[Senate Hearing 113-485]
[From the U.S. Government Publishing Office]
S. Hrg. 113-485
NOMINATIONS OF: LOURDES MARIA CASTRO RAMIREZ AND THERESE W. McMILLAN
=======================================================================
HEARING
before the
COMMITTEE ON
BANKING,HOUSING,AND URBAN AFFAIRS
UNITED STATES SENATE
ONE HUNDRED THIRTEENTH CONGRESS
SECOND SESSION
ON
NOMINATIONS OF:
Lourdes Maria Castro Ramirez, of California, to be Assistant Secretary
for Public and Indian Housing, Department of Housing and Urban
Development
__________
Therese W. McMillan, of California, to be Federal Transit
Administrator, Department Of Transportation
__________
NOVEMBER 13, 2014
__________
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COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS
TIM JOHNSON, South Dakota, Chairman
JACK REED, Rhode Island MIKE CRAPO, Idaho
CHARLES E. SCHUMER, New York RICHARD C. SHELBY, Alabama
ROBERT MENENDEZ, New Jersey BOB CORKER, Tennessee
SHERROD BROWN, Ohio DAVID VITTER, Louisiana
JON TESTER, Montana MIKE JOHANNS, Nebraska
MARK R. WARNER, Virginia PATRICK J. TOOMEY, Pennsylvania
JEFF MERKLEY, Oregon MARK KIRK, Illinois
KAY HAGAN, North Carolina JERRY MORAN, Kansas
JOE MANCHIN III, West Virginia TOM COBURN, Oklahoma
ELIZABETH WARREN, Massachusetts DEAN HELLER, Nevada
HEIDI HEITKAMP, North Dakota
Charles Yi, Staff Director
Gregg Richard, Republican Staff Director
Laura Swanson, Deputy Staff Director
Brian Filipowich, Professional Staff Member
Beth Cooper, Professional Staff Member
Homer Carlisle, Professional Staff Member
Greg Dean, Republican Chief Counsel
Chad Davis, Republican Professional Staff Member
Rachel Johnson, Republican Professional Staff Member
Dawn Ratliff, Chief Clerk
Troy Cornell, Hearing Clerk
Shelvin Simmons, IT Director
Jim Crowell, Editor
(ii)
C O N T E N T S
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THURSDAY, NOVEMBER 13, 2014
Page
Opening statement of Chairman Johnson............................ 1
Opening statements, comments, or prepared statements of:
Senator Crapo
Prepared statement....................................... 13
Senator Menendez
Prepared statement....................................... 13
NOMINEES
Lourdes Maria Castro Ramirez, of California, to be Assistant
Secretary for Public and Indian Housing, Department of Housing
and Urban
Development.................................................... 2
Prepared statement........................................... 14
Biographical sketch of nominee............................... 16
Responses to written questions of:
Senator Crapo............................................ 30
Senator Menendez......................................... 31
Senator Tester........................................... 34
Senator Vitter........................................... 37
Senator Toomey........................................... 38
Therese W. McMillan, of California, to be Federal Transit
Administrator, Department of Transportation.................... 4
Prepared statement........................................... 23
Biographical sketch of nominee............................... 24
Responses to written questions of:
Senator Crapo............................................ 40
Senator Menendez......................................... 41
Senator Tester........................................... 42
Senator Warren........................................... 44
Senator Heitkamp......................................... 45
Additional Material Supplied for the Record
Letter submitted by the National Association of Housing and
Redevelopment Officials........................................ 47
Letter submitted by the Public Housing Authorities Directors
Association.................................................... 49
Letter submitted by the National Hispanic Leadership Agenda...... 51
Letter submitted by the National Alliance of Community Economic
Development Associations....................................... 52
Letter submitted by the San Francisco Bay Area Water Emergency
Transportation Authority....................................... 53
Letter submitted by Inland Action................................ 54
Letter submitted by the Riverside County Transportation
Commission..................................................... 55
Letter submitted by Malcolm Dougherty, Director, California
Department of Transportation................................... 56
Letter submitted by the California Alliance for Jobs............. 57
Letter submitted by the Southern California Regional Rail
Authority (Metrolink).......................................... 58
Letter submitted by the Central Coast Coalition.................. 59
(iii)
NOMINATIONS OF LOURDES MARIA CASTRO RAMIREZ, OF CALIFORNIA, TO BE
ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT; AND THERESE W. McMILLAN, OF CALIFORNIA,
TO BE FEDERAL TRANSIT ADMINISTRATOR, DEPARTMENT OF TRANSPORTATION
----------
THURSDAY, NOVEMBER 13, 2014
U.S. Senate,
Committee on Banking, Housing, and Urban Affairs,
Washington, DC.
The Committee met at 11:03 a.m., in room SD-538, Dirksen
Senate Office Building, Hon. Tim Johnson, Chairman of the
Committee, presiding.
OPENING STATEMENT OF CHAIRMAN TIM JOHNSON
Chairman Johnson. I call this hearing to order. Today we
will consider the nominations of Ms. Lourdes Castro Ramirez, to
be an Assistant Secretary of Housing and Urban Development; and
Ms. Therese McMillan, to be the Federal Transit Administrator
at the U.S. Department of Transportation.
If confirmed, Ms. Castro Ramirez will lead HUD's office of
Public and Indian Housing, which helps more than 3 million
families find affordable housing in cities, suburbs, rural
areas, and in Indian country. Given the growing number of
families struggling to find affordable rents, effective use of
the resources administered by PIH is critical.
By way of introduction, Ms. Castro Ramirez would bring 20
years of experience leading and managing affordable housing and
community development programs at the local level to this
position. She is currently the president and CEO of the San
Antonio Housing Authority, where she oversees housing programs
serving 26,000 families, a workforce of 525 employees, and an
annual operating budget of $186 million. Prior to joining SAHA,
Ms. Castro Ramirez was the director of the Housing Choice
Voucher Program at the Housing Authority of the city of Los
Angeles.
And to introduce Ms. McMillan, she has served as Deputy
Administrator at FTA since 2009, and she became Acting
Administrator in July of this year. Ms. McMillan brings
substantial experience to her new role. As Deputy
Administrator, she has guided FTA staff throughout the agency's
headquarters and 10 regional offices, and she has played a key
role in the implementation of MAP-21's reforms such as the new,
streamlined process for the New Starts and Small Starts
program. Prior to joining FTA, she was a deputy executive
director at the Metropolitan Transportation Commission in the
San Francisco region where she was responsible for strategic
financial planning and MTC's management of Federal, State, and
regional funding for transit, highways, and other
transportation modes.
Any Senator wishing to submit a question for the record for
today's nominees should do so by the close of business
tomorrow, November 14. I would also urge the witnesses to reply
to questions as soon as possible in order to aid the
Committee's consideration of their nomination.
We will now swear in the nominees. Please rise and raise
your right hand. Do you swear or affirm that the testimony that
you are about to give is the truth, the whole truth, and
nothing but the truth, so help you God?
Ms. Castro Ramirez. I do.
Ms. McMillan. I do.
Chairman Johnson. Do you agree to appear and testify before
any duly constituted Committee of the Senate?
Ms. Castro Ramirez. I do.
Ms. McMillan. I do.
Chairman Johnson. Please be seated.
Each of your written statements will be made part of the
record. Before you begin your statement, I invite each of you
to introduce your family and friends in attendance.
Ms. Castro Ramirez, please proceed.
Ms. Castro Ramirez. Good morning, Mr. Chairman. Thank you
very much. I would like to introduce my husband, Jorge Ramirez,
who is with us today; my daughter, Natalia. Also, my parents
were able to join me today: my father, Toribio Castro, in the
audience; and also my mother, Guadalupe Castro.
Also, my sister, Dr. Alma Castro, has joined us, and I
would also like to acknowledge my son, who is hopefully
watching this in college. He is in college, a first-year
student, so hopefully he is watching this in his dorm.
And, last, I would like to acknowledge my son, Nicolas,
whose spirit is always with us.
Thank you.
Chairman Johnson. Ms. Castro Ramirez, please proceed.
STATEMENT OF LOURDES MARIA CASTRO RAMIREZ, OF CALIFORNIA, TO BE
ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT
Ms. Castro Ramirez. Thank you very much, Mr. Chairman.
Good morning, Mr. Chairman and distinguished Committee
Members. I am deeply honored and grateful to President Obama
and Secretary Castro for their confidence in me and for this
opportunity to be before you. Thank you for considering my
nomination to serve as Assistant Secretary for Public and
Indian Housing at the Department of Housing and Urban
Development.
I would like to also express my appreciation to you, Mr.
Chairman, to Ranking Member Crapo, to your colleagues, and
staff for meeting with me prior to this confirmation hearing.
It was extremely helpful, and I gained a deeper understanding
of the Committee's priorities.
My qualifications for this appointment were shaped by my
parents' struggles and informed by my community engagement and
professional experience, including nearly 20 years managing and
leading affordable housing and economic development programs.
I was born in a small rural town in Jalisco, Mexico. When I
was 4, my family moved to California where my parents sought
work, stable housing, and a better future for my siblings and
me.
Growing up in the city of Lynwood, my parents instilled in
us responsibility, service to others, education, and a strong
work ethic.
In 1996, I began my career as a community planner in
Ventura County, California, where I promoted resident
leadership in rural and urban neighborhoods through community
building and advocacy.
Soon I was recruited to join the Housing Authority of the
city of Los Angeles, where I worked with residents, staff, and
local leaders to increase affordable housing opportunities.
In Los Angeles, I led Jobs-Plus, an evidence-based program
that substantially increased the earnings of public housing
residents in two of L.A.'s most distressed communities.
Later, as the director of LA's Housing Choice Voucher
Department, my team and I transformed the Section 8 program
from ``Troubled'' to ``High Performer'' in just 3 years,
renewing confidence in our stewardship of taxpayer dollars.
For the past 5 years, I have served as the president and
CEO of the San Antonio Housing Authority where I have fostered
a culture of collaboration and accountability, providing safe
and affordable housing to nearly 65,000 children, adults, and
seniors. In San Antonio, we established partnerships to promote
self-sufficiency, expand affordable housing, and launch a
placed-based initiative. During my tenure, we utilized the
Moving-to-Work program to foster innovation and advance local
priorities. Today more than 1,900 clients are engaged in self-
sufficiency programs, and 40 percent of them are currently
employed.
We also increased the affordable housing supply by securing
$187 million in Federal, State, local, and private sector
funds. These investments built almost 1,500 new affordable and
mixed-income rental housing units.
In San Antonio, we are creating a neighborhood of
opportunity. The housing authority competed for and won $30
million in HUD Choice Neighborhoods Planning and Implementation
grants to invest in the city's east side. This effort was
enhanced with a Byrne Criminal Justice grant, a Promise
Neighborhoods grant, and a Promise Zone designation, making it
the only city with all four White House Neighborhood
Revitalization Initiatives in the same footprint. These
integrated efforts have leveraged public and private funds,
triggering wide-scale recovery in the area.
