBER THAT THERE WAS AN ENERGY CRISIS IN THE MID '70S, IN WHICH THE COST OF OIL SHOT UP, AND THAT WAS MAKING MULTI-FAMILY HOUSING VERY EXPENSIVE TO MANAGE, AND ALSO BECAUSE 236 HAD JUST BEEN AN INTEREST SUBSIDY, SOME PROPERTIES WERE HAVING TROUBLE FINDING TENANTS WHO COULD AFFORD THE HOUSING, OR WERE COLLECTING RENTS. SO LOAN MANAGEMENT, OR LMSA, WAS CREATED UNDER HILLS. SHE DIDN'T PARTICULARLY FAVOR EXISTING HOUSING OVER THE PRODUCTION PROGRAM. SHE GAVE THEM SORT OF EQUAL 27 EMPHASIS IN HER BUDGET REQUESTS. SHE DID UNDO THE ROMNEY REORGANIZATION, COMBINING HPMC AND HOUSING MANAGEMENT INTO AN OFFICE OF HOUSING. THAT ROMNEY ORGANIZATION TURNED OUT TO BE KIND OF A BAD IDEA. WHEN 236 PROJECTS WERE UNDERWRITTEN, BECAUSE THERE WAS A SEPARATE STOVE PIPE FOR MANAGEMENT, THERE WAS NOBODY THERE TO SAY HEY, WAIT A MINUTE, YOU'VE UNDERSTATED THE OPERATING COSTS THAT ARE GOING TO BE NEEDED TO OPERATE THESE PROPERTIES, YOU'VE OVERSTATED HOW FAST THEY'RE GOING TO LEASE UP, SO HILLS UNDID THAT, WHAT WAS PROBABLY A MISTAKEN ORGANIZATION, AND CREATED THE OFFICE OF HOUSING. NOT EXACTLY AS IT EXISTS TODAY, BUT AN AKC OFFICE OF HOUSING. NOW, THE 1974 ACT DID HAVE A PROFOUND EFFECT INSTITUTIONALLY, GEOGRAPHICALLY, AND IN THE NEXT TWO SLIDES, I'M GOING TO TALK ABOUT A COUPLE OF THOSE THINGS. FIRST OF ALL, THE IMPLEMENTATION OF THE PRODUCTION SIDE OF THE SECTION EIGHT PROGRAMS, NEW CONSTRUCTION AND SUB-REHAB, THE MULTI-FAMILY AFFORDABLE HOUSING INDUSTRY, WHICH HAD STATED UNDER 221D COUNTER BEAMER, I HAD TO ACCELERATE IT UNDER 236, NOW REALLY GREW EVEN FASTER. IN ADDITION, STATE HOUSING FINANCE AGENCIES THAT HAD BEGUN TO PROVIDE BOND FINANCING FOR 236 PROJECTS GOT NEW AUTHORITY UNDER THE 28 '74 ACT. NOW THEY COULD ACTUALLY ADMINISTRATOR THE SECTION EIGHT CONTRACT. SO THAT GAVE STATE HOUSING FINANCING AGENCIES CONTROL, AS IT TURNED OUT, OF A MAJOR PORTION OF THE NEW CONSTRUCTION AND SUB-REHAB PROJECTS. THERE'S A THEME HERE THAT I'M GOING TO RETURN TO, WHICH IS SORT OF THE RISE OF THE STATES. PUBLIC HOUSING AUTHORITIES GOT A NEW RESPONSIBILITY, ADMINISTERING SECTION EIGHT EXISTING, WHICH NOW IS A BIGGER RESPONSIBILITY THAN PUBLIC HOUSING, FOR THE PHAS. AND THERE WERE ALSO SOME CHANGES IN SORT OF THE POSITIONING AND RELATIVE IMPORTANCE OF INTEREST GROUPS. THE U.S. CONFERENCE OF MAYORS AND THE NATIONAL LEAGUE OF CITIES CONTINUED TO BE VERY IMPORTANT. CDBG CREATED THIS NEW CONCEPT CALLED URBAN COUNTIES WHICH ARE BIG SUBURBAN COUNTIES THAT GET THEIR OWN ALLOCATIONS OF CDBG. THAT MADE THE NATIONAL ASSOCIATION OF COUNTIES MORE IMPORTANT. AND THE NATIONAL ASSOCIATION OF HOUSING AND REDEVELOPMENT OFFICIALS LOST THE R. NARA ORIGINALLY REPRESENTED THE URBAN RENEWAL AGENCIES AND THEIR STAFFS, AS WELL AS THE PUBLIC HOUSING AGENCIES, AND BECAME SOMEWHAT LESS IMPORTANT THAN IT HAD BEEN PREVIOUSLY. AND THE NATIONAL COUNCIL OF STATE HOUSING AGENCIES, WITH THE GROWTH AND IMPORTANCE OF 29 THE STATE HOUSING FINANCE AGENCIES, BECAME MORE IMPORTANT. NOW, THERE ALSO WERE SOME GEOGRAPHICAL SHIFTS. AS HUD RESOURCES UNDER BOTH CDBG AND SECTION EIGHT WERE ALLOCATED BY FORMULA, THIS MEANT NEW RESOURCES GOING TO PLACES WITH INCREASING POPULATIONS, AND THE GEOGRAPHY OF HUD ASSISTANCE BEGAN MOVING TO A DEGREE AWAY FROM THE NORTHEAST AND MIDWEST AND TO THE SOUTH AND WEST, TO THE MAJOR POPULATION GROWTH AREAS. THE ORIGINAL CDBG FORMULA WAS BASED ON POVERTY, POPULATION, AND OVERCROWDING, AND DEFINITELY FAVORED THE SOUTH AND WEST COMPARED TO THE EARLIER GRANT PROGRAMS, WHERE THE EARLIER GRANT PROGRAMS HAD GONE. AN EXAMPLE WE SEE ON THE HOUSING SIDE OF THE IMPORTANCE OF FORMULA ALLOCATIONS ARE THE LARGE HOUSING VOUCHER PROGRAMS THAT WE NOW HAVE IN URBAN CALIFORNIA. PUBLIC HOUSING WAS A LITTLE BIT DIFFERENT. THERE HAD BEEN PUBLIC HOUSING OPERATING SUBSIDIES STARTING IN 1969. THEY HAD BEEN DISCRETIONARY GRANT PROGRAMS BASED ON HUD REVIEW OF BUDGETS. HILLS' IMPLEMENTED FORMULA ALLOCATION OF PUBLIC HOUSING OPERATING SUBSIDIES, BUT IT ESSENTIALLY FROZE THE EARLIER PATTERNS AND SIMPLY THE ADVANTAGE WAS TO SAVE STAFF TIME, BUT IT DIDN'T REALLY CHANGE THE GEOGRAPHY OF PUBLIC HOUSING FUNDING. SO I'M GOING TO STOP HERE 30 WITH THE IMPLEMENTATION OF THE 1974 ACT AND TAKE A COUPLE OF QUESTIONS. >> IF ANYBODY IN THE AUDIENCE WOULD LIKE TO ASK ONE. AND HERE COMES MARK SCHROEDER TO ASK ME A QUESTION. >> JOHN WAKE IS A MODEST GUY BUT I BET IF HE WERE TORTURED, HE WOULD ADMIT TO BEING THE PROCEEDGENTER OF THE AMERICAN HOUSING SURVEY. >> I ASKED JOHN AND HE SAID NO, HE DOESN'T KNOW WHERE IT CAME FROM. JOHN WAKER, FOR THOSE OF YOU WHO DON'T KNOW, WAS AT PD & R AS DEPUTY ASSISTANT SECRETARY FOR ECONOMIC AFFAIRS UNDER LYNN. HE WAS THEN ASSISTANT SECRETARY FOR PD & R UNDER THE FIRST BUSH ADMINISTRATION, JACK KEMP, THEN HE WAS FHA COMMISSIONER DURING THE SECOND BUSH ADMINISTRATION. SO I INTERVIEWED JOHN FOR THREE SOLID HOURS, AND THAT WAS ONE OF THE QUESTIONS HE COULD NOT ANSWER IS WHERE DID THE AHS COME FROM. >> OTHER QUESTIONS? ANYTHING FROM THE -- OH, OKAY. I SEE A QUESTION COMING UP. AND THE QUESTIONER IS BILL KELLY, WHO WAS CARLA HILLS' EXECUTIVE ASSISTANT. >> IT'S NOT REALLY A QUESTION, BUT I JUST WANTED TO MAKE AN OBSERVATION. THIS HAS REALLY BEEN A HISTORY OF THE HUD, AND OF SECRETARIES AND THE WHITE HOUSE AND SOME OF THE ASSISTANT SECRETARIES THAT WERE INVOLVED IN IT, BUT THE INTERESTING THING TO ME FROM THE IMPLEMENTATION OF THE '74 31 ACT, WHICH WAS THE PRINCIPAL CHALLENGE OF THE -- DURING THE HILLS ERA, WAS THE CAREER STAFF AT HUD. THE MORATORIUM IN JANUARY OF '73 WAS A DEVASTATING EVENT FOR THE MULTI-FAMILY STAFF WHO REALLY HAD BEEN WORKING ON THE 236 PROGRAM AS THEIR MAIN PROGRAM, AND THERE WAS AN INVESTIGATION OF -- I THINK IT WAS CALLED THE HUD 59, BUT A LOT OF STAFF MEMBERS THAT HAD BEEN ACCUSED OF BACKDATING DOCUMENTS IN ORDER TO LET THE DEALS THEY HAD BEEN WORKING ON GO THROUGH, AND SO THE REAL KEY IN '74 WAS AFTER THE '74 ACT WAS TO MOBILIZE THE WHOLE DEPARTMENT. SO I THINK CARLA DID A GREAT JOB OF SETTING HIGH STANDARDS AND OF DESIGNING SYSTEMS THAT HELPED MAKE HUD MORE RESPONSIVE TO ITS STATUTORY MANDATE, AS WELL AS TO THE CONGRESS THAT WAS WAITING IN THE WINGS AGGRESSIVELY TRYING