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Federal update,continued to carry out programs to prevent or re- Another major restriction in the use of In view of this proposal it is important duce blighted housing or to meet urgent CDBG funds in Kemp's proposal would for city officials to inform members of community needs. Rather,the proposal limit the amount of CDBG funds that Congress about the impact these changes ; would require all CDBG activities in could be spent on activities that do not will have on the community.In addition. such cities to benefit low-and moderate- exclusively benefit low-and moderate- letters should be sent to Sen.Alan Cran- income people(instead of the more flex- income people (with the exception of ston, chair, Subcommittee on Housing ible standards) and would be subject to activities involving acquisition,construc- and Urban Affairs, 112 Hart Senate Office the 75 percent low/mod benefit require- tion,or improvement of housing units). Building,Washington,D.C.20510-0501, ment. and to Rep.Henry Gonzalez,chair,House City officials need to take action now to Banking Committee,2413 Rayburn House Those cities determined to be"severely meet with community development Office Building, Washington, D.C., distressed" would be eligible to con- personnel to evaluate the affects of the 20515-4302. AH tinue to use CDBG funds for low/mod proposed restrictions and targeting pro- benefits,prevention or removal of blighted visions on current programs and priori- housing,or for urgent community needs. ties for CDBG funding in the city. Tax extensions for low-income housing at risk; section 89 repeal advances Low-income housing tax credits,single programs expire on schedule rather than tax credits, as well as provisions to aid family mortgage revenue bonds, and a to include measures calling for exten- affordable housing construction. variety of other tax programs to aid sions in current deficit or debt-ceiling cities face expiration as Congress de- legislation. Leaving such issues unre- One good piece of news is that Congress bates deficit reduction,debt ceiling in- solved is apparently viewed as a meas- appears to agree to include in debt-ceil- creases,and budget reconciliation in the ure that might help produce federal tax ing legislation repeal of Section 89 non- closing days of the 1989 session. Con- legislation early in 1990. The debate discrimination regulations for health gress needs to extend these and other over federal fiscal policy has ended in benefits. The president has also signed expiring tax provisions before the end of stalemate. legislation denying the use of current the year. federal appropriations for prosecution Included in the variety of tax provisions of employers (including cities) that do The Bush Administration has indicated at risk are small issue TDB s,targeted job not comply with Section 89 require- that officials are satisfied to have the ments.AH Notice The Cities Bulletin _ Cis now printed on The Municipal Ads will now appear in recycled paper the Cities Bulletin instead of Minnesota Please recycle Cities. The Cities Bulletin is published Is weekly during the session and twice a month during the interim. page 10 Printed on recycled paper LMC Cities Bulletin