Affordable Housing Needs in The City of Houston - Unique Challenges and Opportunities

10/31/2016
AFFORDABLEHOUSINGNEEDSINTHECITYOFHOUSTON:UNIQUECHALLENGESANDOPPORTUNITIES
[HouseHearing,110Congress]
[FromtheU.S.GovernmentPrintingOffice]
AFFORDABLEHOUSINGNEEDSIN
THECITYOFHOUSTON:UNIQUE
CHALLENGESANDOPPORTUNITIES
=======================================================================
FIELDHEARING
BEFORETHE
SUBCOMMITTEEON
HOUSINGANDCOMMUNITYOPPORTUNITY
OFTHE
COMMITTEEONFINANCIALSERVICES
U.S.HOUSEOFREPRESENTATIVES
ONEHUNDREDTENTHCONGRESS
FIRSTSESSION
__________
OCTOBER29,2007
__________
PrintedfortheuseoftheCommitteeonFinancialServices
SerialNo.11076
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39914PDFWASHINGTONDC:200?
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https://www.gpo.gov/fdsys/pkg/CHRG110hhrg39914/html/CHRG110hhrg39914.htm
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10/31/2016
HOUSECOMMITTEEONFINANCIALSERVICES
BARNEYFRANK,Massachusetts,Chairman
PAULE.KANJORSKI,PennsylvaniaSPENCERBACHUS,Alabama
MAXINEWATERS,CaliforniaRICHARDH.BAKER,Louisiana
CAROLYNB.MALONEY,NewYorkDEBORAHPRYCE,Ohio
LUISV.GUTIERREZ,IllinoisMICHAELN.CASTLE,Delaware
NYDIAM.VELAZQUEZ,NewYorkPETERT.KING,NewYork
MELVINL.WATT,NorthCarolinaEDWARDR.ROYCE,California
GARYL.ACKERMAN,NewYorkFRANKD.LUCAS,Oklahoma
JULIACARSON,IndianaRONPAUL,Texas
BRADSHERMAN,CaliforniaSTEVENC.LaTOURETTE,Ohio
GREGORYW.MEEKS,NewYorkDONALDA.MANZULLO,Illinois
DENNISMOORE,KansasWALTERB.JONES,Jr.,North
MICHAELE.CAPUANO,MassachusettsCarolina
RUBENHINOJOSA,TexasJUDYBIGGERT,Illinois
WM.LACYCLAY,MissouriCHRISTOPHERSHAYS,Connecticut
CAROLYNMcCARTHY,NewYorkGARYG.MILLER,California
JOEBACA,CaliforniaSHELLEYMOORECAPITO,West
STEPHENF.LYNCH,MassachusettsVirginia
BRADMILLER,NorthCarolinaTOMFEENEY,Florida
DAVIDSCOTT,GeorgiaJEBHENSARLING,Texas
ALGREEN,TexasSCOTTGARRETT,NewJersey
EMANUELCLEAVER,MissouriGINNYBROWNWAITE,Florida
MELISSAL.BEAN,IllinoisJ.GRESHAMBARRETT,SouthCarolina
GWENMOORE,Wisconsin,JIMGERLACH,Pennsylvania
LINCOLNDAVIS,TennesseeSTEVANPEARCE,NewMexico
ALBIOSIRES,NewJerseyRANDYNEUGEBAUER,Texas
PAULW.HODES,NewHampshireTOMPRICE,Georgia
KEITHELLISON,MinnesotaGEOFFDAVIS,Kentucky
RONKLEIN,FloridaPATRICKT.McHENRY,NorthCarolina
TIMMAHONEY,FloridaJOHNCAMPBELL,California
CHARLESA.WILSON,OhioADAMPUTNAM,Florida
EDPERLMUTTER,ColoradoMICHELEBACHMANN,Minnesota
CHRISTOPHERS.MURPHY,ConnecticutPETERJ.ROSKAM,Illinois
JOEDONNELLY,IndianaTHADDEUSG.McCOTTER,Michigan
ROBERTWEXLER,FloridaKEVINMcCARTHY,California
JIMMARSHALL,Georgia
DANBOREN,Oklahoma
JeanneM.Roslanowick,StaffDirectorandChiefCounsel
SubcommitteeonHousingandCommunityOpportunity
MAXINEWATERS,California,Chairwoman
NYDIAM.VELAZQUEZ,NewYorkSHELLEYMOORECAPITO,West
JULIACARSON,IndianaVirginia
STEPHENF.LYNCH,MassachusettsSTEVANPEARCE,NewMexico
EMANUELCLEAVER,MissouriPETERT.KING,NewYork
ALGREEN,TexasCHRISTOPHERSHAYS,Connecticut
WM.LACYCLAY,MissouriGARYG.MILLER,California
CAROLYNB.MALONEY,NewYorkSHELLEYMOORECAPITO,West
GWENMOORE,Wisconsin,Virginia
ALBIOSIRES,NewJerseySCOTTGARRETT,NewJersey
KEITHELLISON,MinnesotaRANDYNEUGEBAUER,Texas
CHARLESA.WILSON,OhioGEOFFDAVIS,Kentucky
CHRISTOPHERS.MURPHY,ConnecticutJOHNCAMPBELL,California
JOEDONNELLY,IndianaTHADDEUSG.McCOTTER,Michigan
BARNEYFRANK,MassachusettsKEVINMcCARTHY,California
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CONTENTS
Page
Hearingheldon:
October29,2007.............................................1
Appendix:
October29,2007.............................................43
WITNESSES
Monday,October29,2007
Allison,Horace,SeniorVicePresident,HousingAuthorityofthe
CityofHouston................................................14
Bustamante,Daniel,ExecutiveDirector,GreaterHoustonFair
HousingCenter.................................................34
Celli,RichardS.,Director,CityofHoustonHousingand
CommunityDevelopmentDepartment...............................13
Gerber,Michael,ExecutiveDirector,TexasDepartmentofHousing
andCommunityAffairs..........................................11
Henneberger,John,CoDirector,TexasLowIncomeHousing
InformationService............................................26
Junor,Debra,Member,TexasTenants'Union.......................31
McElroy,Toni,President,TexasACORN............................33
Muhammad,Robert,ChiefExecutiveOfficer,ACTIONCommunity
DevelopmentCorporation........................................29
Ozdinec,Milan,DeputyAssistantSecretaryforPublicHousingand
VoucherPrograms,U.S.DepartmentofHousingandUrban
Development....................................................9
Quan,Gordon,FoundingPartner,Quan,BurdetteandPerez,on
behalfoftheNationalCoalitionforAsianPacificAmerican
CommunityDevelopment..........................................36
APPENDIX
Preparedstatements:
Bustamante,Daniel...........................................44
Celli,RichardS.............................................57
Gerber,Michael..............................................60
Henneberger,John............................................71
Junor,Debra.................................................93
Lopez,Manuel................................................101
McElroy,Toni................................................104
Muhammad,Robert.............................................110
Ozdinec,Milan...............................................114
AFFORDABLEHOUSINGNEEDSIN
THECITYOFHOUSTON:UNIQUE
CHALLENGESANDOPPORTUNITIES
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Monday,October29,2007
U.S.HouseofRepresentatives,
SubcommitteeonHousingand
CommunityOpportunity,
CommitteeonFinancialServices,
Washington,D.C.
Thesubcommitteemet,pursuanttonotice,atHouston
BaptistUniversity,BelinChapel,7502FondrenRoad,Houston,
Texas,Hon.MaxineWaters[chairwomanofthesubcommittee]
presiding.
Memberspresent:RepresentativesWatersandGreen.
Alsopresent:RepresentativeJacksonLee.
ChairwomanWaters.Goodmorning,ladiesandgentlemen.I'd
liketostartbythankingPresidentRobertSloanandthe
HoustonBaptistUniversityforallowingustousethis
wonderfulspacefortoday'shearingon`ÀffordableHousing
NeedsintheCityofHouston:UniqueChallengesand
Opportunities.''It'sabeautifulcampus.Thisisabeautiful
auditorium.Andlet'sjustgivethepresidentaroundof
applausetothankhim.Whereareyou,PresidentSloan?Therehe
is,intheback.Thankyousovery,verymuch.
Mr.Sloan.Thankyou.
ChairwomanWaters.I'dalsoliketothankCongressmanAl
Greenforinvitingmeheretoday.Anduponlearningaboutthis
hearingthatwasbeingheldbythesubcommitteethatIchair
andwhereMr.Greenserves,yourotherCongresspersonofthe
area,Ms.SheilaJacksonLee,said,`Ìwouldliketo
participate.''Let'sthankherforbeinghere.
I'mverypleasedtoholdtoday'shearingforseveral
reasons.First,asIsaid,RepresentativeGreenaskedmeto.
Andwheneverhemakesarequest,Idomybesttocomply.That
isbecauseRepresentativeGreenissimplythemostcommitted
memberofmysubcommittee.Wehavemanyschedulingcommitments
asMembersofCongress.RepresentativeGreen,forexample,
servesonthecriticalHomelandSecurityCommitteeaswellas
facingthedemandsofthefullFinancialServicesCommittee
whichhasbeenextraordinarilyactivethisseasonduetorecent
eventsintheeconomyandtheleadershipofourchairman,
ChairmanBarneyFrank.Yetaswepreparedforthishearing,my
staffconfirmedwhatIhadalreadysuspected,namelythatMr.
Greenistheonlymemberofthesubcommitteetohaveattended
everysingleoneofourhearingsthissession.Hehasperfect
attendance.
Mr.Green.Thankyou.
ChairwomanWaters.Andhedeservesmuchmorethanjusta
goldstarforattendance.RepresentativeGreenisaconsistent
voiceforthepoorest,mostvulnerableresidentsofHouston,
HarrisCounty,andtheNationwhenitcomestoFederalhousing
policydecisions,whethertheytakeplacewithinour
subcommittee,atthefullcommitteelevel,orevenontheFloor
oftheHouseitself.Inthesubcommittee,Icanalwayscounton
him.Indeed,heablysteppedinformeaschairrecentlywhen
myownmultiplecommitteeassignmentsforcedmetomissa
portionofoneofoursubcommittee'shearingsonhomelessness.
Atthefullcommittee,duringconsiderationofourSection8
voucherreformbill,RepresentativeGreenofferedasuccessful
amendmenttoauthorizedesperatelyneededadditionalhousing
vouchersinrecognitionthatweneedtodomorethanjust
improveexistingFederalhousingprograms.Weneedtoexpand
themaftermany,manyyearsofneglect.Finally,earlierthis
month,RepresentativeGreenspokeeloquentlyontheHouseFloor
insupportoftheNationalAffordableHousingTrustFundAct,
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whosepassagebythefullHousestandsasperhapsour
committee'sproudestaccomplishmentthisyear.
RepresentativeGreenisalsoaninnovativelegislatorin
hisownright.Ilookforwardtohearingfromallofthe
witnessestodayaboutthepotentialimpactofabillthathe
hasintroduced,H.R.2629,theHousingFairnessActof2007,
whichwouldreinvigoratetheDepartmentofHousingandUrban
Development'senforcementoftheNation'sfairhousinglaws.He
isalsotheleadsponsorofH.R.3329,theHomesforHeroes
Act,whichwoulddevotesubstantialnewresourcestothe
housingandsupportiveservicesneedsofAmerica'sveterans,an
absolutenecessityinthesetimes,asweallknow.
Now,beforeIhighlightadditionalreasonswhythishearing
issotimelyandappropriate,Iwouldliketoacknowledge
RepresentativeJacksonLee.WhileIdonothaveherservingon
theHousingSubcommittee,shehasmanyaccomplishmentsthatshe
canbeproudof,becauseinadditiontotheworkthatshedoes
ontheJudiciaryCommitteewhereIservewithhersheis
servingonthreeofthemostinfluentialcommitteesinthe
CongressoftheUnitedStates.Again,inadditiontothe
JudiciaryCommittee,sheisontheHomelandSecurityCommittee
andtheForeignAffairsCommittee.SoI'mverypleasedthat
she'sbeenabletojoinustoday.Andshehasworkedwith
RepresentativeGreenastheyhavebothbeenextraordinary
advocatesonbehalfofthevictimsofHurricanesKatrinaand
RitaandthehousingoftheHoustonregionwhichhasbeenso
affected.Theyhavebothbeenstaunchalliesinthefightto
pushformylegislation,H.R.1227,whichisknownastheGulf
CoastHurricaneHousingRecoveryActof2007,throughthe
House.
Again,I'mpleasedtoholdthishearingbecausethe
affordablehousingneedsinHoustonarequiteunique.Asthe
Nation'sfourthlargestcityandoneofthefastestgrowing,
Houstonboastsoneofthemostdiversepopulationsinthe
Nation.Asthetitleofthehearingsuggests,Houston's
circumstancesprovideforbothchallengesandopportunities.On
onehand,asonewhocomesfromLosAngeleswherethemedian
homepriceis$529,000,thehousingcostsinHoustonseem
downrightreasonable.Itisnearly$400,000lessthanthatto
purchaseamedianhomehere.Ithinkthemedianhereisabout
what,Mr.Green,$156,000?
Mr.Green.$154,900.
ChairwomanWaters.$154,900.Thatseemsawfullyreasonable
tothoseofuswhocomefromCalifornia.However,whenwelook
atthenumberofpeoplewhohaveverylowincomes,andarejust
barelymakingit,thatcanbeveryhigh.Peoplearepayingmore
than30percentofthatincomeforhousing.Thesecosts,as
wellasflexiblezoningenvironments,makedevelopmentof
additionalaffordablehousinghereperhapsmorefeasiblethan
insomeofthemajormetropolitanareas.Ontheotherhand,
reasonabledoesnotnecessarilymeanaffordable,norcan
affordablehousingbedevelopedanywherenomattertheeconomic
andregulatoryclimatewithouttheresourcestodoit.
NearlyonethirdofHoustonhomeownersandoverhalfofall
rentersintheHoustonmetropolitanareaagain,asIindicated,
spendmorethan30percentofmonthlypretaxincomeonall
housingcostsmakingthemhousingcostburdenedasdefinedby
theDepartmentofHousingandUrbanDevelopment.Fullya
quarterofrenterspaymorethan50percentoftheirincomein
rentunsustainableforhouseholdsoverthelongterm.Andasin
everycommunityinthecountry,workingnolongerguarantees
beingabletoaffordhousinginHouston.TheNationalLow
IncomeHousingCoalitionestimatesthatinordertoafforda
reasonabletwobedroomapartmenthere,arenterwouldhaveto
earn$14.77anhour,morethan2\1/2\timestheminimumwage.
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Also,likemostcommunitiesintheNation,theFederal
housingresourcesavailableinHoustondon'tcomecloseto
meetingtheneed.Acrossthecountry,onlyoneoutoffour
householdseligibleforFederalhousingassistancereceiveit.
Here,thismanifestsitselfinwaitinglistsnumberinginthe
thousandsfortheHoustonHousingAuthoritySection8vouchers
andpublichousingunits.Houston'sboominggrowthisnow
threatenedbytherecentcrisisinthesubprimemortgage
market.Theforeclosureratesherearenotamongthehighestin
theNation,buttheyarestillsignificant.Andthismarket
experienceddoubledigitdropsinbothhomepricesandhousing
startslastmonth.
Addedtothesechallenges,ofcourse,isthecontinued
impactofGulfCoasthurricanes.Thenearly200,000evacuees
whoinitiallycametoHoustonconstitutedtheequivalentofthe
entireCityofShreveport,oneoftheNation's100largest
cities,suddenlybeingdroppedinHouston'slap.Nearlyhalfof
theevacueesremainhere.ThegenerosityshownbytheCityand
itsresidentshasbeenextraordinary.
RepresentativesGreen,JacksonLee,andIhavejusthadthe
opportunitytoobservesomeoftheexcellentworkthathasbeen
donehere,but,ofcourse,therehavebeenbumpsintheroad
alongwiththesuccesses.I'msurethatwewillhearaboutboth
today.IwanttoassureyouthataschairoftheHousingand
CommunityOpportunitySubcommittee,Iamindeedcommittedto
helpingHoustonmeetallofitsaffordablehousingneeds,both
thosethatexistedbeforeHurricanesKatrinaandRitaand
additionalonesthathavebeencreatedbythehurricanes.
NotonlyamIcommittedbecauseofthewonderfuladvocacy
ofMr.GreenandMs.Leeandothers,asyouknow,myhusbandis
fromHouston.AndsoIhavetohonorhimandhisfamilyalso.
NotonlydoIhavetoworkforLosAngelesandCalifornia,but
IhavetoworkforHoustonandTexas,also.Sowiththat,I
wanttorecognizeRepresentativeGreenforhisopening
statement.
Mr.Green.Thankyou,MadamChairwoman.Friends,thisis
indeedagreatoccasion,becausetodaytheCongressofthe
UnitedStatesofAmericaviaitsHousingSubcommitteehas
convenedinHouston,Texas.Itishistorical.AndIamso
honored,Icannottellyouwhatapreeminentprivilegeitis.
Infact,itisasuperlativepleasureandasplendiferoushonor
tobeseatednexttotheHonorableMaxineWaters,the
preeminentauthority.Thepreeminentauthority,that'sright.
GiveherabigTexassizewelcome.IfyouloveMaxineWaters
andyouknowit,yououghttostandupandshowit.Giveher
thekindofwelcomethatshemeritsforbringingthiscommittee
toHouston,Texas.Giveittoher.
Friends,intheUnitedStatesCongress,theCongressional
BlackCaucus,withits43members,isconsideredtheconscience
oftheUnitedStatesCongress.Iwouldhaveyouknowthatthe
HonorableMaxineWatersisconsideredtheconscienceofthe
conscienceoftheUnitedStatesCongress.MaxineWaters.
