[Congressional Record Volume 142, Number 49 (Wednesday, April 17, 1996)]
[Senate]
[Pages S3479-S3480]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 CONGRATULATING NATIONAL PEOPLE'S ACTION ON 25 YEARS OF ACCOMPLISHMENT 
            AND THEIR 25TH NATIONAL NEIGHBORHOODS CONFERENCE

  Ms. MOSELEY-BRAUN. Mr. President, on Saturday, April 27, National 
People's Action (NPA), a national network of more than 300 community 
organizations, churches, and senior citizen groups from 38 States 
across the country, will open its 25th national neighborhoods 
conference here in Washington, DC.
  I want to call the Senate's attention to this conference, because 
National People's Action represents America at its best--people from 
neighborhoods working together to improve their neighborhoods. The 
hundreds of organizations and the thousands of people from all walks of 
life who make up National People's Action are committed to their 
communities. They know that neighborhoods are critically important. 
They know that neighborhoods with good housing, neighborhoods that are 
safe, and neighborhoods with access to good jobs are places where 
families can achieve their own piece of the American dream. And perhaps 
most importantly, they know that by putting fundamental American values 
to work--by working hard to make those values an everyday part of life 
in their neighborhoods--they are making a real difference in their 
communities and in our country.
  National People's Action is known as the first voice of our Nation's 
neighborhoods. This people's organization has, from its inception, 
spoken out for investing in neighborhoods, ending redlining by 
financial institutions, expanding the stock of good, affordable 
housing, implementing community-based approaches to crime prevention 
and policing, and expanding economic opportunity and the access to good 
jobs at good wages that are so essential to healthy communities.
  NPA is a grass roots movement with an enviable record of 
accomplishment. I would like to take just a moment to highlight a few 
of those many successes. First, NPA played a key role in making the 
Community Reinvestment Act, the primary Federal tool for expanding 
access to capital, a reality, and NPA has used that tool to obtain over 
$25 billion worth of CRA lending agreements. These agreements mean 
access to mortgage money, home rehabilitation money, and economic 
development money for hard-working people living in hard-pressed 
neighborhoods that have all too often been cut off from capital in the 
past.
  NPA created the lease-to-purchase mortgage product, the first of its 
kind in the United States. This innovative approach allows people who 
may not have the money to make a downpayment on a home to have a real 
opportunity to achieve perhaps the single most important element of the 
American dream--owning their own home.
  And NPA, working with Freddie Mac, created an ingenious new type of 
mortgage for buildings with two-to-four units, thereby helping to 
revitalize this kind of housing, which is so important to so many 
cities and neighborhoods, and making it possible for neighborhood 
residents to become homeowners and landlords. The result of this 
resourceful approach are more home-owners in neighborhoods, and a 
better stock of rental housing.
  While NPA's successes are varied, however, they all have the same 
theme. They are all about people, about making it possible for people 
in the neighborhoods and communities around our Nation to build a 
better life for themselves. NPA is a quintessentially American 
organization. It accomplishes a huge amount with very little money. It 
is nonbureaucratic. And it works right at the neighborhood level. It 
doesn't tell people what to do. Rather, it brings people together so 
that, by working together, they can make their neighborhoods better 
places to live for themselves and for their families.
  National People's Action, and its national chairperson Gale Cincotta, 
deserve the Senate's commendation. As I stated at the beginning of my 
remarks, this organization embodies the essence of American values. NPA 
puts the values on which this Nation was founded to work for all of its 
people. I am therefore glad to have the opportunity to bring NPA's 25th 
annual neighborhoods conference to the Senate's attention, and I hope 
every Member of the Senate will attend this important event.
  Mr. President, I ask unanimous consent that a complete list of NPA's 
major proneighborhood accomplishments be printed in the Record.
  There being no objection, the list was ordered to be printed in the 
Record, as follows:

                      NPA's Major Accomplishments


                              reinvestment

       Spearheaded enactment of the Home Mortgage Disclosure Act 
     (HMDA) and the Community Reinvestment Act (CRA) which protect 
     urban areas and minorities from loan discrimination.
       Provided technical assistance to community groups which 
     directly led to over $25 billion in NPA assisted CRA lending 
     agreements.
       Developed 10 city pilot affordable housing programs with 
     the secondary market and private mortgage insurers which led 
     to a nationwide low-downpayment program called the Community 
     Homebuyers Program. The development of the CHBP has resulted 
     in industry-wide changes in the standards for conventional 
     lending and millions of home loans to low income families.
       Coordinated the Chicago Reinvestment Alliance, which in 
     1984 developed a $363 million Neighborhood Lending Program. 
     The program has been renewed twice, and to date, over $500 
     million have been lent and over 14,000 units of affordable 
     housing and businesses have been created or rehabilitated in 
     Chicago.
       Coordinated the NPA/Aetna Neighborhood Investment Program, 
     which provided over $100 million in loans for rehabilitation 
     or construction of over 10,000 affordable housing units in 14 
     urban neighborhoods throughout the country.
       Brought the Neighborhood Housing Services (NHS) to Chicago 
     and has continued to support its expansion by developing new 
     loan programs and funding sources.
       Successfully advocated for increases in Community 
     Development Block Grant (CDBG) funding and for increases in 
     the targeting of CDBG funds to low and moderate income 
     neighborhoods.
       Created the Lease-to-Purchase mortgage product, the first-
     of-its-kind in the nation. This product allows individuals to 
     enter the home as tenants and after a 2-3 year lease period 
     become the homeowner, having accumulated a 10-15% downpayment 
     to purchase. Lease-to-Purchase has become a standard 
     affordable housing option.
       Successfully advocated for performance oriented goals for 
     Government Sponsored Enterprises (GSEs) requiring 30% of 
     mortgages to be purchased in underserved markets and from low 
     and moderate income families.
       Created a unique low downpayment mortgage product for 2-4 
     unit buildings with Freddie Mac that allows for 75% of rental 
     income to be used to qualify the applicant, thus creating an 
     opportunity for homeownership for low income people.
       Developed in conjunction with the Mortgage Guaranty 
     Insurance Corporation (MGIC) the first ever purchase and 
     default counseling training for community based counselors.


