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MODS: Author/president gives permission to repost this where it will do the most good. SB
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7/8/2005

HUD Update

On June 29th and 30th, the House of Representatives considered the final House Appropriations Bill (HR 3058). The final bill looks similar to that at the subcommittee levels, but several programs received additional funding during consideration on the House floor.

HR 3058 restores funding for Section 811 Housing for the Elderly and Persons with Disabilities to the current year’s level of $238 million despite the Administration’s request to cut it by $120 million –almost a 50% cut! The bill also rejects the Administration’s request to eliminate the capital advance and project-based side of the program that provides grants to non-profits for the development of accessible supportive housing. Bush’s proposal cut the funding in half and put a halt on any development, its defeat is a victory for disability and housing advocates.

An amendment offered by Representatives Jerrold Nadler (D-NY), Nydia Velazquez (D-NY), and Barney Frank (D-MA) to add $10 million to the Section 8 Housing Choice Voucher Program passed by a vote of 225-194, including 30 republicans. This brings Section 8 funding up to $15.63 billion, or $865 million above the FY 2005 level, but still slightly more than $200 million below the amount requested by the Bush Administration. This will help ensure that housing agencies across the country have sufficient funds available to renew close to all of the authorized tenant-based vouchers (roughly 1.9 million nationwide).

Section 8 Project-Based Assistance was increased from the Administration’s request by $16 million, bringing it to $5.1 billion. Although this is $210 million below last year, it is still sufficient to fund all current contracts.

The proposal to combine the Community Development Block Grant (CDBG) with 17 other programs and shift it to the Department of Commerce with combined funding at 35% below last years CDBG funding, ironically called Strengthening America’s Communities Initiative, was rejected by the house. The amendment offered by Chair Knollenberg and Subcommittee Ranking Member John Oliver (D-MA) to increase the CDBG budget by $67.5 was accepted by a voice vote.

Most importantly, the House bill does NOT include any legislative proposals to reform the Section 8 program contained in the Bush Administration's "Flexible Voucher" program (S 771/HR 1999). These proposals would allow housing agencies to direct rental vouchers to higher income households and require voucher-holders to contribute a higher percentage of their monthly income toward rent.

The appropriations process now shifts to the Senate. The subcommittees are scheduled for July 12th and 14th. It is unclear if the senate will pass its HUD budget before the August 1st summer district work period. Write your senators now and urge them to follow the lead of HR 3058 in restoring section 811 and CDBG funding and rejecting S 771/HR 1999, but more needs to be done to increase Section 8 Housing Choice Voucher Program to at least the Administration’s request. Once Senate bill is passed, final legislation will be negotiated in the fall.



Sam Finkelstein
Housing Choices Coalition
sfinkelstein@housingchoices.com
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PLEASE HELP WITH THIS ISSUE Thanks, SB