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NAHRO Calls on HUD to Come Clean on Section 8 Funding The Department of Housing and Urban Development should release to Congress the information required to determine the actual figure to fully fund existing vouchers, says the National Association of Housing and Redevelopment Officials (NAHRO). HUD is denying the results of a study by the Center for Budget and Policy Priorities (CBPP), which claims the Department will need $1.26 billion in additional funds in FY 04 for vouchers. Without that amount, aid will be cut off to 184,000 participants-primarily disabled, elderly and working families. HUD claims the report "uses incomplete data to draw erroneous conclusions." "If the Department insists on attempting to deny the results of CBPP's study and delay coming forward to Congress with needed net funding requests before House Appropriators vote on funding for the program today, they should have the courage to share with Congress exactly how much funding they believe is needed for FY 2004 and how many families it would assist," said NAHRO Executive Director Saul N. Ramirez, Jr. "We believe that a significant amount of the $1.26 billion projected shortfall for FY 04 could possibly be made up by HUD's residual funds from this year and prior years," Ramirez said. "However, it is incumbent upon the Department to step forward immediately and notify Congress of how much it has or will have available in residual funds to apply to next fiscal year's net funding needs; both for the families under lease as of Oct. 1, 2004, and the number of remaining additional vouchers projected to assist low-income families come under lease throughout the remainder of FY 04." HUD's claims that the CBPP data is invalid because it is not audited are unwarranted., The department's regulations include several cost control and financial settlement provisions to safeguard against housing agencies overstatingtheir funding needs. Additionally, the data HUD is discrediting is the same data the Department currently uses to issue checks to landlords. HUD should clarify why the data is not valid for policy purposes, but is reliable enough to be used for dispensing funds. . NAHRO believes that Congress should not be alarmed by the analysis performed by CBPP or any recaptures that may occur this year. Ramirez said we are still in transition to the new renewal funding method as a result of the bi-partisan provisions enacted in the FY 03 bill, and implemented by HUD just two months ago. "We need to recognize and applaud the foresight of Congress - and be patient," Ramirez said. "We are finally getting the real cost of renewing vouchers - not a 'back-of-the-envelope' estimate that has proven inaccurate in the past." The number of families served under the program has increased from an estimated 1.5 million in 1999, to approximately 2.02 million. Serving more families each year requires additional funding to ensure that the real housing costs are reflected in the administration's budget. The Administration would like the public to believe that per unit costs are spiraling out of control, and that it is consuming the HUD budget. This is not true. To the contrary, Ramirez noted, "On a per voucher basis, we are actually seeing decreasing costs in a considerable number of rental markets around the county. HUD's rent levels provide access to the bottom half of rental market units or less for modestly priced housing. NAHRO, established in 1933, is a membership organization of housing and community development agencies and professionals throughout the United States whose mission is to create affordable housing and safe, viable communities that enhance the quality of life for all Americans, especially those of low- and moderate-income. NAHRO's membership administers more than 3 million housing units for 7.6 million people The Center on Budget and Policy Priorities study can be accessed at www.cbpp.org/7-11-03hous.htm |
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