If confirmed, I will remain dedicated to preserving and
expanding the housing needs of poor and working families,
elderly and disabled individuals, homeless veterans, and other
special needs populations. I will continue cultivating cross-
sector partnerships and will stay firmly committed to the
belief that, as public servants, we must always show respect
and compassion for the families that we serve.
Finally, if confirmed, I will work closely with Secretary
Castro and the dedicated HUD staff to create opportunities for
the nearly 3.2 million households served by the Office of
Public and Indian Housing; to strengthen existing partnerships
with public housing authorities and Native American
communities; and to sharpen HUD's focus on outcomes to ensure
that our tax dollars are spent wisely and prudently.
Mr. Chairman, thank you and thank you to the Committee for
considering my nomination to be Assistant Secretary for Public
and Indian Housing. I am deeply honored to be here, and I look
forward to your questions.
Chairman Johnson. Thank you.
Ms. McMillan, do you have any family?
Ms. McMillan. Yes, I do, Mr. Chairman, and thank you so
much for the opportunity to introduce them. My husband, Rod
McMillan, and my daughter, Nadine McMillan, are here today. And
I also want to acknowledge my other daughter, Madeline
McMillan, who lives in Los Angeles.
Thank you.
Chairman Johnson. Please proceed.
STATEMENT OF THERESE W. McMILLAN, OF CALIFORNIA, TO BE FEDERAL
TRANSIT ADMINISTRATOR, DEPARTMENT OF TRANSPORTATION
Ms. McMillan. Again, thank you, Mr. Chairman, and to other
Members of the Committee. I am so pleased to have the
opportunity to come before you today as President Obama's
nominee for Administrator of the Federal Transit
Administration.
As you know, I have been working and serving the American
people as part of the FTA since July of 2009 when the
Administration appointed me to the position of Deputy
Administrator. It has been a privilege to serve at a time when
the demand for transit is on the rise. But I would like to
stress that I have been a public servant my entire professional
career. I have not been enticed to work outside of the public
sector because I truly believe that merging a community's
vision with responsive and responsible Government can make
good--sometimes great--things happen. If confirmed, I look
forward to working with you and all Members of the Committee to
help deliver vital transit services to the public.
I know firsthand what transit can mean to the user, because
I am one. Now, I grew up in Los Angeles, at a time when that
city was the consummate ``car capital.'' As a child, I rode the
bus with my grandmother and my auntie who could not drive, and
as I grew up, I used transit to get to summer school, to much
of high school, and my freshman year at UCLA.
Later, when I moved to the San Francisco Bay Area, I used
the region's extensive public transit systems whenever I could,
and I appreciated the fact that I had a viable option to
driving.
And in the 5 years I have lived in Washington, DC, I have
not owned a car, and I realize every day both the advantages
and the tests that come with that choice. That understanding
fuels my passion for this work.
Across the country, public transit is asked to do many
things: to address congestion; to help move our economy; to
provide real mobility to those whose options are limited by
income, disability, or age; to be the thread that links
individuals to jobs, education, and health care.
But like much of our Nation's transportation system, our
transit infrastructure is fraying at the seams, facing an $86
billion deficit in critical reinvestments in existing rails,
trains, buses, and stations.
At FTA, I have worked to address state of good repair,
safety, emergency relief, strategic expansion, and economic
development. And across the board, I have been able to build on
my past 25-plus years of experience working at the local and
regional level, where I had to actually implement Federal
policy and deal firsthand with the opportunities and challenges
of doing so.
Bearing on that experience, I have implemented successful
reforms within FTA aimed at making our processes and procedures
more efficient, effective, and transparent to those that need
to use them or who are otherwise affected by them.
I have streamlined our audit process, greatly improved our
processes for civil rights oversight, and I have worked to
ensure FTA's grantmaking system is more secure and accountable
than ever before.
Ultimately, FTA's customers are your constituents. They
reside in every State; in big cities with huge networks of rail
and buses; and in small rural and tribal communities where
paratransit vans provide critical links to scattered services.
For me, the most informative and rewarding part of working
at FTA has been traveling across the country to meet those
riders and the devoted people who provide the transit services
that they rely on. Whether they take the commuter train to work
because they choose to or a late-night bus because they must,
those riders have a voice that deserves to be heard.
I will do the best job I can as FTA Administrator to listen
and to continue to partner with the transit industry and its
customers through our Federal programs. And I look forward to
working with all of the Committee to do that, should you grant
me the opportunity through confirmation.
Thank you, Mr. Chairman, and I am happy to answer any
questions that you have.
Chairman Johnson. Thank you both very much.
Ms. McMillan, prior to MAP-21, the number of trips in
Tribal Transit grew from 700,000 in 2007 to more than 2.4
million trips in 2012, a more than threefold increase. MAP-21
created a formula to provide stable funding to support these
essential services which provide access to jobs and medical
care throughout Indian country.
How do you think the Tribal Transit Program is performing?
And what can be done to continue the program's success?
Ms. McMillan. Thank you very much, Mr. Chairman, for that
question, and I would like to first acknowledge as well that
the funding level for Tribal Transit was doubled in MAP-21.
Prior to that, as you well know, it had been $15 million for a
discretionary program and, of course, with your support and the
Committee's work, was increased to a combined $30 million--$25
million in the formula program and $5 million for the
discretionary program.
For the Federal Transit Administration, we first did
extensive consultation with the tribal nations to make sure
that they understood what the transition from moving from a
discretionary program to a formula program would be. As you
well noted, the formula program brought with it more
predictability, but we needed to make sure that the tribes
understood what would be the new procedures and what funding
levels would be available to them.
As part of that, we did some specific transitional elements
in implementing to change to make it as smooth as possible. We
conducted a number of workshops, and we will continue to
provide technical assistance to tribal nations as we work to
continue implementing the program.
Chairman Johnson. Ms. Castro Ramirez, last month Secretary
Castro joined me to see housing and economic development
conditions on the Pine Ridge Indian Reservation for himself. If
confirmed, will you engage in meaningful consultation with
tribes and work to fulfill the Federal Government's treaty and
trust responsibilities to address housing and home ownership
needs in Indian country?
Ms. Castro Ramirez. Mr. Chairman, thank you very much for
the question, and I, too, would like to acknowledge your
leadership and the leadership of this Committee in promoting a
focus on Native American housing issues.
I did have an opportunity to also meet with Senator
Heitkamp and hear from her directly in terms of the priorities,
and I also understand that the visit that Secretary Castro
made, along with yourself, Mr. Chairman, and Senator Heitkamp,
to South Dakota and North Dakota was a visit that was very
important, and there was robust discussion and focus.
If I am confirmed, Mr. Chairman, absolutely you have my
commitment to continue to better understand the housing
conditions and the opportunities that the Office of Public and
Indian Housing has in working and consulting with tribal
nations, both in South Dakota and North Dakota, but across this
country.
Chairman Johnson. Ms. McMillan, our transit providers in
South Dakota tell me that the additional formula money in MAP-
21 has been helpful, but they are having significant trouble
finding sources of funding for bus replacement, which is a
large, one-time expense for small transit agencies.
Would you support the return of a competitive bus program
which helped both rural and urban transit agencies?
Ms. McMillan. Mr. Chairman, I appreciate that question very
much, because if there is one area where we have heard
consistently that we need to have perhaps a revisiting of some
of the new elements in MAP-21, it was with the bus and bus
facilities program. I think there was an acknowledgment among
all transit operators, be they large or small- and medium-size
operators, that the predictability with a transition to a
formula program was appreciated, but that in many instances the
formula shares that they received were not commensurate with
the needs and made it particularly difficult, as you pointed
out, to do one-time large expenditures, be it for a major bus
purchase or a new maintenance facility or the like.
That has prompted us to propose, as I know you know, under
the Administration's reauthorization proposal, GROW AMERICA,
that we do two things: one would be to significantly increase
the funding levels for the bus and bus facilities program; the
Administration's proposal is to quadruple it from current
levels; but very importantly, to also reintroduce a
discretionary element, so to have roughly 70 percent of the
program continue on a formula basis to preserve that
predictability but, importantly, to bring back a discretionary
element for the circumstances that you described. And we look
very much forward to working with you as reauthorization
proceeds going forward to pursue those elements.
Chairman Johnson. Ms. Castro Ramirez, many PHAs in my State
feel that HUD reporting requirements are burdensome and even
duplicative in some cases. At the same time, PIH has a
responsibility to collect the information necessary for
effective oversight.
If confirmed, will you work to find the right balance in
HUD's reporting requirements and information systems so that
HUD, Congress, and the public can get information we need for
oversight and accountability while reducing burdens on PHAs?
Ms. Castro Ramirez. Mr. Chairman, thank you for the
question. As you know, I currently serve in the capacity of
president and CEO of the San Antonio Housing Authority, and the
housing authority has a Moving-to-Work designation, and that
designation has enabled the housing authority to implement a
number of innovative programs to meet local needs, but also to
carry out administrative reforms to streamline programs.
If I am confirmed, Mr. Chairman, you have my commitment to
work closely with the Office of Public and Indian Housing and
to also work closely with the various housing partners to
identify and implement streamlining both, you know, through
administrative, regulatory reforms but also to identify, you
know, statutory options that will enable housing partners to be
able to deliver programs to the nearly 3.2 million households
in an efficient and effective manner.
Chairman Johnson. This is a question for the panel. Can
each of you tell me what your top priorities would be, should
you be confirmed? Ms. Castro Ramirez first.
Ms. Castro Ramirez. Yes, Mr. Chairman. If I am confirmed, I
hope to be able to bring my extensive experience in affordable
housing and economic development programs. I have seen
firsthand that families, individuals, and neighborhoods fare
better when there is an affordable housing platform.
I also have worked extensively with a number of partners to
link families and households to some of the critical services
that are necessary to ensure stability and ensure success,
whether that be establishing partnerships with local school
districts or working with the local workforce development
agencies to promote job opportunities. If I am confirmed, my
priorities will be first and foremost to work closely with the
Secretary to advance his vision of creating the Department of
HUD a Department of Opportunity. And the areas of focus would
be, one, to strengthen the core affordable housing and housing
assistance programs; second, to expand the innovative programs
that are working and to expand partnerships to improve the
quality of life for the families that are served through the
Office of Public and Indian Housing; and, last, to identify
administrative reforms and streamline program operations to
ensure the delivery of housing programs in an efficient and
effective manner.
Chairman Johnson. Ms. McMillan, what are your priorities?
Ms. McMillan. Well, Mr. Chairman, let me start first by
saying that in the experience that I had even prior to coming
to the Federal Transit Administration, I worked a lot with the
multiple transit agencies in the San Francisco Bay Area, and a
major concern at that time was preserving the existing
infrastructure of the billions of dollars that have been
already invested in public transport. They need to be reliable.
They need to be effective. They need to be safe.
As an everyday user now, I know the frustration when it is
late or when the bus breaks down. So it is an important part of
people's lives, and keeping our current investments in a state
of good repair and safe is critical.
