ADV-BUDGET ANALYSIS, Bush Budget would slash key housing programs

http://democrats.senate.gov/dpc/dpc-...me=fs-110-1-29
The Bush Budget Would Slash Key Housing Programs . . . Again


February 15, 2007

President Bush has once again proposed deep cuts for critical federal housing
programs. While the President often speaks of his commitment to affordable
housing opportunities and home ownership for all Americans, his budget proposals
for the Department of Housing and Urban Development (HUD) tell a different
story. Overall, the Bush Administration’s Fiscal Year 2008 budget proposes
$36.150 billion in discretionary spending authority for HUD, as compared to
$36.615 billion in the H.J.Res. 20, the Funding Resolution for Fiscal Year
2007 – a cut of $465 million, or 1.3 percent.



The President’s budget would drastically reduce funding for programs that assist
Americans in the greatest need. At a time when more and more Americans are
being squeezed by high rent, high home heating costs, and high oil prices, the
Bush budget proposes to cut funding for programs to assist lower income
Americans with their housing needs. For example, the President’s fiscal year
2008 budget would:



· Cut $174 million, or 23 percent, from the Housing for the Elderly
program, which supports the creation of housing facilities for lower income
elderly Americans aged 62 years and above;



· Cut $117 million, or 48 percent, from the Housing for Persons with
Disabilities program, which provides construction grants, operating subsidies,
and housing vouchers for lower income Americans with disabilities;



· Cut $37 million, or 24 percent, from the Lead Hazard Reduction program,
in which the main grant program assists state and local governments and Indian
tribes in eliminating lead hazards in low-income and owner-occupied housing; and



· Cut $384 million, or 6.2 percent, from the Project-based Rental
Assistance program, including under-funding the Section 8 Tenant-based
assistance program by not accounting for inflation and the cost of renewing
existing vouchers. The result may be that certain low-income families will lose
vital housing vouchers.



The budget would also decrease funding for key public housing programs. These
programs serve more than one million children and more than one million families
with seniors in residence, yet the budget proposes to:



· Eliminate the HOPE VI program by rescinding the $99 million anticipated
in fiscal year 2007 and providing no funds for fiscal year 2008. This program
pays for the rehabilitation or replacement of run down public housing projects
and is the only significant source of federal money for capital improvements of
public housing; and



· Cut $461 million, or 18 percent, from the Public Housing Capital Fund,
which carries out capital and management activities for Public Housing
Authorities (PHA). This funding is needed to ensure that PHA’s can finance new
housing construction.



The President’s budget would drastically cut funding for the Community
Development Fund. The President is asking Congress to:



· Cut $736 million, or 20 percent, from the Community Development Block
Grant (CDBG) program, which provides eligible metropolitan areas with annual
direct grants that can be used to revitalize neighborhoods, expand affordable
housing and economic opportunities, and improve community facilities and
services; and



· Provide zero funding for:



· The Rural Housing and Economic Development program, which assist states
and localities with housing and economic development in rural areas. Under
H.J.Res. 20, the program is funded at $17 million;



· The Brownfields Economic Redevelopment Development Initiative, which
promotes economic development in abandoned and under-used industrial and
commercial facilities where redevelopment is burdened by environmental
contamination. Under H.J.Res. 20, the program is funded at $10 million;



· Community Development Loan Guarantee program, which provides
communities a source of financing for economic development, housing
rehabilitation, public facilities, and large-scale physical development
projects. Under H.J.Res. 20, the program is funded at $4 million; and



· Self-Help and Assisted Homeownership programs, including National
American Indian Housing Council, Special Olympics, National Council of La Raza,
and National Housing Development Corporation.





NOTE: Budget cuts are calculated relative to H.J.Res. 20, the Funding
Resolution for Fiscal Year 2007, which has passed the House of Representatives
and the Senate, adjusted for inflation.