TO PUT PRESSURE ON HUD TO DO SOMETHING THAT THE CAREER STAFF WAS JUST INCREDIBLY RESPONSIVE AND NONE OF IT WOULD HAVE HAPPENED, BECAUSE THE REGS ARE VERY COMPLICATED, WITHOUT THE KIND OF ACTIVE STEPPING UP OF THE CAREER STAFF THAT FELT, I THINK, A LITTLE DISRESPECTED IN THE SHORT PERIOD BEFORE THAT. SO IN ANY EVENT, THAT'S THE WAY I SAW IT AT THE TIME, AND I THINK IT'S JUST AN EXAMPLE OF THE IMPORTANCE OF THE CAREER STAFF IN THE HISTORY OF HUD. >> SO THANKS. >> THANK YOU BILL. >> ON BEHALF OF EVERYBODY 32 ELSE, THANK JILL FOR THIS INCREDIBLE AMOUNT OF DILIGENCE, HARD WORK, AND THOUGHT THAT SHE'S PUT INTO PUTTING TOGETHER THIS PRESENTATION, AND THE BOOK, AND LOOK FORWARD TO READING THE BOOK. >> THANKS SO MUCH. >> [APPLAUSE] >> HI JILL. >> I'M SORRY, KENT. >> I HAVE A LONG LINE OF BUREAUCRATIC MEMORIES HERE. I WAS CHIEF OF STAFF TO SECRETARY WEAVER, AS BILL WAS TO SECRETARY HILLS, AND I THINK ONE OF THE MAIN POINTS GOING OVER AND ADVANCING THE REST OF YOUR DISCUSSION IS THAT WE WERE NEVER ABLE, AS YOU POINTED OUT, TO PULL INTO THAT DEPARTMENT THE WHOLE URBAN DEVELOPMENT SIDE OF HUD. AND SO REALLY, IN WORKING WITH ALL THE SECRETARIES SINCE SECRETARY WEAVER, I STILL FIND THAT WE ARE DEALING WITH THAT CONUNDRUM OF LOSING MASS TRANSIT, LOSING WHAT BECAME EPA, WHEN WE REALLY TRIED TO THINK ABOUT HUD AS HNUD -- H AND UD, AND TODAY WE'RE STILL THINKING OF IT AS IS THE CASE IN FRANCE AND CANADA AND GERMANY, A MINISTRY OF HOUSING AND A LITTLE BIT OF URBAN DEVELOPMENT, AND WOULD YOU COMMENT A LITTLE BIT ON THAT IF YOU WOULD? >> I THINK THAT'S ACTUALLY A FAIR CHARACTERIZATION OF THE DEPARTMENT. I MEAN, WHEN I -- AFTER I HAD BEEN IN THE DEPARTMENT FOR A COUPLE OF YEARS, I SORT OF HAD AN OPPORTUNITY TO GO ANY PLACE I WANTED IN PD & R, AND 33 I WENT TO THE DIVISION THAT WAS RUNNING THE HOUSING ALLOWANCE EXPERIMENTS, BECAUSE I THOUGHT THAT THE BUSINESS OF HUD CLEARLY WAS HOUSING. I THINK THE URBAN DEVELOPMENT, COMMUNITY DEVELOPMENT SIDE OF HUD HAS BEEN MORE OF A STRUGGLE. IT'S BEEN -- YOU KNOW, THE MODEL CITIES COMPLEXITY OF DOING SOMETHING ABOUT DISTRESSED URBAN NEIGHBORHOODS, IT'S A PROBLEM THAT WE NEVER ACTUALLY HAVE FIGURED OUT THE ANSWER TO. WE PROBABLY HAVEN'T FIGURED OUT THE ANSWER TO IT SUBSTANTIVELY, BUT WE HAVEN'T FIGURED OUT THE ANSWER TO IT SORT OF POLITICALLY AND INSTITUTIONALLY, EITHER, BECAUSE WE ALL KNOW THAT YOU REALLY DO NEED TO DO MORE THAN BUILD NEW HOUSING IN A NEIGHBORHOOD, BUT WE HAVEN'T REALLY QUITE FIGURE THE OUT -- FIGURED OUT HOW TO MAKE THAT HAPPEN. SO NOW I'M GOING TO CONTINUE WITH ANOTHER CHANGE OF ADMINISTRATION, JIMMY CARTER IS ELECTED PRESIDENT IN '76, AND HE APPOINTS PATRICIA ROBERTS HARRIS TO BE SECRETARY OF HUD. SHE WAS A TWO FER, BOTH AFRICAN-AMERICAN AND A WOMAN. SO YOU KNOW, VERY GOOD FOR BALANCING THE CABINET. SHE WAS ALSO A LAWYER. SHE HAD BEEN AT A NEW YORK LAW FIRM. MRS. HARRIS WAS SUCCEEDED BY MOONLAND RUE, WHAT I THINK WE -- MOON LANDRIEU, WHO WE SAW ON THE SCREEN AT THE END OF THE CARTER ADMINISTRATION AND LANDRIEU WAS THE FIRST MAYOR 34 TO BE SECRETARY OF HUD. HE ESSENTIALLY CONTINUED THE SAME POLICES THAT HARRIS HAD STARTED, SO I'M NOT GOING TO TALK MORE ABOUT HIM. PAT HARRIS CAME TO HUD WITH AN AGENDA. A NEW PROGRAM AND A SECOND CDBG FORMULA. BOTH OF THEM HAD BEEN WORKED ON, BOTH IN THINK TANKS, AND IN INTEREST GROUPS LIKE THE U.S. CONFERENCE OF MAYORS, AND SO THEY WERE PRETTY MUCH WORKED OUT AND READY TO GO AT THE POINT WHEN SHE WAS CONFIRMED. AND SO SHE VERY QUICKLY ASKED FOR LEGISLATION AND VERY QUICKLY GOT THAT LEGISLATION. NOW, THE IDEA BEHIND THE URBAN DEVELOPMENT ACTION GRANTS PROGRAM WAS THAT CDBG WAS ALL WELL AND GOOD, BUT IT IT WAS TOO THINLY SPREAD ACROSS NEIGHBORHOODS, AND THAT THE MAYORS NEEDED BIG ECONOMIC DEVELOPMENT PROJECTS. SO UDAG WAS A RETURN TO A DISCRETIONARY GRANT PROGRAM. IT WASN'T EXACTLY A COMPETITIVE GRANT PROGRAM. IT'S KIND OF REALLY INTERESTING. INSTEAD OF A HEAD TO HEAD COMPETITION IN WHICH SOME PROJECTS WERE SELECTED, THERE WAS A FUNDING LINE, AND IT OF THE JOB OF HUD STAFF, WORKING VERY INTENSIVELY WITH COMMUNITIES, TO PULL PROJECTS UP TO THE POINT WHERE THEY WERE FUNDABLE PROJECTS. THE UDAG WAS ORIGINALLY SUPPOSED TO BE TARGETED TO THE MOST DISTRESSED CITIES. REMEMBER THIS IS STILL THE YAIR IN WHICH IT WAS THOUGHT THAT THE WEAK FISCAL CAPACITY 35 OF SOME OF THE CITIES WAS AT THE CORE OF THEIR PROBLEMS, BUT OVER THE LIFE OF UDAG, WHICH ACTUALLY LASTED UNTIL THE LATE '80S, IT BECAME THE -- THE TARGETING BECAME DILUTED. FIRST THERE WAS SOMETHING CALLED POCKETS OF POVERTY, AND THEN THE ELIGIBILITY WAS SIMPLY EXPANDED, SO MORE THAN A THOUSAND CITIES GOT UDAG PROJECTS BY THE TIME THE PROGRAM WAS OVER. AND THIS IS ANOTHER RECURRING THEME, IS THE DIFFICULTY OF HUD IMPLEMENTING PROJECTS THAT ARE TARGETED TO PARTICULAR PLACES THAT HAVE THE MOST NEEDS. I MEAN, THAT WAS TRUE OF MODEL CITIES, AND THEN IT WAS TRUE OF UDAG, AND WE'LL SEE IT AGAIN. THE SECOND CBDG FORMULA ADDED OLD HOUSING, AND THE ADVANTAGE OF THAT IS THAT IT GAVE THE OLDER CITIES OF THE NORTHEAST AND MIDWEST A BIGGER SHARE OF THE CDBG PIE. PAT HARRIS ALSO TRIED TO MAKE CDBG INTO MORE OF A POLICY LEVER THAN HAD BEEN THE CASE BEFORE, IN PART, RESPONDING TO SOME CONGRESSIONAL HEARINGS ON THE TOPIC. SHE TRIED TO SHARPEN THE FOCUS OF CDBG ON ACTIVITIES THAT BENEFIT LOW INCOME PEOPLE. SHE TOLD FIELD OFFICES TO NOT SIMPLY WAIT 60 DAYS OR WHATEVER IT IS AND THEN APPROVE CDBG APPLICATIONS, BUT TO GIVE THOSE APPLICATIONS SUBSTANTIVE REVIEW. THAT WAS A BIG CHANGE. SHE ALSO REQUIRED CITIES TO CREATE SOMETHING CALLED 36 NEIGHBORHOOD STRATEGY AREAS, BECAUSE THE IDEA WAS THAT EVEN USED IN RESIDENTIAL NEIGHBORHOODS, CDBG WAS BEING SPREAD TOO THIN, AND SO IT WOULD BE A GOOD IDEA TO CHOOSE SOME TARGET NEIGHBORHOODS AND REALLY CONCENTRATE RESOURCES THERE. THE NEIGHBORHOOD STRATEGY AREAS ALSO GOT A LITTLE BONUS APPLICATION OF SECTION EIGHT REHABILITATION FUNDS. NOW, PAT HARRIS DEFINITELY FAVORED THE PRODUCTION PROGRAMS. AS BILL KELLY MENTIONED, THE MORATORIUM HAD BEEN A BIG SHOCK TO THE AFFORDABLE MULTI-FAMILY INDUSTRY. HARRIS HAD A SUB CABINET THAT CAME FROM THAT INDUSTRY. THE MORATORIUM GAVE HER SOMETHING TO SHOOT AT, AND SHE DID. SO SHE VERY MUCH PUSHED THE PRODUCTION OF NEW CONSTRUCTION AND SUB REHAB, INCLUDING WHEN INTEREST RATES SHOT UP, AND IT WAS DIFFICULT TO FINANCE THOSE PROPERTIES WITHIN THE RENT CEILINGS, SHE AND HER STAFF SIMPLY RAISED THE RENTS, SO THAT YOU GOT A LOT OF SECTION EIGHT NEW CONSTRUCTION SUBSIDIZED AT VERY, VERY HIGH RENT LEVELS COMING OUT OF THAT ERA. SHE WAS SKEPTICAL OF THE TENANT-BASED APPROACH BECAUSE SHE THOUGHT THAT IT WOULD PUT PEOPLE INTO BAD HOUSING. SHE DID, HOWEVER, BECOME AWARE OF THE POTENTIAL FOR THE VOUCHER-TYPE ASSISTANCE TO BE USED AS A MOBILITY TOOL. NOW, BY THAT TIME, THE GALTRO LITIGATION HAD GONE TO THE SUPREME COURT. 