January 31, 2007
.................................................................................... Some Housing Programs that Would Receive Major Funding Increases Under the Joint Funding Resolution for FY 2007Housing for the Most VulnerableSection 8 project-based assistance - An increase of $939 million for a total funding level of $5,976,417,000 is necessary to extend contracts for the preservation of 157,000 units that would not be renewed under the FY06 enacted level. This is necessary to prevent the displacement of low-income residents occupying these housing units. This amount is $300 million above the President’s 2007 request. This additional funding is now needed because HUD misrepresented the actual annual renewal costs associated with project-based contracts. Section 8 tenant-based assistance - An increase of $502 million is provided for a total funding level of $15,920,000,000 -- equal to the President’s 2007 budget request. This increase is necessary to prevent the loss of current vouchers and to cover increasing rents. This section also updates the distribution formula for tenant-based vouchers to reflect the most recent 12-month period of voucher-use data available to HUD. This updated formula, which was in the FY 2006 Senate-passed and the FY 2007 Senate Committee-reported bill, will provide a more accurate and efficient method of capturing true needs. A $100 million set-aside is also included to enable the Secretary to make adjustments to Public Housing Agencies for portability, unforeseen circumstances, and to address the potential loss of vouchers related to the implementation of the new 12-month formula. Public Housing Operating Fund – An increase of $300 million is provided for a total funding level of $3,864,000,000. This is necessary to address operating shortfalls including higher energy costs. In FY 2006, $283 million was attributable to increased utility costs alone. Other critical needs including maintenance and security officers will be addressed with this increase. Over 100 Public Housing Authorities have announced layoffs in recent days based on the assumed continuation of the 2006 funding level. Homeless Assistance Grants – An increase of $115 million for a total funding level of $1,441,600,000 is necessary to meet expiring contracts for the Shelter Plus Care program and the Supportive Housing Program. Without this increase, homeless individuals and families could be returned to the street. Interagency Council on Homelessness - Language is included which extends the authorization to avoid the termination of the council. Housing Equity Conversion Loans (HECM) - Currently, 90 percent of all reverse mortgages for the elderly population fall under the HUD HECM guarantee program. This popular program makes it possible for thousands of elderly individuals and couples to remain in their homes and pay for other critical living expenses. Without this extension, this program would shut down in mid-February. HOPE VI - This resolution extends the authorization for the HOPE VI program so that appropriated funds can continue to be dispersed to replace the most deteriorated public housing with new mixed-income units. Without this extension, this program would shut down in mid-February. Mark to Market program - The resolution extends the Mark to Market program for five years to continue preservation activities for existing multifamily low-income housing projects. Without this extension, preservation activities would cease.
Related News:"New Congress Shores Up Housing Programs for the Poor; Sen. Patty Murray instrumental in improving funding levels of Public Housing and Section 8 programs" (1/30/07) King County Housing Authority: http://www.kcha.org/aboutus/newsreleases/improvedfunding.aspx "Senators Murray and Bond Voice Bi-Partisan Support for Transportation and Housing Increases in Joint Funding Resolution"(1/30/07) http://murray.senate.gov/news.cfm?id=268164 Senator Murray's Prior Housing Updates: Politics by HUD Secretary?; Farmworker Housing; NAHRO Conference;
CDBG: Help Save CDBG: http://murray.senate.gov/economy/update2.html .................................................................................... Receive Housing Updates from Senator Murray: http://murray.senate.gov/economy/housingcomments.cfm |