NAHMA’s persistence in raising the importance of the need for HUD to have sufficient funding through the end of FY 2004 (September 30) and during any period funded under a continuing resolution appear to have paid off! After learning about the additional funding complication caused by the 2004 appropriations language which prevented HUD from using recaptures to cover temporary shortfalls, NAHMA began aggressively working this issue on Capitol Hill. We made the case to key appropriations committee staff that it was essential to ensure HUD could fully fund Section 8 HAP contracts through September and during the expected CR period.
I am pleased to report our efforts have produced results. At yesterday’s industry meeting with Deputy Assistant Secretary Stillman Knight, HUD confirmed that following meetings Stillman has had with the Hill staff, they now believe Section 8 project based HAP contracts will be fully funded for the first quarter of FY 2005. This time period runs from October 1 through December 31. HUD will almost certainly be operating under a CR for at least part of the first quarter. The Department is now identifying needs for the second quarter, which runs from January 1 through the end of March. Please be assured we will continue to follow this issue closely.
Appropriations
The Senate Appropriations Committee will consider its 2005 VA-HUD bill on Tuesday, Sept. 21. Last week, the VA-HUD Subcommittee very quietly approved the bill thorough a procedural maneuver intended to expedite the process. No information has been made available about the details of the Subcommittee bill.
The key question is whether the Senate will find additional money for HUD programs to restore cuts made in the House version. Funding will undoubtedly continue to be tight. The Senate is basically working with the same level of funding for the VA-HUD Subcommittee has the House did. To complicate matters further, House Majority Leader Tom DeLay (R-TX) reportedly has refused to bring the House bill to a vote unless funding for NASA is restored. Please be assured that NAHMA will continue to be a forceful advocate for funding of affordable housing programs.
The Senate Appropriations Committee approved its Agriculture Appropriations bill (S 2803). It provided $90 million for Section 515. Rental Assistance received $586 million. Section 538 multi-family housing guaranteed loans received $86 million. NAHMA is seeking information about the status of the $6 million preservation loan funds which were included in the Subcommittee bill.
A point of clarification on the Senate Agriculture Appropriations bill: last week, Senate Agriculture Appropriations Subcommittee staff told NAHMA funding for the Section 515 and Rural Rental Assistance programs were “comparable” to the House levels. NAHMA has since learned funding was less than the levels provided by the House. The same staff person expressed skepticism that all of the $116 million for Section 515 provided by the House was actually available due to drafting problems with the bill. If amendments to increase funding are not offered during Senate consideration of the bill, differences will be resolved in conference.
