Press Release on Housing Programs Affected by President’s FY08 Budget

Press Release

For Immediate Release: February 5, 2007   
Contact: Steve Adamske, 202-225-7141 or Heather Wong 202-226-3314   
 
Reps. Waters and Frank Statement on President's Fiscal Year 2008 Budget
 
Washington , DC - Rep. Maxine Waters (D-CA), Chairwoman of the Subcommittee on Housing Community and Opportunity , and Rep. Barney Frank (D-MA), Chairman of the House Committee on Financial Services, released the following statement today on President Bush's budget and Supplemental Appropriations request:

"There is a housing crisis in America . It is inconceivable that the President's budget would reduce support for low and moderate income families rather than expand affordable housing opportunities for those truly in need," said Rep. Waters.

"The President has said he wants to be conciliatory and work with Democrats, but today he released his budget where it is apparent he intends to do even more damage to people in need.  The President has now adopted the argument that the nation must sacrifice at a time of war, but based on his housing budget, only those that are the most in need and the most vulnerable, should sacrifice," said Rep. Frank.  "It is now clear the president is choosing to cut assistance to those in need and resources to our cities and communities in order to finance the tax cuts and the war in Iraq ."

Summary of Cuts:

Public Housing:  Approximately a $450 million net cut of 7% for public housing. Big cut in capital repair (which more than offsets a slight increase in the Operating fund), and rescission of $99 million for the HOPE VI housing program.
 
Section 8 vouchers:  A mere $9 million increase for voucher renewal funding vs. the Concurrent Resolution passed last week [out of a total renewal budget of $14.45 billion].  Thus, the amount does not include an inflation adjustment - which would translate into approximately a $500 million cut, compared to the vouchers being funded in the CR. 
 
Community Development Block Grants [CDBG].  A $736 million cut [20%], compared to last year 

Section 811 Disabled Housing:  A $112 million cut [47%] compared to last year
 
Section 202 Elderly Housing:  A $160 million cut [22%] compared to last year
 
Lead Paint Prevention: A $34 million cut [23%] compared to last year
 
Zero funding for Brownfields Redevelopment, Rural and Economic Development Grants, and CDBG Section 108 loans

Rural Housing also took a beating in the President's Budget.  The primary RHS budget cuts are:

Section 515 multifamily direct loan program.  Zero funding compared to $100 million last year.
 
Section 502 single family direct loan program.  Zero funding compared to $ 125 million (budget authority) last year.
 
Section 523 Self-help housing grant program.  A $24 million cut -- reduced from $34 million to $10 million.
 
Section 514/516 farm labor housing direct loan/grant programs.  A $21 million cut - reduced from $31 million to $10 million.
 
Overall the RHS budget is reduced by $175 million, which amounts to a one third cut in the entire RHS budget over the last six years.  RHS is eliminating programs the serve the very poor (direct loan programs) and focusing on programs that serve moderate income (guarantee loan programs).