how is hud going to mitigate this risk to the program and the residence? >> thank you for recognizing this issue. this was one of the most difficult issues in our budget. i ran the family program my first time agat hud. there are a two real risks here. one is an operational risk, that we will not be able to mechanically get the contracts funded with the short funding. that happened in the past when these contracts were shored funded. -- short funded. i and my team have worked hard to make sure these operational processes were in place. we also worked to make sure we have processes in place to monitor the physical units. we have new risk ranking and reporting we do on these units. we have quality control that we have stepped up. those are things that are critical to make sure the kind of affect you are talking about do not happen. the other risk is an uncertainty around funding. you mentioned that as well. because there is private capital that supports these units, it is critical that we not create too much uncertainty around these programs. what is importa

we were tired to protect hud's core rental assistance program. doing so meant difficult cuts to more programs like cbc tv, home and housing for elderly. the kaiser began in fiscal year 2011 are widely sold today. cities and towns are cutting services, laying off workers or delaying critical investments in their communities. this year's budget faces many of the same challenges we struggled with last year. how do you craft a budget that protects low-income residents who rely on how to keep a roof over their heads, makes the economic development in affordable housing investments to strengthen our communities and kids cut the tools they need to effectively manage its programs? of the administration's fiscal year 2013 budget balances priorities and concerned about some proposals. the proposed budget for project-based rental assistance for managed to request at that level by intentionally not pending contracts were full 12 months. iciness may be manageable in the short run i'm concerned we will have the resources when it becomes. and the rental assista

and we have worked very hard last year to preserve funding for the hud bash program. one out of every six men and women in homeless shelters our veterans, and, unfortunately, veterans by 50% more likely to fall into homelessness, compared to other americans. so i am pleased that the budget request continues funding for the hud bash program at $75 million. this level of funding should help us serve an additional 10,000 veterans who would otherwise likely be homeless. veterans homelessness fell by nearly 12% in the year 2010, demonstrating that these programs work. i've also always supported funding for the homeless assistance grants programs to prevent and end homelessness. the budget proposes to put $2 billion for this program. that is an increase of approximately 330 million over the previous fiscal year. it is, however, important that we focus on what works. and one of the models that i've seen work in the state of maine is the housing first model for aiding those who are homeless. we need better data to ensure that events of all housing programs, this particular mo

so, what investments is hud making in this budget to ensure that you have quality controls, internal controls, the fact of audits, a very close relationship with the ig to ensure that we are not wasting taxpayer dollars on substandard units that are unsafe for the tenants or bank outright fraud of where people are stealing money that belongs to the taxpayers and is not benefiting those who need it most? >> first, let me just thank you for your directness and your focus on these problems. both you and senator murray, where there are issues and where we made mistakes -- and clearly there were mistakes made. you were direct and held us accountable to correct those. i hope you will agree that when we discovered these problems that we work very closely with you, with david montoya -- i want to recognize his team, and we are making steps specifically in me that i believe will lead to better management going forward. the contracts for the inspectors, the companies that have been the wing the inspections, have been rescinded. they have been brought back in house. and we have a very specific

so i am pleased that the budget request continues funding for the hud program at $75 million. this level of funding should help us serve an additional 10,000 veterans who would otherwise likely be homeless. veterans homelessness style by nearly 12% in the year 2010, demonstrating that these programs work. i've also always supported funding for the homeless assistance grants programs to event and end homelessness. the budget proposes $2.2 billion for this program. that is an increase of approximately 380 million over the previous fiscal year. it is however important that we focus on what works. one of the models that i've seen work in the state of maine is the housing first model for aiding those who are homeless. we need better data to ensure the effectiveness of all housing programs. this particular model is proving its effectiveness in my home state of maine through the floor and pass, a comprehensive center for homeless women in portland. in addition to programs that effectively serve the homeless, hud of course provides support for affordable rental housing. the budget pro

just as importantly, while hud's request is $44.80 billion in gross budget a party. of fha received, the cost to the taxpayer is only $35.35 billion. only 7.3% below the fiscal year 2012 enacted levels. more than meeting our deficit targets while allowing us to improve oversight of our programs. the second principle we used was to protect current residents and improve the programs that serve them. the families who live in high- assisted houses burned $2,002 per year and as a median and more than half are elderly or disabled. 83% of our budget keeps these residents in their homes and provides basic upkeep to public housing while also continuing to serve our most warble population through or homeless programs. inflation and stagnant income put real pressure on the cost of these programs each year. we redouble our efforts to minimize and reverse these increases, not just for this year, but the years to come. we are working with your colleagues to and accepted a reform legislation that would save $1 billion over five years while also supporting the ability of public hous

