CNU Legislative Strategy Session — Bernstein fed update CNU 17

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CNU President and CEO John Norquist joins members of the CNU board for the latest on CNU’s agenda for change in federal laws and practices. Special guests include the Center for Neighborhood Technology's Scott Bernstein — who will describe urbanist opportunities in the HUD and DOT Sustainable Communities partnership, on which he's consulted extensively — and Nick Donohue, Virginia Assistant Secretary of Transportation, who has helped supply Gov. Tim Kaine with the right combination of reform ideas and value propositions to usher in a set of new policies requiring better connected local street networks, identified urban development areas, and coordinated land use and development planning where the state makes transportation investments. The Virginia experience offers lessons for taking similar pro-urban policies to other states and the federal level, including the message that only when transportation design moves beyond an exclusive focus on mobility to consider mobility and proximity together can truly cost-effective and lasting solutions emerge. Moderated by Jacky Grimshaw.

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CNU Legislative Strategy Session — Bernstein fed update CNU 17

  1. 1. Feeling Hopeful? A Status Report on Emerging Urban Policy Scott Bernstein, CNT June 12, 2009 CNU 17, Denver http:/htaindex.cnt.org scott@cnt.org
  2. 2. Presentation Goals •! Review recent federal Administration and Congressional actions that might support urban policy •! Identify some resources you can use for near-term action •! Suggest a priority agenda for CNU
  3. 3. RETOOLING HUD for a Catalytic Federal Government: A Report to Secretary Shaun Donovan HOUSING THE NATION
  4. 4. Facilitating Green Housing and Communities Report to HUD Secretary Shaun Donovan •! Scott Bernstein Center for Neighborhood Technology Task Force Members— •! Co-Chairs: John Cleveland, Innovation Network for Communities and Anne Evens, Center for Neighborhood Technology •! Members: Bracken Hendricks, Center for American Progress; Stockton Williams, Enterprise Community Partners; Jonathan Rose, Rose Companies; Ben Hecht, Living Cities, Joel Rogers, Center on Wisconsin Strategy RETOOLING HUD
  5. 5. Assumptions and Opportunities •! HUD has direct influence •! Energy price spikes over 10% of nation’s housing contributed to economic •! It is the largest direct crisis and energy/trans costs residential bill payer will limit current solutions’ •! To help people, strategy effectiveness must address both people •! Economy is 18-36 mos. and places From next spike •! Growth of population and •! Green building retrofit is a housing ~1%/year> focus $640 billion, 7 million job mostly on existing stock market •! Work that needs doing is in the places that need work RETOOLING HUD
  6. 6. Strategies 1.! Aggressively Green the HUD Portfolio 2.! Make HUD a Leader in Developing the National Building Retrofit Market 3.! Locate Housing to Create Transit- Oriented, Walkable, Accessible Communities 4.! With White House Leadership, Organize a Cross-Department Strategy for Retrofits as an Economic Development Strategy RETOOLING HUD
  7. 7. Strategy 1— Aggressively Green the HUD Portfolio •! Direct investments in Public Early actions include— Housing, Sections 8/202/811/ MOU between HUD and DOE to HOPE VI, HOME Grants, and also coordinate home retrofit activities Green Retrofit for Lead Hazard for working families (ann. Feb 27) Homes $4.75 Billion in ARRA funds for public •! Grants, loans, incentives, regs housing ($4B), MF retrofit ($250M) (e.g. manufactured housing), green + Native American ($510M) to standards, including increase in match $11.5 billion at DOE allowable Total Development Proposed reorganization to include Costs for green new Office of Sustainable Housing •! Disclose energy costs and change & Communities led by Deputy the way HUD pays for energy Secretary •! Lead demand-side strategies, e.g. Major initiative to support Energy w/smart grid & advanced metering Efficient Mortgages and home investments energy cost disclosure and local capacity building (FY2010 budget initiative, pending) RETOOLING HUD
