Washington, DC -- Senator Hillary Rodham Clinton today said she was disappointed by the President's proposed changes to the Section 8 Housing Voucher program in his Fiscal Year 2006 Budget. Expressing her serious concerns about the changes, Senator Clinton argued that the President's proposal would continue shortchanging Section 8 through a voucher renewal funding system that puts more than 200,000 New York seniors, people with disabilities, and families with children at risk.

"The fact is, the gap between income and housing costs is growing," Senator Clinton said. "The Section 8 housing program helps millions of working families make ends meet, and keeps them on the path to self-sufficiency."

"Many New Yorkers rely on Section 8 housing vouchers to keep a roof over their heads as they try to make ends meet," Senator Clinton said. "In many cases, the vouchers are the only thing keeping them from homelessness."

Preliminary estimates indicate that last year the Bush Administration's voucher renewal system eliminated subsidies for approximately 80,000 people in New York and nationwide.

According to results from a survey commissioned by the New York State Association of Renewal & Housing Officials, housing authorities across New York State are feeling the impact of the Administration's unsound policy changes. For example, the Niagara Falls Housing Authority is experiencing a near $70,000 shortfall in voucher funding. Because this funding will not be enough to continue providing assistance to all current voucher holders, the Niagara Falls Housing Authority will be forced to make an unconscionable decision - to eliminate assistance for needy families. The Tuckahoe Housing Authority estimates a shortfall of approximately $63,000 in FY 05 which leaves them with enough funding to support only 90% of all vouchers. The Town of Smithtown on Long Island is experiencing a $125,000 shortfall which is only enough to support 86% of all vouchers. The Yonkers Municipal Housing Authority stands to lose even more - approximately $2.5 million, which will force the authority to eliminate vouchers for more than 200 families. The Troy Housing Authority estimates that their funding shortfall is approaching half a million dollars this year. As a consequence, they may be forced to cut assistance to between 10 and 15% of the seniors and families currently receiving it.

The situation is even worse in New York City, where housing authority officials will face a $50 million shortfall this year, which is severely undermining the City's ability to continue serving the 110,000 families currently receiving Section 8 vouchers. Based on an initial review of Congressional Budget Office cost data, the President's Fiscal Year 2006 Section 8 budget is sufficient to renew only 95% of the vouchers currently in use, putting tens of thousands of more families are at risk of losing their homes.

Senator Clinton has fought hard to secure sufficient funding for the Section 8 Housing Voucher program. At the end of last month, Senator Clinton joined her colleagues from New York in writing to Secretary Jackson, protesting the anticipated shortfalls to the Section 8 program. During the past couple of years, Senator Clinton has raised her concerns that the Administration's restricted funding formula falls well short of the actual cost of housing vouchers. She has also worked to ensure the accuracy in fair market rents.

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