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Press RoomPresident's Proposed Budget Underfunds Housing and Community Development ProgramsContact: Mary Barron, 202-289-3500 ext. 280 or mbarron@nahro.org WASHINGTON, Feb. 7 -- Don Cameron, President of the National Association of Housing and Redevelopment Officials (NAHRO), had the following comments regarding the President's proposed Fiscal Year 2007 budget: Following last week's State of the Union address, NAHRO expressed concern that housing and community development needs were not evident among the President's priorities. The release of the proposed Fiscal Year 2007 budget confirms our fears. The 1.8% reduction in overall funding for the Department of Housing and Urban Development, which will result in 10-20% reductions in individual programs, will have a huge impact on those in need of adequate and affordable housing. When taken together, a $1 billion cut in funding for CDBG formula grants; elimination of key community development programs with proven track records, such as the Brownfields Redevelopment Program; reduced funding for public housing capital grants, which maintain the physical integrity of our more than 70 year investment in public housing; elimination of the HOPE VI program; and zero funding for repair and replacement of public and assisted housing units in the Gulf region undermine the ability of local agencies to meet local needs in a responsible manner. In addition, proposed legislation to revise the current CDBG formula could cast a long shadow of uncertainty in communities large and small who have to date successfully used a shrinking pot of CDBG dollars to help meet vital community needs such as job creation and retention. Revision of the current formula, in combination with a $1 billion cut to CDBG formula funding, will result in substantially reduced funding in many communities. Reform of the Section 8 program, while necessary, must be addressed by the authorizing committees of Congress in a manner that does not limit the ability of local agencies to meet current commitments and address larger, well-documented needs under the guise of increased local flexibility. Authorization of a responsible funding formula is central to the passage of any legislation of this kind. In an attempt to restrain spending, the administration has underfunded valuable
housing and community development programs. This will not enable local agencies
to manage for results. We simply must make quality affordable housing a national
priority. If we are to address the needs of working families and those unable
to access more than assisted housing-including lower-income seniors and people
with disabilities-a committed and invested federal partner is a necessity. |
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