The 1997-1998 year was a repeat of prior years in terms of policy development. NACCED worked in partnership with the National Association of Counties (NACo) to influence federal legislation affecting community and economic development and affordable housing programs. Once again, NACCED and NACo were instrumental in protecting and securing increased funding for the Community Development Block Grant (CDBG) and HOME Investment Partnerships programs. Additionally, NACCED, NACo and others helped to convince the chairmen of the congressional tax-writing committees to reject the Clinton administration's proposal to effectively repeal the so-called "2% de minimis rule," which encourages corporate investment in tax-exempt single-family and multifamily housing bonds. We also joined with other organizations in an ambitious campaign to build support for increasing the volume caps affecting tax-exempt bonds and Low-Income Housing Tax Credits. As Congress writes a tax bill this fall, one or both of theses increases are strong candidates for inclusion. NACCED and NACo are also working with others pressing for final congressional action on legislation to reform and deregulate the public housing program, block granting homeless funds, and implementing the Section 8 "mark-to-market" program in a manner that protects existing tenants and this vital affordable housing stock.

Increasingly, NACCED is looked to by its members for technical assistance in their implementation of affordable housing, and community and economic development programs. Whether it is for interpretation of a federal statute or regulation or identification of who has conducted a particular program, help is only a phone call away. Our level of service is unmatched in this area. Also HUD regularly consults with NACCED staff and members as it formulates policies regarding affordable housing, community and economic development. In short, NACCED is your voice in Washington, whether it is for advocacy or technical assistance. As our membership grows we can and plan to do even more.

During the 1997-1998 year, NACCED continued working with HUD on the regulatory front in the areas of technology, economic development, homeless program consolidation, and consolidated planning. The funding that NACCED receives under the HOME Investment Partnerships Program is another way that we continue to help our membership through housing finance workshops, peer-to-peer matching of practitioners, and in the delivery of information and technical assistance.

In closing, a special thanks to all those actively involved in NACCED: board members, officers, committee chairs, vice chairs and committee members. Your hard work is much appreciated and truly has made another successful year for NACCED.

Sincerely,

[ signed ] 

Arleeta O. Terrell
President

• Much of the past year was spent protecting and increasing funding. NACCED members and staff assisted NACo in convincing Congress to increase FY 1998 funding for the core HUD programs of Community Development Block Grants (CDBG) and HOME Investment Partnerships at $4.675 billion and $1.5 billion, respectively. This represents a $75 million increase in CDBG and a $100 million increase in HOME. This was an incredible feat, coming as it did in the first year of a five-year balanced budget act that placed sharp constraints on federal domestic spending. However, over the objections of NACo, NACCED and others, Congress also increased the set-asides with CDBG for small, often unrelated programs to $499.8 million.
  


• President Clinton's FY 1999 budget requested a $50 million increase in CDBG to $4.725 billion and another $50 million increase in HOME funding to $1.55 billion. In addition, and in response to protest from NACo, NACCED and others, the budget proposed reducing set-asides within CDBG to $292 million.
  


• In an effort to educate Congress as to the benefits of the CDBG and HOME programs in communities and as justification for maintaining their funding levels, Arlington County, Va., Supervisor Al Eisenberg made a presentation at an April 23, 1998, congressional briefing. The briefing, sponsored by 14 national organizations representing state and local government elected officials and practitioners and nonprofit groups, was endorsed by Senate HUD Appropriations Subcommittee member Patrick Leahy (D-VT) and attended by more than 75 persons.
  


• On April 22, 1998, Mr. Eisenberg appeared on behalf of NACo, NACCED and others before the House Subcommittee on VA, HUD and Independent Agencies Appropriations Subcommittee in support of increased funding for the CDBG and HOME programs. He described the proliferation of new set-asides in the CDBG program as a "hidden cut" despite an increase in the programs' overall funding. In response, he urged the subcommittee to provide $4.725 billion in funding for CDBG, while reducing the set-asides to those that have been part of the program since its inception - Native Americans and Section 107 special purpose grants totaling $92 million. He also recommended increasing HOME funding to $1.55 billion. The House-passed version of the FY 1999 HUD funding bill, H.R.4194, provides $4.725 billion for CDBG and increases HOME to $1.6 billion. The Senate-passed bill includes $4.750 billion for CDBG and $1.55 billion for HOME. Both bills reduce the CDBG set-asides over FY 1998, something NACo and NACCED fought hard for and will attempt to hold in a subsequent House-Senate Conference Committee.
  


