By Eugene T. Lowe
January 31, 2005

Housing and Urban Development Secretary Alphonso Jackson closed out the final plenary session of the 73rd Winter Meeting with remarks on the challenges his department has with Section 8, and the promises of homeownership. Knowing that the mayors had read several news accounts about potential cuts in the Community Development Block Grant (CDBG) and the HOME Investment Partnerships programs, Jackson quipped that "there were bets that I wouldn't show up." But the secretary said that he was delighted to be speaking to the mayors who along with HUD could " create livable environments within our urban areas."

Just as he had told the mayors last June at the Boston Annual Meeting, Jackson said that Section 8 Housing Choice Vouchers are "eating away at the heart of HUD. He said that the rental assistance program now accounts for sixty percent of the department's budget. Jackson said, "I refuse to continue to fund Section 8 at the expense of HOME, CDBG, and other housing programs. I don't think that it is fair to continue to permit that program to grow at the expense of the cities when the cities are in critical need of resources to carry our their mission." In response to the increased costs of Section 8, the Secretary said that he has recommended that public housing authorities use a budget based approach instead of a unit based approach. This will provide public housing authorities more flexibility and make more funds available for other housing and community development programs, such as the CDBG program which, he said is "a very viable and important program to the cities and we realize this."

CDBG program which, he said is "a very viable and important program to the cities and we realize this."

Jackson said that President Bush is committed to assisting people become homeowners. But the Secretary reminded the mayors that the administration "is not trying to get our of rental housing." The Secretary said that "there will be Section 8 certificates in perpetuity in this country. But homeownership is what we should be striving for. People will have a viable stake in this country if they own their homes."

Reviewing the administration's homeownership activities, Jackson said that in June, 2002, President Bush said the nation should make it possible for 5.5 million new minority homeowners. The Secretary said at present, we have created 2 million new minority homeowners, and that there would be 5.5 million new minority homeowners by 2010. But he said, "This will not be easy" because it is a joint venture effort with everyone involved in the housing business. "Specifically, we must hold accountable the GSEs — Fannie Mae and Freddie Mac — to make sure that they address the needs of low and moderate income persons."

Returning to the mayors' concerns about CDBG, Jackson said "we believe that CDBG is a very important program. It is a program that has helped cities tremendously. This administration is committed to make sure that it is carried out with all of the responsibilities attached to it." He added that "CDBG has worked and continues to work very well in our country." Jackson then told the mayors: "I assure you today that the 2006 budget will be a budget that is fiscally conservative but will address the needs of your respective cities." He closed by saying that "we have an opportunity under President Bush , even in a time of war, to address all of the urban needs that confront us today."