Are They Still Lobbyists, and Does it Matter?

By John Jackson

"Saul Ramirez, the executive director of national NAHRO was instrumental in recommending the stimulus to the Obama administration," said former Texas NAHRO President, Richard Franco.

NAHRO (National Association of Housing and Redevelopment Officials) is a non-profit organization that raises funds for housing authorities across the country. They were always upfront about their efforts to lobby the Federal Government as well-until recently.

The United States Housing Act of 1937, came out of a substantial push from NAHRO, and has provided large amounts of funding to housing authorities across the country ever since.

"From the 1950s through the 1970s," says the group's website, "NAHRO maintained its leadership role by initiating and supporting Congressional legislation."

NAHRO worked to influence the 1995 Congressional session on various bills as well.

In 2005, Hurricane Katrina took a financial toll on the group's finances.

As they planned their recovery at Texas NAHRO's annual meeting in Austin, on Mon, Oct. 17 of that year, then Austin Housing Authority CEO, Henry Flores told Franco, "The only thing missing from the budget is funds for lobbying."

Franco assured him, "This will be covered under existing contracts."

The Internal Revenue Service however had growing concerns over NAHRO's lobbying efforts, and began a year long investigation into their finances.

As a result of the audit, there was a different mood at the next year's Texas NAHRO conference, held Sun, Oct 22, 2006, in Abilene.

"We have to work on a really serious issue," said board member, Elizabeth (Becky) Spenser, "the IRS has serious views on lobbying by tax exempt organizations.

"If the organization makes a payment to a legislator for the purpose of influencing a vote," she said, "that is lobbying."

Actually, Federal Tax Regulation 56:49 2 defines lobbying more broadly as "influencing legislation[and]...any attempt to influence legislation through communication with a member or employee of a legislative body or any government official or employee."

"In ignorance," Franco said, "we did a number of things. This will not happen again."

Still "NAHRO continues to make its position known at HUD," (The Department of Housing and Urban Development) the group's website says "and in the Halls of Congress."

NAHRO officials have been vague of late as to whether they are still a lobbyist group

"I don't know what the technical designation of NAHRO is," Franco, now CEO of the Corpus Christi Housing Authority, candidly admitted.

Texas NAHRO VP, Riza Nolasco would not answer any questions except to say, "Check the website."

"We represent a point of view. We educate Congressmen and Senators," said John Bohm, head of NAHRO's Legislative Programs and Media, "informing them on a perspective."

As it stands now, a total of $3 billion has been allocated out of the Obama stimulus to housing authorities nationwide, of which $120 million will go to Texas.

The group's 2010 budgetary recommendations to Congress are also in place, and if enacted, they would place an additional $37 billion in the Housing Authority's coffers.