DECEMBER 97, Volume 7, Issue 6

December 1997----------Volume 7, Issue 6

Table of Contents

Water News
President's Proposed HUD Budget for '98-99 Planned
Holdiay Greetings
Fifteenth Anniversary of UNHP in 1998
Childcare in the Northwest Bronx
Local Childcare Discussions Commence
UNHP Holds First Time Home Buyers Seminar
HUD Proposes New Disclosure Regulations on Broker Fees

More Water News: Retroactive Transition Program Ends on December 31st

As 1997 ends, so does DEP’s retroactive transition program. This program has allowed buildings with high water meter bills to apply for relief retroactive to the time of the installation of the meter at a flat rate charge per apartment. Owners have two weeks to apply for a program that has allowed many owners to survive the ill conceived metering program that was commenced in the late l980’s. People may call DEP at (718) 595-7000 to apply.

UNHP testified against the termination of the retroactive transition program last spring since there still might be buildings that could benefit from the program. While most buildings that needed the retroactive relief have already applied for the program, as recently as this summer there was a new HDFC building that benefited from the program.

More Water News: Retroactive Transition Program Ends on December 31st
As 1997 ends, so does DEP’s retroactive transition program. This program has allowed buildings with high water meter bills to apply for relief retroactive to the time of the installation of the meter at a flat rate charge per apartment. Owners have two weeks to apply for a program that has allowed many owners to survive the ill conceived metering program that was commenced in the late l980’s. People may call DEP at (718) 595-7000 to apply. UNHP testified against the termination of the retroactive transition program last spring since there still might be buildings that could benefit from the program. While most buildings that needed the retroactive relief have already applied for the program, as recently as this summer there was a new HDFC building that benefited from the program.

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President's Proposal for HUD Budget for 1997-98 to be final by January 1st.

The President’s Office of Management and Budget knocked nearly $9 billion out of HUD’s request for the next year’s federal budget. The Low Income Housing Coalition and the Center for Community Change report that HUD requested $32 billion and OMB is recommending $23.7 billion; OMB’s proposal would fund all expiring Section 8 contracts by using $3.6 billion from Section 8 reserves and fund 50,000 new Section 8 units targeting 32,000 for homeless people. OMB also proposes that the President fund some of HUD’s proposals including another 50,000 section 8 units for welfare to work programs with funding from the Presidential Priority Reserve, apparently a fund controlled by the President to fund various initiatives of the administration.

The Center for Community Change report that the administration HUD budget request will be final by January 1st. The President recently visited the Bronx and heralded the remarkable resurgence of many Bronx neighborhoods. That resurgence was supported by a combination of federal, local and private funding. The federal government needs to continue providing support to maintain the gains that have been made and to support new efforts. People who want to urge the President to fund additional housing programs should contact:

President Clinton
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20500
(Fax: 202-456-2461)

President's Proposal for HUD Budget for 1997-98 to be final by January 1st.
The President’s Office of Management and Budget knocked nearly $9 billion out of HUD’s request for the next year’s federal budget. The Low Income Housing Coalition and the Center for Community Change report that HUD requested $32 billion and OMB is recommending $23.7 billion; OMB’s proposal would fund all expiring Section 8 contracts by using $3.6 billion from Section 8 reserves and fund 50,000 new Section 8 units targeting 32,000 for homeless people. OMB also proposes that the President fund some of HUD’s proposals including another 50,000 section 8 units for welfare to work programs with funding from the Presidential Priority Reserve, apparently a fund controlled by the President to fund various initiatives of the administration. The Center for Community Change report that the administration HUD budget request will be final by January 1st. The President recently visited the Bronx and heralded the remarkable resurgence of many Bronx neighborhoods. That resurgence was supported by a combination of federal, local and private funding. The federal government needs to continue providing support to maintain the gains that have been made and to support new efforts. People who want to urge the President to fund additional housing programs should contact: President Clinton The White House 1600 Pennsylvania Avenue, NW Washington, DC 20500 (Fax: 202-456-2461)

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Holiday Greetings

In an article published in the Journal of Community Practice, Si Kahn notes that the great social movements of this century were rarely predicted. Citing examples in the civil rights and other social movements, he emphasizes the importance of the day to day work of many people over much time that preceded and eventually fueled the movements.

