HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 12-06-1982AGENDA
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
Regular Meetint..
December 6, 1982
6:30 P.M.
i. Roll Call
II. Approval of Minutes for September 27, 1982 Meeting
III. Section 8 P.mgr-..m Funding Beyond October 1983
IV. Section 8 Management Review Findings - Progress Report
V. Section 8 Average Monthly Rent Subsidy Payments, 1977-1982
VI. Housing Rehab Program - Progress Report
VII. Additional Housing Programs
VIII. Adjournment
CITY OF PLYMOUTH
3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA 55447
TELEPHONE (612) 559-2800
DATE: ' December 3, 1982
MEMO
TO:
FROM:
HRA Commissioners
Milt Dale
SUBJECT: Section 8 Program Funding Beyond October 1983
The current Section 8 Rent Assistance Program Annual Contributions Contract
ACC) expires on October 12, 1983. It has been a concern of staff that
Section 8 renters and apartment owners be given ample notice as to the
future of Section 8 in Plymouth. Since July of 1982 I have attempted to
receive a response from the HUD Area Office if there are sufficient funds
to continue Section 8 in Plymouth beyond October 1983. The attached
letter indicates there are sufficient federal funds set-aside to maintain
Section 8 in Plymouth at least through December of 1984. Therefore it will
require the Plymouth HRA and the Plymouth City Council to determine whether
Plymouth is best served by continuing Section 8 under local administration.
Since Section 8 rental leases are for a one year time period, I do urge
an early resolution of this matter, since leases written as of November 1,
1982 are not guaranteed to be funded by the federal government beyond the
ACC date of October 12, 1983.
Attachments:
1. Resolution
2. Letter from Robert B. Gerber, HUD, 10-20-82
HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF PLYMOUTH
Pursuant to due call and notice thereof,a meeting of
the Housing and Redevelopment Authority of the City of Plymouth, Minnesota
was held on the day of 19 The following
members were present:
The following members were a sett:
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move3 its adoption:
Introduced the Fallowing Resolution and
HRA RESOLUTION NO.
REQUEST TO THE PLYMOUTH CITY COUNCIL TO CONTINUE LOCAL ADMINISTRATION OF THE
SECTION 8 PROGRAM
WHEREAS, the Section 8 Existing Rent Assistance Program in Plymouth under
local administration has assisted a significant number of lower income persons
over the past five years to maintain or to locate their residence in Plymouth; and,
WHEREAS, the continuance of the Section 8 Program in Plymouth through December,
1984 under local administration would serve to allow those lower income persons
now living in Plymouth to maintain their residence in the community and would
afford them the opportunity to contribute to the general well-being and diversity
of the City; and,
WHEREAS, the City has received, under a letter dated October 20, 1982 from the
Department of Housing and Urban Development, confirmation that the City's ACC
with HUD, #C-4070, is due for renewal in October 1983 and that sufficient funds
remain to allow for the renewal of the contract at least through December 1984;
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of the
City of Plymouth that the Plymouth City Council be requested to make provision in
the 1984 City budget to retain sufficient funds to administer the Section 8
Program locally.
The motion for the adoption of the foregoing Resolution was duly seconded by
and upon vote being taken thereon, the
following vote n avor tereof:
f : `05w ng voted against or abstained:
whl."-
z--:,_n the Resolution was declared duly passed and adopted.
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CITY OF PLYMOUTH
3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA 55447
TELEPHONE (612) 559-2800
DATE: December 2, 1982
MEMO
TO: HRA Commissioners
FROM: Miles Dale
SUBJECT: Section 8 Management Review Findings - Progress Report
In late October of 1982 staff received a letter addressed to Chairman Rod
Hillstrom from the local HUD Area Office. The subject of the letter was
the clearance of the Section 8 Existing Program Management Review Findings
of June 1982. This letter, from Robert B. Gerber, Acting Area Manager,
indicates that all eight findings are cleared subject to review by the area
office sta`f during a future site visit. In my analysis of the letter I
do believe there are several statements that were made that need further
clarification. As well, I shall be in touch with the HUD Area Office in
regards to my response.to the individual file findings and report to them
specific actions taken and the date such action were completed. These file
findings relate to six specific Section 8 Renter files that were examined
by the HUD Area staff in their June 1982 Management Review. As of this
writing I have drafted responses to four of the six tenant file findings.
