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Statement of the National Association of Housing and Redevelopment Officials on the Senate's Mark-Up of the FY 2007 HUD Appropriations Bill

July 24: The National Association of Housing and Redevelopment Officials (NAHRO) takes this opportunity to thank Senators Kit Bond and Patty Murray for their leadership in crafting a HUD appropriations bill that helps sustain and support public housing and community development in a difficult budget environment. Their leadership has been key in ensuring vital programs such as Housing Choice Vouchers are adequately funded and that programs such as HOPE VI and important community and economic development programs are retained. We applaud the increase in the public housing Capital Fund, which represents a $282 million increase over the president's request and a $21 million increase over FY 2006 funding levels. We also applaud funding increases for the public housing Operating Fund, and specific attention within that increase to easing the transition of small agencies to asset management and the Committee's recognition of the unmet needs for utility funding in public housing.

We also appreciate their ongoing support for local community and economic development efforts. By rejecting the Administration's recommended 25% reduction in the Community Development Block Grant program and refusing to eliminate the small but vital Section 108 community development loan guarantee and Rural Housing and Economic Development capacity building programs, the committee has shown an ongoing commitment to tools local communities need to provide affordable housing and economic opportunities to low- and moderate-income citizens.

Still, this increase is not commensurate with current needs. For example, NAHRO recommended $4.35 billion for the public housing Operating Fund, and $4.5 billion for the Community Development Block Grant formula. We hope that we can continue to work with the Senate and House to improve funding for these accounts and in turn ensure successful operations for housing authorities at the local level.

Another highlight of the bill is the committee's recommendation to calculate funding for Housing Choice Voucher renewals based on a full year's worth of funding information. NAHRO has advocated for this approach since the inception of the current, flawed 3-month data "snapshot" methodology. The incomplete snapshot has resulted in the over-funding of some agencies and the under-funding of others and the unprecedented loss of 100,000 vouchers assisting Americans.

Finally, NAHRO welcomes language which delays HUD's public housing asset management implementation for stop-loss agencies by one year and lifts restrictions on the use of Public Housing Capital Funds. These provisions are rational steps that will put HUD's implementation on a fairer, more timely footing and recognize the need for both local flexibility and the force of current law.

NAHRO stands ready to work with members of Congress on a bi-partisan basis to reach agreement on a final bill that addresses the needs of American families and local communities in a responsible fashion within an increasingly turbulent global environment.