• Although the five-year balanced budget act assumes cuts in CDBG and HOME in the out years covered by the plan, NACo and NACCED have adopted the posture of taking it one year at a time in fighting for full funding for these and other programs.
  


• NACo, NACCED and other supporters of tax incentives to stimulate investment in affordable housing had to expend considerable effort to increase the volume caps for tax-exempt private activity bonds and Low-Income Housing Tax Credits. H.R. 979 would increase the bond volume cap (which includes the authority to issue Mortgage Revenue Bonds to assist first-time homebuyers and multifamily housing bonds to stimulate production of rental housing) is now the most widely co-sponsored bill in the Congress with 309 members having added their names. H.R. 2990 to increase the tax credit cap now has 269 co-sponsors. Companion bills, S. 1251 (bonds) and S. 1252 have 54 and 65 Senate co-sponsors, respectively. It is hoped that the level of co-sponsorship will help convince the chairmen of the congressional tax-writing committees to include these volume cap increases in the tax legislation that Congress considers this fall.
  


• A third tax incentive, which stimulates investment in affordable housing, did come under attack. For the third year in a row, President Clinton proposed in his FY 1999 budget a provision effectively repealing the "2% de minimis rule." Under the rule, corporations may purchase tax-exempt bonds, including housing bonds, in an amount no greater than 2 percent of their assets. The rule is critically important to preserving the market for tax-exempt single-family and multifamily housing bonds. Fannie Mae and Freddie Mac are major corporate purchasers of these bonds and together constitute more than 25 percent of the market. A major grassroots effort by NACo, NACCED and others succeeded in convincing the chairmen of the congressional tax-writing committees to reject this ill-conceived proposal.
  


• 1998 saw implementation of provisions, which were incorporated in the FY 1998 HUD appropriations legislation, to scale back the sharply escalating cost of renewing expiring project-based and tenant-based Section 8 rent subsidies. Automatic rent adjustment built into these contracts has pushed rents in many of the 8,500 projects well above the "Fair Market Rents" for comparable housing. The cost of renewing these contracts is projected to grow from $3.6 billion in FY 1997 to $19 billion in the year 2002, at which point it would consume nearly all of HUD budget. Action was needed on two fronts: enough funding to renew these contracts had to be included in the appropriations bill and authority for the rents on these contracts to be restructured and "marked to market," that is reducing them to comparable market rent levels. The appropriations bill provided full funding for renewals and it provided priority to state and local housing agencies to serve as "Participating Administrative Entities" to restructure project mortgages with the twin objectives of saving the federal money while protecting the tenants. The permanent mark-to-market program is to be implemented via regulation in October 1998.
  


• NACo and NACCED joined in a push to get a House-Senate Conference Committee to resolve differences between differing versions of public housing reform legislation. Both bills would have imposed new requirements on public housing authorities to conform their needs assessment and resource allocation plans with the county's consolidated plan, deregulate the public housing programs, and create two block grants—one for operating assistance and one for capital assistance. The bills diverged on such controversial issues as repealing of the 1937 Housing Act, the core federal housing statute; modifying of the Brooke amendment limiting tenant rent contributions; and giving the HUD secretary authority to withhold CDBG funds from a community whose actions directly or indirectly contributed to a housing authority within its jurisdiction being declared "troubled." Conferees could not resolve their differences in 1997. When the House version of the FY 1999 HUD appropriations bill, H.R. 4194 reached the House floor in July 1998. House Housing Subcommittee Chairman Rick Lazio succeeded in adding H.R. 2, the House-passed version of public housing reform legislation to the bill. This is intended to have the matter resolved in the context of a "must-pass" bill. NACo, NACCED and others continue to press for legislation deregulating the public housing program, creating two block grants, tying public housing plans to a community's consolidated plan, opposing repeal of the 1937 Housing Act, promoting sensible targeting of units to promote mixed-income projects opposing the conditioning of a county's CDBG funds, and opposing a provision block granting all housing funds.
  


