DEPARTMENTS OF TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES APPROPRIATIONS FOR 2010 HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION SUBCOMMITTEE ON THE DEPARTMENTS OF TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES APPROPRIATIONS JOHN W. OLVER, Massachusetts, Chairman ED PASTOR, Arizona TOM LATHAM, Iowa CIRO RODRIGUEZ, Texas FRANK R. WOLF, Virginia MARCY KAPTUR, Ohio JOHN R. CARTER, Texas DAVID E. PRICE, North Carolina STEVEN C. LATOURETTE, Ohio LUCILLE ROYBAL-ALLARD, California MARION BERRY, Arkansas CAROLYN C. KILPATRICK, Michigan NOTE: Under Committee Rules, Mr. Obey, as Chairman of the Full Committee, and Mr. Lewis, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. KATE HALLAHAN, DAVID NAPOLIELLO, LAURA HOGSHEAD, LISA PEN˜ A, and ALEXANDER GILLEN, Subcommittee Staff PART 5 Page Department of Housing and Urban Development ........... 1 Livable Communities, Transit-Oriented Development, and Incorporating Green Building Practices Into Federal Housing and Transportation Policy ................ 39 Part II: Livable Communities, Transit-Oriented Development, and Incorporating Green Building Practices Into Federal Housing and Transportation Policy ....................................................................................... 103 Member’s Request .................................................................... 163 Outside Witnesses Written Testimony ............................... 199 Printed for the use of the Committee on Appropriations VerDate Nov 24 2008 00:51 Dec 17, 2009 Jkt 053757 PO 00000 Frm 00001 Fmt 7513 Sfmt 7513 E:\HR\OC\53757P1.XXX 53757P1 jbell on DSKDVH8Z91PROD with HEARING PART 5—TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES FOR 2010 VerDate Nov 24 2008 00:44 Dec 17, 2009 Jkt 053757 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 E:\HR\OC\53757P1.XXX 53757P1 jbell on DSKDVH8Z91PROD with HEARING with DSKDVH8Z91PROD on jbell DEPARTMENTS OF TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES APPROPRIATIONS FOR 2010 HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION SUBCOMMITTEE ON THE DEPARTMENTS OF TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES APPROPRIATIONS JOHN W. OLVER, Massachusetts, Chairman ED PASTOR, Arizona TOM LATHAM, Iowa CIRO RODRIGUEZ, Texas FRANK R. WOLF, Virginia MARCY KAPTUR, Ohio JOHN R. CARTER, Texas DAVID E. PRICE, North Carolina STEVEN C. LATOURETTE, Ohio LUCILLE ROYBAL-ALLARD, California MARION BERRY, Arkansas CAROLYN C. KILPATRICK, Michigan NOTE: Under Committee Rules, Mr. Obey, as Chairman of the Full Committee, and Mr. Lewis, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. KATE HALLAHAN, DAVID NAPOLIELLO, LAURA HOGSHEAD, LISA PEN˜ A, and ALEXANDER GILLEN, Subcommittee Staff PART 5 Page Department of Housing and Urban Development ........... 1 Livable Communities, Transit-Oriented Development, and Incorporating Green Building Practices Into Federal Housing and Transportation Policy ................ 39 Part II: Livable Communities, Transit-Oriented Development, and Incorporating Green Building Practices Into Federal Housing and Transportation Policy ....................................................................................... 103 Member’s Request .................................................................... 163 Outside Witnesses Written Testimony ............................... 199 U.S. GOVERNMENT PRINTING OFFICE 53–757 WASHINGTON : 2009 VerDate Nov 24 2008 00:44 Dec 17, 2009 Jkt 053757 PO 00000 Frm 00003 Fmt 7513 Sfmt 7513 E:\HR\OC\53757P1.XXX 53757P1 jbell on DSKDVH8Z91PROD with HEARING COMMITTEE ON APPROPRIATIONS DAVID R. OBEY, Wisconsin, Chairman JOHN P. MURTHA, Pennsylvania JERRY LEWIS, California NORMAN D. DICKS, Washington C. W. BILL YOUNG, Florida ALAN B. MOLLOHAN, West Virginia HAROLD ROGERS, Kentucky MARCY KAPTUR, Ohio FRANK R. WOLF, Virginia PETER J. VISCLOSKY, Indiana JACK KINGSTON, Georgia NITA M. LOWEY, New York RODNEY P. FRELINGHUYSEN, New JOSE´ E. SERRANO, New York Jersey ROSA L. DELAURO, Connecticut TODD TIAHRT, Kansas JAMES P. MORAN, Virginia ZACH WAMP, Tennessee JOHN W. OLVER, Massachusetts TOM LATHAM, Iowa ED PASTOR, Arizona ROBERT B. ADERHOLT, Alabama DAVID E. PRICE, North Carolina JO ANN EMERSON, Missouri CHET EDWARDS, Texas KAY GRANGER, Texas PATRICK J. KENNEDY, Rhode Island MICHAEL K. SIMPSON, Idaho MAURICE D. HINCHEY, New York JOHN ABNEY CULBERSON, Texas LUCILLE ROYBAL-ALLARD, California MARK STEVEN KIRK, Illinois SAM FARR, California ANDER CRENSHAW, Florida JESSE L. JACKSON, JR., Illinois DENNIS R. REHBERG, Montana CAROLYN C. KILPATRICK, Michigan JOHN R. CARTER, Texas ALLEN BOYD, Florida