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Dear Housing Advocate:I'm writing to update you on some progress we've made in Congress this week to protect critical housing programs that serve our state. Thankfully, there is good news to share. As you may recall, last year the Senate failed to pass a bill to fund the Department of Housing and Urban Development for fiscal year 2007. I worked on that bill all year, so the Senate's refusal to act was deeply frustrating to me. But more importantly, I've met with many of you, and I know the Senate's failure to do its job last year was equally frustrating for you. It undermined the ability of housing agencies to plan and provide services that so many of our residents need. I've been working to get Congress to do its job under very difficult circumstances. Three weeks ago, when Democrats took control of the U.S. Senate, we faced a series of daunting tasks –
The situation has required difficult and painful compromises. I'm pleased that we were able to produce a Joint Funding Resolution for FY 2007 that minimizes the impact for some programs that serve our most vulnerable. That bill just passed the House of Representatives and will be debated in the Senate in the next few weeks. If we had kept the funding from last year the same through this year, critical housing programs would have been cut – and cut badly. Fortunately, we were able to increase several of these programs. Below are some of the housing programs for which we were able to provide major funding increases for the current fiscal year. Please note that the Joint Funding Resolution for FY 2007 must still pass Senate and be signed into law by the President. I'll keep you updated on our progress. If you want to be added to my list, sign up here: http://murray.senate.gov/economy/housingcomments.cfm I am already hearing a collective sigh of relief from local housing leaders, including the King County Housing Authority, which issued this statement: http://www.kcha.org/aboutus/newsreleases/improvedfunding.aspx I want to thank you for being a strong advocate for those who need safe, affordable housing in our state. Your voices are making a difference. Sincerely,
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"We are thrilled that, despite a challenging budget situation, Sen. Murray was able to ensure that low-income families will not lose their housing. While the bill doesn’t solve all of our problems, it is a substantial improvement over what was proposed in the continuing resolution passed by last year’s Congress. To successfully negotiate the appropriations process this year on behalf of the most vulnerable people in our communities in the current budget climate takes real commitment and leadership." - Stephen Norman, King County Housing Authority Executive Director |
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Some Housing Programs that Would Receive Major Funding Increases Under the Joint Funding Resolution for FY 2007
Housing for the Most Vulnerable
Section 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.
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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:
http://murray.senate.gov/economy/update3.html
Help Save CDBG: http://murray.senate.gov/economy/update2.html
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