• In February 1999, the House passed H.R. 217, a bill proposed by Chairman Lazio to consolidate the McKinney Act's homeless housing programs into two programs—one a categorical permanent housing program, and one a formula-driven block grant to states and entitlement counties and cities. The legislation calls for a local homeless planning board to formulate the local homeless needs and resource an allocation plan, a required nonfederal match of 50 percent, a requirement that at least 51 percent of the funds be passed through to nonprofit organizations, and a limitation to 35 percent on the amount of funds that may be used for supportive services for the homeless. At the February Legislative Conference, NACo and NACCED, despite reservation over parts of the bill, urged the House to pass it so as to move it through the legislative process. Despite House passage, the Senate did not consider the bill, opting to wait until the General Accounting Office completes a study of all federal programs related to homelessness. Subsequently, the Clinton administration withdrew support for its homeless housing consolidation bill, one that is more responsive to NACCED and NACo's concerns. It provides for a single formula-driven block grant and is considerably more flexible in what constitutes eligible non-federal matching funds.
  


• In June, 1998 House Housing Subcommittee Chairman Rick Lazio (R-NY) introduced H.R. 3899, the "American Homeownership Act of 1998." The bill re-authorizes the HOME Investment Partnerships program for five years at an annual funding level of $1.5 billion. It also includes a NACo and NACCED-backed HOME loan guarantee program, similar to the Section 108 loan guarantee program under the Community Development Block Grant program. The bill provides $25 million in grants for each of FY 1999 and FY 2000 for homeownership zones. The bill also re-authorizes a provision in the Housing and Community Development Act of 1992 that provided $15 million annually through FY 2003 in grants to state and local governments to create strategies to remove regulatory barriers to affordable housing. It would also require, as a condition of receiving CDBG funds, that communities make a "good faith" effort to remove any regulatory barriers it uncovered. In addition, it would require that all federal regulations include a housing impact analysis and a certification by the federal agency promulgating the regulation that it will have no significant deleterious impact on the availability of affordable housing. HUD is charged with creating a model impact analysis for use by other agencies. At a news conference announcing the bill's introduction, Arlington County, Va., Supervisor Al Eisenberg offered NACo's and NACCED's support for the bill. The House Housing Subcommittee has approved the bill.
  

• Throughout 1998, NACCED worked with grantees as they moved from the Cash Management Integrated System (CMI) to the Integrated Disbursement Information System (IDIS). NACCED has been an active participant on the IDIS list serve and facilitates information back to grantee members. Additionally, NACCED has advocated for IDIS to be linked to Community 2020 to make the two separate programs more useful for local practitioners.
  


• Throughout 1998, NACCED aided its members in their struggle to get Section 108 loan guarantees processed through HUD. While NACCED has advocated for a simplified, streamlined underwriting guidelines, the Section 108 loan process is still hampered by a terribly bureaucratic system. Since grantees continue to have problems getting their loans approved, NACCED will continue its efforts to get HUD to streamline the process.
  


• In March 1998, NACCED communicated with HUD, indicating that members were frustrated by the department's awarding of homeless grants. Despite the department's emphasis on local priority setting, counties complained that their highest priorities were not being funded. Rather, their fourth, fifth or sixth were funded. NACCED pointed out that block-granting homeless housing programs would resolve this problem and urged HUD to reconsider its opposition to legislation that would achieve this objective. In this same communication, NACCED reported the concerns of members over the delay in receiving their FY 1998 grants. HUD made assurances that the problem was being addressed.
  


• In June 1998, members of the NACCED Consolidated Planning Task Force met with key policymakers and program staff to discuss issues surrounding the next round of consolidated plan submissions. The topics covered include: what data HUD will require grantees to use, other sources of data that is acceptable, and how the guidance on the plan can be improved. NACCED urged HUD to use census updates as they become available. A follow-up to this discussion included asking HUD to give the field staff and grantees guidance on the kind of data that is acceptable. In the next few months, the task force will be looking into how to pro-actively work with HUD to ensure that guidance is put out in a timely manner.
  

The HOME Technical Assistance offered through NAHTI is possible via a cooperative agreement with HUD. NACCED's first contract was completed in December 1997. The second HUD contract has been extended from September to December 1998.

