March 2020: Pandemic Response

This was originally published on April 3, 2020 in the OCDCA Newsletter.

Federal News

Pandemic resources for community developers

Please note this information is changing constantly with daily guidance issued from federal agencies. Join the OCDCA resource webinars next week to learn the latest.

Small Business Loans
Small Business Administration - Small business owners are currently eligible to apply for a low-interest loan due to Coronavirus. The SBA's Economic Injury Disaster Loan (EIDL) Program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. EIDL also includes $10,000 grants for businesses and non-profits. The SBA has scheduled webinars on how to apply for the loan program. The CARES Stimulus Package will provide additional resources. The SBA's Coronavirus Small Business Guidance & Loan Resources webpage provides information about what is currently available.

Businesses and non-profit agencies are eligible today to apply for the Paycheck Protection Program. Forgivable loans are available for entities maintaining staff for 60 days. Although this program opens today there's a good deal of confusion in the application process. Some banks have stated that they'll process for existing customers only and general processing concerns abound.

Read How to get a small business loan under the $349 billion aid bill in the Washington Post. Kiva small business loans are available for higher loan amounts during the pandemic. Facebook Small Business Grants Program will begin taking applications in a few weeks.

Community Development Block Grants
Grantees may use CDBG funds for a range of eligible activities that prevent and respond to the spread of infectious diseases such as COVID-19. Access this Quick Guide to CDBG Eligible Activities to Support Infectious Disease Response.

CARES Act Stimulus Package
The U.S. Congress approved and the President signed a $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act that includes major funding for the community development sector.

Eviction and Foreclosure Moratoriums
Access information from Fannie Mae, Freddie Mac, HUD, and the USDA regarding suspensions of foreclosures and evictions for any borrower affected by the fallout of the virus crisis and unable to make their mortgage payment, not limited to homeowners who contracted COVID-19. In addition, the FHFA directed Fannie and Freddie to offer forbearance on the condition that they suspend all evictions for renters unable to pay rent due to the impact of Coronavirus and to provide flexible alternatives to satisfy appraisal requirements and employment verification.

Congress is currently working on Stimulus IV that is rumored to have more community development and affordable housing resources.

CRA Assault Continues Amidst Pandemic - Comments still due April 8th

One would think that a nationwide pandemic would cause the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) to halt the rulemaking process. That unfortunately is not the case.

Public comments remain due April 8th. Your voice is urgently needed to go on the record in opposition to this harmful proposal that would divert billions of dollars away from local communities.

OCDCA urges every member to submit a public comment that's customized to your organization. Here are some helpful templates, but supplementing with your own voice is important.

For additional information read OpEd from members in the Cincinnati Enquirer, New York Times editorial, Jesse Van Tol's OpEd in The Hill, and my OpEd in the Columbus Dispatch and the Ohio Doorsteps podcast.

Public comment (April 8 deadline) is critical in building the case against the proposed changes. Tell the OCC and FDIC that any changes to CRA should strengthen it and live up to the spirit and intent of the act - ensuring that LMI communities and communities of color have equal access to capital and credit.

Please take the time to make your voice heard. If you have any questions please contact me at ncoffman@ohiocdc.org or 614-461-6392 ex. 207. Thank you for your advocacy!

State News

Newest Governor actions

Yesterday Governor DeWine extended the Stay at Home Order till May 1st. On Wednesday, he issued another executive order asking lenders and landlords to suspend payments for small businesses for 90 days. This is a plea and not a mandate.

On March 27th DeWine signed Am. Sub. H.B. 197. The legislation includes several items of interest but not limited to:

  • Extend the mail-in ballot period for the March 17 primary election to April 28, when the absentee ballots must be post-marked. The mail-in only period has certain exceptions for citizens with disabilities.

  • Authorization for state boards, state commissions, local and county governments and higher education boards to conduct meetings electronically, as long as the public is aware and may participate electronically.

  • A requirement that all county offices required to transfer property and process titles remain open, in order for people to access documents that are not made available online.