37 IT WAS AT THE POINT WHEN THE SUPREME COURT DECIDED IT WAS -- THE FEDERAL GOVERNMENT WAS A PARTY, NOT SIMPLY THE CHICAGO HOUSING AUTHORITY, AND IT WAS HILLS VERSUS GALTRO. AND THE SETTLEMENT INCLUDED THE USE OF SECTION EIGHT EXISTING HOUSING TO HELP AFRICAN-AMERICAN CHICAGO PUBLIC HOUSING RESIDENTS MOVE TO THE CHICAGO SUBURBS. SO HARRIS TRIED TO EXPAND ON THAT DEMONSTRATION BY RUNNING A SMALL MOBILITY PROGRAM WITH PLANNING GRANTS AND SPECIAL ALLOCATIONS OF VOUCHERS THAT WERE TO BE USED TO HELP PEOPLE MOVE TO BETTER NEIGHBORHOODS. SHE ALSO -- OH, AT THAT POINT, THE EHAP RESULTS WERE COMING IN. AND IT WAS FOUND THAT A HOUSING ALLOWANCE APPROACH DID NOT DRIVE UP REPRESENTS. IT COULD BE USED SUCCESSFULLY BY MINORITIES. PD & R, HEAVILY STAFFED BY ECONOMISTS, WAS ALSO ENTHUSIASTIC ABOUT VOUCHERS, AND IN FACT PLAYED A VERY BIG ROLE IN THE IMPLEMENTATION OF THE SECTION EIGHT EXISTING PROGRAM, PROVIDING A LOT OF ADVICE TO THE PROGRAM OFFICE. IT'S SORT OF AN ECHO NOW, IS THE VOUCHER ADMINISTRATOR C STUDY THAT'S JUST BEEN COMPLETED. THAT'S SORT OF THE LAST IN LINE OF THE HISTORY OF PD & R, SORT OF HELPING WHAT'S NOW PIH RUN THE VOUCHER PROGRAM. SO I'M NOT TALKING VERY MUCH ABOUT SINGLE FAMILY FINANCE, AND I TALK A BIT MORE IN THE PAPER FOR THE SAKE OF COMPLETENESS. 38 I DON'T TALK ABOUT IT THAT MUCH BECAUSE HUD SECRETARIES DIDN'T REALLY HAVE BIG AGENDAS AROUND FHA SINGLE FAMILY. THEY BASICALLY RAN THE PROGRAM. LET THEIR COMMISSIONER RUN THE PROGRAM. OVER TIME, SINGLE FAMILY FINANCE HAS BEEN -- IT'S CHANGED QUITE A BIT, IT'S CHANGED IN WAYS THAT HUD HAS NOT HAD A WHOLE LOT TO DO WITH. NOW, I MENTIONED THE CREATION OF THE GSES IN 1968 AND 1970. THAT THE POINT, THE GSE, THE SECONDARY MARKET WAS GROWING, THE GSAS WERE LOOKING INCREASINGLY IMPORTANT. THE 1968 LEGISLATION HAD MADE ATTITUDE THE -- HUD THE MISSION REGULATOR OF FANNIE MAE, AND HARRIS STEPPED IN AND TRIED TO MAKE THAT MEANINGFUL BY SETTING AFFORDABLE HOUSING GOALS FOR FANNIE MAE. SHE DIDN'T SUCCEED. FANNIE MAE WAS ALREADY PRETTY POWERFUL AT THAT POINT POLITICALLY. FHA WAS ALSO, HAD CHANGED, IT WAS LOSING MARKET SHARE. IT ALSO -- I THINK I MENTIONED EARLIER THAT FHA IN ITS EARLY HISTORY HAD CREATED A LOT OF HOUSING IN THE SUBURBS, DIDN'T MENTION IT, BUT I COULD HAVE THAT, IT WAS VERY LITTLE USED BY AFRICAN-AMERICANS. BY THIS TIME, A SUBSTANTIAL FRACTION OF FHA SINGLE FAMILY INSURANCE WAS USED BY AFRICAN-AMERICAN HOME BUYERS. SO NOW WE HAVE ANOTHER ELECTION, AND EVEN MORE OF A SEED CHANGE IN AMERICAN 39 POLITICS. THE REPUBLICAN ELECTORAL BASE HAD SHIFTED GEOGRAPHICALLY, LEADING TO THE NOMINATION OF RONALD REAGAN, AND PUBLIC DISSATISFACTION WITH HIGH UNEMPLOYMENT, INFLATION DURING THE CARTER YEARS HAD BASICALLY SWEPT REAGAN INTO OFFICE. HE APPOINTED ANOTHER AFRICAN-AMERICAN LAWYER, SAMUEL PIERCE, TO BE SECRETARY OF HUD, AND PIERCE WAS SECRETARY OF HUD FOR THE ENTIRE EIGHT YEARS OF THE REAGAN ADMINISTRATION. NOW, THE EMPHASIS HAD CHANGED. I MEAN, I THINK I -- WHEN NIXON -- NIXON'S RATIONALIZATION DIDN'T REALLY QUESTION THE IDEA THAT THE FEDERAL GOVERNMENT NEEDED TO USE ITS TAX BASE TO HELP STATE AND LOCAL GOVERNMENTS. IT DIDN'T REALLY QUESTION THE IDEA THAT THE FEDERAL GOVERNMENT WAS RESPONSIBLE FOR A STRONG SAFETY NET. BUT THIS WAS NOW A BIT DIFFERENT. THE EMPHASIS WAS MUCH MORE ON REDUCING THE FEDERAL ROLE, RATHER THAN SIMPLY RATIONALIZING IT. SO REAGAN APPOINTED A PRESIDENT'S COMMISSION ON HOUSING, WHICH DID A COUPLE OF DIFFERENT THINGS, BUT NOTABLY IT ENDORSED THE VOUCHER APPROACH, AND THE REAGAN ADMINISTRATION REQUESTED AND GOT A REPEAL OF THE SECTION EIGHT NEW CONSTRUCTION AND SUB REHAB PROGRAMS IN 1983. ALSO PROPOSED AND GOT AT THE SAME TIME SOME COST CUTTING MEASURES. 40 THIS IS WHEN THE PERCENTAGE OF INCOME THAT HUD-ASSISTED TENANTS PAID FOR RENT GOT RAISED FROM 25 PERCENT OF INCOME TO 30 PERCENT OF INCOME, AND THE POLICY LEVEL OF THE FAIR MARKET RENTS THAT CONTROL VOUCHER SUBSIDIES AND ALSO VARIOUS OTHER THINGS WAS DROPPED FROM THE 50TH PERCENTILE TO THE 45TH PERCENTILE OF UNITS OCCUPIED BY RECENT MOVERS. IT WAS STILL AT THE MIDDLE OF THE MARKET. IT WAS NOT -- IT TURNED OUT NOT TO BE THAT DRAST ACHE CHANGE. PIERCE FOUGHT WITH OMB TO GET 100,000 -- A PROPOSAL FOR 100,000 INCREMENTAL UNITS EVERY YEAR, HE USUALLY GOT IT AND CONGRESSIONAL APPROPRIATORS USUALLY WENT ALONG WITH THAT REQUEST. SO FOR THAT REASON, THE INCREMENTAL VOUCHERS AND ALSO BECAUSE THE NEW CONSTRUCTION SUB REHAB PIPELINE WAS NEVER REALLY SHUT OFF, HOUSING ASSISTANCE DURING THE EIGHT YEARS OF THE REAGAN ADMINISTRATION GREW FROM 2 MILLION UNITS, TO 4 MILLION UNITS. YOU KNOW, NOT ONLY THE NEW CONSTRUCTION SUB REHAB, THE MORATORIUM WASN'T A STOP IN YOUR TRACKS MORATORIUM. EVERYTHING WAS LET GO THROUGH THE PIPELINE, AND IN FACT, SOME FUNDING ACTUALLY GOT SWITCHED FROM STALLED PROJECTS TO OTHER PROJECTS. SO IT WAS VERY INTERESTING. NOW, YOU KNOW, JUST BECAUSE PRODUCTION PROGRAMS HAVE BEEN REPEALED, THAT DOESN'T MEAN THAT THEY DON'T STILL -- THAT THEY ARE NOT STILL A MAJOR 41 HUD RESPONSIBILITY, WHETHER OR NOT THEY ARE STILL BEING BUILT, AND SOME PUBLIC HOUSING WAS STILL BEING BUILT IN THIS ERA AS WELL. A HIGHLY VISIBLE PORTION OF THE PUBLIC HOUSING STOCK HAD NOW BECOME DISTRESSED, PARTICULARLY HIGH RISES IN BIG CITIES, BIG VACANCIES, UNCOLLECTIBLE RENTS. SOME OF IT WAS IN SUCH BAD CONDITION OR SUCH DANGEROUS PLACES, IT WAS HAVING TROUBLE FINDING OCCUPANTS. OMB THOUGHT THAT SPENDING MONEY ON PUBLIC HOUSING WAS A WASTE, SO TRIED TO REALLY DEPRESS FUNDING FOR