From September 1997 to September 1998, the following TA and training activities were conducted under the HOME cooperative agreement:

• During the last year, the popular beginner workshop, "How to Finance Affordable Housing: Bringing it All HOME," was offered in Denver. This training course, which is taught by affordable housing practitioners, provides a nuts-and-bolts overview of the development process and HOME. Next year this course is expected to be offered in two additional cities.
  


• The intermediate workshop, "Affordable Housing Finance: Putting the Deal Together and Bringing it All HOME" provides a detailed examination of the many financing tools including tax-exempt bonds and the Low-Income Housing Tax Credit that are often used to develop affordable housing. While the course provides specific information on the different steps of the development process, it focuses on how to develop a strong proforma. NACCED offered two intermediate workshops during the past year in Cleveland and Chicago. Next year, NACCED expects to take the course to at least two additional cities in the coming year.
  


• NACCED continues to offer the HOME "peer match" program. This program exemplifies NACCED at its best, with members sharing their time, expertise and resources to help those members who might require hands-on assistance in specific areas of the HOME program. Peer matches in 1997-1998 included the following: Palm Beach County, Fla., and Essex County, N.J.; Suffolk County, N.Y., and Clark County, Wash.; and the Arkansas Development Finance Authority and the South Carolina Housing Agency.
  


• NACCED staff collaborated with the Association of Local Housing Finance Agencies to write the guidebook, "Managing Local Opposition to Affordable Housing: Strategies and Tools." This guide provides case studies on how some communities are dealing with NIMBYism toward affordable housing. It also offers recommendations on how to establish a pro-active program to combat NIMBYism.
  


• NACCED held a HOME session during NACo's Steering Committee meeting at the 1997 Annual Conference. This session was designed to engage local county elected officials and affordable housing practitioners in a discussion on how the two different groups can effectively work together to combat NIMBYism to affordable housing.
  

The conference featured a series of legislative and regulatory updates presented by local politicians and HUD officials. The honorable Vernon Gray, NACo's first vice president and a council member from Howard County, Md., gave the opening remarks. The keynote address was given by Dwight Robinson, deputy secretary of the U.S. Department of Housing and Urban Development (HUD).

Additionally, other HUD staff were on hand to speak on the most current issues and initiatives at the department. Frank Davis, director of the Office of Departmental Operations and Coordination, explained HUD's management reform plan and its impact on grantees. Deirdre Maguire-Zinni, director of Entitlement Communities division for the Office of Community Planning and Development, and Mimi Kolesar, director of the Program Policy division of the Office of Affordable Housing Programs briefed NACCED members on recent regulatory changes to the CDBG and HOME programs, particularly in light of IDIS.

The conference featured a series of concurrent sessions that followed three tracks—affordable housing, community development and economic development. Sessions such as "Creating the Right Economic Development Strategy for Your Community," "Fostering Strong Community Partnerships: Working with Local Nonprofits," and "Servicing Housing and Small Business Loan Portfolios" offered participants an opportunity to see how other counties are running their programs. The counties were also able to talk about changes to federal programs and how they will impact local government, and to discover new ideas for funding housing, community and economic development initiatives.

In addition, Phil Rosenberg, personnel director, Broward County, Fla., was the speaker at the Professional Development General session. Mr. Rosenberg talked about the legal rights and responsibilities of the dual role of an employer and a manager. Finally, he presented ways to accommodate the rights of employees.

Workshops 
As a result of the cooperative agreement with HUD (please see HOME Technical Assistance Project above), NACCED provided three housing finance workshops over the course of the last year. NACCED's beginner workshop, "How to Finance Affordable Housing: Bringing it all HOME," brought together a variety of attendees including non-profits, county agencies, banks and other affordable housing practitioners to review the basics of affordable housing finance and development. The workshop emphasizes hands-on learning through interactive case studies and group work. NACCED's intermediate course, entitled "Affordable Housing Finance: Putting the Deal Together and Bringing it All HOME," is designed for those with three or more years of affordable housing finance experience. Practitioners traveled from all over the country to participate in these workshops, and did not leave disappointed. The course is designed to give practitioners with previous experience of the development process an opportunity to fine tune their skills by working through a project from its planning stages to its closing. NACCED is committed to the continued delivery of quality and affordable training to its members.