                     federl housing administration

       Through a national advocacy campaign, stopped abusive 
     lending practices that resulted in catastrophic FHA 
     foreclosures in the 1970s.
       Secured 518(b) and (d) Payback Programs for buyers of 
     defective FHA homes which provided funds for repair of major 
     systems and structural defects.
       Developed Repair and Sell Programs that rehabilitated 
     vacant FHA homes in blighted neighborhoods.
       Spearheaded the development of the FHA Assignment Program 
     which provides assistance to those behind in their mortgage 
     in order to prevent foreclosure.
       Continued to research FHA lending practices and uncover 
     abuses, such as illegal minimum loan amounts imposed by some 
     FHA lenders.
       Negotiated a HUD demonstration program that allows not-for-
     profit developers to obtain vacant, foreclosed properties at 
     a 30% discount. Over 600 homes have been rehabilitated for 
     low income families. This pilot program has become a 
     permanent HUD program.
       Successfully advocated for public disclosure by HUD of FHA 
     lending activity and loan failure rates by mortgage company 
     and census tract. Analysis of data has uncovered high default 
     rates far exceeding HUD's definition of trouble areas.


                       crime and drug prevention

       Developed 1976 community anti-crime program with the law 
     Enforcement Assistance Administration which redirected LEAA 
     funds to local community groups for local anti-crime 
     programs.
       Changed Illinois policy regarding the distribution of Asset 
     Forfeiture funds to allow $500,000 to be returned to 
     communities for crime prevention programs.

[[Page S3480]]

       Coordinated along with the Chicago Police Department a 
     Nuisance Abatement Program in four police districts that 
     resulted in closing 1,000 drug houses during the first year 
     of operation.
       Provided 387 community groups, 42 police departments, and 
     state and local government agencies with technical assistance 
     to develop community based anti-crime and drug strategies.
       Coordinated a national day of Reclaiming Our Neighborhoods 
     in which 38 cities participated February 14, 1994.
       Won change in Asset Forfeiture Regulations nationally, 
     allowing communities to receive 15% of seized drug money and 
     real property.
       Was awarded $1.2 million cooperative agreement from the 
     Bureau of Justice Assistance, U.S. Department of Justice to 
     coordinate a demonstration program (1992-1995) in 13 cities 
     across the country, Communities in Action to Prevent Drug 
     Abuse.
       Was awarded cooperative agreement from the Bureau of 
     Justice Assistance--Department of Justice and the Department 
     of Labor to coordinate Communities in Action to Prevent Drug 
     Abuse II--Reclaiming Our Communities (1995-1997) in 10 cities 
     across the country.


                                training

       Was awarded a three year national VISTA grant in 1978 which 
     resulted in training of almost 100 community staff in 48 
     community organizations.
       Provided technical assistance and seed funding to 131 
     community groups since 1980 through the Mott Foundation's 
     Strengthening Citizen Initiatives at the Local Level Program.
       Provided training on financial management to community 
     groups in 8 cities through a program developed with Allstate.
       Offered week-long training courses since 1974 that have 
     trained over 3,000 participants in community advocacy skills.
       Provided on-site consultations that have resulted in 
     development of dozens of new community organizations across 
     the country.
       Provided on-site training for at least 40 organizations a 
     year.
       Have coordinated national conferences on Housing, CRA, 
     Jobs, Insurance and Drugs providing an area for all the 
     players to come together to discuss their concerns. 
     Each conference attracted over 500 participants.


                                 energy

       Provided training and consulting for 147 community groups 
     on natural gas deregulation in the late 1970s and early 
     1980s.
       In the mid 1980s, founded the Affordable Budget Coalition 
     to address the rash of utility shut-offs plaguing Illinois. 
     The ABC became independent in 1987.
       Assisted community groups to intervene in utility rate 
     cases before the Illinois Commerce Commission, resulting in 
     almost $2 billion in refunds.
       Has been an expert witness in telephone and electric 
     utility cases and performed an analysis of Currency Exchange 
     rates charged to cash government benefit checks for use in 
     rate investigation of the Illinois Department of Financial 
     Institutions.
       Currently working with community groups and participating 
     in policy forums on the deregulation of the electrical 
     utility industry in Illinois.
       Working with community groups, government agencies and 
     electric and natural gas utility companies to establish a 
     long-term solution to the low income residential energy 
     crisis and the decline of federal energy assistance funding.
       Providing training for Community Action Agency's low income 
     board members across the country in cooperation with the 
     Illinois Community Action Agency under a contract from the 
     U.S. Department of Health and Human Services.


                               insurance

       Developed new urban property insurance products and 
     increased urban investments with leading companies, including 
     Allstate and State Farm as a response to NPA advocacy against 
     insurance redlining.

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