By January 1, 1983 I anticipate to have this item completed and cleared.
I will inform the Commissioners of the status of this item at its January
1983 meeting.
Attachments:
1. Copy of Letter to Thomas Feeney, 9-22-82 showing current status of
corrective action" items.
2. Letter to Thomas Feeney, 10-28-82.
October 28, 1982
Mr. Thomas Feeney, Manager
HUD Area Office
220 South 2nd Street
Minneapolis, MN SS401
Dear Mr. Feeney:
1
CITY C)
PLYMOUTR
On September 22, 1982 I indicated in a letter to you that a number of items
would be done by our office to comply with certain HUD requirements as per
earlier Section 8 Management Reviews. One deadline we established was
November 1, 1982. herewith is the information earlier indicated would be,
at that time, forthcoming:
1. Briefing Packet - enclosed
2. Waiting List - enclosed
3. Memo relating to Section 8 Inspections - enclosed
Other items will either:
1. Follow and/or
2. Require a later staff inspection tour by your HUD field office to
verify compliance
Sincerely,
Milt Dale
Associate Planner/Plymouth HRA
MQ/1g
ENCLOSURES (3)
P1 YVe)", TL -i r:. 1!. .i7." f'_1 /41 !t'.. .t !It.' `ti . „ rr.I CEJ rots' ai tt' .'1 1
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CITY OF PLYMOUTH
3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA 55447
TELEPHONE (612) 559-2600
DATE: November 30 1982
MEMOEMO
T0: HRA Commissioners
FROM: Milt Dale
SUBJECT: Section 8 Average Monthly Rent Subsidy Payments
It is required by HUD that the Plymouth HRA submit a quarterly Requisition
for Partial Payment of Annual Contributions for the Section 8 Program. One
item requested on each quarterly submittal is the average monthly rent subsidy
payment per unit. It seemed appropriate to chart the rise and fall of the
average monthly subsidy payments from the star -c of Section 8 in Plymouth to
the present time. Since HUD's request is fur the average monthly housing
assistance payment (HAP) per unit as of the date of requisition, the months
of the year turned out to be February, May,uugu_tanTWovember.
The significance of the chart is the fall of the November, 1982 average sub-
sidy amount to $229. A recent HUD rule change as cf August 1, 1982 revised
the percentage of adjusted gross income each Section 8 tenant was to pay for
his/her share of rent. In the case of current Sect ion 8 tenants, this amount
was to be 26% until October 1, 1982, and then 21% until October 1, 1983, then
28%, etc. New Section 8 tenants pay 30% if they have entered the Program
after August 1, 1982. It does appear that this change could help to serve as
a "brake" to the continual escalation of subsidy payments.
Attachment: Chart
SECTION 8 AVERAGE MONTHLY RENT SUBSIDY PAYMENTS
November 1977 - November 1982
Until September 1, 1982 Section 8 tenants paid 25% of their adjusted income
for rent. As of September 1, 1982 tenants paid either 26% or 30% of their
income while as of October 1, 1982 tenants paid 27% or 30% of their income.
This is what accounts for the significant drop in the average subsidy payment,
ie in August 1982 it was a $239 average while in November 1982 it was $229.
A 52% increase in average subsidy payments occurred between November 1978 and
November 1982.
CITY OF PLYMOUTH
3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA 55447
TELEPHONE (612) 559-2800
DATE: ' December 2, 1982
MEMO
TO: HRA Commissioners
FROM: Milt Dale
SUBJECT: Housing Rehab Program - Progress Report
Currently the Housing Rehab Program (also known as the Home Improvement Grant
Program) is in Year VIII of the CDBG funding program. A total of $34,000 was
allocated for this year's activity which began July 1, 1982 and continues through
June 30, 1983. During the last three months we have received 12 applications
for rehab grants while normally over the same time period we may receive 3 or
4 applications. Since all but one of the applicants is qualified, there appears
that this year's funding will not be sufficient to meet the current demand.