Bywayofsomeinformationthatisofbenefittoyouthat
will,ofcourse,coincidewithmuchofwhatwe'lltalkabout
today,Ineedtosharethefollowing:Therewasaneffortto
raisetheminimumwageinthiscountry.Ittook10yearstoget
itdone.Throughouttheentiretyofthe10yearperiod,the
HonorableMaxineWaterswasattheveryforefrontofthat
movement.Shewasapartofthemovementtoraisetheminimum
wage,andIsaythankGodthatthisCongresshasnowraisedthe
minimumwageto$5.85anhour.It'snotwhatitshouldbe,but
thankGoditisn'twhatitwas.Wehaveraisedtheminimum
wage.
It'simportanttotalkaboutthisminimumwagebecause,
whenwetalkaboutaffordablehousing,peoplewhoareamongthe
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least,thelast,andthelostneedaffordablehousingtoo.And
theyneedtobeabletohavethedignityofearninganincome
sothattheycanpaytheirownway.Noonewantstobeon
welfare.Everypersonwantstosayfarewelltowelfare.A
decentday'swageforadecentday'sworkisameansbywhich
peoplecansayfarewelltowelfare.Shehasbeenapartofthat
efforttohelppeoplegetthatdecentday'swage.
Butmoreimportantlyandasimportantasitis,Iwillsay
moreimportantly,thisHousingTrustFundthatshementioned,
friends,itisunheardofintheannalsofU.S.historytohave
anAffordableHousingTrustFunddedicatedtothepreservation
ofaffordablehousing,totheconstructionofaffordable
housing,totherenovationofaffordablehousing,dedicatedto
maintainingasufficientstockofaffordablehousingtomeet
theneedsofthoseinthiscountrywhodonothaveaffordable
housing.ThisAffordableHousingTrustFundwillbefundedwith
moneyfromtheGSE,FannieMaeandFreddieMac,about$700
millionannually,andmoneyfromFHA,about$300million.This
isasignificantnumber.We'retalkingaboutapproximately$1
billionannuallyforaffordablehousing.Anditissomething
thatwecanthanktheHonorableMaxineWatersfor.Iwillalso
tellyouthatIhavebeensoblessedtoserveonacommittee
withherandtoserveonacommitteethatisalsounderthe
leadershipoftheHonorableBarneyFrank.Andwhenmy
subcommitteechairandmyfullcommitteechairareworkingin
syncandharmony,ifyouwill,itreallymakesiteasyforus
togetsomeofthethingsdonethatyouwanttohaveusdo.So
I'mveryappreciativethatshehascometodayandsheishere
tohearfromusandunderstandwhatourneedsareherein
Houston,Texas,andwedohavesomeneeds.
IalsowanttosaytoyouthatI'mhonoredtohavethe
HonorableSheilaJacksonLeeherewithusaswell.SheandI
areworkingtogetheronagoodnumberofprojects,notonlyin
Congressbutalsoherelocally,thatwhiletheymaynotseemto
relatetothecongressionaleffort,weareelectedtohelpin
anywaythatwecan,andwedoso.AndIaskthatyougiveher
anexpressionofappreciation,aswell.
Finally,beforeIgiveyoujustabitofstatistical
informationandIdon'twanttooverwhelmyoubecausewehave
capable,confident,qualifiedexpertswhowillimpartthis
informationtoyou,butIdowantsaythisfinallybeforeIgo
tothisinformation.WhenKatrinahitLouisiana,itwas
necessaryforMembersofCongresstogothere.Iknowofat
leastfiveoccasionswhereintheHonorableMaxineWaterswent.
ButIwanttotellyouaboutonemallincident,justabrief
vignette,togiveyousomeunderstandingofhowsherelatesto
people.
Wehadaladywhowantedustogoandseehowherhomehad
beenflooded,anditwasaconsensusthatwedidn'thaveenough
time,thatitwasjustreallynotavailableforusatthattime
todothis.Iwantyoutoknowthatwhensheoverheardthat
conversation,shesteppedupandsaid,``Wewillgo,wewill
see,andwewillhear.''Nooneinherworldisabovethelaw,
andthankGodinherworldnooneisbeneaththelaw.Every
personmeritsconsiderationofthelaw.
WithreferencetomyCityofHouston,Texas,wedefine
affordablehousingatthenationallevelasspendingnomore
than30percentofyourincome,yourgrossincome,onhousing.
IregrettoinformyouthatinourCity,wehavemanypersons
whoareexceedingthatandexceeding50percent,butalsowhen
youaddhousingandtransportationintotheequation,wefind
thattheaveragefamilyisspendingabout56percentoftheir
incomeonhousingandtransportation.Now,ifyou'respending
50percentofyourincomeonhousingandtransportation,that
doesn'tleavealotforthenecessitiesoflifeotherthan
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housingclothing,food,andsomeoftheotheramenitiesthat
youneedtolive,aswell.Sowe'reheretodaytohearfromthe
expertsandaskthattheywouldgiveustheinsightthatwe
needsothatwecangobacktotheCongressoftheUnited
Statesandbeefficaciousintheefforttomakesurethatthe
needsofallpersonsinthiscountryaremetwithreferenceto
housing.Everypersonoughttohaveaplacetocallhome.We
areheretomeettheseneeds.
Finally,wehavepeoplewhoarehomelessinHouston,Texas,
andthestatisticalinformationisquiteshocking.Forfear
thatImaynotreciteitallabsolutelycorrectly,I'dliketo
justreadtoyousomeofthisinformation:Atanypointin
Houston,Texas,wehaveabout12,000to14,000peoplewhoare
experiencinghomelessness.Andinthisgroupofpeoplewhoare
experiencinghomelessness,about11percentaretherebecause
ofdomesticviolence;about24percentaretherebecausethey
havebeenincarceratedandtheyarebacktryingtomaketheir
waythroughlife;about28percentofthemareveterans;55
percenthavesomementalhealthissues;57percenthavehad
somesortofhistoryofsubstanceabuse;59percentlosttheir
housingbecausetheylosttheirjob;and66percenthaveno
incomeatall.Thesenumbersdon'taddupto100percent
becausemanyofthepersonswillfallintomultipleclasses.We
havepersonswhohavenojobs,whohavesubstanceabuse,who
mayhavesomementalconcernsthatshouldbeaddressed.
Soaswelooktoacquireourintelligenceonhousing,we
wanttorememberthatwehavethehomeless,wehavethosewho
areworkingandstillcannotaffordhousing,andthen,of
course,wehavethosewhowanttobuyhomesandwouldliketo
havetheopportunitytohaveahomeandnotgetcaughtupina
subprimemarketor,evenworse,apredatorymarketsuchthat
theyfindthemselvesonlyexpendingcapital,notacquiring
equityandnotbuildingwealth.
Iwanttothankyouagain,Congresswoman,forconvening
thishearinginHouston,Texas.IthinkIspeakforallof
HoustonwhenIsaywewillbeeternallygratefulthatHouston
isnowgoingtobeapartofthefocus,ifyouwill,ofthe
housingissuesintheUnitedStatesofAmerica.Thankyou.
ChairwomanWaters.Thankyou.Thankyou,Congressman,for
thatopeningstatement.Wehavesuchanappreciationforhis
passion,andwejustlovehisvocabulary.Okay.Without
objection,Ms.JacksonLeewillbeconsideredamemberofthe
subcommitteeforthedurationofthishearing.Andwiththat,I
recognizeMs.Leeforheropeningstatementalso.
Ms.JacksonLee.Thankyou,MadamChairwoman.And,again,
letmeofferadeeplyappreciatedwelcomeonbehalfofallof
thecitizensofHoustonineverycongressionaldistrictthatwe
havetheprivilegeofsendingtotheUnitedStatesCongress.I
mightleaveofftheconceptthattherewasachangein2007.I
won'tbepointedinthat.ButthatallowedMaxineWatersto
becomethechairwomanofthissubcommittee.Youcanseewhata
differenceadaymakesintermsofthefocusandthecompassion
andpassion.AndsoIthankherforherpresencetoday,andit
isadelighttobeabletoworkwithmycolleague.Thesmartest
thingthatourCaucuscouldhavedoneistoappointCongressman
AlGreentotheFinancialServicesCommittee.Weapplaudthat
act,andoutofthatwasgeneratedagreatopportunityfor
Houston.
Iaskunanimousconsenttoputmyentirestatementintothe
record,butI'llmaketheseverybriefpoints.Withoutadoubt,
IbelievethatwhenyouthinkofourConstitutionandour
beginninglanguageintheDeclarationofIndependence,weall
arecreatedequalwithcertaininalienablerightsoflifeand
libertyandthepursuitofhappiness.Althougheducationand
housingmaynothavebeendirectlymentioned,Idon'tknow
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aboutyou,butIthinkthatthequalityoflifeofallofusis
dependentupongoodeducation,goodhealthcare,andgood
housing.
SoImaketheseverybriefpoints:One,wearelooking
forwardtothistrustfundsothatwecanhaveacommitmentto
affordablehousinginthiscommunityandcertainlyacrossthe
Nation.Iencourageyoutosupportthislegislation.Andeven
thoughyoumaybeintheStateofTexas,callSenatorsacross
theNation.ParticularlycallourSenatorsandaskthemto
supportthisveryimportantlegislation.AndIwillgiveyoua
reasonwhy:Ifyoulookatlowincomeownerswhoexperience
severecostsand,therefore,blockthemoutofthemarket,
you'llfindamongthe31,886ownerhouseholdswithincomebelow
30percentoftheareamedianincomein2000,almosthalf,49
percent,spentmorethan50percentoftheirgrossincomeon
housingcostsandanother17percentmorethanmorethan30
percentoftheirgrossincome.DisabledpersonsreceivingSSI
benefitsareparticularlyvulnerabletoaffordabilityconcerns.
Andsothemostvulnerablepeopleforexample,thefairmarket
rentforaonebedroomapartmentinHoustonis$633,which
exceedsby5percenttheaveragemonthlySSIbenefitsof$603.
Sothereareenormouscostsforthosewhoareseeking
affordablehousing.
LetmemovetoanotherpointthatIthinkisveryimportant
andclosetoChairwomanWaters'heartand,ofcourse,knowing
theFifthWardarea,manyofourolderareasinHoustonand
particularlyareasinmydistrict,sheknowsthenumberof
seniorswhoalsosufferfromtheinadequatehousing.I'm
gratefultotheleadershipofCongressmanGreen,whohasworked
withmeontheseissues.Butacoupleofyearsago,theCityof
Houstonsufferedanumberofchallengesthatrequiredaudits
andrequiredtheeliminationofcertainprograms.Oneofthem
happenedtobetherehabilitationprogramofseniorhousing.In
actuality,theseniorhousingrepairandrehabilitationwas
actuallystopped.Whenwerecognizedthatseniorswouldsuffer,
webroughttogethertheDepartment'sDirectorandSecretaryof
theU.S.DepartmentofHousingandUrbanDevelopmentwitha
goalofrestartingtheprogram.Anagreementwasreachedwhere
theCitywouldexpendlocalfundsandbereimbursedbyHUD.The
programwasrestartedwithnewcontractorsandprocedures.
Now,thehomerepairprogramforourseniorsseemsof
littleconsequencetoCityofficialseventhoughtherepairof
senior'shomesisapriorityintheconsolidatedplanpursued
byHUD.Seniorscontinuetowaitonalist.Sowehope,aswe
movethroughthishearingandfurtherourinterest,thatwe'll
beabletocorrectthatproblem.
Mylastpointisjustanexample.Justlastweek,asenior
whohadbeenonawaitinglistexpectingrepairscamebefore
theCityCouncilafterbeingtoldthatherpropertythatshe
livedinthefloodplain.TheCitystaffwhomisreadthe
regulationhaddeniedthiswomanhomerepairsbecauseshelives
inthefloodplain.Fortunately,CouncilMemberJarvisJohnson
calledmyofficeandwewereabletoconnecttheCouncilOffice
withtheHUDofficialwhocitedthechapterandverseofthe
exemptionthatallowedrepairsofthisnaturewithoutregardto
thefloodzone.Soaswelookforhousing,wemustincludeall
ofthoseinourcommunitythedisabled,theseniors,thosewho
needaffordablehousing.
And,MadamChairwoman,Iamsogratefulforbothyouand
CongressmanGreen,becauseasIlookastherepresentativesof
thehomelesshereinthisauditoriumItookituponmyselfto
drivearoundHoustonlateatnight12to2inthemorning
justtoseethesecondcitythatmostofusdon'tsee.The
enormousamountofhomelesspersonsreallybegsforouraction.
AndsoasIlooktotheStateandlooktotheCityandCounty,
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Iamgratefulofyourpresenceherebutalsooftheleadership
ofthechairwoman.AndI'dliketo,inamomentofpersonal
privilege,thankMr.GuyRankin,whoisnothere,Madam
Chairwoman,butwhowantedtoofferhisappreciationtoyou
fromtheHarrisCountyHousingAuthorityfortheirDHAPprogram
andalsotoacknowledgetheworkthattheyaredoing.Ithank
youverymuch.Ilookforwardtothishearing,andIyieldback
mytime.
ChairwomanWaters.Thankyouverymuch.Ithinkthatwe
havesomeoftheelectedofficialsfromtheHoustonareathat
enteredtheroom,soifyouwouldliketomakeanintroduction,
Mr.Green.
Mr.Green.I'mmostappreciative,MadamChairwoman.Wehave
withusthismorninganoutstandingelectedofficial,public
servant,ifyouwill,theHonorableAdrianGarcia,whoisa
memberoftheHoustonCityCouncil.AdrianGarcia.I'dliketo
alsojustacknowledgethatourveteranshaveunitedanddecided
tobeheretodayasaunit.Andwearehonoredtohaveagroup
ofveteranswhoarehere.Veterans,wouldyoujuststandso
thatwecansee?Anyveterans,ofcourse,buttheseare
veteranswhohaveunited.Theyarehere,andwemustserve
them.Theyhaveserveduswell.
Therearemanyinstitutionsthatwereavailabletoassist
whenKatrinahit,butIwilltellyouthatonethatisinthe
18thCongressionalDistrict,andI'msorrythatIcan'tmove
themintothe9thCongressionalDistrict,buttheSheikh
CommunityCenterisrepresentedtodaybytheHonorableDelord
Parker.Wouldyougivehimanexpressionofappreciation?
Fortherecord,Iwouldliketointroduceadocument,and
ifthereareotherswithdocumentsthatyouwouldliketohave
becomeapartoftherecord,Ibelievethechairwomanwill
announceatsomepointthattherecordwillremainopenfor
members.Andifyou'llgiveittome,Iwillsubmititintothe
recordforyou.
ButwehavefromtheHonorableGladysHousewhoneedsno
introduction,butforedificationpurposes,Iwilltellyou
thatshe'swithhistoricFreedman'sTownandAllenParkway
Villageadocumenttitled`ÀffordableHousingNeedsin
Houston,UniqueChallengesandOpportunities.''Madam
Chairwoman,Ibegthathavewehaveunanimousconsenttoplace
thisintotherecordaswellasanyotherdocumentsthatImay
receive.
ChairwomanWaters.Withoutobjection,itissoordered.
Mr.Green.Thankyou,MadamChairwoman.
ChairwomanWaters.Mr.Green,Iwanttoremindtheveterans
ofH.R.3329,theHomesforHeroesAct,thathasbeen
introducedbyMr.Green.OneofAmerica'sshamesisthenumber
ofhomelessveteransthatwehaveonourstreetsallover
America.Andnotonlywillmysubcommitteemakethisa
priority,we'resayingtoallofthepresidentialcandidateson
bothsidesoftheaislethattheybettermakethatapartof
theirplatformsastheycampaigntoleadthiscountry.Sothank
yousoverymuchforbeinghere.Thankyou.
Withthat,I'dliketointroduceourfirstpanel:Mr.Milan
Ozdinec,DeputyAssistantSecretaryforPublicHousingand
VoucherPrograms,U.S.DepartmentofHousingandUrban
Development;Mr.MichaelGerber,executivedirector,Texas
DepartmentofHousingandCommunityAffairs;andMr.RichardS.
Celli,director,CityofHoustonHousingandCommunity
DevelopmentDepartment.I'dliketothankallofyoufor
appearingforthesubcommitteetoday,andwithoutobjection,
yourwrittenstatementswillbemadeapartoftherecord.You
willnoweachberecognizedfora5minutesummaryofyour
testimony.
WewillstartwithMr.Ozdinec.
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STATEMENTOFMILANOZDINEC,DEPUTYASSISTANTSECRETARYFOR
PUBLICHOUSINGANDVOUCHERPROGRAMS,U.S.DEPARTMENTOFHOUSING
ANDURBANDEVELOPMENT
Mr.Ozdinec.Thankyou,MadamChairwoman.Goodmorning.My
nameisMilanOzdinec,andIamtheDeputyAssistantSecretary
fortheOfficeofPublicHousingandVoucherProgramsatHUD.I
wishtothankChairwomanWaters,CongressmanGreen,and
CongresswomanJacksonLeeforinvitingmeherethismorningto
appearbeforethesubcommittee.Specifically,yourequested
thatIdescribetheDepartment'snewDisasterHousing
AssistanceProgramanditsimplementation,includingherein
theCityofHouston,thusfar.
TheAdministrationrecognizestheneedtocontinue
assistancetoGulfCoastresidentswhoremaindisplacedby
HurricanesKatrinaandRita,manyofwhomarecurrently
residinghereintheHoustonarea.TheDisasterHousing
AssistanceProgram,orDHAPforshort,isanewdemonstration
programthatwillultimatelyprovidetenantbasedrental
assistancetoapproximately44,000families.DHAPcommenced
casemanagementonSeptember1,2007.Thefirstrental
assistancepaymentsunderDHAPwillbeginDecember1,2007.