  8. 8. Accomplishments and Opportunities ARRA Accomplishments Strategic Opportunities: HUD Programs •!Leverage energy efficiency investments $4 billion PHA retrofits to stimulate the private retrofit market $250 million HUD assisted retrofits •!Screen investment decisions to assure $510 million Native American Housing that combined housing and transportation costs are optimized $1.5 billion HOME green units •!Collaborate across agencies on building $10 million Non-profit housing retrofits the energy efficiency economy Related Programs •!Support the development of a national network of regions investing in $5.0 billion Low income weatherization aggressive energy efficiency retrofitting $3.2 billion Energy Efficiency & Conservation Block Grants $3.4 billion State Energy Programs $4.3 billion Home energy efficiency tax credits $0.5 billion Green Job Training $300 million Energy Efficiency Appliance Rebates RETOOLING HUD Facilitating Green Housing
  9. 9. Strategy 2— Make HUD a Leader in the Building Retrofit Market •! Create a $5 Billion Building Early Actions Include— Energy Efficiency (BEEF) •! Requested appropriations for Fund these activities in the HUD •! Create a national capacity FY2010 Budget request building network of public, •! Proposed creating an Office private and community of Sustainable Communities institutions to support led by Deputy Secretary regional retrofit strategies •! Budget proposal includes an •! Create a HUD Office of “Energy Innovations Fund” Sustainable Development •! Budget proposal to boost •! Invest in R& D to support PD & R support beyond development of the housing traditional functions retrofit market RETOOLING HUD
  10. 10. Strategy 3— Locate Housing to Promote Walkable, Transit-Oriented Communities •! Reward location efficiency in Early actions include— new construction and retrofit •! MOU by HUD + DOT to •! Raise Total Development support transit & livable Costs for higher density, infill, communities, regional TOD and brownfield planning, redefine redevelopment affordability, harmonize •! Redefine “affordability” to programs include both housing and •! Proposed initiatives in FY2010 transportation costs budget and in new OSHC •! Utilize Location Efficient •! Regular mentions by Mortgages President Obama and USDOT •! Support local and regional Sec. LaHood linked to “urban planning that advances these policy” (e.g. April 16 HSR event) objectives RETOOLING HUD
  11. 11. Chicagoland MSA Housing Affordability at <30% of AMI vs Housing + Transport Affordability at <45% Drop of 977,000 HHs from Affordability When Transportation is Counted, = Drop of 29.6% of Total Stock H = 13.25 to 72.07 Percent of AMI H + T = 34.68 to 119 Percent of AMI RETOOLING HUD
  12. 12. Ten Years of Foreclosures in Metro Chicago 1998 2008 RETOOLING HUD
  13. 13. It’s Not Over Yet— -Gas Costs Keep Climbing, -12 month’s foreclosures Up 5% in Cook County -Up 70% in surrounding collar counties -Worst where income is low & both sub-prime +VMT exposure is high
  14. 14. Strategy 4—Retrofits as an Economic Sector Development Strategy Early actions include— •! EECBG funded in ARRA at $3.2 •! Fully fund the proposed Energy B, inc. planning as “strategy Efficiency and Conservation development” Block Grants and use to •! EECBG funded from DOE, not support regional strategies familiar with cities or with energy •! Use HUD’s leadership in planning, program desperately greening to create green, needs to add a TA network higher wage jobs for public •! ARRA included residential housing residents energy tax credits, & increases in •! Expand residential energy qualified energy bonds efficiency tax credits •! Multi-agency and public-private •! Build national capacity and discussions under way to build supply chains to serve the retrofit market support retrofit market •! HUD Secretary included in regular meetings of White House Office of Energy & Climate Change RETOOLING HUD
  15. 15. Other Supportive Actions •! Supportive legislation—HR6078, •! Ownership taken by President the GREEN Act, passed last year Obama on green jobs, 21st century as part of HR6899, Energy Bill, economy, and transit/livable about to be reintroduced, supports communities standards, green retrofit, and both Energy Efficient and Location •! Supportive press response to Efficient Mortgages and upgrading HUD-DOT collaboration Consolidated Plans to include •! Large networks of labor unions, sustainable development, community developers and cities transportation coming together around retrofit and •! Supportive hearings— green jobs markets Transportation & HUD •! Innovative uses of Build America Appropriations, two supportive Bonds and related tools aimed at hearings on coordinating housing building retrofit and transportation •! Supportive hearings—Senate Banking symposium on livable communities RETOOLING HUD