There are two ways to resolve this dilemma. Since Plymouth serves eligible
homeowners on a "first come, first served" basis, those homeowners who have
recently submitted applications may have to wait until the start of a new
funding cycle in July of 1983. The other alternative, which was done in 1980,
would be to reallocate funds from other CDBG project (s) to the Housing Rehab
Program.
At its last meeting in November, the Plymouth Housing Rehabilitation Committee
recommended that the Plymouth HRA be asked if additional funds could be made
available for Year VIII. The committee believes they have been very careful
in approving only those work items essential to maintaining homes in a safe
and energy efficient manner. Attached is a copy of the minutes of the last
meeting. (I have deleted out names of grant applicants to protect their con-
fidentiality and in accordance with the Minnesota Government Data Practices
Act.)
Staff estimates that an additional $30,000 may be necessary to provide adequate
funding for this Program through June of 1983. Incidentially, the funding for
this Program was down $8,653 from what was available the previous year. Also,
it seems there is an increased awareness of the need for energy reduction
methods to reduce the cost of home heating along with a growing number of
eligible homeowners.
In checking Year VIII activities, there are two possible sources for additional
funds:
2.
HRA Commissioners
December 3, 1982
Page -3
1. Contingency fund.
May 1982 that the
allocated.)
Created when Hennepin County indicated in
City would receive $10,611 more than originally
2. Site acquisition/assisted housing fund. After the recent purchase
of a site for future senior citizens housing this summer, a total
of $23,916 remained unspent. It should be stressed that some of
this money may be required for architectural fees, surveyors fees,
etc. prior to site development.
Attachments:
1. Minutes of November 16, 1982 Housing Rehab Committee
2. Memo to HRA and City Council, 7-29-82
3. Planning Area 2 - Project Status Report
4. Map, December 1982
MINUTES OF REGULAR MEETING OF THE HOUSING
REHABILITATION COMMITTEE OF PLYMOUTH, MINNESOTA
November 16, 1982
A regular meeting of the Housing Rehabilitation Committee of Plymouth, Minnesota
was held on the 16th day of November, 1982 at 6:30 P.M. at the Plymouth City Center.
Committeemembers present were Mark Eckes and Dick Lee. Also present was City staff
person Milt Dale and City resident Absent was Committee Chairman
Mac McCaughey.
The first order of business was the request of for new storm windows,
additional insulation, insulation chutes and the completion of his hot water heating
system. Mr. 48W indicated that he has aluminum storm windows inside of wood
inserts at the present time but they are very leaky and he would like to replace
these windows with conventional wood storm windows. Committeemembers asked how
many windows there are in his home and he indicated a total of 26 windows. Mr.
NN1W stated that he had a hot water heating system with boiler set-up to heat his
workshop in his double garage but he has been unable to afford to extend the system
to his house. This would require the addition of considerably more hot water pipe,
valves and radiators to complete the job. He estimates that if he did the work
himself it would cost approximately $2,000. Committeem.,mber Mark Eckes asked how
much he pays at the present time to heat his house. Mr. dbjkWa stated that last
year his heat bill was over $800 for the year. Committeemember Eckes stated that Mr.
411wlnshould receive two estimates for storm windows and isolation but they would
not consider the extension of the hot water heating system since he already has a
functioning furnace. Committeemember Eckes believed that the addition of new windows
and more insulation would assist the homeowner considerably in lowering the cost of
heating his house.
Staff presented the committee with a list of housing rehab applicants as of November
15, 1982. There have been approximately 10 new applicants since August of 1982.
Staff also presented copies of thank -you letters from .
The matter of old business was discussed and staff gave a review of what work has
been done since the last committee meeting. Staff indicated that at the 40M
41WAW residence one of the contractors had failed to complete all of the work
items in a satisfactory manner. Staff had discussed this matter with the home-
owner, a list was drawn up itemizing each work item not completed properly and
the cost to complete each item. Since the contractor who started the job has
relocated to Montana, a second contractor, Bob Johnson, who also worked on the
NVAWhouse was asked by the homeowner to determine what it would cost to complete
the unfinished work items. Staff dict discuss this possibility with Mr. Johnson who
indicated a willingness to finish the job provided he be paid as per his estimate.