Our belief is that the day to day work that is happening in neighborhoods around the city and country are laying the groundwork for a new movement around economic equity and affordability. It is hard to list reasons to justify this hope, but it is impossible to be pessimistic when we get the privilege of working with so many people whose spirit and determination make life better in our neighborhoods and buildings. We were thinking about naming names, but there are so many examples of people who are giving so much and some times risking so much to make our neighborhoods good places to live that we didn’t want to exclude anyone. We at UNHP want to say Happy Holidays and Thank You to the many people who have made the NW Bronx better today and have created the foundation for more good things to come.

Holiday Greetings
In an article published in the Journal of Community Practice, Si Kahn notes that the great social movements of this century were rarely predicted. Citing examples in the civil rights and other social movements, he emphasizes the importance of the day to day work of many people over much time that preceded and eventually fueled the movements. Our belief is that the day to day work that is happening in neighborhoods around the city and country are laying the groundwork for a new movement around economic equity and affordability. It is hard to list reasons to justify this hope, but it is impossible to be pessimistic when we get the privilege of working with so many people whose spirit and determination make life better in our neighborhoods and buildings. We were thinking about naming names, but there are so many examples of people who are giving so much and some times risking so much to make our neighborhoods good places to live that we didn’t want to exclude anyone. We at UNHP want to say Happy Holidays and Thank You to the many people who have made the NW Bronx better today and have created the foundation for more good things to come.

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1998—Fifteenth Anniversary of UNHP

In our first 1998 issue of Notes, we will be announcing a schedule of events in l998 to mark our fifteenth anniversary year.

1998—Fifteenth Anniversary of UNHP
In our first 1998 issue of Notes, we will be announcing a schedule of events in l998 to mark our fifteenth anniversary year.

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Childcare in the Northwest Bronx

At the Tolentine Zeiser day care center scarcely a day goes by without a request from one or more families requesting assistance in obtaining childcare…Concourse House has a waiting list of over 300 children…new work mandates will create the need for over 14,700 new daycare slots… five neighborhoods in the NW Bronx have a 99% unmet need for child care according to HRA rankings.

Clearly, New York City cannot meet the current demand for adequate, safe, and affordable childcare. Citywide, new and improved care is desperately needed for children of all ages, and this need is accelerating as more public assistance recipients are mandated to work. Available, affordable, quality child care is not merely a supportive service for job seekers but an indispensable step toward finding and retaining employment. At local meetings, parents have shared stories about children and caregivers getting sick, their welfare cases as well as child care eligibility suspended, and unstable housing and social conditions that frequently undermine the best intentions of parents on public assistance to "get off welfare". In this issue of NOTES, we attempt to provide a basic explanation of the child care infrastructure in New York City.

Background: The City

In the 1940’s, New York City established one of the first publicly subsidized child care systems in the country. Today, with over 53,000 children in care, it is the largest public child care system in the country, and the most complex. Child care subsidies are administered by the Administration for Children’s Services’ Agency for Child Development (ACD*) and the Human Resources Administration’s Office of Employment Services (OES**).

*ACD

Parents access ACD child care services in one of two ways. They can utilize programs (both center-based and agency-sponsored family day care homes) that contract with ACD to provide services. Family daycare refers to the care of more than two children in a caregiver’s home for more than three hours per day. Or they receive a voucher to redeem services at private day care centers and family day care homes that have agreed to serve ACD families, or they can purchase informal care.

**OES

The Office of Employment Services also administers vouchers for child care through the BEGIN program for parents on public assistance. These vouchers are referred to as Training Related Expenses (TREs). To be eligible for TREs, parents must be working, looking for work, engaged in an approved work activity, or if they are under 21, enrolled in high school or a high school equivalency program. These subsidies can be used to pay for any type of child care (center-based family day care or informal care). Informal care refers to an individual caring for no more than two children, either in the children’s home or the caregiver’s. According to a study done by Child Care Inc., 83% of public assistance recipients use informal care through a babysitter, whom they typically pay $40 a week with TRE’s. There are some parents that prefer the familiarity of having a relative or friend care for their children, however informal care may be unreliable. Child care agencies hear regularly from families whose care has been suspended because the caregiver gets sick, finds another job, or becomes frustrated with delayed payments. Also, this type of care is not required to adhere to any safety, health or quality regulations.