I think particularly with safety, I am committed to
advancing FTA's new safety authority that this Committee
granted us as part of MAP-21. It is absolutely critical. Public
transit is already a very safe mode, but I have to say there is
no cap on vigilance when it comes to keeping the American
public safe, and I am committed to a large focus on
implementing our new authority.
Second, I think it's important--and we have a great
opportunity--to strategically expand public transportation for
those who want to have it. My daughter in Los Angeles was
really looking for an apartment in L.A., and one of the top
things that was important to her was access, walkable access,
to the metro station in Los Angeles, to the metro system there.
And I think it is emblematic of what this younger generation is
looking for. They really do want to have options to how they
get around. And I believe that public transport and the work
that the Federal Transit Administration can do to partner with
State and local governments in bringing these options to
communities is very, very exciting.
Third, it is extremely important that we be able to provide
public transportation to anyone who needs or wants to use it.
It cannot be stressed enough, in my view, that access to
employment and education and services has to be at the
forefront of our objectives of why we are providing
transportation, and in this case public transit specifically.
And I am also personally very interested in advancing
workforce development as part of that combination of benefits
that can come with public transport. This industry needs a
well-trained workforce in a number of new areas, particularly
with new technologies that are coming online in the field. We
need workforce contributions in construction, in operations and
maintenance, and for communities where these existing public
transportation services exist or where new projects are coming
online, to the extent that we can develop a career pathway to
involve those communities in the delivery of the service, I
think there are exciting opportunities to do that. And I am
looking forward to working on that area as well.
Chairman Johnson. Ms. McMillan, the transit providers in
South Dakota work with the State's Medicaid program and VA
facilities to deliver coordinated service. How will you work to
improve coordination with other Federal programs that fund
local transportation service, particularly nonemergency medical
transportation under Medicaid?
Ms. McMillan. Mr. Chairman, I very much appreciate that
question because this is an area where we have made some
important gains, but also there are many opportunities, I
think, for continued work.
First of all, I think we need to acknowledge that all major
urbanized areas as well as many of the smaller rural
communities have effective public transportation human services
plans and relationships with multiple other Federal, State, and
local agencies for the delivery of public transportation
services.
We have seen an increased attention and funding for
mobility management, which I think is an extremely important
concept whereby the focus is on the customer's needs to get
from Point A to Point B, and we have programs and personnel who
can match that travel requirement with whatever service is
available and make the most sense, be it fixed-route service or
paratransit service or specialized services delivered by other
agencies.
We have had some success in coordinating and funding these
joint services. I point to the Veterans Transportation and
Community Living Initiative that the Federal Transit
Administration had advanced and funded in fiscal years 2011 and
2012, where we saw very valuable coordination between the DOT,
the Department of Veterans Affairs, and the Department of Labor
in pulling together resources to establish one-call, one-click
centers to coordinate services for veterans and their families,
again, matching public transportation services or services
provided by the VA in those circumstances.
But I believe there are many, many more opportunities to
extend that concept, and you pointed to a key one, which is
transport services provided by HHS and funded with Medicaid. I
think there is a tremendous opportunity and need to more
effectively manage our Federal resources in that circumstance,
and I would look forward to working with the Committee on
getting some advances in that done if I were confirmed.
Chairman Johnson. Ms. Castro Ramirez, in your testimony you
mentioned working with other local agencies and organizations
to create housing and economic development opportunities in San
Antonio.
If confirmed, will you work with other departments within
HUD and across the Federal Government to help communities and
tribes across the country create similar opportunities?
Ms. Castro Ramirez. Mr. Chairman, thank you again for this
question. Absolutely, if confirmed, I will draw on my extensive
experience creating partnerships at the local level. I would
like to share with you the success that we are enjoying in San
Antonio as it relates to creating partnerships across agencies,
and I will share with you that--I heard this quote once, and it
really resonated with me as it relates to why it is important
to partner. Someone said that ``many cities or many communities
are rich in programs but poor in systems,'' and so for me, this
work of partnerships and working across agencies is--the focus
is to strengthen the communication and the interaction of these
major institutions and systems that ultimately serve the same
individual family or neighborhood. And to that end, in San
Antonio, through the Choice Neighborhoods Initiative, we have
established a very strong collaboration with the local school
district, San Antonio Independent School District, with our
local United Way, who is leading the Promise Neighborhoods
Initiative. We also have worked very closely with local
nonprofits that are on the ground, that are promoting economic
development, including business retention and creating new
business opportunities. And equally important, we are working
very closely with the city of San Antonio and the utility
companies to improve the infrastructure of the neighborhood
that is the focus of the Choice Initiative.
That level of collaboration and coordination I think is
what is necessary to be able to lead transformation and to be
able to move from a community that has seen disinvestment for
many years to a community that is being transformed into a
vibrant and thriving community.
If I am confirmed, Mr. Chairman, I am fully committed to
continuing to work across agencies to promote the level of
collaboration that is taking place at the local level and to
bring that to the Federal level.
Chairman Johnson. Ms. McMillan, Congress has extended MAP-
21 only to the end of next May, and both accounts of the
Highway Trust Fund face a shortfall again next year.
Ms. McMillan, in your experience at FTA and your prior
experience at MTC, how does this uncertainty in Federal funding
hurt local efforts to effectively manage and improve transit
infrastructure and service?
Ms. McMillan. Mr. Chairman, you are acknowledging the most
immediate and critical challenge that we are facing at the
Department of Transportation right now, and the need to develop
a multiyear, robust transportation surface funding program is
absolutely critical. And I am working very closely with
Secretary Foxx in taking that message as far and loudly as we
can. And the support of you and the Committee in dealing with
this upcoming cliff again is just top priority for us. In terms
of the impacts of what we have heard and what I have
experienced in my own realm is there are two major areas I
would point out where this uncertainty hurts, particularly for
smaller transit agencies that receive operating funding, and a
major part of their operating funding through the Federal
program. The lack of predictability hits home directly in terms
of their ability to adequately and satisfactorily put service
out on the road to meet the needs of their users. Many of our
larger systems that may have substantial State or local funds
to complement the Federal dollars have a little bit more leeway
there. But even in those circumstances, the lack of being able
to predict better what your budgets are going to be year to
year really impedes effective planning and service delivery.
In terms of major Federal contracts for capital projects,
be they reinvestment in the existing infrastructure or new
projects, again, the lack of stability and predictability of
the critical role of Federal dollars in delivering that hampers
any major commitments for new projects and, importantly, I
think, also hampers local elected officials and others in their
visions of what they want to do for their communities, because
they cannot count on one of the important partners that are
needed to deliver those visions being at the table.
So that is the atmosphere within which we need to work and
I think underscores all the more why we need to make fixing
this problem paramount. And I certainly look forward to working
with the Committee in doing just that.
Chairman Johnson. Ms. Castro Ramirez, PIH oversees $26
billion in housing assistance programs delivered through a
network of State, local, and tribal agencies. How has your
background prepared you to oversee this large organization and
ensure accountability for taxpayers and families these programs
are designed to assist?
Ms. Castro Ramirez. Mr. Chairman, you are correct, the
Office of Public and Indian Housing is very broad and covers--
very large and covers many families through some critical
housing programs.
With regard to my background, as I had an opportunity to
share earlier, my managerial and leadership skills both in the
affordable housing industry and also directly in working with
public housing authorities has been very crucial in shaping my
approach and style of management and oversight. When I was the
director of the Section 8 program in L.A.--the Section 8
program is the second largest Section 8 program across the
country. It serves well over 50,000 families, and at that time
the annual budget was just over $400 million. So the
responsibility connected to managing well over 400 staff
members and being responsible for providing appropriate subsidy
to support 50,000 families who were on the program was--I took
that responsibility very seriously.
When I joined the Section 8 program, as I mentioned, the
Section 8 program was troubled. There were a number of
compliance concerns. There were a number of concerns with
regard to the leasing of vouchers. My approach to addressing
the problem was to work closely with the Section 8 staff and
the team, to work also closely with the Office of the Inspector
General, who at the time was involved in L.A., and to develop a
corrective action plan that would enable the Department to
correct the number of items and deficiencies, but also to
implement new internal controls to ensure that this program
would not get itself into trouble again. So I think that
experience of working very closely with a program and staff
members and the Office of the Inspector General and the
leadership of the agency is an example of the type of
managerial and leadership skills that I would bring.
Currently in my capacity as CEO of the San Antonio Housing
Authority, I am responsible for a budget of just about $187
million annually with total assets of over $500 million. For
the past 4 years, the external financial audits have been
unqualified opinions, no material weaknesses. And, again, I
believe that that really has largely been a function of the
reforms that the San Antonio Housing Authority Board and myself
have implemented to ensure that we are guarding the taxpayers'
trust in our ability to be able to manage and deliver these
critical programs.
Chairman Johnson. Ms. Castro Ramirez, in your testimony you
mentioned several education-related initiatives that you are
undertaking in San Antonio, such as creating libraries in local
family housing developments. Can you talk about the importance
of safe, stable housing for improving children's lives and why
chose to undertake these education-related initiatives in San
Antonio?
Ms. Castro Ramirez. I very much appreciate this question,
Mr. Chairman. As the first in my family to graduate from high
school and go on to college, I have seen firsthand the power of
education and how it creates opportunities. Specifically in San
Antonio, within our public housing program and Section 8, 50
percent of the individuals that are served by the housing
authority are children under the age of 17. And so for us,
understanding that 50 percent of the population are children
and youth, education had to become a priority. Also,
importantly, our mayor at the time, Mayor Castro, launched a
citywide initiative focused on promoting education and creating
greater access, both through the Pre-K 4 SA program, which
provided access to toddlers and children to attend a pre-K
program, but also by establishing resources such as the Cafe
College, to create access for youth that were looking to go on
to higher education. So the focus on education, understanding
who we are serving, has been really the driving force, and we
have had much success establishing partnerships with both
school districts and also education providers in the area to
ensure that we are providing educational resources at the
public housing properties. As an example, we implemented a free
Wi-Fi program at 40 public housing properties to ensure that
there was adequate access. We also have partnered with a local
community college and several businesses to create libraries at
some of our family public housing properties. And, last, for
the last 2 years, we have hosted an education summit that
brings together children and their parents and providers to
recognize the achievements that children and youth are making
within the realm of education. This year, we had 166 youth who
made a pledge to go to college, and we also awarded 40 college
scholarships in the amount of about $1,500 to 40 youths that
are going on to college or continuing their college education.
Again, I think education is very important, and I look forward
to exploring opportunities, if I am confirmed, opportunities
within the Office of Public and Indian Housing to continue to
strengthen the relationship between HUD and the Department of
Education.
Chairman Johnson. I thank the nominees for your testimony
and for your willingness to serve our Nation. I will remind
Members to submit questions for the record by the close of
business tomorrow, Friday, November 14. Nominees, please submit
your answers to the written questions as soon as possible so
that we can move your nominations forward in a timely manner.