TheDHAPisatemporaryhousingassistanceprogram,andits
overallobjectiveistohelpfamiliesultimatelytransition
backtopermanenthousingandeconomicselfsufficiencyby
March1,2009.HUDisindeedresponsibleforthedesign,
implementation,andoperationofDHAP.Wewelcomethis
opportunity,MadamChairwoman.Housingfamiliesinneedisone
ofourcoremissions.Wearealsoinauniquepositiontohelp.
Asyouknow,wehaveatourdisposalanationalnetworkofsome
2,400housingagenciesthatadministerHUD'sHousingChoice
VoucherProgram.Wehaveproventohavetheexperienceand
expertiseatthelocalleveltoeffectivelyadministertenant
basedrentalassistance.ThesePHAsknowtheirlocalhousing
marketsandalreadyworkwithownersintheprivaterentalunit
market.Housingauthoritiesareinvolvedinproviding
assistancetofamilies.Housingfamiliesistheirbreadand
butter.It'swhattheydo.
DHAPmaybeanewprogram,buttenantbasedhousing
assistancehasalreadyproventobeahighlyeffective
mechanismforassistingdisplacedfamilies.Shortlyafter
HurricaneKatrina,HUDdevelopedandimplementedtheKDHAP
programtoassistdisplacedfamilieswhowerepreviously
assistedbyHUD.TheninDecemberof2005,theCongress
appropriatedanadditional$390milliondirectlytoHUDto
assistthousandsofadditionalfamiliesdisplacedbyHurricane
KatrinadisplacedwhowerepreviouslyHUDassistedorhomeless
throughthedisastervoucherprogram.Todate,over33,000
familieshavereceivedrentalassistancethroughthesetwo
programs.HUDisonceagaincallinguponourpublichousing
authoritiestoprovideassistancetoeligiblefamiliesunder
DHAP.Sincethevastmajorityofthesefamiliesarealready
housed,ourPHAswillmakerentalassistancepaymentsonbehalf
ofthesefamilies.Thesefamiliesmayremainintheircurrent
unitor,insomecasesiftheychoose,theycanfindanother
unitandmove.Inthosecaseswhereafamilymustmove,thePHA
willprovidehousingsearchassistance.
ImplementationofDHAPiswellunderway.Wehavepublished
operatingrequirements,contracts,grantagreements,andcase
managementprocedures,includingsoftwaredevelopment.Weheld
meetingswithPHAs,landlords,andadvocacygroupsbothherein
HoustonandinotherareasaroundtheGulf.Wehaveprovided
onsitetechnicalassistanceatPHAoffices,broadcast
interactiveWebcasts,andestablishedaDHAPreferralcall
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centerwithatollfreenumber.
OnAugust11,2007,FEMAreferredtoHUD28,582eligible
familiesforDHAP.Sincethen,wehaveexecuted336grant
agreementswithPHAsthatcoverover26,000ofthosefamilies.
HereinHouston,wehaveoneofthelargestconcentrationsof
DHAPfamilies.Wehaveexecutedtwograntagreements,onewith
theHousingAuthorityoftheCityofHouston,andonewiththe
HousingAuthorityofHarrisCounty,toserveapproximately
9,000families.Bywayofcontrast,MadamChairwoman,through
theentireStateofCalifornia,weonlyhave143eligible
familiesforDHAP.Withrespecttothechallengesandconcerns
wefaceinregardtoimplementingDHAP,ourbiggestconcernis
thenatureofthetransitionfromFEMAtoHUDandallofthe
complexitiesassociatedwithit.Forinstance,thiscomplexity
resultedinHUDconcernsthatthetransitionswouldnotbe
seamlessforallfamilies.Therefore,itwasdecidedtodelay
thecompletetransitiontoDHAPfromNovember1,2007,to
December1,2007.
MadamChairwoman,membersofthesubcommittee,Icannotsay
enoughaboutthetremendousresponseandeffortputforwardby
ourPHAsthroughoutthecountry.Withouttheirdedicationand
commitment,DHAPwouldnotbepossible.Iespeciallywouldlike
tocommendboththeHousingAuthorityoftheCityofHouston
andtheHarrisCountyHousingAuthorityfortheirexceptional
workonDHAP.Allnewprogramshavegrowingpains.OurPHAs,
throughtheirhardworkandperseverance,havebeenableto
rampupthisprogramandprovidecasemanagementoperations
within30daysofsigninganagreementwithFEMA.
MadamChairwoman,Iwishagaintoexpressourenthusiasm
forbeingabletohelp.WebelievethatHUD,usingourlocal
PHAinfrastructure,caneffectivelyandefficientlydeliver
assistance.Theexpertiseisalreadyonthegroundtolinkcase
managementservicesandhousingassistanceinordertoprovide
acomprehensiveresponsetohelpfamiliesrecoverfroma
disaster.Inconclusion,andonbehalfoftheSecretary,Madam
Chairwoman,again,IwanttothankyouforaffordingHUDthe
opportunitytodiscussDHAPwithyouandthesubcommitteein
itsimplementationhereinHoustonandaroundthecountry.I
wouldbehappytorespondtoanyquestionsthatyoumighthave.
[ThepreparedstatementofMr.Ozdineccanbefoundonpage
114oftheappendix.]
ChairwomanWaters.Thankyouverymuch.
Mr.Gerber.
STATEMENTOFMICHAELGERBER,EXECUTIVEDIRECTOR,TEXAS
DEPARTMENTOFHOUSINGANDCOMMUNITYAFFAIRS
Mr.Gerber.Goodmorning,MadamChairwoman,Congressman
Green,andCongresswomanSheilaJacksonLee.MynameisMichael
Gerber,andIamtheexecutivedirectoroftheTexasDepartment
ofHousingandCommunityAffairsinAustin.I'dliketothank
youfortheopportunitytoappearbeforeyoutoday.Madam
Chairwoman,beforeIstart,forthoseofuswhohavelivedwith
anaturaldisasterinTexasforthelast2years,ourhearts
andthoughtscertainlygoouttothepeopleinSouthern
Californiawhoaredealingwiththeeffectsofthesehorrific
fires.
ChairwomanWaters.Thankyou.
Mr.Gerber.Mydepartment,TDHCA,istheleadStateagency
toassistlowincomeTexansinfindingsafe,decent,and
affordablehousing.Withoutyouandyourcolleaguesin
Congress,wecouldn'tdoourjobs.Andwe'dliketothankyou
forallthatyoudotohelpprovideabetterstandardofliving
forlowincomeTexans.Wealsowanttojoininthankingyoufor
youreffortsinpassingthenewHousingTrustFundlegislation
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thatwillhelpevenmorelowincomeTexansandotherpersonsof
lowincomeacrossthecountrytohavegreateraccessto
affordablehousing.
TheNationalHousingTrustFundwouldenableourStateto
haveanothertoolinordertotargetlowerincomeTexans,
especiallythoseat30percentandbelow.Andwewillcertainly
takeyouuponyourrequesttobeintouchwithourmembersof
theSenatetomakethemawareofthebenefitsoftheHousing
TrustFundnationallyandhereinTexas.Thankfully,ourState
legislaturehasalsoreceivedthewordaboutthebenefitsof
theHousingTrustFund.Andthankstotheeffortsofanumber
offolksinthisroom,ourStatelegislatureinthelast
legislativesessionapprovedanalmost60percentincreasein
ourownStatehousingtrustfund.
Evenwithallthathelp,weknowthatwe'restillnot
reachingtheneedthat'soutthere.Sowhatexactlyarewe
doing?WiththeFederalfundsavailable,we'veallocatedat
TDHCAmorethan$680millionforlowincomeTexansduringthe
2007fiscalyearthatjustconcluded.Withthosefunds,we
rehabilitatedseniorsandsingleheadofhouseholdhomesin
ruralTexasallowingfamiliestostayintheircommunitywhile
repairingtheirhomestoadecentstandard.
Weusedprivateactivitybondstoplacearecordlevelof
assistedandlowinterestrateunassistedmortgageshelping
thosepeoplewhoarereadytotakethenextstepinthehousing
continuumofhomeownership.Thesearesafe,traditional
mortgagesthatproviderealsecurityratherthanpeoplegoing
tohigherinterestrateloanstogainhomeownership.
Locally,throughourTexasFirsttimeHomebuyerProgram,we
havebeenabletohelpmorethan1,500familieshereinthe
HoustonareaachievetheAmericanDreamofhomeownership.TDHCA
offersthelowestinterestratesofanyStateagencyandwe
haveaverysafeandtraditionalmortgageproductthat'sfirmed
upbyconventionalunderwriting.You'llfindnoexoticARMsor
balloonmortgagesthroughTDHCA.
WealsoworkwiththeDepartmentofEnergyWeatherization
Programthatnotonlysavesenergybuthelpsafamilyaffordto
heathereinTexasandcoolcooling'sveryimportantahome
withoutmakingchoicesbetweenfoodandelectricity.
And,ofcourse,thepublicprivatepartnershipoftheLow
IncomeHousingTaxCreditProgramhashadatremendousimpact
increatingadditionalaffordablehouseorrehabbingexisting
housingandimprovingthequalityoflifefortheresidentsin
thosecommunities.Forinstance,hereintheHoustonarea
alone,wehaveplacedmorethan26,000unitsofaffordable
housingsincetheprogram'sinceptionin1986.Wehavebuilt
morethan250,000unitsaroundtheState.Soit'sagreat
recordofaccomplishments,butclearlyweneedtodomore.We
alsomakesurethateverydollarspentisutilizedforits
maximumimpact.
Andasaresponsiblestewardofthesevaluablebutlimited
TreasuryFunds,wecloselymonitortheseunitsforcompliance
withallStateandFederalregulations.Oncetheunitsare
placedinservice,wemakesurethattheresidentsandthe
taxpayersgetthefullbenefitoftheprogram.Thispastyear,
ourStatelegislaturegaveusthepowertolevyfinancial
penaltiesupto$1,000adayagainstthosedeveloperswhoare
notkeepingtheircommitments.That's$1,000adayper
violation.Accordingly,we'llmakesurethatthosefewbad
actorsarefirmlyremovedfromtheprogramandthataclear
messageissentindustrywidethatTDHCAwillnottolerate
slumlords.Ourultimateconcernisalwaysforthesafetyand
welfareofourlowincometenants,andweareproudhereinthe
HoustonareatobepartneredsocloselywiththeCityof
HoustonandHarrisCountyinthatregard.
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Ialsowantedtosharewithyouthismorningtheactive
workwe'vedoneinleadingTexas'disasterrecoveryefforts
stemmingfromKatrinaandRita.Whileweappreciatetheefforts
oftheentireCongressinassistingTexans,Iwouldberemiss
ifIdidnotthankyou,MadamChairwoman,alongwith
CongressmanAlGreen,CongresswomanJacksonLee,Congressman
RubenHinojosa,andCongressmanKevinBrady.Somanyother
membersoftheTexasdelegationhavebeenkeyinmakingsure
thatwehavesomeresourcestoassistTexansinneed.
Weexpectwiththedollarswereceive,wewillservemore
than8,000TexanshereinSoutheastTexas,includingHarris
County.ShortlyafterCongressappropriatedthefunds,Texas
GovernorRickPerrydesignatedTDHCAastheleadagencyfor
administeringthefundsthatCongresshasgiventohelpus.
InMayof2006,wereceivedourfirstallocationoffunds.
Thatwas$74.5million,whichwassplitalmostevenlybetween
housingandinfrastructure.Thesecondallocationoffundscame
earlierthisyear,andittotaled$428.6million.We'reworking
veryambitiouslytogetthosedollarsout.GovernorPerry
designatedthat$60millionspecificallywouldbedesignated
forHouston,HarrisCounty,tomeettheneedsofKatrina
evacuees.Houstonwillbeusingits$40millionofthat$60
millionforlawenforcementovertimeandpublicsafetyissues
associatedwiththeinfluxofcloseto200,000Katrina
evacuees.AndtheCitywillalsobeusingpartofthefundsto
rehabilitatemanymultifamilydevelopmentsthatarecalledhome
byKatrinaevacueestoensurethattheywillhavesafeand
decent,affordablehousingoptions.Theremaining$20million
willbeusedbyHarrisCountyforamyriadofsocialservices
assistanceprogramsforevacuees,suchascrisiscounselingand
medicalservices.Theremainderofthefundsarebeingused
primarilythroughoutSoutheastTexastomeetthephysical
devastationthathasbeensufferedthroughoutthe22county
areasurroundingHoustonandheadingmostlyeast.
But,again,wewillcontinuetoreporttoyouandmakesure
thosefundsareusedwisely.Wearesogratefulthatyouhave
takenthetimetocometoHouston,RepresentativeWaters,to
seethissituationherefirsthand.Wewelcomeanyquestions.
[ThepreparedstatementofMr.Gerbercanbefoundonpage
60oftheappendix.]
ChairwomanWaters.Thankyou.
Mr.Celli.
STATEMENTOFRICHARDS.CELLI,DIRECTOR,CITYOFHOUSTON
HOUSINGANDCOMMUNITYDEVELOPMENTDEPARTMENT
Mr.Celli.Thankyouverymuchfortheopportunityto
appearbeforeyoutodayandpresentbriefremarksrelatingto
theuniquechallengesandopportunitiesintheCityofHouston.
Twofactorscreateincreasingdemandforaffordablehousing
inHouston:Newhouseholdsformingduetoimmigrationor
populationgrowth;andpentupdemandforhomelesspersonsor
lowincomehouseholdswhoareenduringsubstandardhousing
conditionsbytwoormorefamiliessharingoneroof.
Accordingtothe2000census,about9,000householdsper
yearwillbemovedintoHouston.Inaddition,65,000households
werereportedasovercrowdedinthe2000censusand
approximately12,000individualsintheCityofHoustonare
currentlyhomeless.Totaldemandforaffordablehousingmust
includesomeaccountingfortheseunderservedhouseholds.As
CongressmanGreenmentionedinhisopeningremarks,the
homelesspopulationisauniqueandsevereproblemintheCity
ofHouston.Weworkdiligentlyasacity.Wemeetevery2weeks
asacity,leaderswithinthecitycommunity,totryandsolve
thehomelessissue,butweneedmoredollars.
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DuetothelowincomesearnedbymanyHoustonhouseholds,
theoverwhelmingmajorityofhousingunitswillhavetobe
affordablerentalunits,withlessthan10percentaffordable
singlefamilyhomeunits.Theunder50percentofareamedian
income,smallfamilysubmarketisthemostunderservedinthe
Houstonmarket.Over27,000familiesarerentburdened,meaning
thattheyspendmorethan30percentoftheirmonthlyincomeon
housing.
Thedemandforaffordablehousingisstaggering.Mystaff
estimatesthat,includingnewarrivalsandunderservedcurrent
residents,2,000householdsperyearwilldemandaffordable
housingproducts.Ofthese,1,300householdsareprojectedto
haveincomesbelow30percentofareamedianincome,and700
householdsareprojectedtofallinthe30to60percentarea
medianincome.Inaddition,theKatrinaevacueescurrently
livinginHoustonandbenefitingfromreextendedhousing
voucherswilleventuallyneedtofindhousingontheirown.
Thiswillincreaseourdemandfurther.
Historically,HoustonCityprogramshaveinvestedabout$54
millionperyearinhousing.TheCityofHoustonhasworked
diligentlytoleverageallavailableresources,usinglow
incomehousingtaxcredits,HOMEfunds,andrequiringdeveloper
equityinoutsidedebtinmanymultifamilytransactions.The
CityofHoustonhasencouragedprivateinvestmentin
redevelopinghistoricneighborhoodsviatheHoustonHope
Programbygrantingdownpaymentassistancetolowincome
familiespurchasingtheirfirsthome,thusreducingthe
mortgagerisktolenders.
Houston,likeallmajorcities,workshardtomeetthe
needsofitscitizens.Meetingallthedemandsforhousing
wouldcostapproximately$100millionayear.Toclosethis
gap,additionalresourcesareneeded.Iassureyou,asdirector
ofhousingandcommunitydevelopment,Icouldeasilyinvest3
timesmycurrentallocationofHOMEfundseveryyearandstill
notmeettheneedsofdeservingHoustonians.
EnactmentoftheNationalHousingTrustFundActof2007
andtherelatedExpandingAmericanHomeownershipActof2007
wouldhelptheCityofHoustonbyprovidingmorefundsto
benefitlowtomoderateincomefamiliesbothdirectlyand
indirectly.Asaparticipatingjurisdiction,Houstonwould
receivesomeportionofthetrustfundsintendedtocreate
150,000unitsofaffordablehousingnationwideeachyear.The
requirementthatsuchhousingbeprimarilytargetedfor
familieswithAMIbelow30percentwouldhelpthosefamilies
herewhohavethegreatestdemonstratedneedforhousing
assistance.RestructuringoftheFHAprogramtoreducetheneed
forprivatemarketsubsidyofsubprimelendingwouldprovide
somebenefittoHoustoneventhoughourhousingstockispriced
veryaffordably.Anyproductthatprovideslowercost
alternativesforlowincomehouseholdswhoqualifyfor
mortgagesisagoodproduct.IapplaudtheRepresentatives'
studyoftheneedsofeverydayhouseholdsandwelcomeyour
interestinHouston.Thankyouverymuchforhavingme.
[ThepreparedstatementofMr.Cellicanbefoundonpage
57oftheappendix.]