Board and Committee Meetings
NACCED held its quarterly board of directors and committee meetings just prior to the NACo Legislative Conference in Washington, D.C., in February. The meetings featured policy updates by key HUD staff as well as legislative updates by NACCED and NACo staff. As a precursor to the committee meetings, NACCED provided a hands-on session pertaining to IDIS at HUD headquarters.

In July, NACCED held its quarterly board of directors and committee meetings prior to the NACo Annual Meeting in Portland, Ore. The meetings in Portland served as an opportunity for the board and committees to consider resolutions on funding for and refinements to key housing and community development programs for inclusion in the NACo County Platform, prior to the Congressional re-authorization process. Some of the issues considered during the meetings included HOME and CDBG set-asides, HUD FY 1999 Appropriations, brownfields clean-up, the homeless housing programs block grant, and Lazio's National Homeownership bill.

This year's 23rd NACCED Annual Conference will be held at the Hyatt Regency in Sedgwick County, Kan. This conference is expected to draw nearly 200 participants from across the country for informative sessions, interactive bus tours, and legislative and regulatory updates. Additionally, this conference will hold a new entitlement training in a preconference workshop and a technology fair as part of the program.

You don't want to miss next year's 24th Annual County Community and Economic Development Conference and Training, which will convene Sept. 25-29, 1999, in Los Angeles. This conference is hosted by Los Angeles and San Bernardino counties. Scheduled at the beautiful Marina Beach Marriott in Marina Del Ray, the conference will feature insightful breakout discussion sessions on varied community development, economic development and affordable housing topics, a professional development session, legislative and regulatory updates, a tour of local HOME and CDBG funded projects, and much more.

Our members continue to look to NACCED's regular Alert mailings for up-to-the-minute news from Washington. From the latest developments on Capitol Hill to the most recent CPD notices and regulations, from policy letters and memoranda to job listings, the NACCED Alert covers it all. And because there is no delay for printing, it is mailed to members the day it is written.

In addition to the membership, these two primary publications are regularly sent to interested persons in the field, potential members, and HUD staff. Additionally, conference brochures/programs and annual reports from past years, are given out to demonstrate NACCED's activities and county models in the field.

In April 1998, NACCED's web site was put onto the Internet with the help of Dan Jackson of San Bernardino County, Calif. Mr. Jackson helped design and put up the boilerplate of the web site. This site is a great opportunity to get copies of the Alert, recent policy memos and waivers, and talk to other members via the bulletin board section. This new service provides NACCED an opportunity to disseminate information to a broad range of individuals and agencies with expediency and ease. The NACCED web site address is: http://www.nacced.org.

Updated yearly, NACCED's membership handbook includes a copy of the NACCED by-laws, a current listing of all NACCED members, a description and the purpose of each committee along with a list of the members of that committee, and extra space for members to file copies of the Alert and/or Insights for future reference.

NACCED is also pleased to provide services on an individual basis. In 1997-1998, NACCED answered more than 200 requests for information on affordable housing, community development, and economic development, and many more requests for technical assistance requiring examination of regulations or statutes, consultation with HUD staff, or other research.

NACCED's cooperative agreement with HUD has allowed the association to continue its technical assistance services during 1997-1998 (please see HOME Technical Assistance Project above). NACCED is able to offer on-site peer-matching technical assistance on the HOME program at no cost, as well as more comprehensive assistance and research.

NACCED Awards Selection Committee Chair Arleeta Terrell announced the 1997 recipients of the Awards of Excellence and HOME Awards at the 1997 Annual Conference in Metro-Dade County, Fla. The NACCED 1997 Awards Selection Committee recognized seven winners in areas of community and economic development, affordable housing, and HOME.

The first award, under the category of affordable housing, was given to Metro-Dade County's Dixie Heights Gardens Affordable Homeownership Project. In the wake of Hurricane Andrew, many affordable housing units disappeared, increasing demand and, consequently, housing prices dramatically. The objective of the homeownership project was to provide affordable homes for families that had been displaced by the hurricane. This project was made possible through a partnership among banks, the county, and the West Perrine Community Development Corporation.

The second award, the first of two under the category of community development, was given to Fairfax County, Va.'s Consolidated Plan Citizen Participation and Funding Process: "A Framework for Strategic Change." This streamlined and coordinated process for allocating resources includes the following objectives: encourage broad-based community involvement; strengthen the coordination of funding objectives, priorities, and allocations; and focus on results and accountability of funded organizations and programs.

