June 22-26, 2001



WHEREAS, the public housing program provides shelter to over 3.2 million low income Americans across the country, including families with children, elderly and disabled; and

WHEREAS, over 3,200 local public housing authorities own and operate public housing units that provide stable living environments and services for needy residents; and

WHEREAS, HUD's proposed budget for fiscal year 2002 would result in a total funding shortfall in the public housing program of over $ 2 billion, including a loss of $ 310 million through the termination of the Public Housing Drug Elimination Program, a $ 700 million reduction in the Public Housing Capital Fund Program, a shortfall in the Public Housing Operating Fund of approximately $ 500 million, and the elimination of one month of reserve funds for the Section 8 tenant-based program totaling approximately $ 640 million; and

WHEREAS, part of the proposed funding shortfall includes termination of the highly successful Public Housing Drug Elimination Program ("PHDEP"), an effective, locally-driven program that provides added security, drug prevention, job training and other services to public housing residents; and

WHEREAS, the proposed $ 700 million reduction in the Public Housing Capital Fund will cause further costly delays in addressing the $ 22 billion of needed repairs to public housing properties and reduce the number of available units in the face of a national affordable housing crisis; and

WHEREAS, HUD's fiscal year 2002 request for the Public Housing Operating Fund falls approximately $ 500 million short of meeting the operating needs of agencies, due largely to dramatic increases in energy costs for which no new funds have been provided; and

WHEREAS, HUD's proposal to reduce Section 8 reserve levels from two months to one month will make it even more difficult for families to utilize Section 8 tenant-based assistance, particularly in competitive real estate markets, and result in $ 640 million loss of funds,

NOW, THEREFORE, BE IT RESOLVED that the U.S. Conference of Mayors opposes the proposed HUD fiscal year 2002 budget for the public housing program and calls upon Congress to appropriate funds to ensure the preservation of this valuable housing resource as follows:

Public Housing Capital Fund:
$ 3.5 billion

Public Housing Operating Fund:
$ 3.9 billion

Public Housing Drug Elimination Program:
$ 410 million

HOPE VI Program:
$ 575 million

Section 8 Tenant-Based Program:
Retain current reserve levels