Appropriations
The House Appropriations Subcommittees have begun to write their 2004 bills. The Agriculture Appropriations bill, approved by the Subcommittee this week, provides the following: total authorization of $4.365 billion for rural housing loans, ($208.7 million above last year and $45.7 million above the President’s request); and $731 million for rental assistance programs ($9.7 million over last year and $9 million below the President’s request). The full Appropriations Committee is expected to vote on the bill next week.
Hearings
This week was especially busy for housing oversight hearings. Section 202, Section 8, and rural housing programs were examined.
On Tuesday morning, the Senate Special Committee on Aging examined the reasons why $5.2 billion in Section 202 funding was unexpended in 2002 and why projects were not coming online within HUD’s 18-month guideline. Witnesses included FHA Commissioner John Weicher, David G. Wood of the General Accounting Office, and representatives from Volunteers of America, National Church Residences, and others. Chairman Larry Craig (R-OH) laid the blame for this problem on HUD. According to Senator Craig, “The most widespread and urgent housing problem facing elderly households is affordability. However, due to a myriad of HUD requirements in the application process, coupled with chronic and often times insensitive bureaucratic delays, non-profit organizations are being put into situations where they cannot help today’s senior citizens get the housing they need.” GAO noted that problems which contribute to delays include: an insufficient capital advance amount; variation in administration by HUD field staff; inadequate automation system at HUD Headquarters; and local issues such as zoning which are beyond HUD’s control. For more information about this hearing, please see the Aging Committee’s web site at:
https://aging.senate.gov/index.cfm?Fuseaction=Hearings.Detail&HearingID=22.
Later that afternoon, the House Financial Services Subcommittee on Housing and Community Opportunity held the third installment in its series of hearings to examine the tenant-based Section 8 program and the block grant proposal. Testimony was heard from the academic and so-called “think tank” community. A couple of block-grant supporters were among the witnesses at this hearing. To read their statements, see
https://financialservices.house.gov/hearings.asp?formmode=detail&hearing=230.
On Thursday, the Financial Services Subcommittee on Housing and Community Opportunity held an oversight hearing entitled “Rural Housing in America.” Testifying before the Subcommittee were the USDA Inspector General Phyllis Fong, William B. Shear of the General Accounting Office, and industry representatives. According to the IG, the six top challenges facing Rural Housing Service managers include: maintaining the physical condition of the portfolio; cracking down on unallowable and/or excessive project expenses; prepayment issues; the need for additional rental assistance to increase reserves; ensuring funds go to targeted rural communities; and the need to develop program performance measures. Witnesses’ testimony can be viewed at
https://financialservices.house.gov/hearings.asp?formmode=detail&hearing=232.