ChairwomanWaters.Thankyouverymuch.AndwhileIfailed
toannounceMr.Allison,I'dliketocallonhimnow.Mr.
HoraceAllisonisaseniorvicepresidentoftheHousing
AuthorityoftheCityofHouston.Ithankyouforbeinghere.
STATEMENTOFHORACEALLISON,SENIORVICEPRESIDENT,HOUSING
AUTHORITYOFTHECITYOFHOUSTON
Mr.Allison.Thankyou.WelcometoHouston.Chairwoman
Waters,CongresswomanLee,andCongressmanGreen,Iwantto
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thankyouforyourtirelesseffortsinsupportofaffordable
housing.Onbehalfoftheresidentpopulationthatweserve,we
wanttothankyouforconveningthishearinghereinHouston.
TheHoustonHousingAuthorityoperatesabout4,000unitsof
publichousingandcurrentlyrunsavoucherprogramofabout
15,000units.Wehaveawaitinglistofover42,000families
forthosetwoprograms.Weopenedourwaitinglistlast
Decemberanditwasonlyopenfor14days.Andtogiveyoua
magnitudeoftheneed,weendedupwith30,000peoplein14
dayswantingtogetonthewaitinglist.Thisdoesnotinclude
peoplewhomayhavenothadtheopportunitytoorwhomayneed
housingassistancebutwhoelectednotto.
There'savastneedforaffordablehousinginHouston.Our
currentutilizationrateis99percentforthePublicHousing
Program,and98percentforthevoucherprogram.Inourvoucher
program,weonlyhaveaturnoverofabout120unitsamonth,
whichmeansifyoulookatthat30,000waitinglist,itwillbe
alongtimebeforethosefamiliescanbeserved.Hencetheneed
foradditionalvouchersintheCityofHouston.Thefamilies
thatweserve,typicallytheirincomeisabout$10,000per
year,whereasthemedianincomefortheCityofHoustonis
$61,000ayear.
Howwe'vebeentryingtoaddresssomeoftheseissuesthe
HousingAuthority,severalyearsago,embarkedwithHUD's
participationontheHopeVIprogramtodevelopadditional
affordablehousing.Wereceived$56millioninFederalfunding
inwhichweturnedaroundandleveragedinto$110million.We
didthatinpartnershipwithboththeprivatesector,the
publicsector,andtheCityandStateandlocalentitiesso
thatwecouldleveragethosefunds.Outofthat,wecreated
over1,000unitsofaffordablehousing.Rental,multifamily
rental,singlefamilyrental,homeownershipopportunitiesfor
families,inclusiveofhistoricrentalandhomeownership,and
theprovisionofsocialandcommunityservices.Theeffort
revivedaformerlyneglectedneighborhoodinthenearwestend
ofHouston.Itwasdonewiththehelpandinpartnershipwith
variousCityleadersanddepartments.
MayorBillWhiteoftheCityofHoustonhasformedajoint
taskforcecomprisedoftheHousingAuthority,HoustonHousing
Finance,andHousingandCommunityDevelopmenttoaddressthe
affordablehousingneedshereinHouston.It'sonthefront
page.InKatrinaandRita,asyou'reaware,theGulfCoastwas
devastated.ButHoustonwelcomedtheevacueesintotheCityof
Houston.WorkingwiththeCity,workingwiththeCounty,we
processedover60,000familiesduringa4monthperiodoftime
inhelpingthemfindshelters,movingfromthesheltersinto
homesorintomultifamilyunits.Ittooksome80ofourkey
staffpeopleworking12to14hourdays,7daysaweek,for
over6weeks,toaddressthisneed.Theimpactonourcurrent
programwasfelt,however,knowingtheneedformaintainingthe
existenceofaffordablehousinginHouston,weprevailed,and
ourcurrentprogramsarefunctioningwell.
CurrentlyundertheKDHAPDVPandDHAPprogram,wemanage
about1,500DVPvouchersandwe'reworkingon2,400DHAP
vouchers.Ourconcernwhenthisprogramendsistheneedto
addressthosewhowillnotbeassisted,i.e.,theelderlyand/
orthedisabled.Therewillbeaneedforadditionalvouchers
toaddressthesefamilies.
SomeofthechallengesthattheHousingAuthorityfaces
are:thisvastwaitinglist,asIsaidearlier,42,000
families;shortfallintheavailabilityofdevelopmentfunding;
andoperatingsubsidiesatonly80to85percent.Andjust
imagineifyourhouseholdwasonlyreceiving82percentofwhat
youthoughtwouldbeneeded,youcanfeeltheimpactofthatas
wellastheHousingAuthority.Sothere'sanincreasedneedfor
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publichousingunitsintheCityofHouston.Acityofoursize
shouldhaveupwardsof10,000publichousingunits,andweonly
have4,000.There'saneedforadditionalfundingandsupport
toadequatelysupporthealthcare,education,andemployment,
andprovidesupportiveservices,needsfromHUD,simplification
oftherulesandregulationssothatHousingAuthoritiescanbe
moreproactiveinaddressinghousingneeds,reformingthe
adjustedincomedefinition,andsomethingassimpleasforthe
seniorsandtheelderly,justsomethingassimpleashavingthe
elderlytobeabletoprovidemedicalinformationthrougha
copyasopposedtohavingtogotothedoctortoobtaina
certifiedcopy.
Chairman,Chairwoman,andcommitteemembers,wewantto
thankyouforcomingtoHouston.Wewanttorecognizeagain
yourtirelesseffortsinsupportofaffordablehousingin
Houston.Andwewanttomakesurethatyou'reawarethatthe
HoustonHousingAuthorityandothersintheCityaredoing
theirbesttodeliverandcreateadditionalaffordablehousing
opportunitiesaswemoveforward.Thankyou.
ChairwomanWaters.Thankyouallverymuchforyour
testimony.Irecognizemyselffor5minutesforquestions.I
thinkI'llstartwithMr.Gerber.
Youmentionedthatthislegislatureprovideda60percent
increaseintheStatehousingtrustfund.Couldyoutellme
whatthatputsthefundinglevelatandjustdiscussabit
aboutthemechanismforfundingtheStatetrustfundaswellas
thetargetedrequirements.AndIthinkitwasyouthatItalked
toearlier.YouaskedmeabouttheCityofLosAngeleshousing
trustfund.Igaveyouawrongfigure.It's$100millionfor
theCityofLosAngeles.IthinkIwastalkingwithyouabout
that.Sotellmeaboutyours.
Mr.Gerber.Sure.IwishIcouldsayourswasanywherenear
a$100million.Wehavehistoricallyreceivedabout$7million
ayearfromthelegislature.Thankstotheeffortsoffolksin
thisroom,itwasincreasedby$5million.The$7millionthat
hasbeenavailableremainslargelylimitedtosomethingcalled
ourbootstrapprogram.That's
ChairwomanWaters.ThisisfortheentireState?
Mr.Gerber.FortheentireState.
ChairwomanWaters.$7million?
Mr.Gerber.$7million$12million.$12millionisthe
total.
ChairwomanWaters.$12millionisthetotal?
Mr.Gerber.$12millionnow.Itwas$7million,butnowit
hasgoneupby$5million.
ChairwomanWaters.Providedbythelegislature.
Mr.Gerber.The$5million.Andthat'stheonlymoney.
ChairwomanWaters.DidyouputanyofyourCDBGmoneyin
too?
Mr.Gerber.No,ma'am.
ChairwomanWaters.NoCDBG.
Mr.Gerber.NoCDBG.
ChairwomanWaters.Doyouhaveanymoneythat'scomingfrom
thedeveloperstosupportthisfundinanyway?
Mr.Gerber.No,ma'am.That'stheonlymoney.
ChairwomanWaters.Sothisisthetotalamountofyour
statewidehousingtrustfund?
Mr.Gerber.That'scorrect.Andthe$7million,alittle
over,islargelyusedagainforthebootstrapprogram,whichis
aselfhelp,sweatequityprogramlargelydoneintheColonias
alongtheU.S.Mexicoborder.
ChairwomanWaters.Largelyonwhat?
Mr.Gerber.LargelysponsoringhomesintheColonias,which
areareasalongtheU.S.Mexicoborder,thathavejust
tremendousneeds.It'sasweatequity,HabitatforHumanity
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likeconstructionprogram,andwehavehadtremendoussuccess
downthereusingthoseverylimitedresources.The$5million,
though,thattheStatelegislaturehasputin,we'retryingto
doanumberofveryinnovativethings.Andweactuallyhave
severalnoticesoffundingavailabilityoutforthosefunds.
Ourhopeisthatwecanprovethatalittlebitofhousing
trustfundmoneycangoalongway.Andthereareopportunities
toincreasehomeownershipthroughproductioninsenior
housing,multifamilyhousing.Thereareavarietyofdifferent
homeownershipprogramoptionsthatmightbeavailable,
additionalprogramstoprovidebarrierremovableforthe
disabledcommunityandaccessibilitybenefitsforthedisabled
community.Thathascertainlybeenakeything.
We'realsousingsomeofthosefundsforgapfinancingfor
disastervictimswhoarenotabletoquitegetintoasafeand
affordablerepairedhomeornewhomebecausetheyjustdon't
haveenoughmoneyinthecurrentbenefitthatwehaveinour
CDBGprogramfordisasterrecovery.Sothatgapthatmissing
gapisalsowehaveabout$1millionthatisgoinginto
meetingthat,thosegapfinancingneedsforthosefolksin
SoutheastTexasaswell.
ChairwomanWaters.JustgivemethetotalamountofState
assistanceforhousingforHouston.Tellmebasicallythatin
additiontoyourhousingtrustfund,whetherCDBGorHOME
funds,oranyotherfundsortaxcredits,givemeanideaof
whattheStatedoestoassisthousingintheGreaterHouston
area,inHarrisCounty.
Mr.Gerber.Sure.Thanksagaintoourtaxcreditprogram,
whichis$42millionstatewide,roughly25percentofthatgoes
hereintotheGreaterHoustonareaforaffordablehousing.So
that'sputtingrealmultifamilyhousingunitsontheground,
eithernewconstructionorrehabilitation.Intermsofthehome
program
ChairwomanWaters.Wait.Sogoingtobothnonprofitand
forprofitdevelopers?
Mr.Gerber.Yes,ma'am.That'scorrect.TheHOMEprogram,
theCityofHoustonisaparticipatingjurisdiction,sothey
receiveadirectawardofHOMEfunds.Andthatgets
administeredbyMr.Celli.
ChairwomanWaters.That'sfromtheState?
Mr.Gerber.FromtheFederalGovernment.
ChairwomanWaters.FromtheFederalsothatisCDBG
throughtheStatetothelocal?
Mr.Gerber.That'stheHOMEprogram.TheHOMEprogram,
whichcanbeusedforamyriadofpurposes,includingtenant
basedrentalassistance,homebuyerassistance,orowner
occupiedrehab.WeattheStatelevelmanageapotofabout$45
millioninhomefunds,butit'sforlargelytheruralpartsof
theState,thenonparticipatingjurisdictionsthataren'tbig
enoughorsophisticatedenoughtomanagetheirprogramontheir
own.LargecitieslikeHouston,ofcourse,havethatability,
sotheyreceiveadirectallocationfromHUDfortheHOME
program.
Ourotherbigprogramthatwehavearecertainlythefirst
timehomebuyerprogram.Wedoatremendousamountofbusiness
hereintheHoustonarea,notjustinHarrisCounty,butinthe
surroundingcountieswhichhavelarge,boomingsuburbs.I'm
verypleasedthatjustwithourlastissuanceoffirsttime
homebuyerfunds,$16milliongotusedwithin30minutesto
providemortgagesforfamilieshereintheHoustonarea,first
timehomebuyermortgageshereintheHoustonarea.Sothat's
anotherprogram.Andrightatthemoment,wehave$120million
infundsavailableforfolkshereinHoustonaswellas
Statewide.
ChairwomanWaters.Whatwouldsayisthepoorestareaof
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andmaybetheMayorwouldliketotheabsoluteneediest,
poorestareaoftheHoustonareainyourCity,say,Mr.Celli?
Mr.Celli.Wehaveseveralneighborhoods,Congresswoman,
thatwe'refocusingonwithHoustonHopetheSettegastareaon
thenearnorthsideofHouston,AcresHome,andSunnyside.
Thosearetheareasthatwe'refocusingourattentionwiththe
HoustonHopeforeclosureprogramwherewe'retryingtocreate
affordablehousingandredeveloptheseneighborhoods.
ChairwomanWaters.SowhatdoyoudoastheCityandthe
Statecombinedtotrytoworktogetherandtargetfundingto
someoftheneediestareas?Andhowisthatrealized?Whatcan
youtellmeaboutacombinationofHOMEfunds,HousingTrust
Funds,CDBG,andotherfundsthatyou'vedirected?What
percentagesdoyouputintothepoorestareas?
Mr.Celli.PrimarilyweworkwiththeState,withthelow
incomehousingtaxcreditprogram.Wetryandleveragethose
fundstodomultifamilyprojects.Latelywe'vebeenfocusing
oureffortsonthehomeless.We'vedonejustoneprojectthat
wethatjustscorednumberoneintheStateofTexas,anSRO
rightontheGulfFreewayinHouston,rightasyoucomeinfrom
HobbyAirport,wheretheywereawardedlowincometaxcredits.
Andpartneredwithourdollarstwotoone,we'regoingto
creditabout175brandnewunitsofsingleroomoccupancy.
ChairwomanWaters.Soareyoufocusingonpermanenthousing
forthehomelessorbasicallystillemergencyshelters?
Mr.Celli.Stillemergencyshelters.Wehaveadesperate
needforpermanenthousingforthehomeless.We'vespentour
initialeffortswithrapidrehousing,butwithaftertherapid
rehousing,weneedtocreatesomepermanenthousingintheCity
ofHoustonalongwiththecommensurateprogramstogetpeople
backontheirfeet,somesupportprograms.Thosecostmoney,
andthereisalotofmoneyinvolvedinthat.
ChairwomanWaters.Thatwillbeafocusofourcommitteeto
tryandgetpermanenthousingforthehomeless.Wethinkthat
thisviciouscycleofemergencysheltersandpeoplelinedup
hastostop.
Mr.Celli.Weapplaudthat.
ChairwomanWaters.Thankyou.Sowe'llbelookingforward
totheeffortsputforthhereandseewhatwecandotoprovide
someassistance.
ToMr.Allison,thatwaitinglistthatyouhaveistypical
ofwhat'shappeningalloverthecountry.Andtheonlywayto
dealwiththatiswhatwe'reattemptingtodothroughthe
HousingTrustFund,theNationalHousingTrustFund,thatwill
presentsomenewopportunitiesforpeoplewhoneedhousing.
Hopefully,asMr.Greendescribed,throughtheresourcesthat
wewillgetfromtheGSEs,FannieMaeandFreddieMac,and
FederalHomeLoan,we'llbeabletomakesomenewmoney
availableforthecreationofnewhousingunits.
Aswelookatourpublichousing,wehavetofigureouthow
toexpandthoseopportunitiesandgivepeoplesomechoices.And
aswelookatHopeVIprojects,wehavetomakesurethatwe
don'teliminatehousingasbeendonewithsomeoftheHopeVI
projectswheretheyredesignedtheseprojectssothattheylook
beautifulandthey'rewonderful,buttheydon'ttelluswhat
happenedtothepeoplewhogetlostaftertheyredevelopthe
housingprojectsandtheyreducethesizeofthoseprojects.So
we'regoingtolookoutforpublichousingandforexpanded
opportunitiesforpeoplewhoreallydoneedthatassistance.
Withthat,I'mgoingtoturntoMr.Greenforhis
questions.
Mr.Green.Thankyou,MadamChairwoman.AndIthankthe
membersofthepanelforbeingheretoday.Yourtestimonyhas
beenveryenlightening.
Letmestartbyjustaskingifwehaveanypersonsinthe
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audiencewhoarewithNGOsorsomesortof501(c)3,somesort
ofentitythatistryingtoassistwithhousing?Ifyouare,
wouldyouraiseyourhandsothatIcanjustgetsomesense?
Okay.Wehavealotofpeopleherewhoareworkingwith
housing.Andthisisimportant.SoIwouldliketoaskeach
memberofthepanel,asterselyasyoucan,totellusabout
someoftheproductsthatareavailablefortheseNGOssothat
theycanbenefitfrommuchofwhatmaynotbepublishedwidely.
Iunderstandthatyouhaveproblemsintermsofgettingyour
informationout.Youdon'thavebigbudgetstoPRyour
products.Solet'stalkaboutsomeoftheproductsthatyou
havethattheycanbenefitfrom.Andfriends,thiswouldbea
goodtimeforyoutotakeoutyourpenandyourpaper.Because
oneofthethingsthatwewanttodoinCongressismakesure
thatwhatweknowand,toalimitedextentsomeofwhatwe
don'tknow,youhaveanopportunitytoknow.
Soletmestartwithyou,Mr.Allison.Tellmesomeofthe
thingsthatNGOsaredoingthatcanbeofbenefittothem.
Mr.Allison.Wehavebeenpartneringwithotherentitiesin
thedevelopmentofaffordablehousing.
Mr.Green.Saythatagain.
Mr.Allison.Wehavebeenpartneringwithotherentitiesin
thedevelopmentofaffordablehousing.Wedon'thaveanopen
RFPprocess,butanyorganizationthatdesirestopartnerwith
theHousingAuthorityortryingtoobtainassistancethrough
theHousingAuthoritytodevelopaffordablehousingiswelcome
tocomein.Wewillsitdownwiththemandevaluatetheir
projectortheirproposalandworkwiththemtotrytoseeif
wecangoforward.Wedohavesomelimitedcapitalmoneysthat
weareinvesting,whetheritbewithanonprofitoraprivate
developer,butthatisourprocess.