This hearing is adjourned.
Ms. Castro Ramirez. Thank you.
Ms. McMillan. Thank you, Mr. Chairman.
[Whereupon, at 11:51 a.m., the hearing was adjourned.]
[Prepared statements, biographical sketches of nominees,
responses to written questions, and additional material
supplied for the record follow:]
PREPARED STATEMENT OF SENATOR MIKE CRAPO
Thank you, Mr. Chairman. Today the Committee is considering two
important nominations for two different organizations: Acting
Administrator Therese W. McMillan, to be Federal Transit Administrator
(FTA) for the U.S. Department of Transportation, and Ms. Lourdes Maria
Castro Ramirez, to be an Assistant Secretary of Housing and Urban
Development (HUD). Since the Chairman has been very thorough in his
explanation of our nominees, I'll be brief.
Ms. McMillan brings 30 years of transportation experience to the
role of Federal Transit Administrator, including 5 years at the agency
prior to this nomination. If confirmed as FTA Administrator, Ms.
McMillan will lead a staff of more than 500 employees in Washington,
DC, oversee 10 regional offices and manage an annual budget of
approximately $10 billion.
In October 2013, as part of its implementation of MAP-21, the FTA
released an Advanced Notice of Proposed Rulemaking in the areas of
Safety and Transit Asset Management. This Notice is of great interest
to myself and several other Members of this Committee who have all
raised concerns with the potential outcome being overly prescriptive.
At the March 2014 Transit Hearing, we heard from private sector
witnesses who also shared our concern that, if done improperly, some
small systems could be subject to overly burdensome regulations that
are inappropriate to their size. Today, I would like to hear how Ms.
McMillan would proceed with the implementation of MAP-21 while
balancing the needs of all systems, both large and small.
Our other nominee today is Ms. Castro Ramirez. Currently, Ms.
Castro Ramirez serves as the President and Chief Executive Officer for
the San Antonio Housing Authority. She brings approximately 15 years
working with Housing Authorities in California and Texas. If confirmed,
Ms. Castro Ramirez will oversee the Nation's public housing and rental
assistance programs that assist approximately 3.2 million low-income
families across the U.S. Also, she would be responsible for the
Department's Native American and Native Hawaiian programs, which serve
562 federally recognized tribes. While Ms. Castro Ramirez has public
housing experience from previous positions, Indian Housing is a big
part of this job and incredibly important in Idaho, so I appreciate her
willingness to learn the latter in her new capacity as well.
Although it is not the topic of today's hearing, I must take this
opportunity to express frustration with how HUD has handled a situation
that is affecting many constituents in Idaho. Last month, HUD released
guidelines related to Recreational Vehicles that they termed a
``reiteration.'' Because HUD termed it a reiteration, these guidelines
went through without the benefit of any public comment or input.
Consequently, the new guidelines for what defines a recreational
vehicle could have serious negative implications for RV owners,
dealers, and manufactures.
The lack of due process and public input also comes at an economic
cost to many small business men and women who make their livings owning
and operating campgrounds. It is now incumbent upon HUD to fix this
situation and mitigate the real consequences that have been created. I
look forward to hearing from each of our nominees on these important
issues and more, and working with Chairman Johnson regarding these
nominations.
Thank you, Mr. Chairman.
______
PREPARED STATEMENT OF SENATOR ROBERT MENENDEZ
I'd like to thank our nominees for their willingness to serve in
these important positions. The work of both the Office of Public and
Indian Housing and the Federal Transit Administration has significant
impact on the everyday lives of many New Jerseyans, and having strong
leadership for these positions is critical.
The position of Federal Transit Administrator is particularly
important to the future of our Nation's mobility and economic
development. As our population ages, providing sources of
transportation that go beyond the car will be vital to ensuring that
our seniors remain connected, active members of their communities.
At the same time, younger generations are driving less, and showing
a strong preference for living car-free in transit-oriented
neighborhoods. The old notion that we can solve our transportation
problems solely by building bigger roadways is out of date, and
inadequate to meet the needs of today.
Having strong transit infrastructure is especially critical in New
Jersey. Each year, the broader New Jersey/New York/Connecticut
metropolitan region sees more than 4 billion transit trips--and without
these trips, our region's transportation system would be brought to a
standstill.
In the coming years, we face significant challenges in maintaining
these networks, including building new, flood-resistant tunnels under
the Hudson River and replacing the 104-year-old Portal Bridge. To deal
with challenges like these, we must be willing to increase our
investment in transit infrastructure.
We must resist a status quo that has led us to transit systems that
are overcrowded, fraught with delays and overburdened by an $86 billion
repair backlog simply to keep them from falling apart.
These problems are too important to leave unaddressed. I look
forward to hearing Ms. McMillan's thoughts on how we can work together
to meet these challenges.
I also look forward to hearing from Ms. Castro Ramirez, who has
been nominated to lead the Department of Housing and Urban
Development's Office of Public and Indian Housing.
This office oversees a number of critical areas, including tenant-
based rental assistance, public housing, and the Choice Neighborhoods
Initiative for revitalizing struggling communities. These programs are
a lifeline for some of the most vulnerable members of our communities,
and provide the housing stability necessary for children to succeed in
school, adults to find and keep jobs, and seniors and persons with
disabilities to connect with supportive services. As a former mayor, I
know how vital Federal resources are in this area to local communities.
I look forward to hearing more from both of our witnesses today.
______
PREPARED STATEMENT OF LOURDES MARIA CASTRO RAMIREZ
To Be Assistant Secretary for Public and Indian Housing, Department of
Housing and Urban Development
November 13, 2014
Chairman Johnson, Ranking Member Crapo, and distinguished Members
of the Committee. I am deeply honored and grateful to President Obama
and Secretary Castro for their confidence in me and for this
opportunity to be before you as you consider my nomination to serve as
Assistant Secretary for Public and Indian Housing at the U.S.
Department of Housing and Urban Development.
I would like to acknowledge my beloved husband Jorge Ramirez, and
my children Jorge, Natalia, and Nicolas--who's brave and tender spirit
is always with us. I also thank my hardworking parents, Guadalupe and
Toribio Castro, my brothers and sisters, and many friends for their
love and support.
My qualifications for this appointment were shaped by my parents'
struggles and informed by my education, my community engagement, and my
professional experience, including nearly 20 years leading and managing
affordable housing and innovative economic development programs.
I was born in a small rural town in Jalisco, Mexico. When I was
four, my family relocated to California where my parents sought work,
stable housing and a better future for me and my siblings. My parents
instilled in us responsibility, service to others, education, and a
strong work ethic. These values and their daily sacrifices had a
profound, formative impact on me, propelling me to work hard, be a role
model for my eight younger siblings and become the first in my extended
family to attend college and receive both Bachelor's and Master's
degrees.
As a student at UCLA, I maintained a strong connection to my
hometown of Lynwood California, and actively served on a number of
committees and student groups that were focused on improving conditions
of low-income neighborhoods.
In 1996, I began my career in community development when I joined
Cabrillo Economic Development Corporation (CEDC) in Ventura County,
California. As a Community Planner, I organized and promoted resident
leadership initiatives in multiple low-income rural and urban
neighborhoods through community building and advocacy.
Soon, I was recruited to join the Housing Authority of the City of
Los Angeles (HACLA), where for 10 years I worked with residents,
dedicated staff and local stakeholders to increase affordable housing
opportunities and investments in people. During my years with HACLA, I
am most proud of my leadership of LA Jobs-Plus, a nationally recognized
program that substantially increased the earnings of public housing
residents in two of L.A.'s most blighted communities: Watts and East
Los Angeles.
From 2006-2009, I also served as director of HACLA's Housing Choice
Voucher Program, the Nation's second largest Section 8 program. During
my tenure, the Section 8 Program went from ``Troubled'' to ``High
Performer'' status in less than 3 years, as my team responsibly managed
a budget of approximately $420 million and assisted more than 50,000
families.
Since April 2009, I have had the privilege of leading the San
Antonio Housing Authority, a Moving-to-Work Agency. As SAHA's President
and CEO, I have fostered a culture of collaboration and accountability
that has resulted in safe and affordable housing for nearly 65,000
children, adults, and seniors. Our Agency established extensive
partnerships to significantly improve operational performance, expand
housing availability through the creation of new housing units, and
launch a comprehensive and integrated placed-based neighborhood
initiative focused on building strong families and communities. The
tangible results of these efforts have benefited San Antonio in three
critical ways.
First, SAHA secured almost $187 million in new Federal, State,
local, and private investments to build 424 new affordable housing
units and redevelop three public housing communities creating 1,043 new
mixed-income housing units. Today, San Antonio's stock of affordable
housing is larger than ever.
Second, SAHA competed for and was awarded $30 million in HUD Choice
Neighborhood Planning and Implementation Grants to redevelop the
Wheatley Courts community on San Antonio's Eastside. The impact of
SAHA's Choice Neighborhood Initiative was enhanced with a Byrne
Criminal Justice Grant to develop community-oriented strategies for
reducing criminal activity in the same neighborhood. SAHA's receipt of
Choice and Byrne grants, along with a Promise Neighborhood Grant
awarded to the local United Way, made San Antonio the only community in
the Nation to be awarded all three White House Neighborhood
Revitalization Initiative grants. These integrated activities have
leveraged significant public and private investments, triggering wide-
scale recovery in a long-neglected community.
Third, SAHA has advanced the goals of the Federal Moving-to-Work
program and demonstrated a consistent commitment to community-wide
economic development. We have built a free Wi-Fi platform at 40 public
housing properties, providing easy access to workforce development
resources for the adults who live there. We have added children's
libraries at 10 family housing sites, offering early learning and
educational enrichment resources, and in 2013 SAHA coordinated the
first Education Summit, at which hundreds of youth received honors
ranging from perfect attendance awards to college scholarships. And
arguably of greatest impact: there are more than 1,900 ``actively
engaged'' clients in SAHA's Moving-to-Work initiatives, 40 percent of
whom are currently employed.
These initiatives were all accomplished while achieving five
consecutive fiscal years of clean audits, free of financial findings
and material weaknesses.
If confirmed, I will bring each of these experiences and lessons
learned to the Office of Assistant Secretary for Public and Indian
Housing. I will remain dedicated to strengthening communities while
preserving and developing quality affordable housing that meets the
needs of poor and working families, elderly and disabled individuals,
homeless veterans, and other special needs populations. I will continue
cultivating partnerships with public and private stakeholders, a
defining component in community transformation since no one agency can
do it alone. In addition, I will remain firmly committed to the belief
that as public servants, we must always show respect and compassion for
the families that need our assistance.
And finally, if confirmed, I will work with Secretary Castro and
the dedicated HUD staff to: (1) create opportunities for the nearly 3.2
million households served by the Office of Public and Indian Housing;
(2) strengthen existing partnerships with the 4,000 public housing
authorities and 566 Native American communities across America; and,
(3) sharpen HUD's focus on outcomes, not only inputs, to ensure that
tax dollars are spent wisely and prudently.