we have a section 108 loan which provides even larger loans to businesses, through hud. we have a new market tax credit program were the city received an additional $45 million of allocation. received $35 million a year ago. another $45 million from the u.s. treasury. it is a tax credit program, not a loan program, but it winds up resulting in a dollars to projects that are in distressed neighborhoods in san francisco and/or employ low-income people. what we're trying to do in the oewd is created entire spectrum, so when we see needs, we can figure out which of our financial tools are best able to be deployed. but there are no other departments that have direct loan programs. we have grant programs in the city. summer specifically targeted to certain outcomes or activities. but direct access our capital for businesses that is flexible to allow them to do things like expanded business, start a business, buy inventory, have working capital, does not exist as a city tool, something we can help control and direct people to. >> the sf shines program, is that the store for the

know your rights, if you believe you have experienced housing discrimination, contact hud. whoo!uck playing music] mom, can we get some ice cream? please, mom, please? no, we're having dinner soon. [music playing] you don't have to be perfect to be a perfect parent. hold up! there are thousands of children in foster care who will take you just as you are. >> announcer: the following is paid for and furnished by hair club for men and women. this station is not responsible for claims made in the following program. when it comes to hair loss in women, the reasons why can be as varied as the women themselves, but there is one proven hair solution that has taken these women from this to this in as little as six weeks. it's not a wig, and it's not a weave. it's their own hair, only better, thanks to the only nationwide company that specializes in female hair loss, hair club for women. >> it's a life changer... forever. >> eternally grateful to hair club. >> be bald for the rest of my life or, you know, go to hair club and get hair. it's like, "o.k., probably i should go to hair club."

i just want to share briefly with my colleagues and the people from hud here and the inspector general. hud was paying $600 a month for properties that had septic rats.s, bras it is appalling that people were forced to live in such horrible conditions. the welfare and safety of tenants must be safeguarded in federally-subsidized properties and it must represent value to the tenant and the taxpayer. i have pressed inspector general to audit to the oversight and the authority administration of the program. it is clearly critical that federally subsidized property complies with all health, safety, and quality standards and i want to commend the secretary for taking my concerns seriously and for asking the house and authority for corrective action plans. i am very pleased that the ig has stepped in and is investigating this problem. i want to echo senator mary's concerns about the federal housing administration which plays such a critical role in an affordable home ownership. the decline in the housing market over the past several years havhas had a tremendous impact on communities through

so that's why the issue came up today with shaun donovan, the hud secretary. here's one of the exchanges with senator patty murray, democrat from washington state. >> let me begin by asking you about the status of the fha's mutual mortgage insurance fund. given the seriousness of this housing crisis, it's not surprising that fha has sustained significant losses notice capital reserve account has served its purpose by covering those unexpected losses. but i was concerned when the president's budget stated that $688 million would be neededed to cover fha losses in fiscal year 2012. both the recent settlements and announced premium increases are expected to improve the mmi fund's financial position. i wanted you to update us this morning on the financial condition of the fha's mmi fund. >> as you correctly stated, the information that was in the budget was outdated on the day it was published and in fact, we were wait to make final decisions about premium increases till we knew the outcome of the settlement. i wish that had been resolved before the budget was fin

it's hud and dot and epa. the technical assistance we can provide along with meager financial assistance. hud and dot in their road planning efforts can be of great assistance in sometimes funding to help these communities maximize limited -- increasingly limited dollars. >> thank you very much. i look forward to working with you on it. >> thank you. i would like to remind everyone again that we still don't have a clock but we do have the lights and periodically look up there and if the red light is going, your time is up. it time i'd like to recognize the gentleman from texas, mr. burgess, for five minutes. >> thank you, mr. chairman. and thank you, administrator jackson, for being here again. i've got a number of things i want to get to. i would submit questions for the record. we're still waiting on responses from your last trip here. we hear from your agency and yourself how you care so much about people in this country with asthma. as an asthmatic, i appreciate that concern.you, the epa is the one federal

banks for the broader housing problem for more than just the row before closing and so we and so the hud in the. thought that was ok so we're going to publish with it this big the penalty with this twenty five billion dollars it's going to go beyond this but that's not the way the justice system is supposed to work that's not actually going out to the banks for the real problems that they cause there are many things that these banks have done illegally every day but as you see it other regulators could be going after them on this is basically the government trying to get around this issue not to mention you know the common justice to the basically just said that we can't. we can't launch any criminal investigation becoming a little too hard for us everything is going to have to be it's sort of on this case but it's horrible and this isn't really being talked about and blown up the way that i think it should be because on the day of the settlement was reached it was all over the news now that you actually have the details about it and you find out who's going to get short changed everyone

