Statements On Introduced Bills And Joint Resolutions

Floor Speech

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By Mr. WYDEN (for himself and Mr. Merkley):

S. 1676. A bill to allow for the use of existing section 8 housing funds so as to preserve and revitalize affordable housing options for low-income individuals; to the Committee on Banking, Housing, and Urban Affairs.

Mr. WYDEN. Mr. President, today I rise to introduce the Affordable Housing Preservation and Revitalization Act. I am delighted and honored to be joined in this effort by my good friend and colleague, Senator Jeff Merkley. It has been my privilege to work with Senator Merkley and his staff on an issue that is so important to our state of Oregon and to folks around the country.

There has been a lot of talk about housing in the media over the past year. The topic of most of these conversations has been the turmoil in lending industry and the fallout from the mortgage meltdown. So much so that many Americans have by now become familiar with terms like ``subprime'' and ``securitization.''

But there is another housing story here, even though it may not get the same attention or airtime: It is the story of homelessness and the struggle to find affordable housing, and for thousands of Oregonians it's a daily reality.

Like many States, Oregon is experiencing a sharp rise in homelessness.

In Multnomah County this past January, a count found 2,438 people homeless on a particular night. That was 13 percent higher than in 2007. The deterioration in the economy since January means there are probably more homeless on Portland streets now, officials said.

In July, the Department of Housing and Urban Development released a report that listed Oregon as the State with the highest concentration of homeless people.

According to a September report by the National Alliance to End Homeless, Central Oregon now ranks sixth in the Nation in overall homelessness rates and third among rural communities.

In times like these, the Federal Government can hardly stand to lose its stock of affordable housing. Sadly, that is exactly whats happening.

As long term contracts are coming due, many landlords are leaving the business of affordable housing for the private market. As these owners convert to market rents, which is in their economic interest, the low-income tenants will be unable to afford their homes. With fewer and fewer places to turn, many of these folks will end up on the street.

Some of properties have what are known as residual receipts--funds left over once the operating expenses and owner's distribution have been paid. Currently, this money can only be used in the most extreme of situations. As a result, many of these residual receipts have accumulated for nearly 3 decades. In Oregon alone, estimates suggest there are more than $10 million in untapped residual receipts.

Senator Merkley and I believe these funds represent a substantial asset that could be used to help preserve affordable housing projects with expiring contracts. That is why we are introducing the Affordable Housing Preservation and Revitalization Act.

Our legislation would permit residual receipts to be transferred with affordable housing properties that are sold to non-profits, provided the non-profits commit to preserving and maintaining the housing stock as affordable.

Our legislation isn't a magic bullet and it certainly will not ensure that every American can put a roof over their head. But we think it's the kind of common sense approach that Americans can get behind. I hope that our colleagues will join us in supporting this bill.

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