Hearing on Proposed Housing Choice Vouchers Legislation
On April 17, The House Financial Services Subcommittee on Housing and Insurance held an oversight hearing on HUD’s Housing Choice Voucher (HCV) program. The hearing reviewed legislative proposals to modify the HCV program, to address: mobility, foster youth and those impacted by the opioid epidemic. The legislative proposals include:
- The Housing Choice Voucher Mobility Demonstration Act of 2018, would authorize the Secretary of HUD to carry out a housing choice voucher mobility demonstration to encourage families receiving such voucher assistance to move to lower-poverty areas and expand access to opportunity areas.
- The Transitional Housing for Opioid Recovery Demonstration Program Act of 2018, would amend the United States Housing Act of 1937 to establish a demonstration program to set aside section 8 housing vouchers for supportive housing for individuals recovering from opioid addiction.
- The Fostering Stable Housing Opportunities Act of 2018, would amend the United States Housing Act of 1937 to include within the definition of “families” a child who is in foster care and has attained an age such that the provision of foster care for such child will end by reason of the age of the child within six months.
Hearing witnesses included:
- Barbara Sard, Vice President for Housing Policy, Center for Budget & Policy Priorities
- Ruth White, Executive Director, National Center for Housing & Child Welfare
- Lynn Kovich, Deputy Secretary, Office of Mental Health and Substance Abuse Services, Pennsylvania Department of Human Services
- Dean Hammond, Board Member, Foundation for Affordable Housing in Kentucky
The witness largely focused on the need for more funding for housing and the important role that housing can play in addressing social challenges. NAHMA will continue to monitor these legislative proposals and will update members, once they are formally introduced. The hearing is available for viewing
here.
Congress Holds Hearings on HUD FY19 Funding
On April 18, the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies (T-HUD) held a hearing on HUD’s FY19 budget request. HUD Secretary Ben Carson testified before the committee on funding for HUD.
In her opening remarks, Subcommittee Chairman Susan Collins (R-ME) expressed support for the new budget caps in FY18. She stated that “funding will provide increases to the Community Development Block Grant (CDBG) program, and rental assistance for low income families and the elderly.” Senator Collins stated the Administrations FY19 request “includes several proposals that were rejected as part of the FY 2018 deliberations and I anticipate that many of those same program eliminations will once again be rejected. “She expressed concern that the FY19 budget request proposal includes the elimination of the CDBG program and the HOME Investment Partnerships Program (HOME), which have been successful for state and local housing development and improvement projects. She highlighted the proposed funding cuts for the Housing Choice Voucher Program (Section 8) by $900 million and provides no new funding for Veterans Affairs Supportive Housing (VASH) vouchers. She said some FY 2019 reductions to rental assistance would require withholding inflationary rent increases to property owners. She stated HUD and the Committee share goals of reducing lead paint exposure, reducing regulatory burdens on public housing authorities (PHAs), supporting the RAD, supporting self-sufficiency in addressing generational poverty, and strengthening PPPs.
In his opening remarks, Subcommittee Ranking Member Jack Reed (D-RI) expressed support for FY18 funding increases. Senator Reed expressed concern that HUD’s FY19 does not provide enough funding to achieve increased affordability in public housing. He argued the FY 2019 cuts “do not appear to be arbitrary and targets vulnerable populations….the budget fails to adequately protect safe and affordable housing for those currently using HUD rental assistance programs.” He stated the budget request indicates that HUD intends to “pull back” from its role in assisting communities with affordable housing and raised concerns about shifting costs to tenants and property owners.
In his testimony, HUD Secretary Ben Carson, testified that the Administration’s FY19 budget request for HUD is “sufficient” to provide assistance to families and the most vulnerable populations. He stated “Section 8 vouchers will continue to serve the same number of households, highlighted $145 million is included to ensure homes are free from lead paint exposure, emphasized fiscal responsibility in requesting and spending public funds, and HUD’s role in supporting self-sufficiency in housing.” He stated that he has directed HUD’s Chief Financial Officer (CFO) to design and implement a transformation plan and lead an internal task force to combat waste, fraud, and abuse and is calling for a “new way” based on giving local PHAs the flexibility to use their operating funds to support their capital needs, and to convert distressed housing units to a Section 8 financing model through RAD. Secretary Carson noted how HUD is supporting long-term recovery efforts resulting from natural disasters with over $300 billion has been appropriated through the CDBG Disaster Recovery Program (CDBG-DR).
NAHMA believes that the HUD’s FY19 budget request will be rejected by Congress, as well as the proposed cuts to housing programs. The entire hearing can be viewed
here.
In addition to the Senate hearing, a related HUD budget hearing was held in the House Appropriations T-HUD Subcommittee. However, the hearing was only on the FY19 budget request for HUD’s Office of Public and Indian Housing. Public and Indian Housing. Acting Assistant Secretary Dominique Blom answered similar questions regarding Administration’s budget request, particularly opposition to funding cuts to the Public Housing and HCV programs was expressed by Representatives. The PIH hearing is available
here.
This week, Agriculture Secretary Sonny Perdue also testified on USDA’s FY19 budget request, however rural housing was not covered in the hearings.
