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NAHMAnalysis:

February 27, 2007 NAHMAnalysis 2007 - 0227

FY 2008 Budget Request for Affordable Rental Housing Programs

Effective Date or Deadline

Funding levels in the budget request are proposed for Fiscal Year 2008, which begins on October 1, 2007. The budget request is subject to the approval of Congress.  

Background

On February 5, President Bush submitted his Fiscal Year 2008 budget request to Congress. Submission of the budget begins a process which, if run smoothly, will be resolved before October 1, with all of the annual appropriations bills signed into law.

The problem is that the budget process almost never runs smoothly. It has now become routine for the new fiscal year to begin without a finalized budget for that year as was the case this year when the FY 2007 budget did not receive final approval until February 15. Congress and the President then fund the government through temporary spending measures known as “continuing resolutions.” However, with the new alignment of both the Senate and House Appropriations Subcommittees, there is hope to expect the budget process to move more efficiently.

Between now and October, Congress is likely to go through the following exercises:

• Hold hearings on the President’s budget (through March);

• Adopt a “budget resolution” which sets spending caps (targeted date is April);

• Begin the FY 2008 appropriations process (May through September or until completed); and

Washington Insider's Column prepared exclusively for NAHMA's Executive Members:

March 23, 2007

Supplemental Spending Bill  

Both the Senate and the House are currently debating S.Con.Res.21 and H.R. 1591, entitled ‘Setting forth the congressional budget for the United States Government for fiscal year 2008 and including the appropriate budgetary levels for fiscal years 2007 and 2009 through 2012’ and the ‘U.S. Troop Readiness, Veterans' Health, and Iraq Accountability Act of 2007’ respectively.  The bills would provide $2.9 billion in funding for the rebuilding of areas affected by the Hurricanes of 2005.  We will keep you posted on these important spending bills and how the money will help establish more affordable housing projects.  

NAHMA Testimony for the Record  

NAHMA has submitted testimony for the House Ways and Means Subcommittee on Oversight for their hearing on the Katrina Tax Relief Issues that was held on March 13.  The testimony included NAHMA’s requests of the extensions of two key LIHTC-related deadlines regarding the placed-in-service date for the GO Zone LIHTC properties to be extended until December 31, 2010.  NAHMA also requested that the deadline for the temporary grace period against the recapture of LIHTC credits be extended.  This 24 month period was provided in the IRS Rev. Proc. 95-28 for Section 42 properties in major disaster areas affected by Hurricanes Katrina, Rita and Wilma.  We believe extending the deadline to 48 months would help further the rebuilding efforts.

Legislation  

NAHMA is pleased to announce the progression of two key pieces of legislation.  The first, H.R. 1227, the Gulf Coast Hurricane Recovery Act of 2007, seeks to reallocate $1.175 billion from FEMA Hazard Mitigation Grants to the Louisiana Recovery Authority’s (LRA) Road Home Program and require Louisiana, Texas, Alabama and Mississippi to submit quarterly reports to relevant Congressional Committees on the state’s use of disaster CDBG funds.  The bill would also allow for any disaster-related CDBG funds to be used by a State or locality as a matching requirement, as well as directs the Secretary of HUD to reimburse cities and counties that previously used CDBG funds to provide rental assistance to households displaced by Hurricanes Katrina, Rita, Wilma or Dennis. The bill was passed by the House by a vote of 301-125 on March 21.  NAHMA had previously endorsed this bill because of provisions relating to the identification of displaced residents who wish to return, the extension of the Disaster Voucher Program (DVP) and suspension of Housing Assistance Payment (HAP) contracts in damaged/destroyed buildings so assistance will not be lost, along with the transfer of housing assistance, where necessary, to allow the rebuilding of destroyed Section 8 properties.

The second bill is H.R. 1562, theKatrina Housing Tax Relief Act of 2007.  The bill would make several changes to provisions of the "Gulf Opportunity Zone Act of 2005" intended to facilitate rebuilding in designated areas of the Gulf Coast impacted by Hurricanes Katrina, Rita, and Wilma.  Specifically, the bill will extend the placed-in-service deadline for Housing Credit allocations for two years, until December 31, 2010, which NAHMA has strongly advocated for.  Also included in the bill is a provision stipulating CDBG funds would not be taken into account in determining if properties placed in service in GO Zones, Rita GO Zones, or Wilma GO Zones are federally subsidized. The  House Ways and Means Committee passed H.R.1562 by voice vote on March 21, 2007. 

Hearings

The House Appropriations Transportation, Housing and Urban Development Subcommittee will hold a hearing on Project-Based and Tenant-Based Section 8 on March 27.  Orlando Cabrera, the Assistant Secretary for Public and Indian Housing and Charles H. (Hank) Williams, Deputy Assistant Secretary for Multifamily Housing will discuss HUD’s proposed budget of these two programs.

If you are currently or have recently experienced a late HAP payment, and your representative is a member of this subcommittee, NAHMA suggests contacting him or her and request that they ask DAS Williams:

• What specific reasons cause HUD to make late HAP payments to project-based Section 8 owners;
• What progress has the Department has made to implement GAO’s three recommendations for improving timeliness of these payments; and
• Does HUD need additional statutory authority to solve this problem, and if so, what is required?

The Subcommittee members include: Chair: John W. Olver (MA),  Ed Pastor (AZ), Ciro Rodriguez (TX),  Marcy Kaptur (OH), David E. Price (NC), Robert E. "Bud" Cramer, Jr. (AL), Lucille Roybal-Allard (CA), Marion Berry (AR), Dave Obey (WI), Ex Officio, Ranking Member:  Joe Knollenberg (MI), Frank R. Wolf (VA), Robert B. Aderholt (AL), James T. Walsh (NY), Virgil Goode, Jr. (VA) and Jerry Lewis (CA), Ex Officio.

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NAHMA Member Testimonials

NAHMA Staff

Executive Director
Kris Cook, CAE

Director, Gov't Affairs
Michelle L. Kitchen

Director, Finance and Administration
Rajni Agarwal

Manager, Meetings & Membership
Joe Thomas

Manager, Education Programs and Special Projects
Brenda Moser

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