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Subcommittee Funding Action Applauded;
NAHRO Urges More Support for Needy

(July 16) - The National Association of Housing and Redevelopment Officials (NAHRO) applauds Reps. James Walsh (R-NY) and Alan Mollohan (D-WV) for their leadership in holding the line and funding most of the key housing programs that assist the elderly, disabled and poor, and the growing ranks of working poor Americans. But NAHRO Executive Director Saul N. Ramirez, Jr. noted that the overall reductions and limitations on Section 8 administrative fees and the reductions to HOPE VI would present problems for housing agencies.

"Reps. Walsh and Mollohan are to be commended for recognizing that federal assistance is vital to ensure decent, safe, affordable housing is available for low-income households," said Ramirez.

Walsh is chairman of the House Subcommittee on VA, HUD and Independent Agencies, which marked up its version of a FY 2004 appropriations bill July 15. The subcommittee approved a bill that kept most programs, with the exception of HOPE VI, at the 2003 levels.

"We are extremely concerned about the subcommittee's recommendation on HOPE VI; however, we view this as a sign of support for the mission of HOPE VI and a way to continue the debate on how we can improve this vital rehabilitation program," said Ramirez. "The subcommittee made a definitive statement that this program is a vital part of the economic revitalization of our nation's neighborhoods." This support was also seen in their funding of key economic development programs unfunded in the administration's request, including RHED, Brownfields, and EZ/EC's.

NAHRO calls on Congress to require HUD to revise a 1988 study examining what the modernization needs for locally owned and operated public housing stock in communities. NAHRO encourages the full House committee to follow the lead of the subcommittee and keep the proposed funding levels for housing and community development programs when it meets next week.

"The most troubling aspects of the bill are unacceptable overall funding reductions and undue restrictions placed on Section 8 administrative fees," said Ramirez. "These provisions could have repercussions on participating landlords and agencies' abilities to serve low-income families."

Here is an overview of the subcommittee mark up:

- HOPE VI limited to $50 million;
- Public Housing Operating and Capital at roughly last year's levels;
- No new funding for Section 108;
- Homeless Assistance - slightly less than administration request;
- HOME Downpayment Assistance Initiative - less than 65 percent of administration request;
- Section 8 Vouchers - nearly $13.4 billion in new appropriations;
- Section 8 Administration fee allocation to be "determined" by HUD;
- A number of unauthorized programs were not funded (HANF, Samaritan Initiative)

The subcommittee proposed an overall net HUD budget of $31.8 billion.

Following is a comparison between numbers for FY 03, the subcommittee's proposed for FY 04 and NAHRO's recommended levels. The figures are in billions.

Program Enacted 2003 Proposed 2004 NAHRO Request
Vouchers * $12.400 $13.400 Renew all
Capital Fund $2.700 $2.700 $3.500
Operating Fund $3.570 $3.600 $4.100
CDBG ** $4.400 $4.500 $5.000
HOME ** $1.870 $1.880 $2.250
HOPE VI $.575 $ .050 $.625
Homeless $1.200 $1.240 $1.325

* Includes renewal funding, administrative fees, and central fund. Reflects use of projected carry-over funding for FY 2004.

** Designates formula amount. The bill proposes $125 million for downpayment assistance in addition to the HOME formula amount.

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.

Please contact NAHRO Communications Director Dee Shafer at dshafer@nahro.org or 1-877-866-2476 ext. 277, or Assistant Editor Tom Ogorzalek at togorzalek@nahro.org or ext. 280 for more information.