This two track system -ACD vs. OES - creates severe inequities for parents, providers, and children because it utilizes two sets of eligibility criteria. ACD uses income as the primary determinant of eligibility. Therefore, a family’s access to services remains constant, as long as their incomes do not exceed guidelines. By contrast, OES basis eligibility on the activity of the parent, and the assistance ends when a parent completes a specific activity. Criteria must be reassessed every time a parent switches from one activity to another, such as from a training program to WEP, oftentimes resulting in a loss of childcare assistance due to bureaucratic inefficiencies. ACD is also the City agency designated to provide child care for low income families. Although ACD provides more seamless care and ACD programs are monitored by the City, ensuring compliance with health and safety codes, staff training and other regulatory requirements, there is an acute shortage of funding available for such programs. A study done by the public Advocate’s Office indicates that ACD serves approximately 53,600 children in a variety of child care settings, but this represents only 15% of eligible families. With the child care demand escalating precipitously in response to welfare reform mandates, more and more parents are placing children in unregulated care settings because there is no available ACD child care.

The Community Food and Resource Center indicates that the city plans to assign 105,000 parents on welfare to its work program during the coming year. With 20, 000 eligible children who are currently on waiting lists for child care subsidies, where will these children go?

Childcare in the Northwest Bronx
At the Tolentine Zeiser day care center scarcely a day goes by without a request from one or more families requesting assistance in obtaining childcare…Concourse House has a waiting list of over 300 children…new work mandates will create the need for over 14,700 new daycare slots… five neighborhoods in the NW Bronx have a 99% unmet need for child care according to HRA rankings. Clearly, New York City cannot meet the current demand for adequate, safe, and affordable childcare. Citywide, new and improved care is desperately needed for children of all ages, and this need is accelerating as more public assistance recipients are mandated to work. Available, affordable, quality child care is not merely a supportive service for job seekers but an indispensable step toward finding and retaining employment. At local meetings, parents have shared stories about children and caregivers getting sick, their welfare cases as well as child care eligibility suspended, and unstable housing and social conditions that frequently undermine the best intentions of parents on public assistance to "get off welfare". In this issue of NOTES, we attempt to provide a basic explanation of the child care infrastructure in New York City. Background: The City In the 1940’s, New York City established one of the first publicly subsidized child care systems in the country. Today, with over 53,000 children in care, it is the largest public child care system in the country, and the most complex. Child care subsidies are administered by the Administration for Children’s Services’ Agency for Child Development (ACD) and the Human Resources Administration’s Office of Employment Services (OES). ACD Parents access ACD child care services in one of two ways. They can utilize programs (both center-based and agency-sponsored family day care homes) that contract with ACD to provide services. Family daycare refers to the care of more than two children in a caregiver’s home for more than three hours per day. Or they receive a voucher to redeem services at private day care centers and family day care homes that have agreed to serve ACD families, or they can purchase informal care. **OES The Office of Employment Services also administers vouchers for child care through the BEGIN program for parents on public assistance. These vouchers are referred to as Training Related Expenses (TREs). To be eligible for TREs, parents must be working, looking for work, engaged in an approved work activity, or if they are under 21, enrolled in high school or a high school equivalency program. These subsidies can be used to pay for any type of child care (center-based family day care or informal care). Informal care refers to an individual caring for no more than two children, either in the children’s home or the caregiver’s. According to a study done by Child Care Inc., 83% of public assistance recipients use informal care through a babysitter, whom they typically pay $40 a week with TRE’s. There are some parents that prefer the familiarity of having a relative or friend care for their children, however informal care may be unreliable. Child care agencies hear regularly from families whose care has been suspended because the caregiver gets sick, finds another job, or becomes frustrated with delayed payments. Also, this type of care is not required to adhere to any safety, health or quality regulations. This two track system -ACD vs. OES - creates severe inequities for parents, providers, and children because it utilizes two sets of eligibility criteria. ACD uses income as the primary determinant of eligibility. Therefore, a family’s access to services remains constant, as long as their incomes do not exceed guidelines. By contrast, OES basis eligibility on the activity of the parent, and the assistance ends when a parent completes a specific activity. Criteria must be reassessed every time a parent switches from one activity to another, such as from a training program to WEP, oftentimes resulting in a loss of childcare assistance due to bureaucratic inefficiencies. ACD is also the City agency designated to provide child care for low income families. Although ACD provides more seamless care and ACD programs are monitored by the City, ensuring compliance with health and safety codes, staff training and other regulatory requirements, there is an acute shortage of funding available for such programs. A study done by the public Advocate’s Office indicates that ACD serves approximately 53,600 children in a variety of child care settings, but this represents only 15% of eligible families. With the child care demand escalating precipitously in response to welfare reform mandates, more and more parents are placing children in unregulated care settings because there is no available ACD child care. The Community Food and Resource Center indicates that the city plans to assign 105,000 parents on welfare to its work program during the coming year. With 20, 000 eligible children who are currently on waiting lists for child care subsidies, where will these children go?