  16. 16. Possible Problems •! While much of this can be •! HUD’s federal partners, other implemented under current than DOT, lack a focus on and authority, much cannot experience with place without new legislative •! Proposals that may ultimately authority for both budgetary reduce risk are still seen as and non-budgetary items risky for financial markets •! Appointments process has •! Assumes an unprecedented been slow level of regional and local capacity •! Unprecedented amount of •! Readiness to plan effectively— coordination required only 12 states have planning statutes, these were the ones with most integrated stimulus proposals but most of America may not be ready RETOOLING HUD
  17. 17. Signs of Life in Congress •! Recent reorganization puts •! Nominations process is very HUD and DOT in same slow appropriations subcommittees •! Few hearings of substance, in both houses and overshadowed by •! Modest increases over FY2008 economic situation and in FY2009 budget stimulus package •! Supportive hearings on HUD •! House Transportation and and DOT Coordination in Infrastructure Chairman to Transportation/HUD introduce transportation bill Appropriations Subcommittee shortly 3/18 and 3/19 •! No agreement on revenue •! In-depth symposium on transit sources, especially for and livable communities held transportation, probably by Senate Banking on March means continuing resolution 26 RETOOLING HUD
  18. 18. Framing that Seems to Help •! Economic success requires both higher incomes and lower cost of living •! America is a nation of communities and regions and success requires place-based partnerships •! We cannot win on climate change and energy independence without deep retrofit and location benefits •! We’re running out of time—gas prices will spike again soon, no time to waste •! The “stimulus” was both the American Recovery AND Reinvestment Act, we’re doing the first, need the second •! Cities and metro areas are the solutions to climate, energy, and economic problems •! Transforming HUD into this kind of leader is essential to getting us where we need to be fast enough RETOOLING HUD
  19. 19. Two Views of Chicago and CO2— Location Efficiency Reduces Financial Risk AND Per-Household Emissions, Changes “Cities are the Problem” to “Cities can be the Solution” RETOOLING HUD
  20. 20. 9.7-1 Transport Carbon in Tons of CO2/HH/Year 4.6 5.8- 10.7 This Place 3.9-6 Has the .1 2.4- 0-2.4 Disappearing 4.4 3 Carbon Blues…! Source: Duany Plater-Zyberk and Company Location Efficiency & the Transect Reveals Carbon Benefits of Good Urban Form
  21. 21. Federal updates •! Banking Committee •! HUD – FY2010 budget symposium, dates proposal includes several •! Upcoming hearings next hundred million dollars for week metro, TOD, mortgage •! House FSC GREEN Act, innovation, R&D in support of the HUD-DOT HR2336, Hearing June 11, record open 30 days, partnership agreement Senate to introduce •! Nothing yet on DOT shortly •! House FSC, HUD will testify June 16
  22. 22. Federal updates cont. •! Much energy consumed by the •! Transportation reauthorization climate bill (ACES) —not likely to happen this year •! Very little in it for spatial •! Marker bills planning, Section 841 reqs •! National transportation States and MPOs to submit planning—Lautenberg/Rock in plans for achieving national Senate, Carnahan/Inslee in GHG reduction goals from House, latter has H/T transportation and land use •! Support for H+T affordability— investments Blumenauer, pending •! One small provision for MPOs •! Federal “patch” on Trust Fund •! Supreme Court has upheld from General Fund of $8 B last right of EPA to regulate GHGs year, $18 to $34 this year as pollutants under the CAAA
  23. 23. Stimulus provided some important openings •! High speed rail--$8B, three rounds of funding •! Green infrastructure set aside—20 percent of $ into state revolving funds must be for green infrastructure •! Energy Efficiency and Conservation Block Grant--$2.8 Billion entitlement for CDBG cities and balance of states—one-third States, two- thirds cities, +$400M competitive
  24. 24. Resources Available •! Re-Tooling HUD—www.upenn.edu •! EECBG Guide—www.cnt.org •! T4America—www.t4america.org •! STPP—www.transact.org •! Affordability Index—http://Htaindex.cnt.org
  25. 25. Possible CNU Actions •! Form a policy agenda and partnerships with key coalitions •! Market New Urbanism as a pathway to sustainable urban policy •! Translate the networks project into a near term action agenda •! Pick some States and metro areas and work them
  26. 26. Thank You! •! Scott Bernstein •! www.cnt.org •! scott@cnt.org RETOOLING HUD

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