Again, thank you for considering my nomination to be Assistant
Secretary for Public and Indian Housing. It is an honor to be here and
I look forward to your questions.
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PREPARED STATEMENT OF THERESE W. McMILLAN
To Be Federal Transit Administrator, Department of Transportation
November 13, 2014
Thank you, Mr. Chairman, Ranking Member Crapo, and Members of the
Committee for the opportunity to come before you today as President
Obama's Nominee for Administrator of the Federal Transit
Administration.
Before I begin my formal remarks, I would like to acknowledge my
husband, Rod McMillan and my daughter Nadine McMillan who are here
today, as well as my daughter Madeline McMillan, who lives in Los
Angeles.
Their support has been essential to my career, and I am thankful to
them every day!
As you know I have been serving the American people as part of the
FTA since July 2009 when the Administration appointed me to the
position of Deputy Administrator.
It's been a privilege to serve at a time when the demand for
transit is on the rise.
But I want to stress that I have been a public servant my entire
professional career. I haven't been enticed to work outside of the
public sector, because I truly believe that merging a community's
vision with responsive, responsible Government can make good (sometimes
great!) things happen.
If confirmed, I look forward to working with YOU and all Members of
this Committee to help deliver vital transit services to the public.
I know first-hand what transit can mean to the user--because I am
one.
I grew up in Los Angeles, at a time when that city was the
consummate ``car capital.''
As a child, I rode the bus with my grandmother and auntie who
couldn't drive, and as I grew up, I used transit to get to summer
school, much of high school, and my freshman year at UCLA.
When I moved to the S.F. Bay Area, I used the region's extensive
public transit systems whenever I could--and I appreciated the fact
that I had a viable option to driving. In the 5 years I have lived in
Washington, DC, I have not owned a car--and I realize every day both
the advantages and tests that come with that choice.
That understanding fuels my passion for this work.
Across the country, Public Transit is asked to do many things
to address congestion;
to help move our economy;
to provide real mobility to those whose options are limited
by income, disability, or age;
to be the thread that links individuals to jobs, education,
and health care.
But like much of our Nation's transportation system, our transit
infrastructure is fraying at the seams--facing an $86 billion deficit
in critical reinvestments in existing rails, trains, buses, and
stations.
At FTA, I have worked to address State of Good Repair, Safety,
Emergency Relief, Strategic expansion and economic development.
Across the board, I have been able to build on my past 25+ years of
experience working at the local and regional level, where I had to
actually implement Federal policy--and deal first-hand with the
opportunities and challenges in doing so.
Bearing on that experience, I have implemented successful reforms
within FTA aimed at making our processes and procedures more efficient,
effective, and transparent to those that need to use them--or are
otherwise affected by them.
I have streamlined our audit process, greatly improved our
processes for Civil Rights oversight, and I have worked to ensure FTA's
grant making system is more secure and accountable than ever.
Ultimately, FTA's customers are your constituents--they reside in
every State, in big cities with huge networks of rail and buses; and in
small rural and tribal communities where paratransit vans provide
critical links to scattered services.
For me, the most informative and rewarding part of working at FTA
has been traveling across the country to meet those riders and to talk
to the devoted people who provide the transit services they rely on.
Whether they take the commuter train to work because they choose to, or
take a late night bus because they must, those riders have a voice that
deserves to be heard.
I will do the best job I can as FTA Administrator to listen--and to
continue to partner with the transit industry and its customers through
our Federal programs. And I look forward to working with all of you to
do that, should you grant me that opportunity through confirmation.
Thank you Mr. Chairman, and Members of the Committee, and I am
happy to answer any questions.
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RESPONSES TO WRITTEN QUESTIONS OF SENATOR CRAPO
FROM LOURDES MARIA CASTRO RAMIREZ
Q.1. As President and CEO of the San Antonio Housing
Authority--a Moving-to-Work (MTW) designated agency--you know
first-hand the incredible benefits the MTW program has provided
your residents. In fact, in a recent report, you note that
Moving-to-Work allows the San Antonio Housing Authority to
``streamline and reduce Federal expenditures while
systematically improving its housing stock, providing
supportive services, and increasing housing choices for low-
income families in San Antonio.'' I too have been a strong
proponent of this program, urging that it be expanded to areas
like my home State of Idaho.
If confirmed, can we depend upon you to advocate that the
Administration request a significant expansion of the MTW
program, as well as to urge for the extensions of existing MTW
contracts?
A.1. Under my leadership, and in partnership with local
stakeholders, the San Antonio Housing Authority (SAHA) has
developed a thoughtful and effective Moving-to-Work (MTW)
program that is achieving greater cost effectiveness in Federal
expenditures; providing incentives that promote self-
sufficiency; and increasing housing choices for low-income
families in San Antonio.
SAHA has implemented several cost efficiency measures that
not only streamline fundamental business processes but also
provide better customer service to our residents. For example,
the implementation of biennial reexaminations for elderly and
disabled participant households resulted in a 30 percent
reduction in the operational costs related to recertifications.
Funding and programming for resident development and family
self-sufficiency initiatives continues to grow and attain
strong people outcomes. Today, there are more than 1,900 adults
actively engaged in self-sufficiency activities, and 40 percent
of them are employed.
Investments in activities geared toward promoting resident
development through education have included providing free Wi-
Fi access at 40 public housing properties; establishing
children's libraries at 12 family housing sites; and
coordinating the Education Summit, where we recognized children
and youth for academic achievement and awarded college
scholarships.
Finally, SAHA adopted an Affordable Housing Preservation
and Expansion Policy that established the principles, goals,
priorities, and strategies to preserve and expand the supply of
affordable housing. In the last 5 years, SAHA expanded the
supply of affordable housing by securing $187 million in
financing, through public-private partnerships, to build almost
1,500 new rental housing units.
If confirmed, I look forward to engaging with you, other
Members of the Senate Banking Committee and housing partners to
explore the best path forward with respect to existing MTW
agencies and those PHAs seeking to become MTW agencies. I also
look forward to increasing awareness of the positive impact
that the MTW program is making in delivering critical housing
resources, promoting self-sufficiency, reducing administrative
costs, and implementing appropriate monitoring and evaluation
protocols.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR
MENENDEZ FROM LOURDES MARIA CASTRO RAMIREZ
Q.1. As you know, HUD's Office of Public and Indian Housing
oversees critical initiatives for helping some of the most
vulnerable members of our communities find affordable housing--
in many cases providing the housing stability children need to
succeed in school and parents need to find and keep a job, and
that allows seniors and persons with disabilities to connect
with supportive services. In particular, I know you have
experience with the Housing Choice Voucher program, among
others, in both San Antonio and Los Angeles.
Can you please discuss the importance of Housing Choice
Vouchers, your experience managing the program at the local
level, and your priorities for it if you are confirmed?
A.1. The Housing Choice Voucher (HCV) Program is a critically
important housing assistance program serving approximately 2.2
million extremely low and very-low income families, and
enabling households to rent in the community of their choice. I
have had extensive experience managing and leading the HCV
program at the local level, both in Los Angeles and San
Antonio. If confirmed, I look forward to relying on my
extensive managerial and leaderships skills to strengthen the
HCV Program.
From 2006-2009, I served as director of LA's Housing Choice
Voucher Program, the Nation's second largest Section 8 program.
During my tenure, the Section 8 Program went from ``Troubled''
to ``High Performer'' status in less than 3 years, yielding a
37 percent performance increase on HUD's scorecard, from 59
percent to 96 percent. In my capacity as Director, I was
responsible for managing a budget of approximately $400 million
in Federal rental subsidies and overseeing a 400-member staff
assisting more than 50,000 families.
To improve service delivery and efficiency, I worked with
my management team and with the Agency's IT Department to
complete a major modernization and seamless software system
migration of the Section 8 Program. Additionally, I worked
closely with the Office of the Inspector General to implement
corrective actions to improve program integrity and internal
controls.
In my experience, the Housing Choice Voucher (HCV) Program
has also been instrumental in combating homelessness.
Specifically, Los Angeles' large homeless population, combined
with its relatively limited stock of affordable housing, made
the availability of subsidized housing crucial to addressing
the city's homelessness crisis. To that end, we increased the
number of Section 8 vouchers available to the Homeless Program,
thereby significantly increasing the existing resources to
permanently end homelessness for these households.
In San Antonio, the Housing Choice Voucher Program has
maintained its High Performer status for four consecutive
years, from 2010 to 2014.
Again, if confirmed, I am committed to working with you,
other Members of the Senate Banking Committee, and public
housing authorities responsible for administering the HCV
Program to strengthen this core housing subsidy program, to
identify regulatory and statutory relief provisions, and to
streamline operations to deliver housing programs in an
efficient and effective manner.
Q.2. If confirmed, you would have responsibility for overseeing
the Choice Neighborhoods Initiative, which provides critical
support for revitalizing struggling communities with distressed
housing. As I'm sure you know from your experience in San
Antonio, the program supports local leadership and targets
comprehensive efforts that focus on access to good schools,
jobs, transportation, housing, and commercial development.
Nationally, the program has been tremendously successful in
leveraging private capital--even during the challenging
economic years of 2010 through 2012, Choice Neighborhoods
grants generated outside investment at a ratio of more than 8-
to-1.
Can you discuss the importance of these funds and programs
like Choice Neighborhoods to local communities?
A.2. In San Antonio, the Choice Neighborhoods Initiative (CNI)
has been catalytic to the revitalization of the Eastside,
providing critical investment in neighborhood assets, including
vacant property, housing, services and schools, while also
advancing self-sufficiency, education, and employment services.
San Antonio's Eastside is the only area in the United
States to receive four separate awards under the White House
Neighborhood Revitalization Initiative (NRI): a HUD Choice
Neighborhood grant, a Department of Education Promise
Neighborhood grant, a Department of Justice Byrne grant, and a
Promise Zone designation.
For its CNI ``planning'' and ``implementation'' grants, the
San Antonio Housing Authority (SAHA) partnered with the City of
San Antonio, United Way, San Antonio Independent School
District, St. Philip's College, Trinity University, San Antonio
for Growth on the eastside, VIA Metropolitan Transit Authority,
local leaders, area businesses, community stakeholders, and
area residents, to create and implement the Choice
Transformation Plan. The plan was developed over a 20-month
period, from April 2011 through December 2012, in more than 30
community meetings and planning sessions. The plan serves as
the foundation for multiple initiatives to transform the
distressed Wheatley Courts public housing development and
surrounding neighborhood into a new master-planned, safe,
sustainable, energy-efficient, mixed-income community, with
high quality schools, health care, transportation and access to
jobs.
The Wheatley Courts Choice Neighborhoods plan is focused on
three core goals:
1. Housing: Replace distressed public housing with high-
quality, mixed-income housing that is well-managed and
responsive to the needs of the surrounding
neighborhood. Specifically, the Housing plan is to
redevelop Wheatley Courts into a 417-unit energy
efficient, mixed-income community, and to expand the
supply of quality housing with 208 new housing units at
The Park at Sutton Oaks, another SAHA property.
