Letter to Senate Appropriations Committee Chairman Robert Byrd and Ranking Member Thad Cochran

Letter

Letter to Senate Appropriations Committee Chairman Robert Byrd and Ranking Member Thad Cochran

Snowe, Schumer Call for Increased Public Housing Funds

In a letter to Senate Appropriations Committee Chairman Robert Byrd (D-W.Va.) and Ranking Member Thad Cochran (R-Miss.), U.S. Senators Olympia J. Snowe (R-Maine) and Charles Schumer (D-N.Y.) today urged that additional funding be included for the Public Housing Operating Fund and the Public Housing Capitol Fund as part of a second Fiscal Year (FY) 2008 emergency supplemental appropriations bill that the Committee is considering. Joined by a bipartisan group of 26 Senate colleagues, Senators Snowe and Schumer requested $500 million for the Public Housing Operating Fund for operating costs for public housing agencies and $500 million for the Capitol Fund to be used to finance major repairs and renovations for affordable housing structures.

"For many low-income Americans, public housing is an absolute necessity that keeps families together, children off the streets, and the elderly sheltered," Senator Snowe said. "But in order to supply decent, affordable homes to these hard-working yet vulnerable individuals, public housing authorities must have the resources to provide basic maintenance operations and necessary renovations to keep these housing developments viable and safe. Providing $500 million to the Operating Fund and $500 million to the Capitol Fund will infuse critical funding into our struggling public housing system and improve the quality of life for low-income families and seniors."

"Right now, a vitally important source of affordable housing is collapsing due to a severe lack of funding. We need to ensure that rental housing options remain viable and vibrant for the foreseeable future, particularly given the troubles we're facing in today's housing market. These funds are urgently needed, will be put to immediate use, and should be approved as quickly as possible," Senator Schumer said.

The text of the letter is below:

Dear Chairman Byrd and Ranking Member Cochran:

As the Appropriations Committee moves forward in considering a second Fiscal Year (FY) 2008 emergency supplemental appropriation, we urge you to provide supplemental funding for the Public Housing Operating Fund and Capital Fund. Public housing is a national asset, serving nearly 3 million low income, disabled, senior citizens, and families while stabilizing neighborhoods throughout America.

Specifically, we request that you provide an additional $500 million for the Public Housing Operating Fund and $500 million for the Public Housing Capital Fund. This additional funding would create an immediate economic stimulus in communities across the nation while preserving the physical integrity of our affordable housing infrastructure and addressing housing needs in the wake of the current mortgage crisis.

In recent years, both the Appropriations Committee and Congress have made great efforts to improve upon a series of administration funding requests that have cut many housing and community development programs. However, despite those efforts, public housing faces tremendous needs in FY 2008. According to HUD estimates, available FY 2008 funding will cover just 81 percent of the amount necessary to provide for utilities, security, maintenance, fraud prevention, and services to vulnerable elderly people and families. The impact of this shortfall is compounded by years of underfunding: For the previous four consecutive years, the funds provided for public housing have fallen below 90 percent of HUD's projection of need.

The Public Housing Operating Fund is used to finance the portion of operating costs that are not covered by tenants' rent contributions. This funding is absolutely essential to maintaining affordability and providing safe, high-quality apartments to public housing residents. By providing $500 million for the Operating Fund through the FY 2008 supplemental funding bill, the HUD-defined need covered by the federal government will increase from 81 percent to 92 percent. This will assist local housing agencies with

providing basic maintenance activities conducted through direct and locally-contracted services, including carpentry, plumbing, painting, elevator, and HVAC maintenance.

Without these essential funds, public housing authorities will be forced to make huge cuts in staffing and inspections, resulting in a decreased quality of life for residents of public housing.

The Public Housing Capital Fund finances major repairs and renovations for public housing. With the nation's public housing authorities accruing new capital needs at a rate of $2.3 billion per year, annual underfunding has produced an estimated $18 to $20 billion in capital needs necessary to preserve affordable housing. By providing $500 million for the Operating Fund through the FY 2008supplemental funding bill, the backlog of capital needs in public housing could be quickly addressed through services, construction, materials, and durable goods benefiting both low-income Americans and the economy. These supplemental funds would not only create jobs and stimulate the economy, but would also further the long-term preservation of affordable housing.

Providing $500 million in supplemental funding for the Operating Fund and $500 million for the Capital Fund in the FY 2008 supplemental funding bill will create an immediate economic stimulus while also protecting our nation's affordable housing infrastructure. As you move forward in developing a second FY 2008 emergency supplemental appropriation, we urge your strong consideration of this proposal.

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