OPERATING SUBSIDIES AND WHAT'S NOW CALLED CAPITAL NEEDS AND WHAT'S CALLED MODERNIZATION, AND AS A RESULT OF THAT, A NEW INDUSTRY ORGANIZATION WAS BORNE, THE COUNCIL OF LARGE PUBLIC HOUSING AUTHORITIES, WHICH -- AND AT THE SAME TIME, AN OLDER ORGANIZATION, PHA DIRECTORS ASSOCIATION, WHICH REPRESENTS LARGELY SMALL AND RURAL PHAS ALSO BECAME RELATIVELY MORE IMPORTANT. UNDER PIERCE, A NEW ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING WAS CREATED, SPUN OFF FROM THE OFFICE OF HOUSING. I TRIED VERY HARD TO FIGURE OUT WHAT THE POLITICS WAS THAT WERE, OR WHAT THE POLICY IMPETUS WAS. THERE WAS NONE. IT WAS BASICALLY JUST TO GIVE A SUB CABINET OFFICIAL AN ASSISTANT SECRETARY RANK. SO IF SOMEBODY KNOWS A DIFFERENT STORY, PLEASE TELL ME. BUT THAT'S ALL WHAT I FINALLY 42 WAS ABLE TO INCLUDE. THERE WAS -- BY THIS TIME, THERE WAS A STOCK OF PRIVATELY OWNED SUBSIDIZED HOUSING. IT ROSE TO OVER 1 MILLION UNITS BY THE END OF THE REAGAN ADMINISTRATION. IT ALSO HAD TO STILL BE MANAGED. SOME PEOPLE AT HUD DURING THE REAGAN ADMINISTRATION AND PARTICULARLY OMB WOULD HAVE WANTED TO JUST LET DISTRESSED PRIVATELY OWNED PROPERTIES FAIL, BUT THE CONUNDRUM HERE IS IF THEY WERE FHA-INSURED, THEN YOU TOOK A LOSS IN THE FHA INSURANCE FUND. SO DURING THIS ERA, LOAN MANAGEMENT SUBSIDIES WERE ADDED TO A LOT OF THOSE OLDER 23 SIXES, AND BEAMERS. AND AT THE VERY END OF THE REAGAN ADMINISTRATION, SOME OWNERS WHO WERE IN GOOD LOCATIONS AND HAD HIGHLY DESIRABLE HOUSING WERE BEGINNING TO OR AT LEAST BEGINNING TO THREATEN TO LEAVE THE ASSISTED HOUSING STOCK. THERE WAS A NEW PRODUCTION PROGRAM CALLED HODAG. IT WAS SORT OF -- IT SORT OF INTIM TATE DOLLARS UDAG FOR A REASON. THE -- IMITATED UDAG FOR A REASON. THE PRESIDENT -- HODAG WAS CREATED BY CONGRESS TO FILL THAT GAP, IT HAD A LIMITED LIFT OF ELIGIBLE PLACES. THE PROGRAM DIDN'T LAST LONG. IT WAS ULTIMATELY FOLDED INTO THE HOME PROGRAM. BUT IT DID ONE VERY INTERESTING THING, WHICH IS IT DIDN'T BASE RENTS ON COST MINUS 30 PERCENT OF INCOME, 43 BUT INSTEAD HAD MAXIMUM RENTS, AND KIND OF A PRECURSOR OF WHAT WE NOW KNOW AS THE RENT RULES FOR THE LOW INCOME HOUSING TAX CREDIT. >> LATE IN THE REAGAN YEARS, HUD LOST A ROLE AND GAINED A ROLE. FIRST OF ALL, WITH THE ENACTMENT OF THE LOW INCOME HOUSING TAX CREDIT, THE RESPONSIBILITY FOR FEDERAL-SUPPORTED PRODUCTION OF RENTAL HOUSING BASICALLY WENT TO THE STATES. TAX LAW HAD ALREADY BECOME VERY IMPORTANT. THERE WAS A TAX REFORM EARLY IN THE REAGAN ADMINISTRATION CALLED THE ECONOMIC RECOVERY TAX ACT IN 1981, WHICH HAD INCREASED THE RATE AT WHICH MULTI FAMILY RENTAL HOUSING WITH LOW INCOME OCCUPANTS COULD BE DEPRECIATED AND PHASED OUT, RECAPTURE OF THAT EXCESS DEPRECIATION. THE DEFINITION OF LOW INCOME WAS ESSENTIALLY NOTHING. 20 PERCENT OF THE UNITS HAD TO BE BELOW 80 PERCENT OF AREA MEDIAN INCOME, WHICH IS LENGTHILY WHAT -- WHICH IS ESSENTIALLY WHAT RENTAL HOUSING IS PRODUCED FOR, BUT LOTS OF HOUSING GOT PRODUCED UNDER THESE NEW TAX PROVISIONS, AND IN THESE MORE FAVORABLE TAX PROVISIONS, AND A BIG TAX REFORM THAT WAS HAPPENING IN 1986 WAS CLEARLY GOING TO REPEAL THOSE PROVISIONS IN ORDER TO MAKE ROOM FOR TAX CREDITS. WELL, YOU KNOW, THE AFFORDABLE HOUSING INDUSTRY, THE NATIONAL COUNCIL OF STATE HOUSING AGENCIES, AN ORGANIZATION THAT HAD BEEN CREATED IN THE LATE 1970S 44 CALLED THE NATIONAL LOW INCOME HOUSING COALITION, ALL WORKED IN DIFFERENT WAYS TO REPLACE THOSE TAX RULES WITH A TAX CREDIT, AND THE TAX CREDIT, AS WE ALL KNOW, IS A PER CAPITA ALLOCATION TO STATES, AND THE PROGRAM IS RUN BY THE TREASURY, NOT BY HUD. MAXIMUM RENTS, AS I SAID BEFORE, RATHER THAN INCOME-BASED RENTS, HUD HAD ESSENTIALLY NO ROLE IN THE CREATION OF LITEC. IT HAS MODEST ADMINISTRATOR FUNCTIONS, CREATING -- DIFFICULT DEVELOPMENT AREAS, THINGS LIKE THAT. BUT UNTIL NOW, HUD ESSENTIALLY DOES NOT PLAY A REAL POLICY LEADERSHIP ROLE AS FAR AS HOW THE TREASURY OR THE STATES USE THAT PROGRAM. SO HOUSING PRODUCTION FOR LOW INCOME PEOPLE GOES TO THE STATES, BUT SOMETHING VERY IMPORTANT CAME TO HUD JUST A YEAR LATER, AND THAT WAS RESPONSIBILITY FOR HOMELESSNESS. THE STEWARD BEING THE KENNY ACT, NAMED AFTER THE LIBERAL REPUBLICAN SPONSOR OF THE LEGISLATION WHO DIED SHORTLY AFTER IT WAS ENACTED, GAVE HUD THE LEADERSHIP IN HOMELESSNESS AMONG FEDERAL AGENCIES. AND INTERESTINGLY, HHS ACTUALLY WANTED THAT LEAD ROLE, BUT DIDN'T GET IT BECAUSE THE STAFF WHO WERE WORKING ON THE MCKINNEY ACT THOUGHT THAT THE POLITICAL APPOINTEES AT HHS WERE EVEN MORE CONSERVATIVE THAN THE POLITICAL APPOINTEES AT HUD, AND ALSO THEY WANTED TO ESTABLISH THE IDEA THAT 45 HOMELESSNESS IS A HOUSING PROBLEM. THERE IS A WIDESPREAD VIEW AT THE TIME THAT HOMELESSNESS WAS MORE OF A HEALTH PROBLEM THAN A HOUSING PROGRAM AND WAS ESSENTIALLY THE RESULT OF THE DE INSTITUTIONALIZATION OF PEOPLE WITH CHRONIC MENTAL ILLNESS. THAT OBVIOUSLY IS PART OF THE NATURE OF HOMELESSNESS, BUT NOT THE ONLY PART. PIERCE IS MOST REMEMBERED FOR THE SCANDAL THAT TOOK PLACE WHILE HE WAS SECRETARY, IN PARTICULAR, THE SECTION EIGHT MOD REHAPPENO REHAB SCHEDULE. IT HAD BEEN CREATED IN 1979 TO FILL KIND OF A GAP BETWEEN SECTION EIGHT EXISTING HOUSING AND SECTION EIGHT SUB REHAB. IT WAS ADMINISTERED BY PHAS AS KIND OF A PROJECT-BASED VARIANT OF THE VOUCHER PROGRAM, AND IT HAD BEEN KIND OF CHURNING ALONG WITH MODEST APPROPRIATIONS, BUT YOU KNOW, SOMETHING EVERY YEAR. ITS RENT CEILINGS ULTIMATELY HAD BEEN RAISED, MAKING IT A MORE ATTRACTIVE PROGRAM FOR DEVELOPERS, AND WITH THE ENACTMENT OF THE LOW INCOME HOUSING TAX CREDIT, TRYING TO USE THEIR NEW TAX CREDIT AUTHORITY, STATE AGENCIES IN THE EARLY YEARS OF THE TAX CREDIT OFTEN AWARDED TAX CREDITS TO MOD REHAB PROJECTS AND HUD DID NOT REDUCE THE MOD REHAB RENTS ACCORDINGLY. SO THESE WERE REALLY JUICY DEALS. SO IT WAS A SMALL PROGRAM, SOME PEOPLE CALLED IT THE ONLY GAME IN TOWN, IT WAS A BONANZA FOR DEVELOPERS WHO GOT IT, AND WHAT HAPPENED IS 46 THAT DEVELOPERS WITH GOOD CONNECTIONS TO THE REPUBLICAN ADMINISTRATION GOT HUD OFFICIALS TO SUBVERT THE PROCESS FOR WHICH PHAS GOT THE MONEY AND WHICH DEVELOPERS GOT AWARDED THE FUNDS BY THOSE PHAS. SOME OF PIERCE'S STAFF WERE CONVICTED. NOBODY ACTUALLY WENT TO JAIL. NOBODY