the first thing we have to do is integrate our head of hud and veterans association.hen what we have to do is actually give rental assistance to these veterans so they can help them get into homes. so that will go a long way. our goal should be to end veterans' homelessness in the united states. it's shocking that these men and women that serve this country so well cannot find a place to say. >> as we try to figure out and bases have shut down, should formal military bases -- should they be given an opportunity of transitional living for a year, two years, after they are done with their service, to sort of live in military housing? >> well, i think there are several things we can look at but the most cost-effective and i think best for the veterans, really, is to give them the support that they need to find rental housing. i think the real issue is getting people into adequate rental housing. one of the problems with living on a base is you've left the marine corps. >> what are the chances it gets past this year? >> i think there's a very good chance. we've increased

i am pleased that the budget request that continues funding for the hud program at $75 million.s level of funding should help us serve and an additional 10,000 veterans who otherwise would likely be homeless. veterans' homelessness fell by nearly 12% in the year 2010, demonstrating that these programs work. i also have always supported i also have always supported funding for the

. >>> a new rule took effect this week barring owners and operators of hud funded housing asking aboutr identity. they also said fha mortgage finance ears are prohibited from discriminating when making loan decisions. those who violate the rules break the law and will be held accountable. >>> pope benedict denounced what he calls the powerful and political current speaking to league lies same sex marriage in the united states. it came in a meeting with bishops in the united states, and he also told the bishops there is an urgent need for catholic priests to discover the value of chastity. >>> candidates campaigning ahead of several primaries next week in the deep south. mitt romney held a townhome meeting in jackson mississippi. he's behind in the polls there. mississippi and alabama appear to be two states where rick santorum and newt gingrich can make up ground in the race. rick santorum was at a rally in mobile, alabama, scoring two southern wins on super tuesday, and is hoping for two more in mississippi and alabama. they both have called for each other to drop out of the race in o

it's nightly business report >> announcer: nightly business report with susie gharib and m huds nightly business report is made possible by: this is "nightly business report" with susie gharib and tom hudson. soox*ud good evening, everyone. my colleague, tom hudson is off tonight. the dow broke its winning streak after some disappointing economic news today. investors had been buying up stocks on a steady stream of upbeat news about the economy, but not today. inflation at the consumer level rose 4/10ths of a percent in february. high gasoline prices accounted for most of the increase. the biggest disappointment is a significant drop in consumer confidence. the university of michigan index in march fell to the lowest level this year. it's a sign that consumers are worried about high prices at the pump, and could scale back on spending. the major averages closed mixed. the blue chips lost 20. the nasdaq fell a point, and the s&p edged up a point. the dow rose almost two and a half percent on the week. the nasdaq gained over two percent, and the s&p 500 added 2.4% for the week. in the bon

housing and paid $1 million beside the $6 million land payment for community facilities because this is hud-finance, middle-income apartments. the vision of the city evolves. that was 1959. in 1970's, there were huge, huge discussions about a corporate heights -- appropriate heights and urban design plans. there was a ballot measure in 1979 on height limits. when the last phase of golden gate we came up for approval, the area, what is now known as golden gate commons -- there was an environmental impact report. one of the first in the city. it found that the heights that were approved for golden gateway were a violation of ceqa, and they made a unanimous recommendation that they could not be built without violating ceqa -- unanimous recommendation by the planning commission. that triggered a three-year process. in the end, they changed the he

and then it needs to be returned to the employer and returned to us, and we need to be accountable to hud, as well as to you, about the claims being made about low-income jobs being created. it is a challenge to get that information which the employees are not required to provide. we have to provide best efforts to get that information. common sense says that any small businesses that are often providing relatively low-wage jobs, that these people taking the jobs are probably low to moderate-income individuals. however, we have some of the seventh five jobs that have been created through this loan fund, we have received back 22 forms. of. 22, we have received 85% of the jobs have been low or moderate income individuals. we're going to redouble our efforts and the figure out ways to continue to get that information and we will be providing that to you on an annual basis. supervisor chu: thank you, supervisor avalos and jennifer. are there members of the public who wish to speak on item number five? >> thank you. i am sharon miller from renaissance entrepreneurship center, a small-business

