FOR IMMEDIATE RELEASE February 8, 2006	Contact: Michele Anapol (202) 466-2121 x226 manapol@nhc.org

Statement by Conrad Egan

President and CEO of the National Housing Conference

Prepared in Response to the President’s FY 2007 Budget Proposal

“The President’s budget proposal leaves many of the nation’s most critical housing and community development programs severely under-funded, undermining the ability of states and localities to meet community needs and reducing the number of families able to access stable, affordable housing. Specifically, the Community Development Block Grant (CDBG) program, a proven tool for developing affordable housing, has been cut by more than $1.1 billion leaving funding at its lowest level since 1990. This is despite CDBG’s clear effectiveness, which is best demonstrated by the Administration’s own substantial reliance on the program to help families in the hurricane-devastated Gulf Region.

The budget proposal would provide funding to renew nearly all of the Section 8 housing vouchers currently in use, although it would not offset cuts made in previous years, and it would increase funding for Homeless Assistance Grants and Housing Opportunities for Persons with AIDS. However, other programs that aid the disadvantaged would experience significant cuts. This includes a drastic 50 percent or $118 million reduction in funding for supportive housing for people with disabilities, and a 25 percent or $190 million reduction in funding for supportive housing for the elderly – a combined loss of more than 3,000 affordable homes nationwide.

In addition, the HOPE VI program, a key initiative that replaces dilapidated and crime-ridden public housing with thriving mixed-income communities, would be completely eliminated. The Section 515 rural rental housing program also would be cut, ultimately leaving revitalization efforts focused on helping rural families solely under the Section 542 rural voucher program. These cuts would significantly damage efforts to revitalize low-income communities.

Decent, affordable and safe housing helps ensure stability, promotes independence and is important for good health. As a result, NHC urges Congress to fully fund housing and community development programs for the sake of families that rely on many of these essential programs to not only survive, but thrive.”

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