KNOWS WHAT PIERCE HIMSELF KNEW. I MEAN, HE WAS NOT A HAND-ON ADMINISTRATOR. HE WAS SOMEWHAT CYNICAL ABOUT DISCRETIONARY GRANT PROGRAMS, BUT, YOU KNOW, HE FOCUSED ON A FEW THINGS AND LEFT A LOT OF THINGS TO THE SUB CABINET TO DO. WHAT PIERCE WOULD LIKE TO BE REMEMBERED FOR, WHAT HE THOUGHT OF AS HIS LEGACY, WAS IN THE AREA OF FAIR HOUSING, AND IN PARTICULAR, THE FAIR HOUSING AMENDMENTS OF 1988, WHICH FINALLY GAVE HUD ENFORCEMENT AUTHORITY. AND IT ALSO EXTENDED PROTECTIONS TO FAMILIES WITH CHILDREN AND TO PEOPLE WITH DISABILITIES. PIERCE ACTUALLY HELPED BROKER THE DEAL. HE HOSTED AFTER HOURS MEETINGS IN HIS CONFERENCE ROOM BETWEEN THE NATIONAL ASSOCIATION OF REALTORS AND THE CIVIL RIGHTS ORGANIZATIONS THAT HAD COME TO A TENTATIVE AGREEMENT ON WHAT THE ENFORCEMENT MECHANISM SHOULD LOOK LIKE. HE KEPT THOSE MEETINGS AWAY FROM THE DEPARTMENT OF JUSTICE. AND ULTIMATELY, THE ADA AMENDMENTS WERE ENACTED AND PRESIDENT REAGAN DID NOT VETO 47 THEM. PIERCE ALSO CREATED THE FIT PROGRAM, THE FAIR HOUSING INITIATIVES PROGRAM, BECAUSE HE AND HIS GENERAL COUNSEL HAD OBSERVED -- THERE WAS ACTUALLY A LITTLE PD & R STUDY THAT SUPPORTED THIS, THAT PRIVATE FAIR HOUSING ORGANIZATIONS WERE DOING A PRETTY GOOD JOB OF BRINGING DISCRIMINATION COMPLAINTS ON THE BASIS OF PAIRED TESTING, AND SO THE FHIP PROGRAM, IT WAS A DEAL BETWEEN THE NATIONAL ASSOCIATION OF REALTORS THAT THE FFIP PROGRAM WAS BORN, AND PIERCE DID ONE OTHER THING, AND I WON'T GO INTO THIS, BECAUSE IT'S JUST NOT ALL THAT -- TURNS OUT IT WASN'T THAT IMPORTANT BUT IN THE '80, THERE WERE ACTUALLY TWO DIFFERENT VOUCHERS PROGRAMS, THERE WAS THE EXISTING SECTION EIGHT PROGRAM AND OLD VOUCHER PRACTICAL AND TURNS OUT THEY WERE ESSENTIALLY THE NAME THING BUT WHEN IT WAS ENACTED, PIERCE SAID I WANT VOUCHERS TO BE PORTABLE ACROSS JURISDICTIONAL LINES. HIS STAFF FOUGHT HIM ON THAT, THE PUBLIC HOUSING INDUSTRY FOUGHT HIM ON THAT, HE SAID IT'S GOING TO HAPPEN, AND IT HAPPENED. >> SO NOW WE HAVE THE ELECTION OF GEORGE H.W. BUSH, AND ANOTHER VERY HIGH PROFILE APPOINTMENT TO BE SECRETARY OF HUD, JACK KEMP, AFTER RETIRING FROM FOOTBALL, HAD BEEN A CONGRESSMAN FROM UPSTATE NEW YORK, HE CAME TO HUD WITH HIS CONGRESSIONAL STAFF, A COUPLE OF THEM, ANYWAY, AND AN AGENDA, PUBLIC HOUSING, HOMEOWNERSHIP, 48 EMPOWERING THE POOR, CREATING ENTERPRISE ZONES. BUT WHEN HE FIRST GOT TO -- HE ALSO APPOINTED A SUB CABINET THAT "THE WASHINGTON POST" CALLED CONSERVATIVE INTELLECTUALS INCLUDING JOHN WIEKER, WHO WE JUST MENTIONED EARLIER IN RESPONSE TO A QUESTION. BUT FIRST HE TOLD HIS SUB CABINET THAT HE HAD TO CLEAN THE AUGIEN STABLES IN THE WAKE OF THE HUD SCANDALS, SO HE HAD HIS STAFF PROPOSED THE HUD REFORM ACT WHICH IS STILL THE HUD REFORM ACT THAT WE KNOW. THE INTEGRITY OF THE NOFA PROCESS, ALL OF THE RULES AGAINST COMMUNICATION WITH APPLICANTS FOR HUD GRANTS DURING THE APPLICATION PROCESS, SUBSIDY LAYERING REQUIREMENTS, THIS WAS IN ORDER TO KEEP WHAT HAD HAPPENED TO MOD REHAB FROM HAPPENING, AND VERY INTERESTINGLY, ALSO THE REVIVAL OF PD & R. JOHN WIEKER WAS ABLE TO MAKE THE CASE THAT IF THERE HAD BEEN STRONG PROGRAM EVALUATION AND DATA-DRIVEN MONITORING, THE SCANDALS WOULD NOT HAVE OCCURRED. I DON'T KNOW WHETHER THAT'S TRUE OR NOT, BUT IT SOLD. >> PD & R GOT A LOT MORE FUNDING FOR EVALUATION. I SEE TODD RICHARDSON GRINNING. HE WAS HIRED AT THIS TIME. AND A LOT MORE STAFF. AND ALSO, A NEW RULE WHICH IS CREATING FROM HUD ADMINISTRATIVE DATA, DATABASES FOR MONITORING PROGRAM PERFORMANCE AND DOING ANALYSIS. 49 NOW, ANOTHER REALLY IMPORTANT THING THAT HAPPENED UNDER KEMP, AND I'VE CALLED THE EARLIERS PASSIONATE CONSERVATISM, BY THEN THERE WAS A BIPARTISAN CONSENSUS ON ENDING HOMELESSNESS AND BUSH HAD MADE FULL FUNDING FOR MCKINNEY ONE OF HIS CAMPAIGN PROMISES. I WILL MAKE ANOTHER EXCEPTION AND MENTION A SUB CABINET OFFICIAL. I DON'T DO THAT VERY MUCH IN PART BECAUSE THERE WERE SO MANY IMPORTANT ONES, AND THE PAPER AND THIS TALK WOULD BE ENDLESS IF I TALKED ABOUT THEM ALL, BUT I WILL MENTION ANNA CONDROTIS, ANOTHER CONSERVATIVE INTELLECTUAL BROUGHT IN UNDER KEMP. SHE HAD BEEN AT THE FOOD STAMPS PROGRAM AND HAD WORKED ON HOMELESSNESS THERE, SHE CAME TO HUD TO BE THE ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT. SHE CREATED THE SNAPS OFFICE, THE OFFICE THAT STILL RUNS THE HOMELESS PROGRAMS. THERE HAD BEEN SOME GRANT PROGRAMS, BUT THEY HAD BEEN -- ONE WAS IN PD & R, A COUPLE WERE IN HOUSING, WAS IN CPD, SHE BROUGHT THEM ALL TOGETHER IN ONE PLACE. SHE MADE AN IMPORTANT AGREEMENT WITH CURBING DOLVER, THE FOUNDER OF THE NATIONAL LOW INCOME HOUSING COALITION, TO STOP FIGHTING ABOUT HOW MANY HOMELESS PEOPLE THERE WERE. PD & R HAD ACTUALLY DONE A STUDY IN THE EARLY '80S THAT CONCLUDED, I DON'T EVEN REMEMBER THE NUMBERS, 300,000, 400,000, IT WASN'T 50 THAT BAD A STUDY, BUT THERE WAS AN ADVOCACY COMMUNITY AT THAT POINT WHO WAS TELLING THE PRESS THERE WERE 3 MILLION HOMELESS PERSON, SO THERE WERE LOTS -- CONTENTIOUS, AND THEY SAID WE'RE GOING TO AGREE THAT WE ARE GOING TO ESTABLISH A SOUND EMPIRICAL BASIS FOR HOMELESSNESS POLICY AND AGREE ON WHAT THAT BASIS IS. ALSO STARTED THE MOVE TOWARDS SUPPORTIVE HOUSING BY PROPOSING AND GETTING ENACTED THE SHELLER PLUS CARE PROGRAM, WHICH FOLLOWS THE VOUCHER MODEL AND PROVIDES PERMANENT HOUSING TO HOMELESS PEOPLE WITH DISABILITIES. SHELTER PLUS CARE WAS PART OF A MAJOR PIECE OF LEGISLATION THAT HAPPENED DURING THE FIRST BUSH ADMINISTRATION, CALLED THE NATIONAL AFFORDABLE HOUSING ACT, OR THE CRANSTON GONZALEZ ACT. AT ONE POINT IF YOU WERERAL YOU CALLED IT NA JMENT A, DEMOCRAT YOU CALLED IT CRANSTON AND GONZALEZ. THIS WAS A COMPROMISED LEGISLATION. KEMP GOT PUBLIC HOUSING HOMEOWNERSHIP AND A COUPLE OF OTHER LOW INCOME HOMEOWNERSHIP PROGRAMS, THEY WERE CALLED HOPE ONE, TWO AND THREE. HE ALSO GOT THE FAMILY SELF-SUFFICIENCY PROGRAM, WHICH ALREADY EXISTED ON A SMALL DEMONSTRATION BASIS, BUT HE REALLY LIKED THE IDEA, AND THIS IS -- YOU KNOW, THE HOPE ONE, TWO AND THREE PROGRAMS HAVE NOT HAD LASTING IMPORTANCE. AS I SORT OF ALLUDED TO EARLIER IN TALKING ABOUT 51 WEAVER, THE WHOLE IDEA OF TURNING POOR PEOPLE INTO HOME OWNERS HAS NOT TURNED OUT TO BE SOMETHING THAT HAS STOCK, ON THE OTHER