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Local Child care Discussions Commence

Following a neighborhood meeting with the Deputy Commissioner of HRA, several groups in the neighborhood have begun discussing ideas to meet the area’s child care needs. This group hopes to build upon the expertise of local daycare providers, community organizations, developers of affordable housing and neighborhood leaders. The group is exploring strategies including additional locations for center based care in the Northwest Bronx, the creation of a family daycare provider network and more after school programs.

Center-Based Care

Child care centers are the kind of regulated care most often selected for children of ages three to five. The need in NW Bronx neighborhoods is illustrated by statistics gathered in Community Board 7; more than 14,200 children on public assistance live in the area where only three ACD contracted child care centers exist.

Family Daycare Providers
To become a family daycare provider, caregivers watching more than 2 children in their home must undergo a self certification process, called registration, which requires the completion of 15 hours of training within the first year and 15 hours in each subsequent two year period. They must also provide references and a health form, and agree to be cleared through the State’s child abuse registry. Registration is administered through the NYC Department of Health. Family daycare providers may or may not be involved in a family daycare network. A network is an organization or agency that offers training and support services to a group of family daycare providers in a community and may assist them in becoming regulated.

Home-based care, with appropriate oversight, can quickly provide excellent and cost effective care for infants and toddlers as well as school age children. Because the work is done in the home and requires minimal capital, it could be one of very few entrepreneurial opportunities available for low income women. ACD maintains a list of trained providers. UNHP is currently planning on surveying the providers in 10458 and 10468 to determine how well the providers feel the program is currently working both for the providers and the children.. Formation of a local network may reinforce the ability of providers to improve their own economic situation while providing more day care.

School Age Care

In 1995, New York City’s after school child care programs for children 5 to 12 served 7% of eligible children. Youth Services funding has been substantially cut in the last three years and many of these programs do not offer consistent and extended hours of care. Consequently, this coupled with the escalating demand for care in response to welfare reform, increases the risk of physical and emotional peril, poor academic performance, and behavioral problems for children. Opportunities for the expansion of more after school programs would be met enthusiastically by child care providers in the Northwest Bronx.

Conclusion:

Presidential forums and presentations on model programs will not erase the fact that the provision of more regulated child care will cost more money. Increased dependence on unregulated and informal care will not provide the stability necessary to support families moving from welfare to work and will ultimately lead to children being victimized.

Furthermore, there is a wide and growing body of research that indicates the importance of quality and care and early education in a child’s life. Studies have shown that the quality of care given to pre-schoolers has a significant impact on the positive development of social and cognitive skills. For children growing up in low income families, whose parents often have little or no access to quality care, such an investment is crucial.

In the new year, UNHP plans to continue the effort of crafting initiatives aimed at expanding the supply of child care. If you have any interest in joining that effort, please call (718) 933-3101.