Some of the work done previously will have to be redone but it appears the final
cost should not exceed the original cost estimates. Staff then related the progress
on various other projects. Committeemember Dick Lee did suggest that a less ex-
pensive way could be found to reduce the possibility of frozen pipes at the I111111r
4WO residence. This could be done by wrapping the pipes with electric tape and
insulation thereby eliminating the need for insulating the walls in that portion
of the basement. Staff will look into this possibility with the building inspector.
Rehab Minutes
Page two
New business items were discussed briefly regarding the
4BVMW, JW1010 ander Staff was asked
were income eligible. Staff indicated that they were.
applications of fJJW
if all of these applicants
The need for additional funds was discussed with the committee recommending that
the Plymouth HRA be asked if additional funds could be made available for the
Year VIII Rehab Grant Program considering the increased number of applicants over
last year. Also the Committee feels they have been very careful in approving only
those work items which were most necessary to maintain homes in a safe and energy
efficient manner. Committeemember Eckes believed that -Plymouth has been very
judicious in its use of grant funds in comparison with other communities. He
stated that his opinion is based on what he has observed as a member of the Hennepin
County Citizen Planning Area Advisory Committee.
The meeting was adjourned at 8:00 P.M.
CITY of PLvMourH
3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA SS447
TELEPHONE (612) 559.2800
MEMO
DATE: July 29, 1982
TO: HRA Commissioners and City Council
FROM: Milt Dale, Associate Planner
SUBJECT: Final Funding Allocation for Year VIII CDBG Program
Staff was informed in May that the City of Plymouth would be receiving
additional CDBG funds over its earlier announced allocation of $114,806.
The final funding amount will be $10,611 more or a total of $125,417
for Year VIII. The Plymouth HRA earlier recommended the following
project activity allocation:
1. Site acquisition for assisted housing $80,806
2. Housing rehabilitation grant program 34,000
Hennepin County has placed the additional $10,611 in a contingency fund
account which will allow the City to use the funds for whatever eligible
activity it deem; appropriate.
Staff was informed by Hennepin County that Plymouth was in receipt of more
CDBG monies due to a recalculation of the City's population based on the
most recent 1980 census results. Attached is a resolution approving the
year VIII CDBG Program application.
Attachment:
Resolution ,
CITY OF PLYMOUTH
3400 PLYMOUTH BLVD., PLYMOUTH, MINNESOTA 55447
TELEPHONE (612) 559.2800
DATE: ' December 3, 1982
MEMO
TO: HRA Commissioners
FROM: Milt Dale
SUBJECT: Additional Housing Programs
There is every indication that the CDBG (Community Development Block Grant)
Program will continue beyond July 1983. Consequently, staff is in the pro-
cess of assessing what type of programs would be of benef',t to the City now
that the major CDBG funding item, the senior citizen housing site acquisition
project, has been accomplished. Over the last few years, about 30 percent
of the CDBG "pie" has been alioca:ed to the housing rehab program. This
leaves a considerable amount if potential funds for the 1983-1984 CDBG year
available for other program activities.
HUD's proposeO regulations regarding the use of CDBG funds have been relaxed
somewhat Eo -phis may allow the City more flexibility in the use of this
money should these regulations be approved. Attached is a copy of a recent
NAHRO Monitor relative to this issue. Staff wishes to solicit ideas from
the Commissioners as to what projects they would like to see implemented.
Attachment: NAHRO Monitor, 9-30-82
1 1'
A semi-monthly report on issues in housing and community development published as a NAHRO membership service I
SEPTEMBER 30. 1982/VOLUME FOUR/NUMBER EIGHTEEN
HOUSE, SENATE PASS APPROPRIATIONS
BILLS FOR HUD/INDEPENDENT AGENCIES
Both the House and Senate have passed
appropriations bills for HUD and 17 in-
dependent agencies. By a vote of 343
to 38, the House passed a $47 billion
appropriations bill (HR6956) September
15. The Senate's bill, passed September
24 by a vote of 73 to 11, also was for
47 billion.
