HUD's  2004 Federal Budget Funding Policy Is Causing Big Problems

Unfortunately the only humor in this newsletter is on the flip side.  On April 22nd, HUD finally announced how it is going to hand out the funds that Congress appropriated for the Voucher program for this year - 2004. The method that HUD is using is leaving some HA's in the lurch because HUD is basing its numbers on average unit costs from May, June, July of 2003. If the average unit cost has gone up since then, the HA will be short of funds.

Please note that Tuscarawas MHA has not seen significant increases since last summer so at this writing, it looks like our funds should be OK. However, new leases may have to be put on hold.  The greatest problem with this new funding policy is that HUD is making the funding levels retroactive to January 1, even though they are just now informing HA's of available funding.   Some housing authorities we have talked to are experiencing unit costs as much as $20 / unit / month higher than last
summer.  HUD has basically said "too bad." 

Why would housing authorities see an increase in the per unit cost, you may wonder.  Many variables could cause an increased unit cost, such as higher  utilities, lower tenant payments due to unemployment, or increases in rents.  Larger families coming under lease can cost more.  These are costs housing authorities cannot control, and throughout the history of the program, HUD and Congress have recognized this.  However, the current administration at HUD seems to be ignoring past practices and is now accusing HA's of "not living within their budgets."

Congress did not intend for this shortfall to occur.  When Congress appropriated 2004 funding late in 2003, they appropriated enough to fund all Vouchers in use.  It is HUD's interpretation of the appropriations language that is causing the current scenario whereby HA's that are caught short may have to terminate in-use Vouchers for lack of funds. 

Because families may have to be removed from the program in some areas, members of Congress are now taking notice.  A bi-partisan letter is being circulated (sponsored by 3 Republicans and 3 Democrats) which urges HUD to stop implementing the radical funding changes it has made. 

In the 30-year history of the Voucher program, Congress has always pledged enough funds to cover the costs of Vouchers in use.  HUD has now decided to change that.  If you are concerned about the present (and future) funding of the Voucher program, we recommend you inform our federal legislators.  

It is not recommended that you send letters by snail mail since delivery is now slowed down because of the anthrax incidents.  Call, fax, or e-mail.  

*Congressman Bob Ney, our representative, is a powerful House member in regard to housing issues.
Phone is 1-202-225-6265 (DC); local 330-364-6380
Fax number is 1-202-225-3394 (DC); local 330-364-7675
E-mail is bobney@mail.house.gov 

*Senator Michael DeWine:
Phone 1-202-224-2315 (DC); 1-614-469-6774 (Columbus)
Fax 1-202-228-6519 (DC); 1-614-469-2982
E-mail is dewine@dewine.senate.gov

Your voice WILL make a difference.  Congressmen will want to know the comments and opinions of participating owners.  Let them know you support the efforts of the Voucher program to house low-income families, and urge adequate funding for Vouchers in use based on current and realistic costs.
 

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