Mr.Green.Areyoucurrentlyworkingwithnotforprofits
indevelopingproductsrightnow?
Mr.Allison.No,wearenotpartnereddirectlywithanot
forprofit.
Mr.Green.Ifyouhaveonethatwillperformsomeoutreach,
youwouldbeamenabletoworkingwithanotforprofit
Mr.Allison.Absolutely.
Mr.Green.todevelopaproduct?
Mr.Allison.Absolutely.
Mr.Green.Allright.Thankyouverymuch.Now,Mr.Celli,
ingivingyourexplanation,ifyouwould,tellusaboutthelow
incometaxcreditjustbriefly,becausewehavealotofNGOs
thatcanbenefitfromthatkindofintelligenceintermsofhow
thatcanworktodevelopaffordablehousing.
Mr.Celli.Well,alowincomehousingtaxcreditisthe
bestwaytocreatequalityaffordablemultifamilyhousingfor
lowincomeindividualsaswellasseniors.Itbasically
providesaClassApropertywithClassCrents.Noother
vehiclecanleveragedollarsthewaythatdoes,andweliketo
useourFederaldollarsinpartnershiptoleveragethelow
incomehousingtaxcredits.
Generally,wecandothatsometimestwoandsometimesthree
toone.Sowhatthatreallyrelatesto,itcostsabout$100,000
tobuildamultifamilyapartmentunitthat'saquality,
livable,decentplaceforpeopletolive,butitonlydebt
serviceabout$30,000ofthatcost.Solowincomehousingtax
credits,alongwithourdollars,canbringdownthat
affordabilityforourseniorcitizensaswellasforourlow
incomeindividuals.
Mr.Green.Forfurtherexplanation,thatlowincometax
creditmeansthatthereisataxcertificatethatismade
availabletosomeonethatwe'llcalladeveloper.Isthata
fairstatement?
Mr.Celli.Yes,itis.Andthenit'ssoldtoinvestors.
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Mr.Green.Let'sjustmakethatclearer.Whenwesaythat
it'ssoldtoinvestors,thatmeansthatthisdeveloperwillgo
outandfindaninvestorwhocanbenefitfromataxbreak?
Mr.Celli.Yes,sir.
Mr.Green.Andhethenwillpartnerwithhim,andhe'll
receivemoneysfromtheinvestorthathecancouplethatthe
investorwillbenefitfromthetaxbreak,sohe'swillingto
givethemoneytothedevelopertodevelopproperty?
Mr.Celli.Yes,sir.
Mr.Green.Andwhenthispropertyisdeveloped,ofcourse
theyallgotothebank.Butitmeansthatsomenotforprofit
orsomeentitywe'llcalladeveloperhashadtheopportunity
nowtobuildthislowincomehousing.
AndtellmeifwehavesomeNGOsthatareparticipatingin
thisprocess.Dowehavesome?
Mr.Celli.Yes,wedo.
Mr.Green.Okay.Nowforthebenefitofthoseofyouwho
arelisteningandyouwanttogetintothebusinessofhelping
todevelopaffordablehousing,thislowincometaxcreditisan
excellentmeansbywhichyoucangetinvolved.Itreally
providesmoneyfromtheprivatesectorbyvirtueofataxbreak
thatisaccorded.Isthatafairstatement,Mr.Celli?
Mr.Celli.Yes,itis.
Mr.Green.Allright.Doyouhaveanotherproductthatyou
cantellusaboutbriefly?Becausemytimeisquicklypassing.
Mr.Celli.TheCityofHoustonjustprovided$700,000to10
differentcommunitydevelopmentcorporationstoconstruct10
housesintheHoustonHopeneighborhoods.Thosearethe
neighborhoodsthatImentionedearlier,likeSunnyside,Acres
Home,Settegast,andIndependenceHeights.That'sasingle
familyprogramwherewe'reencouragingnewhomesbycommunity
developmentcorporationswithourproduct.Alongwiththat,
we'recouplingourdownpaymentassistanceprogramwherefor
thehomeowner,youcanbuydownthemortgageupto$30,000in
theHoustonHopeneighborhoods.
Mr.Green.Andforadditionalinformationontheseproducts
andothersthatyoumayhave,howwouldpeopleaccessthe
intelligence?
Mr.Celli.Callme.7138688444.
Mr.Green.Now,ifyoudidnotgetthatnumber,raiseyour
handyouneedtorepeatit.
Mr.Celli.7138688444.That'sadirectlinetomyoffice.
Mr.Green.Thankyou,Mr.Celli.
Mr.Gerber.Intheinterestoftime,I'lljustaddon.The
taxcreditprogram,thatisaverycomplexprogram.Wewere
verypleasedabout3or4monthsagotodoaactuallyless
thanthat,aneventwithCongresswomanJacksonLee,aworkshop
withmembersofthefaithbasedcommunitywhoareinterestedin
participatinginthatprogram.Itisaverycomplexand
challengingprogramthatreallyissomethingthatrequiressome
degreeofexpertise.Andmanyofthefolksinthisroomhave
thoseskills.Wewouldverymuchwelcomeachancetodoanother
workshop,maybeevenpartneredwiththeCityofHoustonandthe
Countyunderyourgoodoffices.Let'strytopiecethat
togethertoinvitefolksinthisroomtocometogetherand
learnina,youknow,fulldayworkshop,whichisreallywhat
ittakestoget,Ithink,agroundingofsomeofthebenefits
andtherisksofgoingintothis.Becausebuildinga250unit
apartmentcomplexisnotsomethingthatonewantstogointo
lightly.There'salotthatisinvolved.Sowewelcomethat
chance.And,ofcourse,wereallyvaluetheleveragingthat
goesonwithlocalsinordertomakethosetaxcreditdeals
workinplaceslikeHouston.SoIwouldjustfocusreallyon
thatprogram.
Mr.Green.Well,Iwanttothankyouforvolunteeringand
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beingaccessible.Ithinkwe'lltakeyouuponthatofferand
havethatworkshop.Absolutely.There'sacompetitivesideto
thelowincometaxcreditprogram.Areyoupreparedtoaddress
that,orshouldIgotothenextspeaker?
Mr.Gerber.Well,therearereallytwotaxcreditprograms.
There'sa4percenttaxcreditprogram,andthenthere'sthe9
percenttaxcreditprogram.It'sthe9percenttaxcredit
programthathasthedeepestsubsidyandistheprogramthatis
themostcompetitive.And,youknow,we'reoversubscribedfor
thosefunds3to1.
Incontrast,the4percenttaxcreditsaregenerally
layeredwithabondtransaction.AndtheHarrisCounty,you
know,HousingFinanceCorporationofSoutheastTexashasa
financecorporation.Allarebondissuers.TheTexasDepartment
ofHousingandCommunityAffairsisabondissuer.Andthenwe
willlayerontoit4percenttaxcredits.Thereareplentyof
those.It'sbasedonthevolumecountstheStatereceivestobe
abletodoanadditionaldeepertargetingtomaketheeconomics
ofthedealwork.Soforbothabondtransaction,layeredwith
4percentcredits,orthe9percentcompetitiveprogram,I
wouldproposethatwedoaworkshopthatwouldlinkbothof
thoseandtalkaboutbothofthem.Becauseinmanycases,ina
CitylikeHouston,abondtransactionmakesalotofsenseat
those4percents.Youcanmaketheeconomicsofitworkasyou
canwiththe9.
Mr.Green.Ms.LucindaDanielswillcontactyouaboutit.
Mr.Gerber.I'lllookforwardit.
Mr.Green.Mr.Ozdinec,ifyoucanrespondquickly,because
mytimeisverylimited.
Mr.Ozdinec.Sure,Congressman.Asyouknow,the
Department'sannualbudgetisabout$32billionayear.A
littlemorethanhalfofthatistheHousingChoiceVoucher
Program.That'stheenginethatdrivestherentalassistance
marketprettymuchacrossthecountry.Ourambassadorstoour
programsareliterallypublichousingauthoritiesandour
cities.Allofourfundsflowthroughthecities.Butthereare
thingsthatcanbedone,obviously,intheSection8program
forthenongovernmentalfolksoutherethatdosmallscale
development.TheycanreachouttotheirPublicHousing
Authority.EachPublicHousingAuthorityhastheabilityto
projectbasetheirvouchers.TotheextentthataHousing
Authorityislookingforpropertiesorrentalunitsin
Mr.Green.Letmejustintercedequickly.Explainthat
term,``projectbase.''Manypeoplemaynotunderstandexactly
whatthatmeans.That'sanimportantterm.
Mr.Ozdinec.I'llgiveyouanexample,ahypothetical.Ifa
HousingAuthorityhad1,000vouchersintheirprogram,they
couldtakethebudgetauthorityforupto20percentofthat
voucherprogramandsolicitproposalsfromdevelopers,
nonprofitorotherwise,toproviderentalunitsthroughthe
projectbasedprogram.Andtheywouldsigna10yearcontract
withtheHousingAuthoritytoprovidethatunitforwaiting
listfamiliesforthatperiodoftime.
ThathelpstosupportsomeofthedealsthatMr.Gerber
discussed.The4percentdealsaretoughtodo,butoftenwhen
there'sprojectbasingassociatedwithit,it'sthegreasethat
makesthewheelrun.
Mr.Green.Thankyouverymuch.MadamChairwoman,I'dlike
tosubmitfortherecordastatementfromCouncilMemberAdrian
Garcia.Withoutanyobjection,Iofferitatthistime.
ChairwomanWaters.Withoutobjection,itissoordered.
Thankyouverymuch.Ms.JacksonLee?
Ms.JacksonLee.MadamChairwoman,thankyouverymuch.And
toallthewitnesses,letmethankyouforveryinstructive
testimony.MightIjustrepeat,becauseIthinkwehavealready
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acknowledgedtheleadershipofChairwomanWaters,butletme
repeatthesenumbersthataresostriking.
Iwanttoposealineofquestioningthathopefullymaybe
willchangeattitudes:30,000peoplecameonthewaitinglist
in14days;42,000arewaitingforSection8vouchers.Iknow
wecandobetterhereinHouston.Wecandobetter.AndIthank
youforthatinstructiveinformation,becausewehavetofinda
waytomovetowardacorrectiveaction.Andsoletmejust
quicklyMr.Ozdinec,letmequicklyjustrefreshyourmemory.
Asyouknow,aboutadecadeorsoago,therewasamindsetthat
suggestedthatlargestructuressuchasCabriniGreenin
Chicago,andsomeothersinAtlanta,werenotthewaytogoin
termsofpublichousing.Unfortunately,Houstongotcaughtup
intheoverallumbrellawhereHoustonwasnothighdensity.And
somyquestiontoyou,listeningtoMr.Allisonandthecrisis
wehavehere,that'sSection8,buthealsomentionedtheneed
forpublichousingunits.Wehaveonly4,000.We'vehad4,000
fordecades.Wenowareminimallyneeding10,000.What
policies,becauseofthepolicythatI'vejustenunciatedyou
workedinNewOrleans,youworkedinChicagoandAtlantacan
bealteredtoworkwithacitythatreallyneedsthesepublic
housingunits?
Mr.Ozdinec.Thankyou.AndIappreciatethequestion.The
thingthatIthinkisthemostimportantlessonthatwecould
havelearnedthroughthe1990'sthroughtheHopeVIprogram,if
there'soneveryimportantlesson,ispartnerships.Upuntil
thatpoint,HousingAuthoritiesweredoingpublichousing
developmentsontheirownthroughdirectappropriationsfrom
Congresstobuildpublichousingprojects.Ithinkinthelast
decade,we'vegottenhousingauthoritiesfamiliarwiththe
termsthatmanyofthepeopleinthisroomarefamiliarwith,
thedifferencebetweena9percentanda4percentcredit.
WhatdoIneedtodotobeagoodpartnertoaprivate
developersoIcanparticipateaspartofadevelopmentprocess
where,forexample,a250unitmultifamilydevelopmentcan
supportperhaps100verylowincomefamiliesaspartofthe
publichousingprogram.Wehave,aspartofthatnew
developmentprocess,institutedwaysfornonpublichousing
authoritiestoownpublichousingthroughlongtermrental
assistanceagreementsandothermechanismsthatareavailable
totakewhatweretraditionallyoperatingsubsidiestosupport
marketrateandtaxcreditunitscombinedtogethertogenerate
additionallowrentpublichousingunitsinthecontextofa
largercommunity.
Totheextentthathousingauthoritiescantakethosetools
thatthey'velearnedonfinancing,mixingincomes,mixing
financingtools,partneringwithdeveloperswhodevelop
affordablepublichousingacrossthecountry,andbeingagood
stewardandagoodpartnerforthosesortsofdeals,using
theirSection8programpotentiallytoprojectbase,thoseare
alltools,Ithink,thatwe'velearnedthroughthe1990's.To
theextentthattheCongressdecidestoappropriateany
additionaldevelopmentfundsfortheDepartment,my
recommendationwouldbeforthosefundstobeusedverysimilar
tothewayweusethetaxcreditequitybothonthe9percent
andthe4percentcredits;thatdeveloperssubmitproposals
Ms.JacksonLee.I'msorry.Mytimeislimited.
Mr.Ozdinec.Iapologize.
Ms.JacksonLee.Ifyoucanwrapup.
Mr.Ozdinec.Well,that'sit.Imean,thatwouldbemy
numberonelesson,partnershipsandavarietyoffundsbeing
pulledtogethertocreatepartnersandstakeholdersaround
affordablehousingdevelopments.
Ms.JacksonLee.IguessthequestionIwouldhaveis
whetherornotwehavetheabilitythroughlegislationor
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otherwisetogobacktothoseunderutilizedcommunitiesthat
neverhadthedensityandletthembuildpublichousing.Is
thatapossibility?
Mr.Ozdinec.Ifthemoneyisthere,Congresswoman,Ithink
theanswerisyestothat.Ithinkthemethodofdevelopment
nowhaschangedfrom30yearsagotosomethingmoreakinto
whatyouseeinAtlantaandsomepartsofChicagonow.
Ms.JacksonLee.Thankyou.LetmeaskMr.Cellionanother
issuethatI'mverykeenonand,Mr.Ozdinec,ifyoucan
respondtothisaswell,andthatisthequestionofsenior
repairhousingunderyourcommunitydevelopmentfunding.Itis
inyourconsolidatedplan.Iunderstandtheprogramis,ifyou
will,suspended.Thequestionistheabilitytobeableto
addressseniorrepairprogramsinawaythatmeetstheneedsin
thiscommunity.AndMr.Ozdinec,ifyoucanspeakfroma
housingperspectivefromHUD'sperspectiveintheutilization
ofthesefunds,sowhatwecallseniorrepairreconstruction,
astotheviabilityofthat.Andwhydon'tIgotoyoufirst
andthenMr.Celli,please.
Mr.Ozdinec.Thankyou,Congresswoman.Thatisnotmy
account,unfortunately.
Ms.JacksonLee.Iunderstand.
Mr.Ozdinec.ButImetwithyourstaffthismorning,andI
willdefinitelygetthemincontactwithourDeputyAssistant
SecretarywhorunstheCDBGprogram.Wecanhaveaconversation
aboutthattoensurethatyourconcernsarebeingmet.
Ms.JacksonLee.Mr.Celli.
Mr.Celli.Weareintheprocessofgoingbackandlooking
atabout1,800homesthatarerequiredbyus,byHUD,togo
backandreinspecthomesthatwedidseniorrepairtogoing
backto2001through2005.Andwehavetogobackandreinspect
thosehousesandfixthemiftheyneedtobefixed.
Unfortunately,wehaveawaitinglistofabout2,000
individualswhoareonthatthatareinneedofrepairwork.
AndthatlistwascreatedwhenFederalfundswerecutoffto
theCityofHoustonin2005.Andsowe'reintheprocesson
that2,000waitinglist,we'relookingat,Ibelieve,200of
thosehousesrightnow.Andwe'rebeginningtotrytowhittle
downthatwaitinglist.
Ms.JacksonLee.So,Mr.Ozdinec,wecanworkwithyouto
correctthisseeminglyheavyburdenontheCityofHouston,
whichislookingbehindandnotforward,thecrisisofsenior
housinganddisabledhousingonrehabandreconstruction,maybe
wecanmovealong,becauseitreallyisatdisasterproportions
intermsofseniorsandthedisablednotbeingabletohave
homerepairbecausetheworkthattheCityisnowdoingiswork
thatisfixupwork,meaninggoingbacktotryandcorrect
ills.AndIknowthereshouldbeaparalleltrackofthembeing
abletofixtheproblemsofthepastandreporttoHUDbutmove
forwardonaprogramthatisliterallynowstagnatedandpeople
aresuffering.
Mr.Ozdinec.Yes,ma'am.
Ms.JacksonLee.Thankyou.
ChairwomanWaters.Thankyouverymuch.TheChairwill
grantherselfanadditionalminutebecause,aswewalkedin,we
werehandedpicturesfromsomeofthecitizensabouthomesthat
werebuilt,developersthatwerecontractedwithbytheHousing
Authority,thatarefallingapart.Whoisresponsiblefor
makingthesehomeownerswholeforthesehomesthathavebeen
paidforbyHUD,I'mtold?
Mr.Allison.Iwouldneedtoseetheproperties.The
HoustonHousingAuthorityisonlyresponsibleforhomesin
Houston.WearenotresponsibleforhomesinSanAntonio.
ChairwomanWaters.Well,withoutlookingatthese
particularonesI'llgiveyouacopyofthese,areyouaware
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ofthisproblem?