Included in the House bill is .an initial
appropriation of $1.35 billion for fis-
cal year 1983 operating subsidies, $3.445
billion for community development block
grants, and $340 million for urban de-
velopment action grants. The bill pro-
vides $5.9 billion for HUD programs and
4.6 billion for revenue sharing pro-
grams. The bill includes approximately
357 million more than the President re-
quested for the programs included in
the appropriations bill and $472 million
more than the funds appropriated for
comparable programs in fiscal year 1982.
chusetts) said there would be no more than
9.6 billion in new budget authority for
subsidized housing. Although the budget
resolution calls for $10.4 billion for
assisted housing, Representative Boland
has suggested the $9.6 billion figure
to avoid exceeding the funding ceiling
set by the first budget resolution. The
first budget resolution established a
ceiling of $56.6 billion for the programs
contained in HR6956. Because the legis-
lation exceeds funding limitations in
other categories, the $9.6 billion figure
for assisted housing is needed to keep
within the total budget limit.
The Senate's bill proposes $3.8 billion
in new budget authority for subsidized
housing. In addition, the bill includes
an amendment sponsored by Senator Daniel
Patrick Moynihan (D -New York) that would
suspend for 90 days the provisions in-
creasing tenant rents from 25 to 30 per-
cent. The bill provides an additional
1.25 million for congregate housing for
a total of $4.75 million. Finally, the
The NAHRO Monitor is an official .publication of the National Association of
Housing and Redevelopment Officials. 266 Virginia Avenue, N.W..
bill extends the construction deadline for
The House deferred action on assisted housing units eligible for the financial
housing programs because Congress had not adjustment factor from October 1 to
approved authorizing legislation. 'the January 1, 1983. The joint House and
deferred programs include annual contri- Senate conference on this legislation will
butions for assisted housing, including determine which, if any, of these pro -
Section 8 rent supplemental monies, low- visions are retained in the bill's final
rent public housing loans, and Government form.
National Mortgage Association special as-
sistance funds. While the bill provides CDBG RULES REDUCE EMPHASIS
funds for existing contracts under these ON BENEFIT TO NEEDY
programs, no budget authority was pro-
vided for new contracts for assisted HUD's proposed community development block
housing. grant regulations for entitlement commu-
nities reflect a decreased emphasis on
Chairman of the HUD/Independent Agencies benefits to low -;and moderate -income per -
Subcommittee Edward P. Boland (D -Massa- sons. The regulations require CDBG pro -
The NAHRO Monitor is an official .publication of the National Association of
Housing and Redevelopment Officials. 266 Virginia Avenue, N.W..
2
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oJ
N,
11,
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jects to benefit low- and moderate -income
persons, to eliminate slums and blight,
or to meet urgent needs. However, the
regulations delete emphasis on satisfying
the major program objective -- to prin-
ipa'lly benefit low- and moderate -income
persons. The pi :..used regulations give
equal weight to a rh of the three program
requirr'ne fts. Thi=; is counter to
NAHRO's long standing position that the
priority of CDBG programs should indeed
be the benefit of low- and moderate -
income persons. House housing sub-
committee Chairma+. Henry B. Gonzales
announced September 29 that he plans to
hold hearings on the rules "at the first
possible time."
The regulations were submitted to the
House and Senate banking committees for
review in mid-September. They are not
expected to be published in the Federal
Register until after Septeii;5er 30. RM
has requested a waiver of the 30 -day
delay before the regulations become ef-
fective. If the waiver is denied, the
effective date of the regulations could
be delayed until February 1983.
Because most grantees will already have
begun obligating or spending funds from
their fiscal year 1982 grants before the
new regulations become effective, a tran-
rhe NAHRO Mon*r;r (15%'X 6194.9268) is published on the 15th and
last day or each month for S3 per year(paid as part of membership
dues) by the National Association of Housing and Redevelopment
Officials. 2600Virginia Avenue. N.W.. Washington. D.C. 20037:
202%333.2020. President— R. Clayton Jones: Executive Director—
Robert W. Mafiin: Director of Publications/Com munications—
rerence K. Cooper: Editor— Elli J. Moss: Production
Manager—Caroline M. Grills: Administrative Assistant—Saarje M.
Scott. Second-class postage paid at Washington. D.C. and additional
mailing ofrices. POSTMASTER: Send address changes to NAHRO.
