Federal Update Affecting Local Government

HOPE VI Reauthorization Passes House on Thursday, the House passed H.R. 3524, the HOPE VI Improvement and Reauthorization Act of 2007. The HOPE VI grant program is the only major source of federal funding available to local governments for the redevelopment and improvement of public housing. If passed by the Senate and signed into law, H.R. 3524 would reauthorize the HOPE VI program at a level of $800 million a year through 2015. In addition to funding, the bill requires that all public housing units in existence as of January 2005, that are proposed for demolition be replaced on a one-for-one basis. The bill also gives public housing agencies flexibility in meeting the one-for-one replacement obligations by establishing a limited waiver for compelling circumstances (such as a severe shortage of land).

The bill also increases the amount of HOPE VI funds that can be used for community and social services, including vocational and employment training, and counseling to improve financial literacy. Finally, the bill establishes green building requirements on redevelopment projects to create healthier living environments and lower utility costs. The bill now heads to the Senate, where quick action is expected.

Coalition Fights for Restoration of Byrne Justice Assistance Grant Funding. A coalition of public safety and local government associations, has been meeting with Congressional leadership to urge restoration of funding to the Edward Byrne Memorial Justice Assistance Grant (JAG) Program, better known as the Byrne-JAG program. Byrne-JAG provides grants to state and local governments for a broad range of innovative activities, from preventing and controlling crime to improving the criminal justice system.

In FY 2007, the program was funded at $520 million. With the threat of a veto, competing priorities and a compressed timeline on appropriations, for FY 2008, Congress appropriated only $170.4 million for the program.

Transportation Commission Issues Report; NLC Member Input on Transportation Issues Requested The Commission mandated by Congress to review the nation's transportation system and provide recommendations for the next reauthorization grabbed headlines this week with their proposal to raise the gas tax substantially over the next few years. In addition to the revenue concerns expressed by the majority of the 12-member panel, the National Surface Transportation Policy and Revenue Study Commission recommended a future switch to new methods of raising revenue, a major new investment in intercity rail, more accountability in how transportation dollars are spent, a focus on metropolitan transportation, and greater emphasis on environmentally-friendly transportation options.
To view the Commission's report, click on: http://www.transportationfortomorrow.org/final_report/

House and Senate Leaders, White House, and Federal Reserve Chief Pushing for Economic Stimulus Package. In a show of bi-partisanship, congressional leaders, the President, and the Chairman of the Federal Reserve Bank, Ben Bernanke, expressed their support for an economic stimulus package that would help jump start the faltering economy. The President, who was not expected to lay out his ideas for spurring the economy until his State of the Union address, is now expected to offer his recommendations on Friday, January 18. The Federal Reserve Chairman has indicated already that he fully supports a temporary and targeted stimulus package. There appears to be agreement that the package finally passed will range between $100 and $150 billion.

Among the elements of a package being considered are: (1) a one time tax rebate for working and middle class families; (2) expanded unemployment insurance coverage; (3) increased funding for home energy assistance programs; and (4) increased funding for the food stamp program. Congressional leaders have said that they believe an economic stimulus bill could be drafted and passed within a month if a broad outline of an agreement can be reached in the next several days.