2. People: The People outcomes focus on families' health,
education, safety, and employment, through efforts to
encourage and support self-sufficiency and job
readiness, and to facilitate access to early childhood
and adult education. The educational aspect of the
People component is in close partnership with the
Promise Neighborhood Initiative, which is overseen by
the United Way.
3. Neighborhood: The Neighborhood component will transform
the neighborhood of poverty into a safe, pedestrian-
oriented neighborhood, with home ownership
opportunities; develop a plan to grow business and
retail opportunities; and improve access to health and
wellness activities and resources. Abatement of
dilapidated structures, rehabilitation of owner-
occupied units, and development of infill housing will
also provide opportunity for investment that will
create a significant impact.
Q.3. What are your priorities for community revitalization
programs like Choice Neighborhoods if you are confirmed?
A.3. If confirmed, my priorities for community revitalization
programs would include continual support for place-based
strategies including the Choice Neighborhoods Initiative and
the Jobs Plus Program.
A hallmark of my tenure in San Antonio has been preserving
and expanding affordable housing opportunities, and developing
strong partnerships that link families to education, jobs, and
supportive services. As described above, for the past 3 years,
the San Antonio Housing Authority has been leading a place-
based revitalization effort that includes unprecedented local
collaboration with significant Federal investments to improve
housing, education, and safety, through the Choice
Neighborhoods Initiative, the Department of Education's Promise
Neighborhoods Initiative, and the Department of Justice's Byrne
grants.
I began my work with the Los Angeles Housing Authority
leading the LA Jobs Plus demonstration program. Jobs Plus is an
innovative, placed-based employment and community building
program designed to increase the level of employment,
education, and earnings among public housing residents. Because
of its success, several cities from across the country,
including New York and San Antonio, have adopted and
implemented this program. Through funding from the Social
Innovation Fund and the New York Center for Economic
Opportunity, San Antonio has been implementing Jobs Plus with
great success, with nearly 900 adults currently involved.
If confirmed, I will continue to work across agencies to
coordinate with other Federal partners to align housing,
education, economic development (jobs), and transit policy to
support neighborhood revitalization efforts.
Q.4. I'm sure you are well aware from your experience in San
Antonio of the serious capital funding needs currently facing
our Nation's public housing authorities--a shortfall of $26
billion for the maintenance and preservation of affordable
housing. Meanwhile, the share of families nationwide with
severe housing cost burdens continues to rise, particularly
among the most vulnerable--seniors, persons with disabilities,
and families with extremely low incomes.
What measures would you support to help close this gap and
address urgent affordable housing capital needs?
A.4. If confirmed, I pledge to work to preserve and improve the
affordable housing stock by promoting viable financing tools,
including but not limited to the Low-Income Housing Tax Credit
Program, the Federal Capital Fund Program, the Choice
Neighborhoods Initiative, and the Rental Assistance
Demonstration Program, each of which enable housing authorities
to partner and leverage public and private resources to
rehabilitate properties and revitalize communities.
Specifically, the Rental Assistance Demonstration (RAD)
Program is one solution to addressing housing preservation,
enabling housing authorities to preserve and improve deeply
affordable properties. Under RAD, housing authorities can
convert public housing units to a new, more sustainable
financing mechanism and leverage public and private funding to
make needed capital improvements while preserving the long-term
affordability.
As I understand, across the country, demand for the RAD
Program has been growing. HUD has approved RAD applications
covering 60,000 public units as authorized by legislation, and
due to growing demand HUD has established a waiting list with
approximately 125,000 public housing units. It is also my
understanding that HUD needs Congressional approval to lift the
cap.
The RAD program is one solution to addressing rental
housing preservation, and if confirmed, I pledge to work with
you, other Members of the Senate Banking Committee, and housing
partners to ensure that programs such as RAD are available to
housing authorities to address the urgent capital need in
public housing and stem the loss of critical affordable
housing.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR TESTER
FROM LOURDES MARIA CASTRO RAMIREZ
Q.1. Indian Housing: Ms. Ramirez, as you know, we have immense
housing needs across Indian Country. I often hear that we have
three or four families living in a two bedroom home. The Indian
Housing Block Grant under NAHASDA is one of the most valuable
tools that we have to reduce the backlog of housing needs in
Indian communities.
One of the consistent complaints about the program is that
more money is being spent on rehabilitating and renovating
existing housing stock and less money is being devoted to new
construction.
What things can we be doing together to provide more
balance to the use of funds so tribes are not sinking money
into fixing dilapidated and crumbling housing?
A.1. Housing issues in Indian Country are complex and demand
integrated solutions. I understand that HUD is currently
conducting a comprehensive housing needs study which will be
critical in quantifying and shaping HUD's efforts to address
the overwhelming housing need in Indian Country. I believe that
through a cooperative effort, consistent with the Government-
to-Government relationship that HUD has with Indian tribes, HUD
can begin to effectively address the extraordinary housing
needs in Indian Country.
If confirmed, I look forward to visiting Native American
tribes in Montana and throughout the country to gain a deeper
understanding of the factors impeding the development of safe
and affordable housing in Montana and in all of Indian Country.
Additionally, if confirmed, I look forward to working with
you, other Members of the Senate Banking Committee as well as
the Senate Indian Affairs Committee, Secretary Castro, and
tribal leaders to find viable solutions that will lead to
improving housing conditions and expanding housing
opportunities in Indian Country.
Q.2. Indian Veterans Housing: Last month, I was able to get out
and visit some of Indian Country. On one of my stops in
Minnesota to the Fond du Lac Reservation, I was able to see an
Indian veteran's housing project that would be greatly helped
by the use of HUD/VASH funds. In addition, in my home State of
Montana, the Crow Tribe is in the process of constructing
similar housing dedicated to tribal veterans.
As you are aware, because of program rules, these HUD/VASH
vouchers provide challenges to tribal housing authorities and
are not being used.
We have made attempts to make changes to current law to
expand the use of these vouchers in Indian Country, but is
there an administrative solution that can be employed for this?
A.2. I can certainly appreciate the benefit and impact of HUD
VASH vouchers as I have extensive experience managing and
overseeing a successful HUD VASH program in San Antonio and in
Los Angeles. In San Antonio, the housing authority and the VA
have built a strong, collaborative relationship through regular
and meaningful communication and agreement on respective roles
and responsibilities. The partnership reflects a shared goal of
housing veterans and has resulted in housing more homeless
veterans. In fact, as a result of this partnership, the San
Antonio Point-in-Time survey indicates a significant reduction
in the number of homeless veterans, from 668 in 2010 to 263 in
2014.
If confirmed, I look forward to being briefed by HUD's
Office of Public and Indian Housing on the language included in
the President's FY2015 request that would allow vouchers to be
used in Indian Country.
Additionally, if confirmed, I look forward to working with
you, other Members of the Senate Banking Committee as well as
the Senate Indian Affairs Committee, Secretary Castro, and
tribal leaders to determine how best to address the statutory
prohibition regarding the use of HUD VASH vouchers in Indian
Country.
Q.3. RV Definition: As you may be aware, HUD recently released
a memo regarding the RV Exemption under the Manufactured
Housing Act. I understand HUD's view that this memo reiterates
HUD's existing definition of an RV, but it has been viewed by
many as a significant departure from existing guidance.
As a result, some units marketed as ``Park Model RVs'' are
no longer compliant with HUD's RV definition. This has created
significant uncertainty for the owners of these models who may
now be subject to local zoning and construction codes, may be
barred from campgrounds or have difficulty in securing
financing to buy or sell such models. This is a huge concern in
a State like Montana where many communities in the State,
including many in Indian Country rely on tourism which often
includes travel by RV.
Following the upcoming Manufactured Housing Consensus
Committee meeting, can you commit to me that HUD will move
expeditiously to consider its recommendations to update the RV
definition and at a minimum, move to address the immediate
uncertainty surrounding park model RVs?
A.3. This is an issue that is under the jurisdiction of HUD's
Office of Office of Manufactured Housing Programs under the
Office of Housing. I am unable to provide a substantive
response to this question, as I do not have detailed knowledge
or information on this matter. If confirmed, I will ask to be
fully briefed on this matter by the Office of Housing, since,
as you note, there is an impact on Indian Country.
Additionally, I will work with your office and Secretary Castro
to address this matter.
Q.4. Small Public Housing Relief: Ms. Ramirez, as the CEO of
the San Antonio Housing Authority I'm sure you have a very
clear understanding of the difficulties that public housing
agencies face when it comes to regulations.
Over the last several years, I've heard from many of my
public housing agencies--the majority of which are very lean
organizations managing fewer than 500 units--about the impact
regulations designed for much larger agencies, which limit
their ability to carry out their core mission of helping
families.
This is one of the reasons that Senator Johanns and I
introduced legislation to address the disproportionate
regulatory burdens faced by small public housing agencies and
would provide them with greater flexibility. I will continue to
push this legislation, but many of its provisions are things
that HUD has the flexibility to implement on its own.
What are your ideas about how to provide small public
housing agencies more flexibility by tailoring regulations to
allow them to spend less time on paperwork and more time
focusing on their core mission?
A.4. As the CEO of a housing authority, I believe it is
important to balance the need for monitoring and accountability
with the need for limiting the burden on public housing
authorities, particularly in a tight fiscal environment.
Striking the right balance will help to ensure decent and safe
affordable housing for residents, while protecting taxpayers
through effective and appropriate oversight.
I understand that the Department already has reduced
certain administrative burdens in the public housing and
Section 8 programs. Thanks to Congress, the Department has
already reduced burden in the public housing and Section 8
programs through notice issued on May 19, 2014, and June 25,
2014. These notices were issued in accordance with streamlining
authority provided to HUD by the Congress in the FY2014
Appropriations Act. I further understand that the Department is
continuing to explore additional options for reducing
administrative burdens on small housing authorities and, if
confirmed, I look forward to being briefed and working with
you, other Members of the Senate Banking Committee, and public
housing authorities on this effort.
Q.5. Administrative Fees: I continue to hear concerns about a
lack of funds to administer Housing Choice vouchers, which is
slowing down the issuance of new vouchers, limiting access, and
increasing wait times. In Montana, many of our agencies are
looking at a variety of ways to cover these administrative
costs, but many of them continue to come up short and some have
even had to go so far as to return VASH vouchers because they
don't have the funds to administer them.
Can you share with me any thoughts you have on ways that
HUD could provide more flexibility to housing agencies and
would you support allowing agencies to use some of their
Housing Assistance Payment funds to cover these costs?