HAND, FAMILY SELF-SUFFICIENCY WITH CANO IS WITH US NOW, IT'S TURNED OUT TO BE PRETTY IMPORTANT, HELPS ASSISTED HOUSING RESIDENTS INCREASE THEIR INCOME, SOMETIMES THEIR HUMAN CAPITAL. KEMP WOULD HAVE MADE PARTICIPATION IN FFS MANDATORY, BUT CONGRESS DIDN'T GO ALONG WITH THAT. FROM THE HOUSING INDUSTRY AND CONGRESS CAME THE HOME INVESTMENT PARTNERSHIP PROGRAM. THIS CAME OUT OF A TASK FORCE CALLED -- IT WAS CHAIRED BY DAVID MAXWELL, WHO WAS CEO OF FANNIE MAE, AND JAMES ROUSE, DEVELOPER OF COLUMBIA AND OTHER THINGS, THE ROUSE-MAXWELL TASK FORCE, IT HAD RECOMMENDED A NEW PRODUCTION PROGRAM, AND HOME DID FOLD IN HODAG AND OTHER SMALL PROGRAMS AND IT WAS A BLOCK GRANT, A FORMULA GRANT. ON THE OTHER HAND, IT WASN'T REALLY THE CULMINATION OF THE MOVE TO A BLOCK GRANT. IT'S USUALLY BEEN COMBINED WITH YTEC VOUCHERS AND THE SECTION EIGHT PROJECT-BASED PROGRAMS HAVE REMAINED SEPARATE. >> [INTERRUPTION] >> -- AMERICA, WHICH AMONG OTHER THINGS EITHER PROPOSED OR IMPLIED THAT HUD SHOULD BE ABOLISHED, GAO, MEANWHILE, HAD PUT HUD ON A HIGH RISK LIST, SO CISNEROS AND INDEED THE CLINTON WHITE HOUSE WERE CONVINCED THAT HUD WAS REALLY AT RISK OF NO LONGER BEING A 52 CABINET DEPARTMENT, OF BEING BROKEN UP, DISBURSED. CISNEROS' RESPONSE WAS SOMETHING CALLED THE BLUEPRINT FOR REINVENTING HUD. MANY OF THE PROPOSALS WERE ALREADY IN THE WORKS, HIS SUB CABINET ALREADY WANTED TO DO CERTAIN THINGS. FOR EXAMPLE IT INCLUDED A PROPOSAL FOR AN INDEPENDENT FHA WITHIN HUD THAT WOULD -- DIDN'T GO ANYWHERE. BUT THE OVERALL THEME OF THE BLUEPRINT WAS THAT ALL HOUSING ASSISTANCE, PUBLIC HOUSING PROJECT-BASED, PRIVATELY OWNED HOUSING, WOULD ALL SPHWOWRN VOUCHERS OVER TIME. THAT DIDN'T HAPPEN. IT WAS NOT ENACTED. BUT MANY OF THE PROPOSALS MORPHED INTO OTHER THINGS, AND THERE ARE ECHOS OF THEM, LET ME SAY. CISNEROS IS KNOWN PROBABLY MORE THAN ANYTHING ELSE FOR THE HOPE SIX PROGRAM. HE DIDN'T CREATE THE PROGRAM SINGLEHANDEDLY, BUT HE GOT IN FRONT OF IT, AND MADE IT HIS OWN AND HELPED WITH THE ADVOCACY WITH CONGRESS AND OTHERS THAT MADE HOPE SIX POSSIBLE. THE STALEMATE FINALLY HAD BROKEN ON WHAT TO DO ABOUT THE STRESS -- ABOUT DISPRESS -- DISTRESSED PUBLIC HOUSING. PD & R HAD DONE A CAPITAL NEEDS STUD YEVMENT PD & R HAD ALMOST NO FUNDING DURING THE REAGAN ADMINISTRATION BUT ONE EXCEPTION WAS THAT CONGRESS APPROPRIATED MONEY FOR A STUDY OF CAPITAL NEEDS. THAT STUDY CONCLUDED THAT THERE WERE HUGE CAPITAL NEEDS 53 AND THEY WERE GROWING. MODERNIZATION, APPROPRIATIONS, WERE NOT EVEN KEEPING UP WITH THE GROWTH. A NATIONAL COMMISSION ON DISTRESSED PUBLIC HOUSING RAN WITH THOSE FINDINGS, AND A BOOK, ALEX CUTLERWITZ, THERE ARE NO CHILDREN HERE, REALLY DRAMATIZE DOLLARS THE AMERICAN PUBLIC, JUST HOW AWFUL IT WAS TO GROW UP IN CHICAGO PUBLIC HOUSING. SO HOPE SIX DEMOLISHED PUBLIC HOUSING UNITS AND REPLACED PERHAPS ABOUT HALF OF THEM WITH VOUCHERS. THIS CAUSED ANOTHER KIND OF SHIFT TO VOUCHERS, THESE WERE NOT INCREMENTAL UNITS OF ASSISTED HOUSING BUT VOUCHERS THAT REPLACED PUBLIC HOUSING. AND ALSO ESTABLISHED THE IDEA THAT REDEVELOPED PUBLIC HOUSING CAN HAVE PRIVATE FINANCING AND PRIVATE OWNERS. I'M SPEEDING UP A LITTLE BIT HERE BECAUSE I'M RUNNING OUT OF TIME, AND ALSO I'M GETTING TO AN AREA WHICH I THINK IS MORE FAMILIAR TO EVERYBODY IN THE ROOM. ANDREW CUOMO, HE CAME TO HUD AS THE ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT UNDER CISNEROS, SO IN A WAY IT'S SORT OF HARD TO PULL THE TWO SECRETARIES APART, ON THE OTHER HAND, THEY WERE VERY DIFFERENT STYLES. IF HENRY CISNEROS WAS A VISIONARY, ANDREW CUOMO WAS A FIGHTER. HE THOUGHT THAT HUD WAS STILL AT RISK OF BEING ABOLISHED BECAUSE OF A REPUTATION OF THE AGENCY OF NOT BEING ABLE TO MANAGE PROGRAMS, SO HE PUT NEW LIFE INTO THE AUTHORITY 54 TO DEBAR FHA LENDERS THAT HAD BROKEN THE RULES, HE CREATED RIAC, SENT INSPECTORS OUT TO FIND OUT WHETHER PUBLIC HOUSING AND ASSISTED HOUSING DEVELOPMENTS WERE SAFE, WHETHER THEY WERE IN SOLID CONDITION, AND HE HELD OUT WITH CONGRESS FOR A RETURN TO INCREMENTAL VOUCHERS. CONGRESS HAD STOPPED FUNDING INCREMENTAL VOUCHERS. THERE WAS ANOTHER PIECE OF JOURNALISM THAT ACTUALLY TURNED OUT TO BE PRETTY IMPORTANT, A "NEW YORK TIMES" ARTICLE BY JASON DIPARO CALLED THE YEAR HOUSING DIED. WHAT THAT MEANT IS THE YEAR THERE WERE NO INCREMENTAL UNITS OF ASSISTED HOUSING. CUOMO TOOK THAT TO HEART AND DURING THE -- THE FINAL NEGOTIATIONS OVER QUERA, THE QUAT HOUSING AND WORK RESPONSIBILITY ACT, WHICH IS STILL THE MOST SET OF LEGISLATIVE CHANGES TO THE PUBLIC HOUSING AND ASSISTED HOUSING PROGRAMS, OTHER THAN A LITTLE TWEAKING SINCE THEN, CUOMO THREATENED TO WALK OUT OF THE ROOM DURING THE FINAL DEAL OVER QUERA UNLESS THE APPROPRIATIONS ACT INCLUDED QUERA, 50,000 INCREMENTAL VOUCHERS, AND HE GOT THEM. THE GSE GOALS WERE NOW -- LEGISLATION HAD IN THE EARLY 1990S, LEGISLATION HAD PUT SOME MORE MEAT ON TO WHAT THOSE GOALS SHOULD BE. CISNEROS AND HIS FHA COMMISSIONER HELD PUBLIC HEARINGS, ESTABLISHED SOME GOALS. CUOMO AND HIS FHA COMMISSIONER WERE CALLED THE RATCHET UP GANG, BECAUSE THEY TRIED TO INCREASE THE GOALS 55 FOR THE PERCENTAGE OF LOANS THAT FANNIE AND FREDDIE BOUGHT THAT WERE FOR LOW INCOME HOMEOWNERS OR IN CITY NEIGHBORHOODS, TRIED TO RATCHET THE GOALS UP TO THE POINT WHERE FANNIE AND FREDDIE COULDN'T MAKE THEM JUST BY DOING BUSINESS AS USUAL. OTHER NEW APPROACHES THAT ASSOCIATED WITH CUOMO AS ASSISTANT SECRETARY FOR CPD, HE CREATED THE CONTINUUM OF CARE. THIS WAS NEVER IN LEGISLATION. HE CREATED IT THROUGH AN ITERATIVE SERIES OF NOFAS. IT'S A HYBRID BETWEEN A FORMULA PROGRAM AND A COMPETITIVE PROGRAM. THE FIRST YEAR, -- WHAT THE COC DOES, AS YOU PROBABLY KNOW, IT REQUIRES ALL APPLICATIONS FOR HOMELESS FUNDING, THERE ARE DISCRETIONARY GRANT PROGRAMS TO, GO THROUGH A PLANNING BODY CALLED THE CONTINUUM OF CARE SO HUD GETS A SINGLE APPLICATION FROM A COMMUNITY. THE FIRST YEAR CUOMO RAN THIS WITHOUT A FORMULA AND HE FOUND THAT HE HAD TO AWARD MOST OF THE MONEY TO A COUPLE OF COMMUNITIES THAT WEREN'T REALLY STRONG APPLICATIONS. SO THEN HE BROUGHT IN A FORMULA ELEMENT. THE COC HAS BEEN AN IMPORTANT LEVER FOR GIVING HUD THE ABILITY TO INFLUENCE LOCAL LOMA HS POLICY OFFER THE YEARS. MARK TO MARKET