FULL FUNDING FOR PUBLIC HOUSING CAPITAL AND OPERATING FUNDS
WHEREAS, almost 3 million low-income Americans live in public housing that is operated by
3,200 local public housing authorities (PHAs); and
WHEREAS, public housing provides a critical affordable housing resource in communities across
the country; and
WHEREAS, in fiscal year 2002, a $ 250 million shortfall in the Public Housing Operating Fund
account led to a serious financial crisis in almost one quarter of the nation's PHAs that could have
resulted in these agencies shutting down at the end of March, 2003; and
WHEREAS, in order to avert financial ruin for these agencies, Congress allowed HUD to use
funds appropriated in fiscal year 2003 to make up for the shortfall, resulting all PHAs being
underfunded by at least 10% in fiscal year 2003; and
WHEREAS, PHAs across the country have been deferring needed maintenance, reducing staff
and resident services because of this funding shortage; and
WHEREAS, Congress, HUD, and independent expert of acknowledged that the public housing
stock needs over $ 20 billion in capital improvements to bring it up to modern standards; and
WHEREAS, HUD's proposed budget for fiscal year 2004 (1) does not provide sufficient
operating funds to make-up for the current shortfall or provide adequate resources for next year;
and (2) does not seek any Capital Fund monies to address the backlog modernization needs in
public housing,
NOW, THEREFORE, BE IT RESOLVED that the U.S. Conference of Mayors strongly
supports full funding for the Public Housing Operating Fund and Capital Fund to ensure the
preservation of this important affordable housing resource and, as part of the fiscal year 2004
HUD appropriations, calls on Congress to provide $ 4.1 billion for the Public Housing Operating
Fund and $ 3.5 billion for the Public Housing Capital Fund.
©2003 U.S. Conference of Mayors 
