FOR IMMEDIATE RELEASE	Contact: Michele Anapol (202) 466-2121 x226 manapol@nhc.org

CRITICAL FUNDING FOR U.S. HOUSING PROGRAMS CUT BY 8 PERCENT IN ADMINISTRATION’S NEW FY 2008 BUDGET PROPOSAL

Analysis of Budget Proposal Reveals Funding for Community Development Block Grants, Public Housing, the Disabled and Elderly, is Hardest Hit; HOPE VI Targeted Again for Elimination
 

Washington, DC (February 9, 2007) – This week the Bush Administration released its FY 2008 budget proposal, reducing by 8 percent funding for U.S. Department of Housing and Urban Development (HUD) programs designed to meet critical housing needs across the nation. According to the National Housing Conference (NHC), the nation’s premier public policy and housing advocacy organization, the Administration is touting a $1.6 billion increase, with a total budget of $35.2 billion, in HUD discretionary funding within the proposal. However, this total is based on a comparison to the FY 2007 HUD budget request of $33.6 billion and not the $38.3 billion that would be provided by the pending U.S. House of Representatives-approved FY 2007 joint funding resolution, or H.J. Res. 20. 

“When considering the magnitude of the reductions in the Community Development Block Grant fund, public housing, and housing programs for the elderly and disabled, within the Administration’s budget proposal, it is clear that the wide-ranging housing needs of this nation’s most vulnerable populations are not being addressed,” said NHC President and CEO Conrad Egan.

FY 2008 Budget Proposal by the Numbers

Comparisons of the FY 2008 budget proposal to the pending U.S. House of Representatives-approved FY 2007 joint funding resolution totals reveal severe cuts nearly across the board:

Community Development Block Grant Funds

Particularly hard hit again this year is the Community Development Block Grant (CDBG) program, a fund that helps provide housing and community improvements in low-income neighborhoods. The budget proposal reduces the fund by $735 million, from $3.772 billion to $3.037 billion, resulting in a funding decrease of nearly 20 percent when compared to the pending House-approved FY 2007 joint funding resolution.  The proposal also reiterates HUD’s efforts for new CDBG formula funding.

Public Housing

The budget proposal falls short in terms of meeting public housing needs. Although slight increases are provided in the Public Housing Operating Fund and the tenant-based rental assistance voucher program over the pending House-approved FY 2007 joint funding resolution, the Public Housing Capital Fund would be cut by 17 percent from $2.439 billion to $2.024 billion. In addition, the budget proposal seeks to eliminate, yet again, the HOPE VI program, which helps to revitalize severely distressed public housing.  The Administration has tried to eliminate HOPE VI for the past 5 fiscal years.  

Housing for the Disabled and Elderly

The Administration’s budget proposal cuts Section 811 disabled housing funds almost in half at 47 percent, from $237 million in the pending House-approved FY 2007 joint funding resolution to $125 million. Funds for the Section 202 elderly housing program are reduced by nearly 22 percent from $735 million to $575 million. 

While the HOME program, which creates affordable housing for low-income households and provides homeless assistance grants, received an increase in funding, the Administration’s budget proposal either cuts, or provides level funding, to the bulk of HUD programs when compared to the pending House-approved FY 2007 joint funding resolution.

Additional detailed information about the Administration’s budget proposal can be found by going to a special edition of NHC’s Washington Wire online newsletter.

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