*Local Child care Discussions Commence*
Following a neighborhood meeting with the Deputy Commissioner of HRA, several groups in the neighborhood have begun discussing ideas to meet the area’s child care needs. This group hopes to build upon the expertise of local daycare providers, community organizations, developers of affordable housing and neighborhood leaders. The group is exploring strategies including additional locations for center based care in the Northwest Bronx, the creation of a family daycare provider network and more after school programs. *Center-Based Care* Child care centers are the kind of regulated care most often selected for children of ages three to five. The need in NW Bronx neighborhoods is illustrated by statistics gathered in Community Board 7; more than 14,200 children on public assistance live in the area where only three ACD contracted child care centers exist. *Family Daycare Providers* To become a family daycare provider, caregivers watching more than 2 children in their home must undergo a self certification process, called registration, which requires the completion of 15 hours of training within the first year and 15 hours in each subsequent two year period. They must also provide references and a health form, and agree to be cleared through the State’s child abuse registry. Registration is administered through the NYC Department of Health. Family daycare providers may or may not be involved in a family daycare network. A network is an organization or agency that offers training and support services to a group of family daycare providers in a community and may assist them in becoming regulated. Home-based care, with appropriate oversight, can quickly provide excellent and cost effective care for infants and toddlers as well as school age children. Because the work is done in the home and requires minimal capital, it could be one of very few entrepreneurial opportunities available for low income women. ACD maintains a list of trained providers. UNHP is currently planning on surveying the providers in 10458 and 10468 to determine how well the providers feel the program is currently working both for the providers and the children.. Formation of a local network may reinforce the ability of providers to improve their own economic situation while providing more day care. *School Age Care* In 1995, New York City’s after school child care programs for children 5 to 12 served 7% of eligible children. Youth Services funding has been substantially cut in the last three years and many of these programs do not offer consistent and extended hours of care. Consequently, this coupled with the escalating demand for care in response to welfare reform, increases the risk of physical and emotional peril, poor academic performance, and behavioral problems for children. Opportunities for the expansion of more after school programs would be met enthusiastically by child care providers in the Northwest Bronx. *Conclusion:* Presidential forums and presentations on model programs will not erase the fact that the provision of more regulated child care will cost more money. Increased dependence on unregulated and informal care will not provide the stability necessary to support families moving from welfare to work and will ultimately lead to children being victimized. Furthermore, there is a wide and growing body of research that indicates the importance of quality and care and early education in a child’s life. Studies have shown that the quality of care given to pre-schoolers has a significant impact on the positive development of social and cognitive skills. For children growing up in low income families, whose parents often have little or no access to quality care, such an investment is crucial. In the new year, UNHP plans to continue the effort of crafting initiatives aimed at expanding the supply of child care. If you have any interest in joining that effort, please call (718) 933-3101.

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UNHP HOLDS FIRST TIME HOME BUYER SEMINAR

A number of community people from our neighborhoods attended a First Time Home buyers seminar sponsored by the University Neighborhood Housing Program, Inc. and Republic National Bank. The seminar covered topics such as the steps to buying a house and the importance of a good credit history. According to the representative from Republic National Bank the ten basic steps involved in purchasing a home are:

Determine how much you can afford
Know your credit history
Decide what kind of house you want
Find a lawyer
Shop for a home
Have the house inspected
Sign a contract-which is the reason why the attorney was needed.
Apply for the a mortgage
Bank issues a commitment
Close on the house.

It was indicated that these basic steps are followed by most banks and prospective home owners in the process of buying a house.

The second session of the seminar provided information on personal credit issues. A Budget and Credit Counseling Services (BuCCS) representative spoke about the importance of a solid credit history and the process of having an individual’s credit history repaired or constructed.

Buying Locally

The seminar came at a time when community residents interest in homeownership is rising in our communities. Sometimes, people hear about homebuying and think that means leaving the neighborhood that people have been living in. As one prospective homebuyer who attended the seminar showed this is not the case. This person was particularly interested in buying a house in the Crotona Neighborhood where she currently lives in a rented apartment. She wants to stay in the neighborhood that she and her family have worked to improve over the past several years by participating in the local neighborhood association’s work. She talked eloquently about the dramatic improvements she has witnessed over the years and cited influx of new private and public investment in the area including the construction of new private homes and the opening of the Mary Mitchell Center. Efforts are being made in the community to try to increase interest in Homeownership in other Northwest Bronx neighborhoods.