Mr.Allison.No,I'mnotawarethatoftheproblemswith
somehomesthatwehavedevelopedthatareindisrepair.Notat
all.
ChairwomanWaters.Allright.Areyougoingtostickaround
afterthepanel?
Mr.Allison.Yes,ma'am.
ChairwomanWaters.Verygood,becauseIthinkwehavesome
peopleherewhowilldescribeitinmoredetailtous.With
that,Ithinkyes?
Ms.JacksonLee.MayIreadjusttwoquestionsintothe
record
ChairwomanWaters.Yes,youmay.
Ms.JacksonLee.justveryquickly?Thisisforthe
SecretaryforHUD.Letmeaskforaresponsetoaseriesof
lettersthatIhavewrittenregardingtheAllenParkwayVillage
andthenonfulfillmentoftheHopeVIrequirementsthatwere
agreedtointhereconstructionandrehabofAllenParkway
Village.ThesecondoneistheissueofHUDprogramsthatmay
beappliedinadiscriminatoryfashionasrelatestolowincome
residents,particularlyintheFourthWardarea.AndI'd
appreciateit.Wehaveaseriesoflettersintoyouonthat
issue.
Mr.Ozdinec.I'lllookintothat,ma'am.
ChairwomanWaters.Theywillbeincludedintherecord.The
Chairnotesthatsomemembersmayhaveadditionalquestionsfor
thispanelwhichtheymaywishtosubmitinwriting.Without
objection,thehearingrecordwillremainopenfor30daysfor
memberstosubmitwrittenquestionstothesewitnessesandto
placetheirresponsesintherecord.Thispanelisnow
dismissed.Iwouldliketowelcomeoursecondpanel.Thankyou
verymuch.IwillcallonMr.Greentointroducethesecond
panel.
Mr.Green.Thankyou.Andasyou'recomingforward,Iwill
starttheintroductionsbecausetimeisoftheessenceandwe
wanttocoverasmuchaspossible.Sopanelists,ifyouwould,
kindlymoveforwardasexpeditiouslyaspossible.
OurfirstwitnesswillbeMr.JohnHenneberger.Heisthe
directoroftheTexasLowIncomeHousingInformationService.
Thisorganizationprovidesagreatserviceintermsof
statisticalinformation.WearehonoredtohaveMr.Henneberger
withus.
OursecondwitnessisMr.RobertMuhammad,thechief
executiveofficerofACTIONCDC;theyverymuchinvolvedwhen
theKatrinasurvivorswerecomingtotheCityandinneedofa
multiplicityofservices.Theywere,ofcourse,theretobeof
assistance.
OurthirdwitnessisMs.DebraJunor,amemberoftheTexas
Tenants'Union.She,Ibelieve,hastestifiedinWashington,
D.C.IfnotMs.Junorherself,we'vehadamemberofthe
organizationtotestifybeforeusinCongress.
OurfourthwitnessisMs.ToniMcElroy,thepresidentof
TexasACORN.TexasACORNhasbeentoWashingtonmanytimeson
behalfofKatrinasurvivors,andwe'rehonoredtohaveMs.
McElroywithustoday.
OurfifthwitnessisMr.DanielBustamante,theexecutive
directoroftheGreaterHoustonFairHousingCenter,along
timecommunityactivistandchampionforpersonswhoare
sufferingfromhomelessness.
OursixthwitnessisMr.GordonQuan,foundingpartnerof
Quan,BurdetteandPerez,heretodayonbehalfoftheNational
CoalitionofAsianPacificAmericanCommunityDevelopment,also
shownasCAPACD.
And,finally,wehaveMr.ManuelLopez,thehousing
directoroftheTejanoCenterforCommunityConcerns.Iwould
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addalsothatMr.QuanisaformercitycouncilpersonI
neglectedtosaythiswhochairedtheHousingCommitteefor
theCityofHouston.AndMr.Lopezhasbeeninvolvedinthis
communityforsometimeaswell.Idon'tseehimcurrently;but
ifhedoesarrive,ofcoursewewillhearfromhim.Withthis
said,MadamChairwoman,Iyieldbacktoyou.
ChairwomanWaters.Thankyouverymuch.Wewillstartwith
Mr.Henneberger.Wewillrecognizeyoufor5minutes.
STATEMENTOFJOHNHENNEBERGER,CODIRECTOR,TEXASLOWINCOME
HOUSINGINFORMATIONSERVICE
Mr.Henneberger.Thankyou,MadamChairwoman,andmembers
ofthesubcommittee.Iwanttothankyoufortheopportunityto
beinvitedtotestifytoday.I'mJohnHenneberger.I'mthe
directorofanNGOthatundertakeseducation,research,and
advocacyconcerningthelowincomehousingandcommunity
developmentneedsofTexans.MadamChairwoman,beyondthe
courseofthishearing,Iwouldurgethecommitteetohelpus
shinethelightontheproblemsandchallengesthathavebeen
encounteredwithprovidinghousingassistancetothe75,000
Texasfamilieswholosttheirhomesorhadtheirhomesseverely
damagedbyHurricaneRita.Wearecomingtoatrainwreck
regardingthisprogrambecauseofalackofadequatefunding
andthefactthatmanyofthepoorestpeoplewhohadtheir
homesdestroyedbyHurricaneRitainTexasstandsnottobe
abletoreceiveanyhousingassistancebecauseoftheshortage
ofavailablefunds,butthatisatopicforanotherday.
AndtodayIwouldliketofirstbeginbytalkingtoyou
aboutthecurrentstateofaffordablehousinginHouston,which
Icanbestcharacterizeasaworseningcrisis.Therearefour
trendsthathighlightthecriticalhousingchallengesthatface
Houston;firstofall,thelargeshareofHoustonresidentswho
rentratherthanown.MadamChairwoman,itiscounterintuitive
tothoseofusinTexaswhoareveryproudofourindependence
andourownershiptofindthatweare41stamongtheStatesin
homeownership.Anditisdeeplydistressingtofindthat
Houstonis57thamongthelargeU.S.citiesintermsof
homeownership.Weare22percentagepointsbelowthenational
averageofhomeownershiphereinHouston.Andweare10percent
belowtherateofhomeownershipofcentralcitiesintheUnited
States.
SoHoustonisaprofoundlytroubledcityintermsofits
extremelylowrateofhomeownership.Houston'srateof
homeownershipislowestamongallthemajorcitiesintheState
ofTexas.Wealsohaveaverylargeshareofrenterswhopay
toomuchoftheirincomeforrentandutilities36percentof
alltherentersinHoustonhaveincomesbelow$20,000.Andmany
ofthese,asIthinkyouhavealreadywellsummarizedin
statisticaldata,areseverelyrentburdened;140,000
householdsintheCityofHoustonwithsevererentburdens.I
providedyou20pagesoftestimonywhichprovidesyoudetailed
statistics,soIwon'tgointoallofthedetailshere.
ThefourthcharacteristictrendinHoustonistheshortage
ofrentalhousingtothelowincomefamilieswhoneedthat
housing.AndtheCityhas,basedonourestimatesofthe2005
AmericanCommunitySurvey,adeficitof49,323homesfor
extremelylowincomefamilies,thatis,familiesbelow30
percentofmedianfamilyincome.Iprovidedyouinmytestimony
abreakoutbycongressionaldistrict.Andthosecongressional
districtswhichrepresenttheGreaterHoustonareahavea
deficitof108,000homesforfamilieswithincomesbelow30
percentofmedianfamilyincome.Thecrisisistruly
astronomical.
Thefourthtrendisthesizablegapbetweenthe
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homeownershipoftheCityofHoustonanditssuburbs.Thisgap
is23percent.TheratioofHoustonhomeownerstosuburban
homeownersis23percentlowerintheCityofHoustonthanit
isinthesuburbs.Andthisisinexcessofnationaltrendsof
majormetropolitanareasandtheirsuburbs.
And,finally,governmenthousingsubsidies,asMs.Jackson
Leehasexploredwithapreviouswitness,inHoustonare
disgraceful.Andthegovernmenthousing,inessence,hasto
providethesafetynetforthepoorestfamiliesinmostcities.
InHouston,therateissubstantiallybelowthatofmostofthe
restofthecountry.Houstonhasthesmallestnumberofper
povertypopulationsmallestnumberofSection8unitsand
publichousingunitsperthenumberofpeopleinpovertyofany
ofthe20largestcitiesinthecountry,withtheexceptionof
DetroitandPhoenix.Wearewellbelowtherate.Wehaveonly
oneSection8andpublichousingunitforevery22.5personsin
povertyinthistown.Thatisthatadisgracefullylowrate.
Allofthesemakeforamajoraffordablehousingcrisisin
Houston.AndthencameHurricanesKatrinaandRita,andthings
suddenlygotawholelotworse.
I'llbrieflysummarizeafewofthechallengesthatthe
CityofHoustonandthesurroundingcommunityhavefacedin
meetingthehousingneedsofKatrinaandRitaevacuees,first
andforemostofwhichisthatTexashasreceivedgrossly
inadequatelevelsoffundingforhurricanesurvivorsfor
housingassistance.Thetotalamountbudgetedcurrentlyfor
assistanceforKatrinaevacueesinthisCity,whichreceivedby
farthelargestnumberofKatrinaevacueesofanycityinthe
country,isonly$60million.
Now,ofthat$60million,inouropinion,theCitymadea
poorchoicetospendalargeportionofthatmoneyfor
additionalpolicingandforreimbursementofvariouscoststhe
Cityhasincurred.Webelievethatifyouonlyhave$60
million,thefirstpeopleinlineoughttobethepeoplewho
werehurtandlosttheirhomes.Andthegovernmentoughtto
standbehindthem.Thehousingprograms,furthermore,thatwe
haveavailable,housingresourcesthatwehaveavailablethe
otherhousingresourceswehaveavailableislargelylimitedto
theLowIncomeHousingTaxCreditProgram.AndTexasdidgetan
allocationfromCongressofadditionalfundsundertheLow
IncomeHousingTaxCreditProgram.ButtheTaxCreditProgram
cannotservepeopleattheincomelevelsoftheaverageKatrina
andRitaevacuee.Theyjustcannotaffordthoserents.And,in
fact,arecentmarketstudybytheTexasDepartmentofHousing
andCommunityAffairshasshownthatHoustonisactually
overbuiltwithtaxcreditunitsof60percentofmedianfamily
incomewhilewehave140,000plusfamiliesbelow30percentof
medianfamilyincomewhoarepayingmorethan50percentof
theirincomeforrent.Texascametogetherandsubmittedaplan
forlongtermhousingrecoveryandsubmittedittothe
Presidentin2006,whichI'veattachedtomytestimony.
Unfortunately,thosespecificrecommendationshavelargelynot
beenprovidedfor.
Iknowmytimeisup,andI'llbrieflyI'llmovequickly
toourspecificrecommendationsfromthatletter.Firstofall,
ifHoustonisgoingtomakeit,it'sgoingtoneedsubstantial
newSection8HousingChoiceVouchers,andIdon'tknowexactly
wherethey'regoingtocomefromgiventhebudgetsituationthe
wayitis.ThecombinedorganizationswhichlookedattheRita
andKatrinaproblemestimatedthatTexascitiesalltogether
needed36,000incrementaladditionalSection8vouchersin
ordertodealwiththeKatrinaandRitapopulationthatwe've
had.
Weneedanadditional,inourestimate,$97.5millionof
lowincomehousingtaxcredits,butonlyifwecangetthat
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coupledwitharuleswaiverwhichwillallowtheStateissuing
entitytopermittheStatetofundaportionoftheapartments
withineachdevelopmentatahigherlevelthanthe9percent
credits.Inotherwords,usethetotalcapofauthoritythat
CongresswouldgivetheStateforlowincomehousingtax
creditsbutallowthemtoenhancethesubsidysowecanget
someunitsatthe40percentofmedianfamilyincomerate,
becauseweareonlyableeffectivelytogenerateattheupper
50percentand60percentofmedianfamilyincomeratewithtax
credits.
ChairwomanWaters.Mr.Henneberger,isallofthisinthe
attachedtestimonythatyou'vegivenus?
Mr.Henneberger.Yes,ma'am,itis.AndIthankyouvery
muchfortheopportunitytotestifybeforeyoutoday.
[ThepreparedstatementofMr.Hennebergercanbefoundon
page71oftheappendix.]
ChairwomanWaters.Thankyou.AndI'mhopefulthatyouwill
makesurethattheplanthatyoualludedtothatwaspresented
tothePresidentabouthowtofixsomeofthisisnotonlymade
availabletousbutyouwillperhapseven,attheinvitationof
Mr.Green,cometoWashingtonandworkwithusonthat.
Mr.Henneberger.Thankyou.
ChairwomanWaters.Iappreciateitverymuch.AndI'm
sorry.We'regoingtohavetomoveoninordertogetto
everybody'stestimonyinthetimethatwehavebeenalloted.
Mr.Muhammad.
STATEMENTOFROBERTMUHAMMAD,CHIEFEXECUTIVEOFFICER,ACTION
COMMUNITYDEVELOPMENTCORPORATION
Mr.Muhammad.ChairwomanWaters,RepresentativeGreenand
ofcoursemyownrepresentative,SheilaJacksonLee,Iam
RobertMuhammad.I'mthefounderandCEOofACTIONCommunity
DevelopmentCorporation.Iwouldliketherecordtoreflect,
MadamChairwoman,thatIambeingjoinedtodaybyRuqayya
Gibsonwhoisourexecutivedirector,andSadiyahEvangelista,
whoisaboardmemberandourgeneralcounselforACTIONCDC.
Iholdamaster'sdegreeandIamcurrentlybeginningthe
dissertationphaseinmyPh.D.workinthefieldofurban
planningandenvironmentalpolicyatTexasSouthernUniversity
hereinHouston.Ihaveservedasastudentintheministryand
acommunityservantinHoustonforover20years.
ACTIONCDC'smissionistoempowerlowandmoderateincome
individuals,families,andneighborhoods.Ourmottois,
`ÌmprovingOurNationOneNeighborhoodataTime.''
HoustonJustsomebackground,MadamChairwoman.Houston
isanonzoned,lowregulation,marketdriven,developer
friendlycity.Houston'scostoflivingisrelativelylow,as
younoted,incomparisontoCalifornia.Whenrentalcostand
unitavailabilityarethevariablesusedindetermininghousing
affordability,onecouldreasonablyconcludethatthere'sno
shortageofaffordablehousingstockintheCityofHouston.
However,amorethoroughexaminationwillrevealthatthereis
ashortageofsafe,hazardfree,environmentallysound,energy
efficient,handicapaccessible,seniorcitizenandfamily
friendlyaffordablehousing,convenientlylocatedneartransit,
decentschools,andjobcenters.
InHouston,forprofitdeveloperswouldgladlybuild
affordablehousingifitwasintheirbestinterest.Land
acquisitionandcarryingcosts,predevelopmentexpense,
construction,andmarketingforsalesandrentaldictatesthat
eachprojectinitshighestandbestuseresultsinthehighest
returnoninvestment.Therefore,housingstockinHoustonis
builtoraffordablehousingstockinHoustonisbuiltbysmall
forprofitdevelopersornonprofitsoristheresultof
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cyclicalmarketforcesthatmakehousingunitsavailable
becausetheycannotreasonablycommandmarketpriceswithout
majorreinvestmentandredevelopment.
Ijustwanttogothroughthechallengesofmeetingthe
housingneedsofKatrinaevacuees,andthenIwill,iftime
allows,tellyoutheprojectsthatACTIONisworkingonin
termsofbuildingsomehousing.AfterHurricaneKatrina,ACTION
CDCprovidedhousingcounselingto1,400Katrinafamilies,
financialrecoverycounselingto1,120families,case
managementservicesto916families,employmentservicesto
1,620families,foodservicesto5,090families,and
transportationassistanceto2,050families.Wehaveprovided
$172,164tofamiliesinunmetneedsassistancefromthelong
termrecoverycommitteeofHouston,$85,000indirectfinancial
assistance,$240,000infinancialassistancethroughthe
AmericanRedCross.Ourstaffofeighthardworkingcase
managersincludesfourKatrinaevacuees.
Now,accordingtoarecentstatistic,nearly3yearsafter
HurricaneKatrina,anestimated100,000survivorsstillreside
inHoustonandhavenoconcreteplanstoleaveandreturnto
NewOrleans.Manyareeldersandtheyarelosinghope,
sufferingfromprolongedmentalanguishand/ordying.
Anotherchallengeisthatinassisting30percentofthe
survivorswhoareelderlyordisabled,withmeetingthelong
termneeds,thesurvivorswhowereabletoliveoffofa$600
disabilitycheckinNewOrleanscannotdosoinHoustondueto
ourcostofliving.AndtheycannotdosoinNewOrleansany
longerbecausethecostoflivingtherehasdoubledsincethe
hurricane.AccordingtoarecentZogbypoll,alargenumberof
survivorsarecurrentlyemployed,but70percentearnlessthan
$25,000perhousehold.Manysurvivorsthatwehavebeenengaged
arelivingtwoandthreefamiliestoahousehold,which
contains9to18individualsperapartment.Theconstant
instabilityintheFEMAhousingprogramhashadanegative
effectonthementalhealthofsurvivors.Forthepast2years,
ACTIONCDChasmadeitourprioritytoassistthesurvivors
withrecoveringandachievingselfsufficiency.
TheHUDfundedDisasterHousingAssistanceProgram
administeredjointlythroughtheCityofHoustonandHarris
CountyHousingAuthoritieswillnothelpeverysurvivor.There
areanestimated25,000householdsinHoustonnotcoveredby
DHAP,andatleast50percentofthosehouseholdsneed
additionalassistance.Thisisacomplexsituation,meeting
housingandhumanneeds,willmostcertainlyrequirepatient
pragmatic,holisticcasemanagement.Andfundingtoprovide
theseserviceshavestobeadequateandongoing.