ALSO WAS CREATED AT THIS TIME. IN SOME SENSE, IT HAD BEEN -- SOME ELEMENTS OF IT HAD BEEN PART OF THE BLUEPRINT, BUT IT 56 WAS VERY DIFFERENT THE WAY CONGRESS ULTIMATELY ENACTED IT. IT WAS ATTRACTIVE TO CONGRESSIONAL APPROPRIATORS, BECAUSE IT FORGAVE FHA DEBT ON THE MANDATORY SIDE OF THE BUDGET AND CUT SECTION EIGHT RENTS ON THE DISCRETIONARY SIDE OF THE BUDGET. RECENT -- AN IMPORTANT PORTION OF THE MARK TO MARKET PROGRAM HAS EXCEPTION RENTS THAT ARE STILL ABOVE MARKET. SO THE IDEA THAT, YOU KNOW, THIS HAS ALL BECOME MARKET RENT HOUSING THAT ULTIMATELY COULD BE SUPPORTED BY VOUCHERS, THAT DIDN'T REALLY HAPPEN. THE CISNEROS ASSISTANT SECRETARIES HAD AN AGGRESSIVE FAIR HOUSING AGENDA. CISNEROS BROUGHT IN OFFICIALS AT THE SUB CABINET LEVEL THAT WERE REALLY VERY DEDICATED TO FAIR HOUSING. THE SUB CABINET AND SUB SUB CABINET LEVEL IN PD & R, PIH, OJC, AS WELL AS FHEO, THEY SETTLED OUTSTANDING LITIGATION ON AFFIRMATIVELY FURTHERING AND PROVIDED VOUCHERS TO THE MOBILITY PROGRAMS THAT IMPLEMENTED THOSE SETTLEMENTS. THEY SET THE BASIS OF FURTHER LITIGATION BY PUBLISHING A FAIR HOUSING GUIDEBOOK WHICH IS NOT THE SAME THING AS REGULATIONS, BUT IT HAS BEEN USED SUCCESSFULLY IN LITIGATION TO SHOW THAT COMMUNITIES WEREN'T DOING WHAT HUD HAD SAID THEY OUGHT TO BE DOING. AND THE MOVING TO OPPORTUNITY DEMONSTRATION, WHICH, AGAIN, IS AN OUTGROWTH OF GALTRO, WAS STARTED UNDER JACK KEMP, 57 WAS EMBRACED BY JACK KEMP, BUT THE CISNEROS FOLKS TRIED TO EXPAND IT BEYOND THE ORIGINAL FIVE COMMUNITIES. THEY WERE NOT SUCCESSFUL IN DOING THAT. AND I WILL IN THE INTEREST OF TIME -- I WON'T TELL THE STORY OF HOW THAT CAME TO BE. >> THEN WE HAVE THE 2000 ELECTION, AND THE SECOND BUSH ADMINISTRATION. MEL MARTINEZ HAD BEEN COUNTY EXECUTIVE IN ORANGE COUNTY, FLORIDA, WHICH IS THE EQUIVALENT OF A BIG CITY MAYOR, SO IN EFFECT, THIS WAS ANOTHER MAYOR. HIS MISSION APPARENTLY, PEOPLE WHO WERE THERE AT THE TIME, WHO WERE CLOSE TO HIM, IT WAS BASICALLY TO KEEP HUD OUT OF THE NEWS, KEEP SCANDALS FROM HAPPENING. JUST KEEP THE LID ON. HE DID HAVE TWO AGENDAS: ONE, WHICH I WON'T GO INTO IN DETAIL, WAS REFORMING THE REAL ESTATE SETTLEMENT PROCEDURES ACT, AND ANOTHER WAS ENDING CHRONIC HOMELESSNESS. NOW, YOU KNOW, THE BIPARTISAN CONSENSUS ON HOMELESSNESS CONTINUED. YET ANOTHER ORGANIZATION, THE NATIONAL ALLIANCE TO END HOMELESSNESS, WAS VERY STRONG BIPARTISAN POLITICAL CONNECTION, WENT TO THE NEW BUSH WHITE HOUSE AND SAID YOU KNOW, WE CAN ACTUALLY END CHRONIC HOMELESSNESS, IT'S A SMALL ENOUGH PROBLEM. MARTINEZ COMPLETELY EMBRACED THAT. AND AMONG OTHER THINGS, WHILE HE WAS SECRETARY, BEGAN STRENGTHENING THE EMPIRICAL BASIS FOR HOMELESSNESS POLICY 58 FURTHER WITH THE HOMELESS MANAGEMENT INFORMATION SYSTEM, THE POINT IN TIME COUNT, THE ANNUAL HOMELESS ASSESSMENT REPORT. ALFONSO JACKSON, MARTINEZ LEFT HUD IN ORDER TO RUN FOR THE SENATE, ALFONSO JACKSON HAD BEEN DEPUTY SECRETARY, HE BECAME SECRETARY, HE WAS A FRIEND OF THE PRESIDENT'S, HE WAS THE FIRST AND TO THIS DATE THE ONLY HUD SECRETARY TO COME FROM THE PUBLIC HOUSING INDUSTRY. WHILE JACKSON WAS SECRETARY TO KATRINA AND -- THE KATRINA AND RITA HURRICANES HAPPENED, AND YOU KNOW, I SORT OF CALLED THIS HUD BECOMES A DISASTER RELIEF AGENCY, BECAUSE THAT WAS AN IMPORTANT PART OF WHAT WAS GOING ON. THE APPROPRIATION FOR GRANTS THAT RAN THROUGH CDBG TO REBUILD LOUISIANA, MISSISSIPPI AND TO A LESSER EXTENT TEXAS AND ALABAMA, THEY WERE BIGGER THAN THE BIG CDBG APPROPRIATION. OTHER THINGS THAT HAPPEN WHILE JACKSON WAS SECRETARY WAS REFORMS TO PUBLIC HOUSING FUNDING AND MANAGEMENT. THERE WAS A NEW OPERATING SUBSIDY FORMULA. NOW BASED ON AN EXTERNAL BENCHMARK. HIS ASSISTANT SECRETARY FOR PIH EMBRACED THE RECOMMENDATION OF THAT STUDY THAT PHAS SHOULD HAVE TO FOLLOW THE SAME PRINCIPLES AND ASSET BASED MANAGEMENT THAT THE PRIVATE SECTOR DOES AS A CONDITION OF GETTING OPERATING SUBSIDY FUNDS. I SAID EARLIER THAT QUERA IS BASICALLY THE LAST PIECE OF LEGISLATION. 59 ASSISTED HOUSING POLICY WENT INTO LEGISLATIVE STALEMATE AT THIS POINT. THERE WERE BILLS, PARTICULARLY IN THE HOUSE, SOME OF THEM HAD PROVISIONS THAT WEREN'T VERY CONTROVERSIAL, BUT THEY DIDN'T GO ANYWHERE. THE ADMINISTRATION PROPOSED TO MAKE VOUCHERS A STATE BLOCK GRANT. THAT DIDN'T GO ANYWHERE. THEN TO DEREGULATE IT IN OTHER WAYS, THAT DIDN'T GO ANYWHERE. JACKSON WAS INVESTIGATED FOR VIOLATING THE HUD REFORM ACT, AND IRONIC, GIVEN THAT HIS PREDECESSOR WAS TOLD THAT HE WAS SUPPOSED TO NOT HAVE ANY MORE HUD SCANDALS. RESIGNED, AND STEVE PRESTON BRIEFLY BECAME SECRETARY OF HUD. SO NOW WE COME TO THE OBAMA ADMINISTRATION. SEAN DONOVAN WAS A SOMEWHAT UNUSUAL CHOICE OF SECRETARY OF HUD. HE WASN'T A MAKE, HE WASN'T A MINORITY, HE HAD NO EXPERIENCE, NO ELECTIVE OFFICE. NOT USEFUL AT ALL FOR BALANCING OUT THE CABINET. ON THE OTHER HAND, HE HAD HOUSING EXPERTISE. HE HAD BEEN AT HUD AS DEPUTY ASSISTANT SECRETARY FOR MULTI-FAMILY, HE HAD BEEN HOUSING COMMISSIONER OF NEW YORK CITY, AND HE EVIDENTLY WAS CHOSEN BECAUSE THE HOUSING CRISIS, THE HOUSING FINANCE CRISIS, WAS WHAT TRIGGERED THE GREAT RECESSION, WAS THOUGHT OF AS SOMETHING THAT YOU NEEDED A HUD SECRETARY TO HELP SOLVE, 60 AN INDEED, DONOVAN PARTICIPATED IN DISCUSSIONS OF THE FINANCE SYSTEM AND HOUSING FINANCE SYSTEM WITH THE SECRETARY OF TREASURY AND THE HEAD OF THE FEDERAL RESERVE BOARD 20 A -- TO A DEGREE THAT'S VERY UNUSUAL FOR A HUD SECRETARY. THE ARA PROGRAMS THAT WERE ESSENTIALLY CREATED BY THE OBAMA TRANSITION TEAM WERE IMPLEMENTED BY DONOVAN. HE PUT HIS OWN STAMP ON SOME OF THEM. FOR EXAMPLE, YOU KNOW, GROWING OUT OF THAT, A BIG INFLUENCE ON GREENHOUSING. FHA'S MARKET SHARE HAD PLUMMETED DURING THE 1990S, AND THEN IT CAME BACK IN THE WAKE OF THE GREAT RECESSION, BECAUSE WHAT HAPPENED IS THAT A LOT OF LENDERS BASICALLY FLED THE MARKET, WHEREAS FHA DIDN'T REALLY CHANGE ANYTHING, BUT KEPT UNDERWRITING LOANS TO ITS REGULAR STANDARDS, AND THEREFORE WAS WRITING MORTGAGES WHEN OTHERS HAD STOPPED WRITING MORTGAGES. ALSO UNDER DONOVAN, THERE ARE A COUPLE OF THINGS THAT I'M GOING TO CALL NEW APPROACHES WITH OLD ROOTS, CHOICE NEIGHBORHOODS, IT HARKS BACK TO MODEL CITIES, ATTEMPT TO BE COMPREHENSIVE, WE TALKED ABOUT THAT A BIT