and we work with our state agencies and other folks and with -- and with -- and with hud and with the department of justice and treasury when we can. >> no comment. that sounds fine to me. that's even shorter than the answer. i must be doing a good job here. you mention a lot the working relationship with the state ags. do you ask them for information or do they always come to you with an issue that they want you to cover? >> it's a combination. sometimes on mergers and issues we generally take the lead. but on the antitrust investigations -- but sometimes they join us and occasionally they will do and maybe we should ask them to do more, some of the depositions we're doing in investigations and some of the document reviews. we have a lot of cross pollination with them. i did a youth privacy panel with eric schneiderman two weeks ago in new york and that was great because we hadn't met each other, although i worked with some of his predecessors. so tomorrow, the national association of attorneys general is in town, and i'm going over to talk to them, and then they're coming back over

we are building a little over 100 units, hud found it, affordable housing. there is a community center, child development center, a youth center, and there are a couple of retail spaces, the tenant of which is still to be determined. >> are these high-rise buildings? >> they are. >> a high-rise building is a building that is more than 75 feet from the point of fire department access on the ground to the floor of the highest occupied floor of the building. >> correct. >> i'm glad we agree. it is important to agree. this is a high-rise building. this will also be a high-rise building. they started construction yesterday. are the standards for a high- rise building for affordable housing, sponsored by the government, are the standards of construction the same as they would be if we were to build a high-rise luxury building? >> yes. >> there is no institutionalized double standard in the building code. we have the same standard of safety, regardless of income? >> that is true. >> you design these buildings, but who is hiring you? >> mercy housing, the developer.

experts and that had certain residents especially in that point of time especially by the experts at hud on the wisdom of expanding many great society programs. at the same time that nixon entered the white house he was clearly suspicious of career offici official, those evil bureaucrats that populated the agencies and departments around the mall in washington, and what he was suspicious about them for was that he believed that the executive branch apartments were populated by civil servants who were liberal, democratic and mostly opposed to his administration's priorities. those kinds of concerns were not entirely baseless. a survey of senior career officials in 1970 found, for example, that 47% of them identified as democrats, 17% as republicans and 36% as independents. what the president did in response over the remaining part of his administration was to pursue a variety of administrative strategies in order to gain better control of the executive branch. i want to talk just very briefly about a few of them and talk briefly again about their seeming impact. critical to these strategi

i'm tom huds. goodnight, everyone and have a great weekend. you, too, susie. >> susie: good night, tom. i'm susie gharib. we hope to see all of you again next week. "nightly business report" is made possible by:

i note that the one problem we had with foia focus is that we did once feature the hud foia officers who four years later pled guilty to falsifying federal mortgage documents. >> not under indictment at the time. >> exactly, and if he was being investigated, it hadn't been shared with us. all right. in 1984, dan suggested publishing guidance on congressional access to agency records under the foia, exception and personal records and i agreed. due to the expansive growth of the short guide to the freedom of information act, the federal trade commission told us that it was false advertising to continue to call it the short guide, so in 1986 dan suggested it be called just the department of justice guide to the foia, and i agreed. in 1986 the legal education institute was no longer able to continue teaching these two-day foia classes, so dan suggested oip handle it all by ourselves, and while we're at it add two new courses, one for advanced foia personnel and another one of the one that dan referenced earlier, the dick and dan show, where the two of us once a year would go out and we w

and go, oh, this issue has already been decided, and decide for the agency, whatever other agency, hud, agriculture, you know, what have you. in the new case, without taking notice of the fact that the reason the cia won in the first case was because it was the cia, and so now you have two cases saying that something can be withheld that was never withheld before, and then it just snowballs from there. and so i think that picking the cia was a strategic choice to try and head off some of the most onerous foia practices that we had seen in many agencies, and they ranged from simple things, like not identifying the exemptions that they give on a redaction by redaction level. the cia has this wonderful policy and they actually, they have a document in their reading room that talks about this policy, that if you get 100-page cia document, it will have at the top of the first page of the document b1, b3, b5, b6, b7, c, and then it will have 8 million redactions, none of which are marked, because the cia believes that it only has to identify redactions on a document level, and that this is n

just a dodge but finally in two thousand in the housing bill congress itself woke up at the behest of hud and. explicitly outlawed these schemes they basically put a provision in that said you can't launder money to get around the f.h.a. downpayment requirement so they had to shut down but it wasn't till we wrote about that on our site and said hey this is what was going on could government reports in the i.r.s. ruling when they cracked down on it and said hey this is completely ridiculous that this was going on and it was only at that point that they sued us. so they tried to shut us down to get us to take the article down basically for for bringing visibility to the whole scheme and now this scheme is starting to be understood as a major problem with f.h.a. and if you look at the quantity of loans that went through these so are funded down payment schemes. you get a number like a one hundred billion dollars or so of these as just as a d.p.a. link loons that are defaulting at rates i believe in something around thirty percent also talk about this lapse it's first second so far probably i