Intermsoftoolsthatareneededtoincreaseandpreserve
affordablehousingandourpositionontheNationalHousing
TrustFundActof2007,H.R.2895,letmesayitlikethisto
thisdistinguishedpanelsubcommittee.Nonprofitsina
nonzoned,lowregulated,marketdriven,developerfriendlycity
suchasHoustonareatadistinctdisadvantage.Sometimesit
feelslikewe'rebeingaskedtomakebrickwithoutstraw.In
ordertoincreaseandpreserveaffordablehousing,werequest
thatyouconsiderthefollowing.
Continuedandincreasedaccesstofunding,programssuchas
HOMEandCommunityDevelopmentGrantsarecriticalto
nonprofitstobeabletodesign,build,andmanagequality
affordablehousinginthecommunitiesweserve.Operatingfunds
forCertifiedHousingDevelopmentOrganizationsisequally,if
notmore,importantbecauseitfreesthenonprofittofocuson
projectdeliveryversusapreoccupationwithseekingfundsto
coverrelatedoverhead.Fundsforstaff,consultants,and
qualitytrainingareimportanttobuildingtheinternal
capacitynecessaryforcontinualprojectsuccess.
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Transparencyandclarityofprocesshasalreadybeen
stated.FederalandStateandCityentitiesshouldsimplify
processesanddocumentationrequirements.
Landacquisitionfunds,nonprofitscannotbuildorpreserve
affordablehousingstockifwecannotassembleparcelsnearjob
centers,transit,orinlowincomeareasthataregoingthrough
gentrification.Landcostnormallyshouldnotexceed20percent
ofone'stotalprojectcost.Nonprofitsneedgapland
acquisitionfundinginordertobuildaffordableprojectsthat
wouldotherwisebeimpossibleunderhighestandbestuse
analysis.
Lastly,weneedpredevelopmentfunds.Nonprofitscannot
properlyassessthefeasibilitynordeliveraffordablehousing
projectswithoutcompetent,professionalexpertise.Private
lenderswillnotparticipateinprojectsthatarenotpackaged
properlyorfailtocashflow.ACTIONpredictsthatenergy
usageandexpensealongwithpublicsafetywillbecomemajor
determinantsofhousingaffordabilityinthefuture.Energy
efficient``green''buildingandsafetythroughdesignprograms
increasecostduringthedevelopmentphase.However,these
predevelopmentexpensesincreasedevelopmentsustainabilityand
propertyvalueoverthelifeoftheproject.
Iclosewiththis.ACTIONCDCfullysupportstheNational
HousingTrustFundof2007becauseitwillprovideincreased
fundingandclearbenchmarksforachievement.Theadditionof
significantfundswillbetremendousinitsimpacton
underservedcommunities.InamajormetropolissuchasHouston,
newandexistingnonprofitsneedtobepositionedtoassist
governmentinmeetingourlowincomepopulation'sneeds.Wesee
H.R.2895asawiseuseoftaxpayerfunds.H.R.2895helps
deconcentratepovertybyallowingnonprofitstoofferquality
workforcehousingtomiddleclassfirstresponders,teachers,
andotherpublicemployees.Itisgoodfornonprofitsbecause
ithasthepotentialtohelpcreateinnovativeaffordable
housingdevelopmentsthataremixedincome,mixeduse,
transportationoriented,environmentallysound,energy
efficient,hazardmitigated,safe,handicappedaccessibleand
financiallyfeasible.MayGodblessyouforyourconcernfor
thepoorandlessfortunate.OnbehalfoftheBoardandstaff
ofACTIONCDC,thankyouinadvanceforyourinvitationand
considerationofourtestimony.
[ThepreparedstatementofMr.Muhammadcanbefoundon
I'dliketoasktheothermembersofthepaneltoplease
summarizeyourtestimony.We'regoingtotrytowrapeachof
yourpresentationsupinabout4minutes.Weallowedthefirst
twotogofarbeyondthe5minutes,becauseIknowtheyhave
beenwaitingalongtimetotellsomebodyaboutwhatisgoing
onandwhattheneedsare.Ithinktheyhavedoneaprettygood
jobofkindofidentifyingwhattheneedsare,soI'dlikeyou
tojustaddtoitasquicklyasyoupossiblycan,andthen
we'llgivethemembersanopportunitytoasksomequestions.We
willthenhavetocatchplanestogobacktoWashingtonto
vote.Thankyouverymuch.
STATEMENTOFDEBRAJUNOR,MEMBER,TEXASTENANTS'UNION
Ms.Junor.Goodmorning,CongresswomanWaters,Congressman
Green,CongresswomanJacksonLee,andmembersofthecommittee.
MynameisDebraJunor,andI'mhereofbehalfoftheTexas
Tenants'Union,anonprofittenants'rightsorganizationwhich
empowerstenantsthrougheducationandorganizingtoprotect
theirrights,preservetheirhomes,improvetheirliving
conditions,andenhancethequalityoflifeintheircommunity.
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IamaformertenantofaHUDassistedapartmentcomplex,a
formerHUDfundedVISTAvolunteer,andaformertenant
organizerfortheTexasTenants'Union.
TheHUDpropertiesIhaveworkedinandwilldiscusstoday
areprivatelyownedapartmentcomplexesthateitherhaveHUD
insuredloansorprojectbasedSection8HousingAssistance
Paymentscontracts,orboth.Inthe1960'sand1970's,HUD
encouragedprivatedeveloperstobuildaffordablehousing
throughlowinterestHUDinsuredloans.Inexchange,theowners
wererequiredtokeeprentsaffordabletolowandmoderate
incomepeople.
Inthelate1970'sandearly1980's,HUDbeganproviding
additionalsubsidiestosomeofthesedevelopmentsandcreated
newapartmentcomplexeswiththeprojectSection8program.
Thisprogramprovidedgreataffordabilitytolowand
extremelylowincomepeoplesimilartothepublichousingor
Section8voucherprogram.
Inthemid1980's,someownersbeganpayingofftheseHUD
insuredloanswhichreleasedthemfromtheobligationto
provideaffordablehousing.Oneofthefirstprepaymentsinthe
countryoccurredinDallas,Texas,wheretheapartmentswere
demolishedandreplacedwitha17screentheater.Atthattime,
therewasnoFederalprogramdesignedtokeeptheproperties
affordableandnoprotectionatallfortheresidents.
I'mgoingtoskipawholelotbecauseofthe4minutes.The
TexasTenants'UnionparticipatesinthePreservationWorking
Group,whichhasanumberofrecommendations:
ProvideadequateappropriationstorenewSection8
contracts.HUD'sfailuretorequestappropriateappropriations
isahugethreattothesuccessofpreservingthishousing.It
isessentialforCongresstofixthisproblemverysoon.TTUis
workingwithapropertyinSouthTexasnowthatislikelythe
casualtyofthisfiasco.
Strengthenthemarktomarketprogram.Marktomarkethas
generallybeenaneffectivetoolforpreservingandimproving
Section8housing;134propertiesinTexasareinvolvedinthis
program,includingnineinHouston.AtleasttwodozenHouston
propertiescouldstillbenefitfrommarktomarket
restructuringinthereformspendinginH.R.3965.
AmendH.R.3965todirectHUDtofundthetechnical
assistanceprogramstotenants.Expiringsubsidiescanhavea
drasticimpactonresidents.Andtenantscanplayacritical
roleindeterminingtheoutcomeoftheseproperties.Please
includetheamendmentthatwassubmittedintheNational
AllianceofHUDTenantstestimonyonmarktomarketlastweek.
EnactaFederalfirstrightofpurchase.Thiscouldbea
veryusefultoolingettingatriskpropertiesundernew
ownershipwillingtokeepthesubsidiesinplace.
Ensurevouchersareprovidedforallfamiliesandunits
whenpropertiesarenotpreserved.Toomanylowincomefamilies
havefallenthroughthecracksassubsidizedpropertiesconvert
tomarketratehousing.
EmpowertenantstoenforcetheirrightswhenHUD
enforcementislacking.
ProvideHUDwiththedirectiontosavetroubledproperties
andotheratriskhousingthroughtheenactmentofH.R.44.Our
writtentestimonyelaboratesontherecommendations.Thankyou
forgivingmetheopportunitytotestifyontheseissues.
[ThepreparedstatementofMs.Junorcanbefoundonpage
93oftheappendix.]
ChairwomanWaters.Thankyousomuch,Ms.Junor.
Ms.McElroy,thankyouforbeinghere.Weareverymuch
awareoftheworkofACORNalloverthecountry.Youmadeyour
presenceknowninWashington.
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STATEMENTOFTONIMcELROY,PRESIDENT,TEXASACORN
Ms.McElroy.Okay.Thankyou,ChairwomanWaters,
CongressmanGreen,andCongresswomanJacksonLee.Thankyou.
I'mgladtohavetheopportunitytotestifytodayaboutthe
affordablehousingneedsoflowincomeresidentsintheCityof
Houston.I'djustliketoskimoversomeofthechallengesof
affordablehousingneedsinthisCityaswellasthechallenges
oflowincomefamiliestoachieveandmaintainhomeownership,
thelackofprotectionforrenters,theremaininglongterm
housingneedsofKatrinasurvivorswhichhasbeendocumented
today,andfinallysomerecommendationstoenhancethe
availabilityofaffordablehousing.
There'sashortageofaffordablehousingconstruction
withintheCity.Thedevelopersarebuildingaffordable
housing,butit'soutsideoftheCitylimits.Manytimesthey
areputtingminorityresidents,outsideoftheCityofHouston
wherethere'snopublictransportation,wherethere'sno
healthcarefacilities,wheretherearefew,ifany,job
centers.Soourneighborhoodsarebeinggentrified.Andthe
infrastructureisbeingimproved,butthetraditionalresidents
aregone,sowedon'tbenefitfromthatatall.
ThirdWardisanexampleofsuchacommunity.Letmetalka
littlebitaboutourpredatorylendingandhousingcampaign.We
haveissuedareportcalled``ForeclosureExposure''which
examinestheHomeMortgageDisclosureActdataandtalksabout
what'shappeningrighthereinHouston.AfricanAmericanswere
issued26percentofallthehighcosthomepurchaseloansin
Houstonin2006,butonly6.7percentoftheprimehome
purchaseloans.Latinoswereissued32.8percentofthosesame
highcostloansoriginatedhereinHoustonand20percentof
theprimeloans,whichisgreaterthantheirwhichisreally
outofwhack.Incontrast,Whitesreceived52.5percentofthe
primeloansoriginatedinHouston,52.5,whichisgreaterthan
their30percentshareofthehighcostloansoriginatedhere.
AfricanAmericansrepresent16.6ofthepopulationinthe
metropolitanarea,butthey'regettingagreatnumberofthe
highcostloans.LatinosintheHoustonarearepresentabout
28.7percentofthepopulation.Sothehomeloans,the
mortgagesthatarebeingwrittenarereallybadpredatory
loans,andthey'reaffectingminoritybuyersoutofproportion
oftheirpopulationinHouston.Immigrantfamiliesarefalling
victimstoanumberofscamswhichwehaveworkedon,including
thecontractfordeeds.
Also,ithasbeenmentionedaboutthehomerepairprogram.
ACORNmembers,alongwithMembersofCongress,Congresswoman
JacksonLeehavefoughttoothandnail.WewenttotheCity,we
wenttoHUD,andthere'sstillnotenoughmoneyforseniorhome
repairs.TherehasbeenalotofimprovementunderMayorWhite,
butweneedmoredollars,especiallyFederaldollars,toget
intotheprogramtohelpseniorswhoareliterallydyingbefore
theirrepairscanbemade.Sowe'reencouragedbythe
improvements,butweknowthatthereisaneedformore.
Therearefewprotectionsabsolutelyforrenters,because
Houston,asbeenalludedto,hassuchahighnumberofrenters
foracitythissize.Foramajorcity,mostofthefolksare
renters.Andthereisnoprotection.ACORNmembersinother
areashavegottenlegislation,suchashavinglandlordsbeing
licensedandbeingfinedfornotkeepinguptheirproperties.
Somethingofthatnatureisneededrighthere,rightnow.
And,ofcourse,thehousingneedsforKatrinasurvivors,
theriseinforeclosures,ACORNisalongwithitssister
organization,ACORNHousing,hasbeenmeetingwithbanks,
mortgagecompanies,andservicestotryandgetsomerelieffor
thealmost2millionfamiliesthatcouldlosetheirhomein
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foreclosureinthenextfewyears.Sowe'dliketoseeanumber
ofthingshappen,oneofwhichisthattheStateofTexas
shouldenhanceenforcementandoversightoflandlords,ofwhich
wehavenonenow.
[ThepreparedstatementofMs.McElroycanbefoundonpage
104oftheappendix.]
ChairwomanWaters.Thankyouverymuch,Ms.McElroy.
WearegoingtohavetomovetoMr.Bustamantenow.Thank
you.
STATEMENTOFDANIELBUSTAMANTE,EXECUTIVEDIRECTOR,GREATER
HOUSTONFAIRHOUSINGCENTER
Thankyou.Goodmorningtothehonorablemembersofthe
subcommittee.MynameisDanielBustamante,andI'mthe
executivedirectoroftheGreaterHoustonFairHousingCenter.
I'mheretodaytotestifybeforeyouaboutthefairhousing
needsandthestateoffairhousinginHouston,Texas.After
hearingtestimonytoday,allIhavetosayisthathousing
discriminationisaliveandwellinourCity.Itisadaily
occurrenceinthelivesofthousandsoffamiliesandchildren,
Blacks,disabledindividuals,Latinos,andotherprotected
classmembers.
SincethepassageoftheFederalFairHousingActin1968,
anditsamendmentin1988,theissueofhousingdiscrimination
hascontinuedtobeprominentinthedevelopmentoftheCityof
Houston.Studiesandsurveyshaveconsistentlyshownthat
housingdiscriminationagainstAfricanAmericansandHispanics
continuesunabatedinourregion.TheinfluxofHurricane
Katrinaevacueesexacerbatedthishistoricalhousing
discriminationproblemandhasbeendocumentedthroughtesting.
Thearea'sdemographicsincludeanevergrowingimmigrant
population,withlimitedEnglishproficiency,whoare
victimizeddailybyunscrupuloushousingproviders.The
disabledinourregionareinconstantneedoffairhousing
enforcementservices,suchasreasonableaccommodationsand
modificationstoensuretheirrightstobarrierfreeliving.
Houstonisthelargestcityinthesouthaswellasthe
fourthlargestcityinthecountry.Theuseofracially
restrictedcovenantstomaintainsegregatedcommunitiesisnot
veryfarremoved.The1968CivilRightsActthroughtheFair
HousingActmadehousingdiscriminationpracticesillegaland
createdtheprotectedclassesthatexisttoday.Inspiteof
theselaws,housingdiscriminationhascontinuedthroughout
AmericaandstilloccursonadailybasisintheHoustonarea.
Ingeneral,peoplemoveintobetterhousingsituationsso
theycanimprovetheirqualityoflife.Theabilitytoaccess
qualityhousingwillimpactaccesstoqualityeducation,
employmentopportunities,retailestablishments,parks,
churches,andotherpublicservices.Mostpeoplearetotally
unawareoftheirfairhousingrights.Discriminatorypractices
inhousingcanbequitesubtleandareunlikelytobedetected
byvictims.
TheUnitedStatesCensusclearlyshowssegregationandthe
changingpatternsintheethnicandracialcompositionof
GreaterHouston'sneighborhoods.Overthelast30years,the
primarilyWhitecommunitieshavedevelopedinareastowardsthe
outskirtsoftheCityofHoustonandinthesurrounding
counties.Inrecentyears,manyofthehistoricallyminority
lowrentcommunitiesintheinnercityhavebeenredeveloped
intohighrentmostlywhitecommunities.
ThemetropolitanHoustonareaincludesalargeregionwith
multiplecounties,andthefurtherawayyougetfromtheCity
ofHoustonintothesurroundingcounties,thelesscoloredthe
communitybecomesandthemoreWhiteitis.TheCityof
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Houston,forexample,isamajorityminoritycommunity,butif
youtakethepopulationsurroundingHouston,itisprimarily
White.Andwhathasbeenhappening,andthishasbeen
documentedbystudiesallthewayfromHarvardandalotof
otherprominentuniversitiesthatarequotedinmydocuments,
Houstonisstillasegregatedcommunity.Wehavedesegregated,
butwehavenotreallypaidattentiontowhat'sgoingoninour
communitywithdiscrimination.
The2007FairHousingTrendsbytheNationalFairHousing
Allianceindicatesthattheincidenceofdiscriminationagainst
AfricanAmericans,Latinos,andAsianAmericanscontinues
unabated.InHouston,theHousingDiscriminationStudyinthe
year2000,whichwasconductedbyHUD,foundthatAfrican
AmericansandLatinoswerediscriminatedagainst25percentof
thetimewhentheywenttorenthomesand19percentofthe
timewhentheywenttopurchasethem.Thesestatisticscontinue
tobeveryreal.
Ouragencydidarentalauditin2001,andthroughtesting,
wefoundthefollowing:85percentoffamilieswithchildren
werediscriminatedagainstwhentheysoughttorent;80percent
ofAfricanAmericanswerediscriminatedagainstwhenthey
soughttorent;and65percentofHispanicswerediscriminated
againstwhentheysoughttorent.Theseareveryrealfigures
thatwehavedocumentedthroughindependenttestingthatwe
havedone.