2600 Virginia Avenue. N.W.. Washington. D.C. 20037.
sition provision is included. The tran-
sition provision states that activities
funded from fiscal year 1982 appropri-
ations will automatically qualify under
the primary objectives set forth in the
new regulations.
The new regulations also clarify that
activities approved by HUD prior to 1982
and carried out with CDBG funds from any
preceeding year also will be subject to
earlier program benefit regulations.
All provisions regarding neighborhood
strategy areas have been removed. HUD
has revised the requirement that activ-
ities which reduce the development cost
of certain multifamily housing projects
be acceptable only if a majority of the
units were available to low- and moder-
ate -income persons. The new regulations
require that only 20 percent of such
units be occupied by lower-income persons.
The most significant change in eligible
activities concerns the implementation
of provisions of the 1981 Housing and
Community Development Amendments affect-
ing public services. COBG-funded public
service activities are now limited to
10 percent of the entitlement grant
amount, but no longer have to be con-
ducted in areas of concentrated redevel-
opment activity. Grantees may also
provide, as a result of the 1981 amend-
ments, direct assistance to private for-
profit entities when the activities
are related to an economic development
project.
Minimal revisions were made to the re-
uirements for housing assistance plans
HAPs). HUD has changed the times and
manner for submission of HAPs to require
that they all cover the federal fiscal
year and be submitted to HUD for review
and approval between September 1 and
October 31 each year. Exceptions on sub-
mission dates are allowed for new en-
titlement grantees. These new grantees
must submit an interim HAP. For 1982
only, grantees will be able to submit
HAPS until December 31, 1982. Grantees
with a three-year HAP goal extending
beyond fisca'. rear 1982 must submit a
new HAP.
Generally, these regulations provide en-
titlement communities with greater flex-
ibility in administering the program,
although the accountability standards
and procedures for post -grant review
and audit remain to be tested. Further
revisions of program management provi-
sions are expected.
HOUSE PASSES $1 BILLION
PUBLIC WORKS JOBS BILL
The House passed 223-169 a Labor Depart-
ment supplemental appropriations bill
HJRes562) that provides $1 billion
in fiscal 1982 for approximately 200,000
temporary public works jobs. The amount
equals 5 percent of the federal govern-
ment's estimated cost of unemployment
compensation for fiscal 1982. The funds
will be available until December 31.
Of the funds appropriated, 85 percent
will be reserved for individuals unem-
ployed for at least two weeks. Jobs
provided under the bill can last no
longer than six months and the maximum
salary allowed is $5,000. Fifteen per-
cent of the funds will be reserved for
youth employment and training programs
of the Labor Department.
Most of the funds, 83 percent, will be
allocated to local governments in areas
with unemployment rates in excess of
the national average for the previous
three months. Two percent of the funds
will be allocated to jobs for American
Indians and the remaining 15 percent
3
would be allocated to areas experiencing
large losses of jobs because of plant
closings, natural disasters, or sudden
or severe "economic dislocation." The
bill prohibits the displacement of cur-
rently employed workers with the supple-
mental funds and the substitution of
federal funds for local funds.
An identical bill (SJRes245) has been
introduced in the Senate. If the bill
passes the Senate, President Reagan is
expected to veto it. Opponents of the
bill state that it does not address the
unemployment problem because public serv-
ice employment seldom leads to permanent
jobs and does not teach marketable
skills.
HOUSE PUBLIC WORKS SUBCOM2MITTEE
HOLDS HEARINGS ON INFRASTRUCTURE.
The House Public Works Subcommittee on
Economic Development began hearings
September 14 on the Federal Capital In-
vestment Act of 1982 (HR6591). The
hearings focused on policies needed to
promote economic development by improving
the nation's basic Infrastructure. If
passed, the bill would amend the federal
budgeting process by requiring the sep-
arate identification of expenditures
classified as public infrastructure in-
vestments, including buildings, roads,
dams, and transit systems. As part of
the fiscal 1984 budget, the bill would
require both special analysis of capital
projects and a full capital budget that,
in future years, would identify past
public infrastructure investments for a
more complete picture of the nation's
assets. Included would be the cost of
building and maintaining public facili-
ties and the determination of revenue
sources for capital investments.
Continued on page 8)