  • Authorization for the Director of Environmental Protection to issue an order that prohibits disconnecting water service as a result of nonpayment of fees and charges. The legislation also requires the reconnection of water service to anyone whose service was disconnected as a result of nonpayment of fees and charges and waives all fees for connecting or reconnecting water service.

  • Address student meals through a summer program.

  • Align Ohio's tax return deadline to the federal government's July 15 date.

  • Allow the administration to make transfers from the Budget Stabilization Fund in FY 2020 with Controlling Board approval.

Ohio's unemployment numbers

Ohio reported 272,117 initial claims for unemployment compensation last week, which set a record, according to the Department of Job and Family Services. The number of claims filed was an all-time high for Ohio for the second consecutive week. The state saw 468,414 claims over the two-week period compared with 364,603 for all of 2019. Unemployment information can be found here.

HUD dollars deployed to Ohio

This week the U.S. Department of Housing and Urban Development released their first tranche of funding to Ohio - $90.9 million for community development block grants, $45.6 million for emergency shelter grants and $910,129 for the Housing Assistance for Persons with AIDS program.

Feb 2020: Presidential Budget & CRA

This was originally published on February 28, 2020 in the OCDCA Newsletter.

Federal News

Take Action to Defend the Community Reinvestment Act

The Community Reinvestment Act (CRA) was passed by Congress in 1977 as a response to redlining and lending discrimination. Since 1996, banks have issued $2 trillion in community development loans and investments in low- and moderate-income (LMI) communities.

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) released a Notice of Proposed Rulemaking (NPR) to "reform" the CRA. Former FDIC chair and current board member Martin Gruenberg explained succinctly that it's a "deeply misconceived proposal that would fundamentally undermine and weaken the CRA."

Why this "reform" is misconceived:

  • Banks could get CRA credit for investments in sports stadiums, roads, bridges, and other infrastructure projects that are disconnected from CRA's purpose of ending redlining and supporting disinvested people and places.

  • A modern-day form of redlining could be an unintended consequence by allowing banks to choose which of its assessment areas to serve and which to ignore.

  • Banks would be held accountable to a ratio instead of their communities.

  • By proposing a list of CRA-eligible activities, Washington will now decide your community's needs, instead of you.

  • A modest 10% decrease in CRA lending would cause Ohio to realize a loss of $975 million in LMI mortgage and small business lending over five years.

CRA works. We need to modernize CRA - not weaken it! OCDCA urges every member to submit a public comment that's customized to your organization. Here are some helpful templates, but supplementing with your own voice is important.

For additional information read OpEd from members in the Cincinnati Enquirer, New York Times editorial, Jesse Van Tol's OpEd in The Hill, and my OpEd in the Columbus Dispatch.

Public comment (April 8 deadline) is critical in building the case against the proposed changes. Tell the OCC and FDIC that any changes to CRA should strengthen it and live up to the spirit and intent of the act - ensuring that LMI communities and communities of color have equal access to capital and credit.

Please take the time to make your voice heard. If you have any questions please contact me at ncoffman@ohiocdc.org or 614-461-6392 ex. 207. Thank you for your advocacy!

President Releases FY21 Budget Request

On February 10, the White House released a $4.8 trillion budget request that outlines spending priorities for Fiscal Year (FY) 2021. Similar to this Administration's past proposals, this budget seeks to cut many critical housing and community development programs across agencies. Overall, the request calls for HUD to be funded at $47.9 billion, a 15 percent decrease in funding from the FY20 enacted level. The budget request proposes eliminating the Community Development Block Grant Program, the HOME Investment Partnership Program among many others.

The President's request serves as a vehicle to communicate the Administration's priorities for FY21 to Congress and is non-binding. In the past three years, lawmakers have mostly rejected the president's budget request, and have funded critical affordable housing and community development programs at the urging of advocates. Learn more about the President's budget request.

State News

Opportunities for Civic Engagement in Ohio

With it being an election and census year there are two opportunities for your organization to engage in civic engagement. Check out the Ohio Census Advocacy Coalition to learn how to get involved and for information on mini-grants in some parts of the state. And check out Ohio Votes and learn how to become an Ohio Votes Partner, help registration efforts and mobilize underserved voters. You'll also have a chance to hear from them at upcoming member meetings.