September 5, 2003

Yesterday (September 4), the Senate Appropriations Committee approved its version of the VA-HUD spending bill. Total funding for the Housing Certificate Fund comes in below the House figure because the Senate did not include the additional $150 million which the House redirected from the working capital fund prior to passing the bill. As the situation now stands, it appears the Section 202 and 811 programs will be essentially flat-lined.

A Senate Appropriations Committee press release which describes the bill at length can be viewed at https://appropriations.senate.gov/releases/record.cfm?id=210315. Relevant excerpts from the release follow:

“The bill rejects the administrations proposal to fund vouchers through the Housing Assistance for Needy families (HANF) account which would block grant voucher assistance to states. Instead, the bill funds the Housing Certificate Fund at $18.4 billion, which is the budget request as included in HANF and the proposed Project-Based Rental Assistance fund. Funding for section 8 would be provided for vouchers currently in use and for those that are likely to be used up to the authorized contract level.”

“HOME is funded at $1.975 billion and includes $50 million for the America Dream Downpayment fund and $40 million for housing counseling.”

“Housing for Special Populations is funded at $1.034 billion, of which $783 million is for Section 202 Elderly Housing and $250 million is for Section 811 Housing for the Disabled.”

More details will be forthcoming when the official Committee Report is released. NAHMA is seeking additional information about the sufficiency of funding for the Section 8 Housing Certificate Fund. Preliminary reports from Hill staff suggest the Senate Appropriators believe HUD will have enough money for the voucher program through appropriations, and if necessary by redirecting unused money in other accounts which could cover any shortfall. Furthermore, if the appropriated funds are not sufficient, the Senate appropriators will expect HUD to submit a request for additional funding.

Recently, NAHMA spearheaded an industry effort to advocate for a level of funding that ensures all utilized Section 8 vouchers are funded and PHAs will be able to lease up to their authorized levels. NAHMA drafted letters to this effect, which were sent to Secretary Martinez, VA-HUD Subcommittee Chairman Kit Bond, and VA-HUD Subcommittee Ranking Member Barbara Mikulski. Seven other of our interested industry partners signed on to our letter.

NAHMA will continue to closely follow the Section 8 issue as consideration of the VA-HUD bill proceeds to the Senate floor.

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