A.5. The Housing Choice Voucher (HCV) Program is a critically
important housing assistance program serving approximately 2.2
million extremely-low and very-low income families, and
enabling households to rent in the community of their choice. I
have had extensive experience managing and leading the HCV
program at the local level, both in Los Angeles and San
Antonio. I also know that to effectively deliver vouchers to
eligible families, adequate Administrative Fee funding is
necessary. The Administrative Fee supports the direct costs of
professional staff responsible for determining eligibility,
issuing vouchers, inspecting units, and maintaining program
integrity. If confirmed, I look forward to relying on my
extensive managerial and leaderships skills to strengthen the
HCV Program.
I understand that the proposed FY2015 budget includes an
increase to the Administrative Fee. Additionally, HUD is
conducting an Administrative Fee study to gather accurate
information on the costs associated with administering the HCV
program, and to use this information to develop a new fee
allocation formula. If confirmed, I look forward to working
with the Department and utilizing the study to address the HCV
Administrative Fee needs of housing authorities.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR VITTER
FROM LOURDES MARIA CASTRO RAMIREZ
Q.1. In 2009, HUD's Office of Inspector General (OIG) found
that HUD did not obtain the best value through one of its
contracting programs (PBCA-ACC contracts) and was wasting at
least $7.6 million per year as a result. The OIG suggested that
HUD perform an analysis to determine the most cost-effective
method for implementing the program. In response to the OIG,
HUD stated that its plan to address these failings included:
obtaining ``market driven'' savings through
competition;
increasing the number of applicants that bid for
the contracts; and
having applicants be ``operational in various
geographical service areas'' to obtain ``cost
efficiencies with economies of scale.''
Do you agree with HUD's position in 2009 that these basic
principles lead to the most cost-effective funding awards?
A.1. I am unable to provide a substantive response to this
question, as I do not have detailed knowledge or information on
this matter. In addition, as far I am aware, the Office of
Public and Indian Housing does not use a PBCA model.
Q.2. Do you agree that fair and open competition is the best
way to ensure that HUD receives the best value and the taxpayer
receives the greatest benefit for the costs incurred, for
programs both within and outside the Office of Public and
Indian Housing?
A.2. If confirmed, I commit to working closely with HUD's
Contracting Officer to ensure that the procurement of goods and
services by the Office of Public and Indian Housing complies
with laws governing procurement and competition in contracting.
I believe that the expenditure of public funds in the
procurement process requires the highest degree of public trust
and standard of conduct.
Q.3. If a fair and open competition is the best way to ensure
that HUD receives the best value and the taxpayers receive the
greatest benefit, why has HUD neglected to follow the same
basic competitive contracting rules as other Federal agencies,
for instance with Performance-Based Contract Administration?
A.3. I am unable to provide a substantive response to this
question, as I do not have detailed knowledge or information on
this matter. As noted in my response to the first question, as
far as I am aware, the Office of Public and Indian Housing does
not use a PBCA model. However, if confirmed, I am committed to
complying with all contracting rules governing HUD and the
Office of Public and Indian Housing.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR TOOMEY
FROM LOURDES MARIA CASTRO RAMIREZ
Q.1. In October, Senators Ayotte, Feinstein, Shaheen, and I
wrote Secretary Castro to express concerns with the Department
of Housing and Urban Development's proposed renewal process for
Moving-to-Work (MTW). Given your experience as the President
and CEO of a MTW Agency, I wanted to give you the opportunity
to weigh in on some of the issues raised in that letter.
Given how far HUD's current proposal is from what was
offered to MTW agencies in March 2014, what is your view of
HUD's aggressive timeframe for a final renewal agreement by
December?
A.1. I understand that the Department has been collaboratively
working with the 39 current MTW agencies to discuss the terms
and conditions of extending their participation in the MTW
Program through 2028, an additional 10 years beyond the current
term that ends in 2018. This will better situate these MTW
agencies to address long-term needs and to continue delivering
critical housing and support services in their local
jurisdictions. Finally, while I am aware that an end of the
year goal has been established, I am confident that the
Department will work to meet the needs of both the agencies and
the Department, and if confirmed, I pledge to work toward this
end.
Q.2. HUD has proposed that extension agreements become
effective upon execution instead of becoming effective on
expiration of the current agreements in 2018. Again, what is
your view of such an aggressive timeframe? Does it allow for a
smooth transition for MTW agencies and the communities they
serve?
A.2. As I stated earlier, it is my understanding that both HUD
and the MTW agencies established the goal of finalizing
mutually agreeable terms for new contracts by the end of the
calendar year. Many of us have long-term real estate and
program planning efforts that require funding predictability.
However, based on San Antonio Housing Authority's experience
participating in contract extension discussions, all parties
understand how critical it is that agreement be reached
regarding program and funding flexibilities to continue local
innovative work, while adding reporting and evaluation elements
necessary to showcase that work. I should note that since being
nominated by the President, I have delegated responsibility for
participation in discussions with HUD regarding an extension of
existing contracts as well as for participation with public
housing trade associations.
Q.3. As I understand it, the proposed extension includes a
provision that would cut the public housing component for 11
MTW agencies in 2019. How will you ensure that these agencies
can maintain their successful programs following this potential
funding cut?
A.3. I do not have detailed information about the funding
arrangements for those 11 agencies nor do I have information
that HUD has proposed provisions regarding any cuts to the
public housing component. However, if confirmed, I look forward
to being fully briefed on the proposed provisions.
Q.4. In your written testimony, I was pleased to see concrete
examples of SAHA using the flexibility provided by MTW to
pursue innovative, community-wide economic development. As
Assistant Secretary, will you work closely with MTW agencies to
craft a renewal agreement that ensures them the flexibility to
address their communities' unique challenges?
A.4. As the President and CEO of the San Antonio Housing
Authority, I know how impactful an MTW designation can be in
transforming the way public housing authorities deliver
affordable housing resources in their communities. If
confirmed, I will work closely with the Department and MTW
agencies to develop a renewal agreement that supports the
progress that MTW agencies and their partners have made in
their local communities, while ensuring that monitoring and
evaluation of the program remains a priority.
Q.5. Legislative proposals to expand MTW have been introduced
or debated in both the House and Senate--for instance the
Affordable Housing and Self-Sufficiency Improvement Act of 2012
in the House and Moving to Work Charter Program Act of 2013 in
the Senate. Would you support expansion of MTW as Assistant
Secretary for Public and Indian Housing? If so, are there any
key reforms or considerations Congress should pursue in
expanding MTW?
A.5. Under my leadership and in partnership with local
stakeholders, the San Antonio Housing Authority (SAHA) has
developed a thoughtful and effective MTW program that is
achieving greater cost effectiveness in Federal expenditures;
providing incentives that promote self-sufficiency; and
increasing housing choices for low-income families in San
Antonio.
SAHA has implemented several cost efficiency measures that
not only streamline fundamental business processes but also
provide better customer service to our residents. For example,
the implementation of biennial reexaminations for elderly and
disabled participant households resulted in a 30 percent
reduction in the operational costs related to recertifications.
Funding and programming for resident development and family
self-sufficiency initiatives continues to grow and attain
strong people outcomes. Today, there are more than 1,900 adults
actively engaged in self-sufficiency activities, and 40 percent
of them are employed.
Investments in activities geared toward promoting resident
development through education have included providing free Wi-
Fi access at 40 public housing properties; establishing
children's libraries at 12 family housing sites; and
coordinating the Education Summit, where we recognized children
and youth for academic achievement and awarded college
scholarships.
Finally, SAHA adopted an Affordable Housing Preservation
and Expansion Policy that established the principles, goals,
priorities, and strategies to preserve and expand the supply of
affordable housing. In the last 5 years, SAHA expanded the
supply of affordable housing by securing $187 million in
financing, through public-private partnerships, to build almost
1,500 new housing units.
If confirmed, I look forward to engaging with you, other
Members of the Senate Banking Committee and housing partners to
explore the best path forward with respect to existing MTW
agencies and those PHAs seeking to become MTW agencies. I also
look forward to increasing awareness of the positive impact
that the MTW program is making in delivering critical housing
resources, promoting self-sufficiency, reducing administrative
costs, and implementing appropriate monitoring and evaluation
protocols.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR CRAPO
FROM THERESE W. McMILLAN
Q.1. Back at our January Banking Committee Hearing on MAP-21
progress, I asked then-Administrator Rogoff for assurances that
the FTA would not impose regulations that are unduly burdensome
to small transit systems, which he gave.
May I ask again for your assurances that you will continue
on this same issue if you are confirmed as the new FTA
Administrator?
A.1. If confirmed, I can commit to the same assurances you
received from my predecessor for consideration of small transit
systems.
FTA is taking a comprehensive approach to its MAP-21
rulemaking requirements with thoughtful consideration to the
effect on smaller operators.
With regard to FTA's safety authority, we believe that
using a safety management system (SMS) approach, where we
tailor the safety regime to the unique circumstances of the
individual transit provider, is the best approach. SMS will
allow each transit agency to focus on its specific safety risks
and threats--without adding unnecessary burden.
With regard to Transit Asset Management (TAM), FTA believes
that we can apply the new requirement that all agencies have an
asset management plan with a scalable, flexible approach. It
should be noted that not all transit agencies will be required
to report asset information to the National Transit Database
(NTD), including recipients who are solely funded by Sec. 5310
funding. Further, we are sensitive to the resources of agencies
who will be asked to report their asset inventory data.
We also recognize the importance of reaching out to the
public. FTA published an Advanced Notice of Proposed Rulemaking
(ANPRM) on safety and TAM in October 2013 and conducted several
webinars seeking public input on how best to implement the new
authority. We received more than 2,500 pages of comments, many
from small and rural operators, and FTA is now in the process
of reviewing and analyzing them before preparing for the next
steps in the rulemaking process.
Finally, FTA plans to be an active partner with transit
providers, providing guidance, training, and technical support
as we work to implement these programs. We will be there to
assist with understanding requirements and determining the
proper level of resource commitment. All this can and will be
scaled appropriately to the different sectors of public
transportation.
Q.2. The Banking Committee has a strong record of balancing the
needs of rural and urban States and I look forward to
continuing that principle as we move toward reauthorization.
Do you agree that rural transit service is important and
should grow proportionately with transit?
A.2. I agree that rural transit service is important and should
grow proportionally with transit. Rural transit provides a
lifeline for those who are unable to use a personal vehicle to
access education, employment, health care, and other vital
services. If confirmed, I look forward to working with you to
address the needs of rural transit systems and riders across
America.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR
MENENDEZ FROM THERESE W. McMILLAN
Q.1. As you know, the recovery from Hurricane Sandy is ongoing,
even as we just reached the 2-year anniversary of the storm. I
appreciate the investment FTA recently made in resiliency
projects for New Jersey Transit and the Port Authority of New
York and New Jersey, but as you know, more work remains to
done. It's vital that we invest the remaining FTA emergency
relief funding in the places that were hardest hit, to ensure a
full recovery and prevent more catastrophic damage from future
storms.
Can I have your commitment that the remaining Sandy transit
emergency relief funds will be targeted towards the hardest hit
areas?