RODNEY ALEXANDER, Louisiana CHAKA FATTAH, Pennsylvania KEN CALVERT, California STEVEN R. ROTHMAN, New Jersey JO BONNER, Alabama SANFORD D. BISHOP, JR., Georgia STEVEN C. LATOURETTE, Ohio MARION BERRY, Arkansas TOM COLE, Oklahoma BARBARA LEE, California ADAM SCHIFF, California MICHAEL HONDA, California BETTY MCCOLLUM, Minnesota STEVE ISRAEL, New York TIM RYAN, Ohio C.A. ‘‘DUTCH’’ RUPPERSBERGER, Maryland BEN CHANDLER, Kentucky DEBBIE WASSERMAN SCHULTZ, Florida CIRO RODRIGUEZ, Texas LINCOLN DAVIS, Tennessee JOHN T. SALAZAR, Colorado BEVERLY PHETO, Clerk and Staff Director (II) VerDate Nov 24 2008 00:44 Dec 17, 2009 Jkt 053757 PO 00000 Frm 00004 Fmt 7513 Sfmt 7513 E:\HR\OC\53757P1.XXX 53757P1 jbell on DSKDVH8Z91PROD with HEARING DEPARTMENTS OF TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES APPROPRIATIONS FOR 2010 FRIDAY, JUNE 19, 2009. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WITNESS HON. SHAUN DONOVAN, SECRETARY, UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OPENING REMARKS OF CHAIRMAN OLVER Mr. OLVER. The subcommittee will come to order. We are going to start off here even though we are waiting for Members because today’s schedule could be a weird and wondrous process. I want to welcome the Secretary of the Department of Housing and Urban Development, Shaun Donovan, to the subcommittee. Mr. Secretary, thank you for appearing before us for the second time this year. We are pleased to have you with us this morning to discuss the fiscal year 2010 budget request for HUD. HUD is requesting $46 billion in budgetary resources, recog- nizing the key role affordable housing plays in our communities. This fact is especially poignant as we enter the second year of an economic recession in which foreclosure rates continue to increase and unemployment approaches 10 percent. I am particularly pleased that, for the first time since I became chairman of this subcommittee, HUD has presented the sub- committee with an honest budget that better reflects the public housing and community development needs that face the Nation. The $3 billion increase requested for project and tenant-based Sec- tion 8 arguably fully funds these core housing programs for the first time in many years. In addition, the $550 million increase in the Community Development Block Grant program acknowledges the important role that CDBG plays in the economic development in cities and towns across the Nation. The fiscal year 2010 budget also includes a number of new initia- tives. I am not sure I could enumerate them all, but there are a number of them. I am particularly pleased to see that the Sustainable Commu- nities Initiative you announced at the subcommittee’s livable com- munities’ hearing a few months ago is proposed to receive $150 million within this budget. As you know, I have long advocated for (1) VerDate Nov 24 2008 01:30 Dec 17, 2009 Jkt 053757 PO 00000 Frm 00001 Fmt 6633 Sfmt 6633 E:\HR\OC\B757P2.XXX B757P2 jbell on DSKDVH8Z91PROD with HEARING 2 the better coordination of transportation, housing and energy pol- icy. I look forward to hearing more about how HUD is coordinating with DOT, EPA, and DOE to ensure that we are creating not only affordable housing but also affordable communities. I also look forward to discussing the Choice Neighborhoods Ini- tiative and how this initiative will replace Hope VI. The goal of in- tegrating schools into our neighborhood revitalization efforts is commendable. However, there are many cities that still have a sig- nification stock of severely distressed public housing that we must ensure don’t get left behind as a result. In addition, I am interested in learning more about the energy innovation fund and what role you expect this program will play in advancing energy efficiency in public housing. There are areas in your budget that I believe lack sufficient de- tails and need additional clarification. In particular, the budget proposes using up to $434 million for the transformation initiative. As I understand it, this program will focus on modernizing HUD systems and providing a new office for strategic planning. While I support these broad concepts and intended goal of creating a new, efficient HUD, I have a number of questions about how this flexi- bility will be used and what impact it will have on existing pro- grams. Additionally, I hope to discuss the administration’s forecast that FHA will provide $1.7 billion in receipts in fiscal year 2010. As you are probably aware, the Congressional Budget Office has contested whether FHA will, in fact, incur a receipt balance. As we move for- ward, the difference between the