Appropriations
Fiscal Year 2004 began on October 1, but only 3 of the 13 annual appropriations bills have been signed into law. Therefore, most of the government, with the exception of the Department of Defense, the Department of Homeland Security, and the Legislative Branch, is operating under a continuing resolution (CR). The CR runs through October 31 at 2003 spending levels.
There is a silver lining in the appropriations situation. While NAHMA remains disappointed that HUD and RHS are operating under a CR, the good news is that the FHA once again has budget authority to issue multifamily mortgage commitments.
NAHMA Public Policy Positions
NAHMA’s Board agreed with the Executive Members’ recommendation to “strongly support” legislation to clarify costs of development that may be included in the eligible basis of a Section 42 Low Income Housing Tax Credit development (S 1119). NAHMA’s position is posted to the public Legislative News section of the website.
A Senate companion to the NAHMA-endorsed FHA Multifamily Loan Limit Adjustment Act (HR 1985) will be introduced in the near future by Senator Jon Corzine (D-NJ). Because Senator Corzine would like to introduce this legislation with bipartisan support, NAHMA has been working with his staff to build support among Senate Republicans.
Report on Waste, Fraud and Abuse
The House Budget Committee released a report on waste, fraud, and abuse in federal programs. The report was mandated by the 2004 Budget Resolution, which directed committees to identify waste, fraud and abuse in the programs under their jurisdiction and recommend changes in the law to correct those instances and achieve budget savings. The report consists of statements by the House Committees and the GAO.
The report submitted by the House Financial Services Committee notes, “…the Committee concluded that savings can be most readily identified in funds labeled as ‘unliquidated obligations.’ Unliquidated obligations are funds that are appropriated and obligated for a function but, for a variety of reasons, never actually dispersed…”
The Committee identified Section 8 and Section 236 programs at HUD and the Section 521 Rural Rental assistance program at RHS as “most likely to have high levels of unliquidated obligations.”
The Committee’s submission also includes a vigorous dissent by the Ranking Member Barney Frank, et.al., which rejects characterizing the unobligated balances as wasteful spending. An excerpt from the dissent reads, “On the issue of Section 8 balances, in response to the question ‘Would you describe that as fraud or abuse or waste?’, the HUD CFO responded, ‘Absolutely not.’”
The entire report, Addressing Government Waste, Fraud and Abuse, can be viewed at
https://a257.g.akamaitech.net/7/257/2422/03oct20031230/www.access.gpo.gov/congress/house/pdf/108cp/89421.pdf.