The second award under the category of community development was given to Yvonne Atkinson Gates of the Clark County, Nev., Early Childhood Development Center. This center provides services that prepare preschool children for prosperous educational careers. Additionally, the center has a prenatal childhood development center, a diagnostic teaching center, and a parent training center.

The fourth award, given in economic development, was awarded to Micro Industry Credit Rural Organization (MICRO) of Pima County, Ariz. This organization provides loans and technical assistance to help borrowers start as well as expand their business. Additionally, MICRO provides a line of credit for business owners to buy materials for a job.

The fifth award, the HOME award, was given to the Community Integrated Living Arrangement (CILA) Program in Cook County, Ill. CILA is a group home that is staffed by a live-in family unit that does not change with a 'shift,' and the number of its tenants does not usually exceed three disabled persons.

The sixth award, given under the affordable housing category, recognized Canticle Place in DuPage County, Ill. This project is the first housing in the county for people living with AIDS, and the first in metropolitan Chicago to also house family and friends of people with AIDS. This project was made possible with the help of a nonprofit developer, Wheaton Franciscan Sisters.

Finally, the second award under the affordable housing category was given to Los Angeles County's Margarita Mendez Apartments. These apartments are the first transitional housing and support services facility for emancipated foster youth in the State of California.

These award winners have been featured in NACCED's newsletter, Insights, throughout the 1997-1998 year. Congratulations to all 1997 NACCED Award winners!

THE ROY HOOVER AWARD 
The Roy Hoover Memorial Award, NACCED's most prestigious honor, recognizes an individual who exhibits the qualities of the late Roy Hoover, former director of the Department of Urban Affairs for Los Angeles County, Calif. Mr. Hoover was also the founder and first president of NACCED (1978-1979).

Those recognized are individuals who have made extraordinary contributions and achieved significant accomplishments in his or her service to NACCED, county government, and the housing, community and economic development field.

The 1997-1998 Roy Hoover Award was given to Al Linden, former community development director for Union County, N.J., for his 30 years of outstanding and dedicated service to counties and NACCED.

Elected to serve for two-year terms on NACCED's Board of Directors were: Virginia Edwards, Monmouth County, N.J.; Terry Gonzalez, Los Angeles County, Calif.; W.D. Morris, Orange County, Fla., Peter Munroe, Clark County, Wash.; and Walter D. Webdale, Fairfax County, Va.

The following individuals were asked to fill out the one-year terms: Jeffry Bertrand, Essex County, N.J.; W. Lance Crawford, Greenville County, S.C.; and Irene Hart, Sedgwick County, Kan.  They join Suzanne Hayes, Cook County, Ill., and Philip Smith, DuPage County, Ill., to
complete the 10-member board of directors.

Incoming NACCED President Arleeta Terrell designated the following individuals to serve
as chairs for NACCED's Housing, Community Development, Economic Development,
Membership and Program Support committees:

Housing—Chair: Julie Rynerson-Hemphill, San Bernardino, Calif.; Vice-Chair: Brian Cramer,
Tarrant County, Tex.

Community Development—Chair: Linda Peterson, King County, Wash.; Vice-Chair: Tony Crapp, Metro-Dade County, Fla.

Economic Development—Chair: Judy Karon, Ramsey County, Minn.; Vice-Chair: Melvin
Richardson, Fulton County, Ga.

Membership—Chair: Frank Newton, Cobb County, Ga.; Vice-Chair: Lenita Jacobs-Simmons, Charleston County, S.C.

Program Support—Chair: Barbara Prescott, Sedgwick County, Kan.; Vice-Chair: Carlos
Jackson, Los Angeles County, Calif.

Current Associate Members

NACCED gratefully acknowledges its affiliate members, Planners Diversified, AOG Consulting, Application Oriented Design, and Mullin and Lonergan Associates for their generous financial support of NACCED's 22nd Annual County Community and Economic Development Conference.

Executive Director
John C. Murphy

Director of Community and Economic Development 
Sarah Davidson
(Replaced by Shawna La Rue in May 1998)

HOME Project Coordinator 
Shawna La Rue
(Replaced by Julie Fogarty in May 1998)

Administrative Assistant
Marie A. Brewer