July 18, 2003

Appropriations

There are two key annual appropriations (i.e. discretionary spending) bills which fund federal housing programs. The first is the Agriculture, Food and Drug Administration, and Related Agencies bill, which funds the Rural Housing Service. The second is the Veterans Affairs, Housing and Urban Development, and Independent Agencies bill, through which HUD receives its funding. The status of each for 2004 follows: RHS Appropriations The House passed their bill Agriculture Appropriations bill (HR 2673) by a vote of 347-64. The Senate Appropriations Committee approved its bill, which now awaits action by the full Senate. It appears the request for zero new construction funds will once again be rejected. Concern about unused RA appears to be the reason each chamber funded the Section 521 program well below the Administration’s request of $740 million. Here is how the numbers compare for key RHS programs at this time: Section 515 was funded at $116.5 million in the House bill and $115.1 million by the Senate Appropriations Committee. Section 515 received about $115 million in 2003. Section 521 Rural Rental Assistance was funded at $731 million in the House bill and at $721 million by the Senate Committee. The program received $721 million in 2003. HUD Appropriations So far, only the House VA-HUD Appropriations Subcommittee has acted. The full House Appropriations Committee is expected to consider the bill next week. A brief snapshot of current action on key HUD, quoted directly from a press release issued by the House Appropriations Committee follows: “HUD is funded at $37 billion, $942 million above last year’s levels and $98 million above the President’s request.” “The Housing Certificate Fund is funded at $18.4 billion, a $1.3 billion increase over FY03, a 7% increase over last year.” “Includes $12.1 billion for Section 8 voucher renewals, $810 million more than FY03 and $205 million more than the request. This will fully fund all authorized vouchers based on a 96% lease up rate and the most current cost estimates.” “HOME Investments Partnerships is funded at $2.064 billion, $77 million over FY03, including a $25 million increase for HOME formula grants. Provides $125 million for the President’s Downpayment Assistance Initiative.” “Housing for the nation’s elderly (Section 202) is funded at $773 million the full amount requested.” “Disabled Housing (Section 811) is funded at the requested level of $250 million.”

Hearings

Several noteworthy hearings have occurred. House Financial Services Subcommittee on Housing and Community Opportunity: On July 1, the Subcommittee held a field hearing in Los Angeles, California entitled, “Section 8 Housing Assistance Program: Promoting Decent Affordable Housing for Families and Individuals who Rent.” Among the witnesses were NAHMA member Gary Clopp, who testified at the request of NLHA. Gary’s testimony on behalf of NLHA can be viewed at https://financialservices.house.gov/media/pdf/070103gc.pdf. On July 8, the Subcommittee held a second oversight hearing on rural housing. At the hearing, entitled “Rural Housing in America”, the Subcommittee received testimony from USDA Undersecretary for Rural Development Thomas C. Dorr. Undersecretary Door discussed the status of RHS single family and multifamily housing programs. His testimony can be viewed at https://financialservices.house.gov/media/pdf/070803td.pdf. The next Section 8 field hearing will be held in Columbus, OH on July 29. NAHMA is optimistic about prospects for having a witness at this hearing. House Financial Services Subcommittee on Oversight and Investigations: On June 25, the Subcommittee held a hearing entitled, “Saving Taxpayer Money Through Sound Financial Management.” The Subcommittee received testimony from HUD’s Chief Financial Officer, the HUD IG, and USDA Undersecretary Thomas Dorr. To view the witness’ testimony, please see https://financialservices.house.gov/hearings.asp?formmode=detail&hearing=240&comm=4. The focus of the hearing was to examine the reasons for HUD’s and RHS’ unexpended appropriations and how to combat waste, fraud, and abuse in the programs.

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