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Press RoomNAHRO Statement on FY 2005 HUD Appropriations: Step
Backward Shows Need to Refocus our Nation's Priorities on Housing and
Community Development
The following is a statement of James Inglis, president of the National Association of Housing and Redevelopment Officials (NAHRO) on funding for housing and community development programs included in the FY 2005 Omnibus Appropriations bill: The omnibus appropriations bill represents an unfortunate and troubling step backward for our nation's affordable housing and community development efforts. Low funding levels for the Department of Housing and Urban Development (HUD) will hurt families across the United States who need affordable homes. The bill will thwart local attempts to maintain strong and thriving communities. I am disappointed that many members of Congress did not responsibly review key provisions of the bill that will affect NAHRO's members, who work to provide affordable housing and build strong communities. Many important programs administered by our members have been significantly
reduced, in some cases by more than 5 percent compared with last year.
Funding for the homeless and those living with AIDS was cut by 1.5 percent
and 4.4 percent, respectively. Funding to maintain vital public housing
resources was reduced by 5 percent. Funding for the HOPE VI program,
which has successfully transformed troubled public housing in favor
of thriving mixed income communities, was reduced below 2004 levels.
This, however, is an improvement over the administration's proposed
budget, which eliminated the program completely. Other popular and successful
programs, like CDBG and HOME, fared no better in this bill. Funding
for these programs, which have enjoyed enormous bipartisan support,
also was reduced substantially. Even the American Dream Downpayment
Initiative, designed to advance the president's homeownership agenda,
was reduced by 43 percent over FY 2004 levels. This will eliminate entitlement
funding for 60 communities that were funded in 2004. We appreciate that, in this difficult year, funding for the Housing Choice Voucher program was increased by 6.1 percent over FY 2004 levels. This is sufficient to fund the vouchers leased throughout 2004 at acutal cost. We supported Senate efforts to improve the FY 2004 renewal policy, however, Congress chose to keep Section 8 on a perilous course by continuing a policy that renews current housing choice vouchers on a budget basis rather than the more accurate and market-driven approach of renewing vouchers on a local, actual-cost basis. The budget-based approach was first introduced in April of this year and caused business disruptions for many local housing agencies and the residents they serve. Continuation of this policy will put these families at risk again in the year ahead. Agencies may be forced to make painful choices, including possibly terminating families from the program, because they lack the necessary funds to continue helping those the program currently serves. Unfortunately, Congress decided to forgo our nation's concerns about the critical need to sustain funding levels for housing and community development activities to a degree that corresponds with local documented needs. Housing and community development activities sustain and enhance a productive and vibrant economy, create jobs and encourage wealth building in addition to meeting an unarguable need to support families and communities in need. Before the next Congress takes office, NAHRO members will redouble their efforts to educate and inform decision makers on the likely impact HR 4818 will have on the families and communities across the nation. We look forward to working with the new Congress and hope its members understand the dire need for theses services in the United States. We are prepared to work with Congress to ensure that the families and communities we serve are not left behind in the challenging days that lie ahead. We look to the new Congress and the administration to debate openly
and honestly the future of our nation's affordable housing. Nothing
less will adequately serve our constituents.
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