*UNHP HOLDS FIRST TIME HOME BUYER SEMINAR*
A number of community people from our neighborhoods attended a First Time Home buyers seminar sponsored by the University Neighborhood Housing Program, Inc. and Republic National Bank. The seminar covered topics such as the steps to buying a house and the importance of a good credit history. According to the representative from Republic National Bank the ten basic steps involved in purchasing a home are: Determine how much you can afford Know your credit history Decide what kind of house you want Find a lawyer Shop for a home Have the house inspected Sign a contract-which is the reason why the attorney was needed. Apply for the a mortgage Bank issues a commitment Close on the house. It was indicated that these basic steps are followed by most banks and prospective home owners in the process of buying a house. The second session of the seminar provided information on personal credit issues. A Budget and Credit Counseling Services (BuCCS) representative spoke about the importance of a solid credit history and the process of having an individual’s credit history repaired or constructed. *Buying Locally* The seminar came at a time when community residents interest in homeownership is rising in our communities. Sometimes, people hear about homebuying and think that means leaving the neighborhood that people have been living in. As one prospective homebuyer who attended the seminar showed this is not the case. This person was particularly interested in buying a house in the Crotona Neighborhood where she currently lives in a rented apartment. She wants to stay in the neighborhood that she and her family have worked to improve over the past several years by participating in the local neighborhood association’s work. She talked eloquently about the dramatic improvements she has witnessed over the years and cited influx of new private and public investment in the area including the construction of new private homes and the opening of the Mary Mitchell Center. Efforts are being made in the community to try to increase interest in Homeownership in other Northwest Bronx neighborhoods.

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HUD Proposes New Disclosure Regulations on Brokers Fees

The Department of Housing and Urban Development (HUD) has proposed new regulations to prompt mortgage brokers to sign binding contracts disclosing their fees up front and revealing who they represent. UNHP has worked with a couple of homebuyers who could have benefited from tighter regulation of brokers. The proposed regulation would require brokers to disclose to the homebuyer up front:
1) all fees the broker will receive from proving the services, and
2) whether the mortgage broker commits to obtaining for the borrower the best loan available from the lenders he/she does business with.

Brokers who fail to comply with proposed disclosure regulation would subject themselves to increased scrutiny by HUD and potential liability under the Real Estate Settlement Procedures Act (RESPA) of 1974. A violation of this type carries a penalty of up to 10,000 fine, a year in prison, and civil liability including triple damages.

To comply with the regulation, the brokers would need to complete a disclosure form, the Honest Lending Contract, before a borrower applies for a loan. Brokers who use the disclosure agreement will be entitled to protection from enforcement action under RESPA. For more information on the proposed rules, visit the HUD’s web page at www.hud.gov/fha/res/respa_hm.html. The deadline for comments recently passed and final regulations should be issued shortly.

*HUD Proposes New Disclosure Regulations on Brokers Fees*
The Department of Housing and Urban Development (HUD) has proposed new regulations to prompt mortgage brokers to sign binding contracts disclosing their fees up front and revealing who they represent. UNHP has worked with a couple of homebuyers who could have benefited from tighter regulation of brokers. The proposed regulation would require brokers to disclose to the homebuyer up front: 1) all fees the broker will receive from proving the services, and 2) whether the mortgage broker commits to obtaining for the borrower the best loan available from the lenders he/she does business with. Brokers who fail to comply with proposed disclosure regulation would subject themselves to increased scrutiny by HUD and potential liability under the Real Estate Settlement Procedures Act (RESPA) of 1974. A violation of this type carries a penalty of up to 10,000 fine, a year in prison, and civil liability including triple damages. To comply with the regulation, the brokers would need to complete a disclosure form, the Honest Lending Contract, before a borrower applies for a loan. Brokers who use the disclosure agreement will be entitled to protection from enforcement action under RESPA. For more information on the proposed rules, visit the HUD’s web page at www.hud.gov/fha/res/respa_hm.html. The deadline for comments recently passed and final regulations should be issued shortly.

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