2005 Budget
The big news this week was the release of the President’s FY 2005 Budget Request. All budget-related information can be found on NAHMA’s Legislative News webpage
https://www.nahma.org/content/news.html. Once again, housing programs in the HUD budget are essentially flatlined or reduced. The upcoming NAHMAnalysis, which will be available soon, will take a thorough look at the budget. In this meantime, a brief overview follows:
Housing Certificate Fund
The “Flexible Voucher Program” was proposed as a new way to reinvent the Section 8 voucher program. The FVP would be administered by the PHAs as is the current practice with Section 8 vouchers. According the HUD budget summary, it would be a “dollar-based grant program that will control the growth in costs and provide a more efficient and effective program.” The current unit-based funding the Section 8 vouchers would be abandoned.
Total Funding For the Housing Certificate Fund, as overhauled by the FVP the FY ‘05 request is $18.466 billion, a reduction from this year’s final appropriation of $19, 257 billion.
Funding for Project Based Section 8 anticipated increased renewals; $5.1 billion is requested, a $330 million increase over this year’s level.
Section 202
The request for this program has hovered at $773 million for the past couple of years. The request represents a reduction from last year’s appropriated level of $778 million.
Within the request, $4 million are for PRAC renewals, $30 million is for rehab grants / assisted living conversion, and $53 million is provided for service coordinators
Section 811
$249 million is requested; $2 million of this will be directed toward PRAC renewals, and $50 million is for mainstream voucher renewals. Section 811 received a final appropriation of $250.57 million for ’04.
HOME
A slight increase is requested for HOME, to help offset the homeownership downpayment assistance initiative. The 05 request is $2,084 billion; the ’04 enacted level was $2,006 billion.
FHA Multifamily Insurance
The budget notes premiums will be reduced on the Section 221(d)(4) program from 50 basis points to 45 basis points.
Section 515
Once again, the budget proposes to limit funds for repair and rehab only. $60 million is requested, whereas Congress provided $116.5 million for ‘04.
Rural Rental Assistance
The Administration requested $592 million, an increase above this year’s $584 million appropriation
Section 538 Multifamily Housing Loan Guarantees
Flatlined request for $100 million, same as the ‘04 appropriation.
Ricin Scare in the Senate
The toxic substance ricin was found in the mailroom of Senate Majority Leader Bill Frist. Ricin is deadly and there is no known antidote. This incident is being treated as another bioterrorism attack, and a criminal investigation is underway. At this time, there are no reported deaths or illnesses resulting from the poison. However, the Senate office buildings were closed for most of this week to allow hazmat teams to work.
NAHMA strongly recommends that members use electronic means to communicate with Congress. Mail to the House and Senate members has always been slow, and irradiation procedures following the anthrax attacks in 2001 further slowed the processes. Following another apparent attempt to poison by mail, additional delays should be expected for any letters send through the U.S. Postal System. NAHMA strongly recommends that members who wish to send mail to their members of Congress use e-mail as a faster alternative. Most members of Congress have e-mail accounts which are accessible through their websites. You can find your Representative’s website through
https://www.house.gov/. Email accounts of Senators’ are listed at
https://www.senate.gov/general/contact_information/senators_cfm.cfm.