A.1. While I agree there is much work left to be done to fully
recover and rebuild the areas hit hardest by Hurricane Sandy, I
am pleased to report that 92 percent of the $10.4 billion
provided to FTA has now been allocated to the transit agencies.
This includes the selection of 40 projects totaling $3.59
billion for the resiliency needs of affected agencies announced
in September 2014.
FTA is currently holding the remaining 8 percent of the
funding, approximately $817 million, in reserve for future
recovery needs arising from latent storm damage, higher
contract bids than anticipated, and a variety of other possible
circumstances. If confirmed, I intend to work with you and
others on this Committee to distribute these funds to the areas
hardest hit by the storm.
Q.2. One of my top priorities is providing Federal support for
the Gateway project, which includes new tunnels under the
Hudson River and the replacement of New Jersey's Portal Bridge,
which are both over 100 years old. If either the bridge or the
tunnels fail, you'll see a complete severing of the Northeast
Corridor and a crippling bottleneck in a region that produces
20 percent of the Nation's GDP. Gateway is truly the definition
of a project of national significance, and we can't wait until
one of these pieces of critical infrastructure fails to find a
solution.
Can I have your commitment to working within DOT to help us
with the advancement of this project through any funding,
financing, or technical assistance resources at your disposal?
A.2. If confirmed, I commit to work within DOT to address the
challenges that aging infrastructure presents to the Northeast
Corridor.
The tunnel infrastructure under the Hudson River that
jointly serves Amtrak and New Jersey Transit is a serious
concern for the region's continued economic success. I fully
understand the importance of this tunnel to the region's
economy. Indeed, in recognition of the importance of this
project, the Department allocated $185 million from FTA's
Hurricane Sandy funding to the Federal Railroad Administration
for use in the project. I look forward to working with you, the
State of New Jersey, and Amtrak to identify additional
resources in order to move this project forward.
The Administration's GROW AMERICA Act proposal would
provide Amtrak with predictable, dedicated funding to repair
and replace its aging infrastructure, like these tunnel
arteries. The proposal also boosts funding for FTA's New Starts
program to $2.5 billion per year, and transit agencies like New
Jersey Transit would be eligible to apply.
If confirmed, I look forward to working with you and this
Committee to identify DOT funding sources available for this
critical project.
------
RESPONSES TO WRITTEN QUESTIONS OF SENATOR TESTER
FROM THERESE W. McMILLAN
Q.1. Rural Transit: Thank you for joining us today, Ms.
McMillian. As you know, Montana is a very large State and often
folks need to travel long distances to access basic services.
In many cases, these trips to see a doctor, to see family
member or to go to work are made possible by public transit.
And in our larger towns, ridership is continues to increase as
our transit systems continue to grow.
Would you agree, Ms. McMillian, that transit is important
and should be supported in rural and small communities, not
just in big metro areas?
A.1. I agree that rural transit service is important and should
grow proportionally with transit. Rural transit provides a
lifeline for those who are unable to use a personal vehicle to
access education, employment, health care, and other vital
services. If confirmed, I look forward to working with you to
address the needs of rural transit systems and riders across
America.
Q.2. When FTA imposes new regulatory or program requirements,
compliance can be particularly difficult for small and rural
transit providers. Unlike large transit agencies, the costs of
compliance have to be spread only over a small staff and
ridership.
As you make decisions to impose new requirements, how will
you work to consider the implications for small and rural
providers?
A.2. If confirmed, I intend to ensure that small and rural
providers are not unnecessarily or disproportionately burdened
by Federal requirements.
FTA is taking a comprehensive approach to its MAP-21
rulemaking requirements with thoughtful consideration to the
effect on smaller operators.
With regard to FTA's safety authority, we believe that
using a safety management system (SMS) approach, where we
tailor the safety regime to the unique circumstances of the
individual transit provider, is the best approach. SMS will
allow each transit agency to focus on its specific safety risks
and threats--without adding unnecessary burden.
With regard to Transit Asset Management (TAM), FTA believes
that we can apply the new requirement that all agencies have an
asset management plan with a scalable, flexible approach. It
should be noted that not all transit agencies will be required
to report asset information to the National Transit Database
(NTD), including recipients who are solely funded by Sec. 5310
funding. Further, we are sensitive to the resources of agencies
who will be asked to report their asset inventory data.
We also recognize the importance of reaching out to the
public. FTA published an Advanced Notice of Proposed Rulemaking
(ANPRM) on safety and TAM in October 2013 and conducted several
webinars seeking public input on how best to implement the new
authority. We received more than 2,500 pages of comments, many
from small and rural operators, and FTA is now in the process
of reviewing and analyzing them before preparing for the next
steps in the rulemaking process.
Finally, FTA plans to be an active partner with transit
providers, providing guidance, training, and technical support
as we work to implement these programs. We will be there to
assist with understanding requirements and determining the
proper level of resource commitment. All this can and will be
scaled appropriately to the different sectors of public
transportation.
Q.3. Tribal Transit: Ms. McMillian, the Cherokee Nation of
Oklahoma has contacted the Senate Committee on Indian Affairs
regarding the distribution of the Nation's transit money.
According to the Nation, the FTA has withheld distributing
approximately $330,000 Tier 1 and Tier 2 funding that is
undeniably due to the Nation according to the MAP-21 formula.
I understand that this is because there is some dispute
regarding the distribution of Tier 3 funds between Nation and
United Keetoowah Band. It seems very harmful to hold up funds
clearly owed to a Tribe under the law because of an unrelated
dispute.
What assurance can you provide the Committee that this
funding will be distributed to the Nation in a timely manner?
A.3. I am pleased to report that FTA has successfully mediated
an agreement between the Cherokee Nation of Oklahoma and the
United Keetoowah Band of Cherokee for a sub allocation for Tier
3 funds for FY13 and 14. This agreement was necessary prior to
processing their grant applications; as a result both tribes
may now apply for Tier 1, 2, and 3 funding.
FTA expects to receive and process grant applications from
both tribes in the near future. If confirmed, I would be happy
to work with you and other Members of the Committee on issues
pertaining to the Tribal Transit program.
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RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARREN
FROM THERESE W. McMILLAN
Q.1. Study after study demonstrates new rail and subway
expansions are one of the strongest and most effective ways to
boost the economy and stimulate private investment, but the up-
front costs have caused Congress to hold back on funding.
Acting Administrator McMillan, do you agree with these
recent studies that capital investment in rail transit can
stimulate economic growth and do you believe that New Starts
projects such as the Green Line project in Massachusetts are
one of the strongest and most effective ways for States to
boost the economy and stimulate private investment?
A.1. I agree that investments in transit stimulate economic
growth.
There are examples of economic growth all over the country
as a result of the construction of new or expanded transit
projects. Employers, health service providers and others are
choosing to locate near transit. Private developers are
building residential areas near transit stops. Transit can
serve as a revitalizing influence in neighborhoods across the
United States.
There are two excellent examples of economic development to
note in Massachusetts, and we expect more to follow when the
Green Line project gets underway in Cambridge in the near
future. Assembly Square Station in Somerville is the anchor of
the $1.5 billion Assembly Row mixed-use development area, which
has revitalized the former Ford Motor Company Plant into a
vibrant place to work, shop and live.
In Worcester, a new regional transit hub, connected to the
redeveloped Union Station, has played a key role in attracting
private investors to CitySquare, a $563 million public-private
commercial real estate project that will create a vibrant,
pedestrian-friendly center in downtown Worcester.
There is great news coming from other parts of the country
as well. In Orlando, Florida, the SunRail commuter rail line
has connected millions of residents of Central Florida with
employment and education in downtown Orlando, and has spurred
$1.6 billion in public and private investments near SunRail
stations. Notably, a $250 million public-private partnership to
create a Health Village at Florida Hospital has resulted in
quality health care and thousands of jobs becoming easily
accessible through transit.
And finally, in Denver, Colorado, the transformation of
historic Union Station into a multimodal transportation hub has
attracted nearly a billion dollars in related private
investment, anchoring two new commuter rail lines that will
better connect the region's 3 million residents to downtown
Denver.
If confirmed, I look forward to working with you to advance
transit projects that generate economic development and
employment while improving quality of life in their
communities.
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RESPONSES TO WRITTEN QUESTIONS OF SENATOR HEITKAMP
FROM THERESE W. McMILLAN
Q.1. In North Dakota, our transit providers do not have big
subway systems or fleets of several hundred buses like the
providers in big urban areas. However, transit is important to
rural areas as well, especially to some of our more vulnerable
populations. If confirmed, how will you ensure that rural and
small communities are supported?
A.1. Thanks to the work of this Committee, MAP-21 increased
funding for both the rural and tribal transit formula programs,
giving FTA the ability to partner with more agencies to bring
transit service to rural and tribal areas needing relief.
FTA has several critical support activities under way
through it technical assistance resources, such as the National
Rural Transportation Program (NRTAP) and the National Center on
Mobility Management (NCMM) that have been tailored to the
issues facing rural transit providers. FTA also published the
final program guidance for the Rural Area Formula grant program
on October 24, 2014, an important resource for service
providers. This incorporates changes made to the section 5311
program and crosscutting requirements resulting from the
passage of MAP-21.
If confirmed, I look forward to working with this Committee
and our rural transit providers to improve access to much
needed transit service.
Q.2. Small transit providers can face particular challenges
when new regulations are imposed as the cost of regulation must
be absorbed by very small staffs and small ridership. When
developing new requirements, do you intend to ensure that small
and rural providers are not unnecessarily or disproportionately
burdened?
A.2. If confirmed, I intend to ensure that small and rural
providers are not unnecessarily or disproportionately burdened
by Federal requirements.
FTA is taking a comprehensive approach to its MAP-21
rulemaking requirements with thoughtful consideration to the
effect on smaller operators.
With regard to FTA's safety authority, we believe that
using a safety management system (SMS) approach, where we
tailor the safety regime to the unique circumstances of the
individual transit provider, is the best approach. SMS will
allow each transit agency to focus on their specific safety
risks and threats--without adding unnecessary burden.
With regard to Transit Asset Management (TAM), FTA believes
that we can apply the new requirement that all agencies have an
asset management plan with a scalable, flexible approach. It
should be noted that not all transit agencies will be required
to report asset information to the National Transit Database
(NTD), including recipients who are solely funded by Sec. 5310
funding. Further, we are sensitive to the resources of agencies
who will be asked to report their asset inventory data.
We also recognize the importance of reaching out to the
public. FTA published an Advanced Notice of Proposed Rulemaking
(ANPRM) on safety and TAM in October 2013 and conducted several
webinars seeking public input on how best to implement the new
authority. We received more than 2,500 pages of comments, many
from small and rural operators, and FTA is now in the process
of reviewing and analyzing them before preparing for the next
steps in the rulemaking process.
Finally, FTA plans to be an active partner with transit
providers, providing guidance, training, and technical support
as we work to implement these programs. We will be there to
assist with understanding requirements and determining the
proper level of resource commitment. All this can and will be
scaled appropriately to the different sectors of public
transportation.
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