Thesefigurescontinuetotroubleusbecauseweunderstand
thatpeoplemovefortherightreasons.Thedisabledinour
community,forinstance,arebeingforcedtofilecomplaints,
Federalcomplaints,togetsuchbasicneedsasaccommodations
andmodificationsfortheirlivingsituationbecauseof
landlords'inabilitytocomplywiththelaw.
OurCityisexperiencingatremendousgrowthrightnow.
Over29percentofourCityisforeignborn.47percentofthe
populationover5yearsoldspeakalanguageotherthan
English.ThiscommunityisbringingnewdynamicstoourCity,
andthey'reverymuchbeingtargetedbyunscrupulouslandlords.
Familieswithchildren,forinstance,representasignificant
partofthistremendousgrowth.Singleparentfamiliesandtwo
parenthomeswithseveralchildrenareverycommonintheCity.
Manyfamiliesaredeniedtheirfairhousingrightwhenthey
seektoimprovehousing.Childrenareconstantlymadetosuffer
policiesbylandlordswhodon'ttoleratechildren.They
frequentlytakeadvantageoffamiliesthroughpenaltiesand
fineswhenthey'retryingtogetthemtomovetolargerunits.
IdowanttoaddressthispanelabouttheHousingFairnessAct
of2007.
[ThepreparedstatementofMr.Bustamantecanbefoundon
ChairwomanWaters.WearegoingtohavetomoveontoMr.
Quan.I'msosorry.We'regoingtohavetolimitourtime.
Thankyouverymuch.
STATEMENTOFGORDONQUAN,FOUNDINGPARTNER,QUAN,BURDETTEAND
PEREZ,ONBEHALFOFTHENATIONALCOALITIONFORASIANPACIFIC
AMERICANCOMMUNITYDEVELOPMENT
Mr.Quan.Thankyou,ChairwomanWaters,Congresswoman
JacksonLee,andCongressmanGreen.MynameisGordonQuan,and
IamhererepresentingtheNationalCoalitionofAsianPacific
CommunityDevelopment,aswellastheAsianChamberof
Commerce,ourlargestAsianbusinessgroupintheHoustonarea.
Youhavecopiesofmytestimony,soI'llgostraighttothe
itemsthathavenotpossiblybeencovered.
Houston,asyousee,hasaveryuniquesituation.Youasked
thequestion,Ms.Waters,astowhatareasareingreatest
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need.Andthemayorhasdesignatedsevenareasofdevelopment
thatweneedtobelookingat.Wehavethismixedblessingof
taxdelinquentpropertiesthatwecanredevelopintoaffordable
housinginthefuture.WhatIproposeisgreatercooperation
betweengovernmentagencies,bothFederal,State,andlocal,to
earmarkfundstothesedifferentareas,andalsoapublic
privatepartnershipthatlooksatworkingwithCDCsand
developers.Ashasbeensaidbythepanelpreviously,thisCity
hasbeenlonganareaforprivatedevelopment,wheredevelopers
havereallytakenamajorroleintheCity.Unleashthatpower.
Workwithnonprofitsandseehowwecandevelopcommunities,
notjustlowincomebutmultimixedincomecommunitieswhere
wehavemiddleincomeandhigherincomehomes.Wedon'twantto
stigmatizeareasoftheCityasghettos.In10years,nobody
willwanttoliveinthoseareas,andwe'vewastedourtime.So
howdowelookatdevelopinglongtermneighborhoodsthatwill
havealastingeffect.
Anotherthingyoutalkedaboutwashomelessness.Inour
City,wedidapolltoindicatethat12to14,000individuals
everynightarehomeless.Whatwehavefoundisthat35percent
ofthoseindividualshavementalorphysicalailmentsthatdo
notallowthemtoliveindependentlyinourCity,and55
percentneedastructuredenvironmentwheretheycanreceive
thecounselingthattheyneedtogetbackontheirfeet,soit
isonly10percentthatareleftinshelters.Sowhilewe're
lookingatsheltering,we'renotlookingatthelongterm
benefits.Howdowegetthesepeopleoffthistreadmill,not
justabandageapproach?Permanenthousingistheanswer.
Unfortunately,wehavebeenproducingveryfewpermanent
housingunits.
Mr.Cellitalkedaboutthisoneproject,175units.That's
great.Butweneed7,000unitsifwe'rereallygoingtoaddress
ourneeds.Sowe'retalkingaboutprojectbasedtaxcredits.We
talkedabouthousingvouchers.Thosearethingsthatweneed
because,otherwise,theseprojectsarenotfeasiblebecause
there'sverylowincome,sonobankwillfinancethese
projects.
Wealsoneedtobebuildingcapacity.Thereareonlytwo
organizationsinHoustonthatreallydevelopSROs,theHousing
CorporationofHoustonandtheNewHopeHousing.Weneedat
leastfiveorsixofthesecorporations.Weneedtohavemore
peoplewhoknowhowtodothat.CatholicCharities,the
women'ssomanygroupswouldliketodoit,andtheydon't
knowhow.Weneedtoinstructthem.
EducationisthethirdpointIwanttoreach,becauseI
knowI'mrunningoutoftime.AsmentionedbyMr.Bustamante,
wehaveachangingdemographicinHouston,andmanynew
immigrantsdon'tknowabouthomeownership.Iknowthereare
programsthathavebeenraisedup,butIlookattheVietnamese
communitywherewehavehadcondominiumsthathavebeen
forecloseduponbecausepeopledidn'tknowtheirobligationsto
maintainwithinthatcommonstructure.We'vehad,asMs.
McElroytalkedabout,deedcontractfordeed.Somany
immigrantsarecomingwhodon'tknowhowtopurchasehomesin
ourcommunity,nottomentionsubprimelending,whichweall
knowabout,andfirsttimehomebuyerprograms,whichmany
peopledon'tknowabout.
Finally,I'dliketojusthitupontheFairHousingAct.
Oneofthingswe'retryingtodevelopinthiscommunityis
seniorhousingspecificallygearedtowardscertaincommunities
wheretherearespecialneeds,suchastheVietnamese
community.We'regoingtobehavingagroundbreakingthis
afternoonfortheGoldenBambooVillage,whichwillworkwith
theVietnamesecommunity.ButwewanttomakesuretheFair
HousingActdoesnotinadvertentlydiscriminateagainst
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organizationsthatseektomeetspecialneedsgroupsthatare
nototherwisebeingenforced.SoIthankyouforthistime,but
Iknowmytimeisup.I'mavailabletoansweranyquestionsyou
have.Thankyou.
Abigroundofapplauseforthispanel.I'mgoingtokind
offoregowhatwouldbeourtraditionalquestionstosay,we
getit.Wegetit.Weunderstand.Andallthathasbeen
mentionedfromthispanelaboutfunding,adequatefundingfor
housingsurvivors,andtheextremeshortageofgovernment
subsidizedhousing,themarktomarketprogramwejustheard,
we'regoingtoinsistthatallofthoseownersofthose
buildingsbepaidandbepaidontime,andthattheybepaid
fairmarketvaluefortherents.Andwe'reworkingonthat,
includingmoneystohelp,youknow,fixupsomeofthose
places.
Forthepredatorylending,wehaveabigbillthatweare
puttingtogether.Weknowthattherearepeoplewhoshouldbe
givenprimeloansbuthavebeenforcedintothesubprime
market.Thatmarkethascollapsedbecauseofallofthe
reasons,greedmostly,thathavetakenplaceoutthere.And
we'renowfocusedontryingtosavesomeofthesehomesfrom
foreclosure.Housingdiscriminationisoneoftheshamesof
thiscountry,andwehavetocontinuetoworkonit.I'mso
pleasedthatMr.Greenhaspresenteduswithlegislationto
dealwithhousingdiscriminationinAmericaandfairhousing.
Weunderstandwhatisgoingon.Youhaveadequatelydescribed
thegentrificationthatisgoingon,andyouareabsolutely
right.Theneedfor7,000unitsI'mabsolutelyshockedatthe
factthatthereareonly4,000publichousingunitshere.I
hearwhatyou'resayingaboutthesevenareasthathavebeen
identified,thetaxdelinquentproperties.
AndIwanttothankyouallforreinforcingwhatwe've
alreadycometounderstand,butwecameheretohaveyou
documentwhatisgoingonattheinvitationofMr.Green.I
willyieldtimetoMr.Greenandaskhimtokeephiscomments
andhisquestionstoaminimumsothatwecangetoutontime.
Thankyouverymuch.
Mr.Green.Thankyou.Iwillbebrief,butIdowantto
thankyou,Mr.Bustamante.Inyourtestimony,youmentionedthe
HousingFairnessActof2007.Andjustforedification
purposes,friends,wecanenddiscriminationinhousinginthis
country.Wereallycan.Wecan.Themostefficacioustoolthat
wehaveavailabletousissomethingknownastesting.Testing
works.Whenwecansendourpersonsequallyqualifiedof
differentethnicitiesordifferentstationsinlife,wecan
findoutwhoisperformingthisdastardlykindofbehavior,and
wecancatchthem.Wecancatchthem.Butittakesnotonlyan
actofCongresstodothis;ittakesaCongresswillingtoact.
Thatiswhatittakes.
AndIassureyouthatthiscommitteechairedby
CongresswomanWatersiswillingtoact.Ihavebeenvery
gratefulandbenefitedfromherhelpwiththisHousingFairness
Act.IjustwanttotellyouthatinthatAct,wehave$20
millionannuallyfromHUDforHUDtoadministernationwide
testing.WealsohaveinthatActarequirementthatHUD
presentsareporttoCongressontestingevery2yearsevery2
yearssothatwecantrackwhat'shappeningasaresultof
whatwearedoing.AndwehaveothermeansbywhichNGOscan
getinvolved,andtheNGOscangooutanddothetestingand
bringlawsuits.TheNGOscantestandalsolitigatetomake
surethat,whenwecatchthem,wecanpunishthem.Thatmust
happen.
Andfinally,toMs.McElroyfromACORN.Youmentioned
contractsfordeed.Letmejustsharethiswithyou.Someof
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10/31/2016
themarecontractsformisdeeds.Manypeoplefindthemselves
havingmadealonghistoryofpaymentsonlytohavewhatthey
thoughtwouldbetheirhometakenfromthemwhenthey'reright
nearthepointwheretheycanpurchase.SoIshareyour
concern,andIassureyouthatissomethingthatIwillbe
workingwithyouandothersonintheCongressoftheUnited
Statestoseeifwecanmakesomecorrections.Iwanttoonly
echowhattheCongresswomanhadsaid,``Fromtimetotimeit's
goodtosayamen.''Thisisoneofthosedayswhenweshould
say,`Àwoman,awoman,awoman.''Thankyou.
ChairwomanWaters.Thankyouverymuch.NowMs.Jackson
Lee.
Ms.JacksonLee.MadamChairwoman,letmethankyouand
CongressmanGreen.AndletmebecauseofthegreatpanelMr.
Henneberger,Mr.Muhammad,Ms.Junor,Ms.McElroy,Mr.
Bustamante,andMr.Quan,andIknowMr.Lopezwasdetained
letmechampionandthankCongresswomanWatersforrecognizing
thatweliveinadiverseAmerica.Alloftheamendmentsthat
havebeendiscriminatoryrelatingtohousingandimmigrants
havebeenfoughtbackbythischairwoman.Andwehavejoined
herwithChairmanFrankandCongressmanGreen,andwewill
continuetodothat.
Letmequicklydoafewthankyou's,andacknowledgethe
presenceofMr.LoveoftheCoalitionoftheHomeless.Ihope
hehasbeeninspiredtoday.Iwouldalsoliketothank,inhis
absence,ChadBoganyandGeraldWomack.Bothofthemare
leadersintherealestateareaandtheyhavefoughtthese
issuesofdiscriminatoryhousing.Andwethankthem.Iwantto
acknowledgeGladysHouseaswellandjustputontherecordin
particularthattheGregorySchoolreceivedHUDearmarked
dollarsandtheprojectisyettobefinished.Werecognize
that.
Letmequicklyjustsaynotonlydowegetit,Ms.McElroy
andACORN,Ican'tthankyouenough.We'regoingtoreignite
thebattleonseniorhousing,particularlyonthereverse
mortgagesthatCongressmanGreenwe'llallbeworking,but
alsoontheseniorrepair,whichdoesnotmakesense.Iwantto
makesurethatwereignitethatfight.AndIdowanttoput
intotherecordthatweMr.Henneberger,ifyouwouldshare
withusadditionallegislativefixestohelpus,ifyouwill
andI'mgoingtogetyoutoputitintherecord,buttohelp
usovercomewhathashappenedtoHoustonwheretheyonlyhave
4,000publichousingunitswhentheyshouldhavemore.Iknow
thatyoucanthinkaboutitcollectively.
Andthenwouldyoualsonotethatweyourpointabout
segregatedhousing.Whatwewanttodo,andIthinkwhatwe
heard,peoplethinktheThirdWardissegregated,ortheFifth
Ward.Butwewanttocomeoutandfixitup.Wedon'tmindour
seniorsandlowincomescomingin,butlet'shavethemhave
beautifulproperties.Let'sgetACTIONCDCtotakeupthis
projectthatHUDhassaidwheretheycanjointventureonthe
Section8.Let'slettheCDCsbuildthesefacilitiesfor
Section8.I'dliketodevelopit,butlet'sgettheCDCstodo
it.
Iclose,MadamChairwomanwiththis:Wearechampionsof
whatourcitiesdo.Allwedoistakebackthemessageofour
cities.AndsowhenyouhearthetermHoustonHOPE,wechampion
it.Wethink,infact,thatwehaveawonderfuleffortbecause
ithasHoustonHOPE.ButIwanttoputintotherecord,Edith
Salaville,87yearsold,atWeinburg&Delanoreonthefront
pageofTheHoustonChronicle.Herinheritedpropertybya
historiccivilrightsleaderinourcommunityandshe,Ithink
wasagranddaughter,fellbehindinpropertytaxesaftershe
lostherseniorexemption.
Shewasforeclosedon,an87yearoldwomanwholivedin
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10/31/2016
thispropertyunderthepretensewecangetthesehousesand
puttheminHoustonHOPE.Wemusthaverestraintandoversight
federallyofaprogramthatbuildsitselfonforeclosureswhich
mightcatchuptheelderlyandthedisabled.WewantHouston
HOPE,butwewantittoworkinanondiscriminatoryfashion.
AndsoIamgratefulforthepresenceofallofyouhere
today.And,again,Ithankyou,MadamChairwoman,and
CongressmanGreen.Ithankyouforallowingmetoparticipate
inthisoutstandinghearing.Withthat,Iyieldback.
ChairwomanWaters.Thankyouverymuch.I'dliketothank
bothCongressmanGreenandCongresswomanJacksonLeefortheir
greatadvocacyandthetimeandattentionthattheyputinto
theirworkinWashington,D.C.Iknowtherearedayswhenmany
ofyouhavefeltthatthere'snohelpcoming,thatWashington
isnotdoingwhatitshoulddo.ButIwanttotellyouthatwe
dohavethegavelnow,anditisgoingtomakeadifference.We
aregoingtouseourpowertocorrectsomeoftheseillsthat
haveexistedforfartoolong.Again,I'msopleasedthatAl
Greenisonthatcommitteedoingsuchagreatjob.Heisa
workhorse.Hehasafabulousworkethic.AndsoI'mdelighted
tobehere.TheChairnotesthatsomemembersmayhave
additionalquestionsforthispanelwhichtheymaywishto
submitinwriting.Andwithoutobjection,thehearingrecord
willremainopenfor30daysformemberstosubmitwritten
questionstothesewitnessesandtoplacetheirresponsesin
therecord.Iunderstandthattherearesomeotherthingsthat
shouldbesubmittedfortherecord,andwithoutobjection,Mr.
Greenfirst.
Mr.Green.Wehavethesephotographs,andIwouldaskthat
thepartiessubmittingthephotographsgiveusanarrativethat
willbeplacedintherecordaswell,ifthereareno
objections.
ChairwomanWaters.Yes.Andalsodoyouhaveanyother
documentstosubmit,Ms.Lee?
Ms.JacksonLee.Yes,MadamChairwoman.I'llreadit
becauseIhavewrittenonit.Justsimplytoannounceagain,
theHarrisCountyHousingAuthoritythatdevelopedthedisaster
housingprocessthatmaybecomeanationalmodelfordisaster
housingassistance.AndifthereisanyonefromHarrisCounty
Housing,justraisetheirhand.I'mjustputtingthatstatement
intherecord.Thankyouverymuch.
ChairwomanWaters.Thankyouverymuch.AndIwouldalso
liketosubmitfortherecordthewrittenstatementsofthe
HoustonCenterForIndependentLivingandhistoricFreedman's
TownandAllenParkwayVillageaswellasthatofMr.Malaika
Adanwillbemadepartoftherecord.Andiftheyoungladyin
thebackwhosubmittedthesebeingwouldraiseherhandoh,
I'msorryinthefront,willraiseyourhand,andmakesurewe
getanarrativetogoalongwiththosepicturessothatwecan
putthatintherecordandhaveanopportunitytoaddresswhat
youbroughttoourattention,Iwouldappreciateitverymuch.
I'dliketothankallofyouforbeinghere.Thisisa
fantasticturnoutforrathershortnoticetobeheretoday.And
wereallydoappreciateit.Youbringtousthesupportthatwe
needtobeabletomoveforward.Thishearingisadjourned.
Thankyouverymuch.
[Whereupon,thehearingwasadjourned.]
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APPENDIX
October29,2007
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Affordable Housing Needs in The City of Houston - Unique Challenges and Opportunities

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