EARLIER IN RESPONSE TO KENT'S QUESTION, IT WAS LIKE HOPE SIX IN THE SENSE THAT IT CENTERS AROUND FAIRLY DISTRESSED HOUSING PROJECTS. IT IS AN ATTEMPT LIKE MODEL CITIES TO BRING IN RESOURCES FROM ACROSS THE CITY, FROM ACROSS THE FEDERAL GOVERNMENT, WITH A PARTICULAR 61 NEW EMPHASIS ON SCHOOL QUALITY, ON STRENGTHENING SCHOOLS. WE STILL DON'T KNOW WHAT THE RESULT IS GOING TO BE. AND THEN THE TRANSFORMATION INITIATIVE. A SET-ASIDE OF PROGRAM FUNDS FOR RESEARCH, AMONG OTHER THINGS, AND THAT KIND OF HARKS BACK TO THE CREATION OF PD & R AND TO ITS REVIVAL UNDER KEMP, THE WHOLE IDEA THAT ARTICULATED PERHAPS A LITTLE DIFFERENTLY IN THE OBAMA ADMINISTRATION AS AN EVIDENCE-BASED POLICY MAKING. ANOTHER NEW APPROACH WITH OLD ROOTS IS THE RENTAL ASSISTANCE DEMONSTRATION. YOU CAN SORT OF SEE THIS AS, WELL, THE CISNEROS BLUEPRINT IS FINALLY HAPPENING. CONVERTING PUBLIC HOUSING STREAMS TO SECTION EIGHT SUBSIDIES, WITH AN ELEMENT OF TENANT CHOICE, SOONER OR LATER, TENANTS CAN TAKE THEIR VOUCHERS AND MOVE OUT OF THE PROPERTIES, MIXED FINANCING AND OWNERSHIP. BY THIS TIME, THE PUBLIC HOUSING INDUSTRY HAD NOTICED THE SECTION EIGHT HAD A MORE STABLE FUNDING STREAM THAN PUBLIC HOUSING OPERATING SUBSIDIES AN CAPITAL GRANTS, AND ALSO I THINK WHAT'S GONE ON HERE IS THAT WITH HOPE SIX AND OTHER THINGS HAVING LARGELY TAKEN DOWN ALL THE BIG DISTRESSED PUBLIC HOUSING PROPERTIES, THE PUBLIC HOUSING INDUSTRY IS MORE WILLING TO TAKE RISKS THAN IT USED TO BE. SO EVEN THOUGH CONGRESS HAS ONLY ENACTED IT AS A LIMITED PROGRAM WITH A CEILING ON THE NUMBER OF UNITS, THE PUBLIC 62 HOUSING INDUSTRY'S RESPONSE HAS BEEN VERY ENTHUSIASTIC. AND THEN WE COME TO THE CURRENT SECRETARY, JULIAN CASTRO. HE IS THE SECOND MAYOR OF SAN ANTONIO, AND THE FOURTH CHIEF CONNECTION EXECUTIVE OF A LOCAL GOVERNMENT TO BE CHOSEN TO HEAD HUD. HE HAS KIND OF RETURNED TO THE THEME OF UNIFYING THE MISSION OF HUD BY CALLING HUD ACROSS ITS PROGRAMS AND SILOS THE DEPARTMENT OF OPPORTUNITY. HE HAS ISSUED A FINAL REGULATION ON AFFIRMATIVELY FURTHERING FAIR HOUSING, SOMETHING THAT I THOUGHT MIGHT NOT HAPPEN DURING THE OBAMA ADMINISTRATION. THERE IS STILL AT LEAST ONE PIECE OF UNFINISHED BUSINESS, WHICH IS TO EXTEND THOSE AFFIRMATIVELY FURTHERING REGULATIONS TO THE STATE, WHICH IS PARTICULARLY IMPORTANT NOW THAT THE STATES REALLY HAVE THE HOUSING PRODUCTION RESPONSIBILITY. CASTRO HAS ALSO REQUESTED INCREMENTAL VOUCHERS AND IN PARTICULAR, FOR HOMELESS FAMILIES, GIVEN A GROWING EVIDENCE ABOUT THE IMPORTANCE FOR HOUSING VOUCHERS, NOT ONLY FOR HOUSING MOBILITY BUT ALSO FOR ENDING FAMILY HOMELESSNESS. HUD HAS COME A LONG WAY IN 50 YEARS, BUT WHAT STRIKES ME IS HOW ENDURING SOME OF HUD'S CHALLENGES HAVE BEEN. I'VE JUST TALKED ABOUT AFFIRMATIVELY FURTHERING FAIR HOUSING, AND HOW TO MAKE SOME HEADWAY ON PROVIDING HOUSING OPPORTUNITIES FOR POOR PEOPLE AND MINORITIES IN PLACES THAT 63 ARE SAFE FOR THEIR KIDS, WHERE THEIR KIDS HAVE ACCESS TO HIGH QUALITY SCHOOLS. ANOTHER ONE THAT WE'VE TALKED ABOUT A LITTLE BIT EARLIER IS HOW TO FOLLOW A SUCCESSFUL PLACE-BASED POLICY THAT ACTUALLY TURNS AROUND A DISTRESSED NEIGHBORHOOD. I THINK THAT WE REALLY HAVEN'T FIGURED OUT EITHER -- MAYBE NOT HOW TO DO IT, OR MAYBE NOT HOW TO ASSEMBLE THE RESOURCES THAT ARE NEEDED TO DO IT. AND THEN FINALLY, HOW TO OVEROME THE BUDGETARY CHALLENGES TO MAKING HOUSING ASSISTANCE A FAIR AND EFFECTIVE PART OF THE SOCIAL SAFETY NET, HOW TO GROW HOUSING ASSISTANCE BEYOND 5 MILLION OR SO UNITS -- AT WHICH IT'S CURRENTLY STALLED. SO I WILL CONCLUDE BY SAYING THAT HUD HAS HAD MANY STRONG AND EFFECTIVE SECRETARIES, AND THIS IS WHAT, ON THE BASIS OF MY REVIEW, STARTING WITH ROBERT WEAVER, 1965, THROUGH THE PRESENT, WHICH IS WHAT I THINK IT TAKES TO BE A GOOD HUD SECRETARY. YOU HAVE TO BE A VISIONARY, YOU HAVE TO BE A GOOD POLITICAL INFIGHTER AND A STRONG ADMINISTRATOR. IT'S A TALL ORDER. >> SO I THINK WE HAVE TIME FOR A FEW MORE QUESTIONS? TWO BRIEF QUESTIONS. >> ANYONE TWEETING A QUESTION? YES? >> CAN YOU CLARIFY THE UDAG PROGRAM AND ITS COMPETITIVENESS? >> PARDON? >> YOU CAN CLARIFY THE UDAG PROGRAM AND ITS 64 COMPETITIVENESS? >> OKAY. THE UDAG PROGRAM WAS NOT ALLOCATED BY FORMULA. THERE WAS A LIST OF ELIGIBLE CITIES. AND SO IF YOU WERE ON THAT LIST, YOU COULD APPLY FOR A UGA -- UDAG GRANT. YOU HAD TO DEMONSTRATE THAT WITHOUT THE GRANT, THE ECONOMIC DEVELOPMENT PROJECT WOULDN'T GO FORWARD. BUT IF YOU WERE ABLE TO MAKE THAT DEMONSTRATION, AND YOU WROTE A PROPOSAL THAT LOOKED LIKE IT WAS FEASIBLE, IT COULD BE FINANCED, IT WAS GOING TO CREATE A LOT OF JOBS, THEN YOU GOT FUNDED. AND AS I SAID, IT WAS KIND OF A ROLLING APPLICATION IN WHICH AS PROJECTS BECAME FUNDABLE, THEY GOT FUNDED, RATHER THAN HAVING FUNDING ROUNDS, AS WE KNOW IT, FROM SAY THE HOMELESS PROGRAMS NOW. LARRY. >> IF I MAY SUGGEST A FOOTNOTE, YOU MENTIONED THE FAIR HOUSING INITIATIVES PROGRAM, THERE WAS THE FAIR HOUSING ASSISTANCE PROGRAM, WHICH WORKED WITH STATE AND LOCAL FAIR HOUSING AGENCIES, AND AT THE TIME WE HAD THOSE TWO PROGRAMS, JOHN KNAPP WAS GENERAL COUNSEL AND BOB NIP WAS DIRECTOR OF PUBLIC AFFAIRS, SO WE HAD KNAPP AND NIP, TALKING ABOUT FPAP AND FPIP. >> I DIDN'T QUITE GET LARRY'S QUESTION BUT I DID HEAR HIM MENTION JOHN KNAPP AND JOHN KNAPP, WHO WAS JOHN PIERCE'S COUNSEL, WAS ANOTHER OFFICIAL WHO DESERVES TO BE CALLED OUT AND MENTIONED BY NAME. 65 HE WAS VERYO FOE SAM PIERCE CHAMPIONED FAIR HOUSING IT WAS AS A PARTNERSHIP WITH HIS GENERAL COUNSEL, JOHN KNAPP. >> I THINK SOMEBODY IS COMING FORWARD. ONE MORE QUESTION. >> I THINK WE'RE AT TIME. I'M GOING TO CALL IT. >> OKAY. >> [APPLAUSE] >> >> SO IT IS OBVIOUS WHY WE ASKED JILL TO DO THIS. AND PEOPLE -- A REMINDER TO PEOPLE, THE OVERVIEW WE HEARD IS THE BASIS FOR THE FIRST CHAPTER IN HUD AT 50, CREATING PATHWAYS TO OPPORTUNITY, WHICH INCLUDES SIX OTHER CHAPTERS BY RESEARCHERS AND PROMINENT RESEARCHERS, MANY OF WHOM SPENT TIME AT HUD. IT WILL BE AVAILABLE IN OCTOBER, AND IT IS A VOLUME TO CELEBRATE HUD AT 50, AND IT STARTS OFF WITH THIS. SO THANK YOU AGAIN! >> [APPLAUSE]

See also

External links

References

This page was last edited on 11 October 2017, at 19:10
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