By Eugene T. Lowe
May 12, 2003

Chairs of the House and Senate Subcommittees for Housing introduced legislation on April 29 that would fundamentally change the delivery of the federal government's Section 8 housing assistance. Currently, Section 8 vouchers are administered by local public housing authorities under the Department of Housing and Urban Development (HUD). The bills introduced in the House and Senate would convert the tenant-based rental assistance program to a state block grant.

Representative Bob Ney (OH), Chairman of the House Financial Services Housing and Community Opportunity Subcommittee, introduced H.R. 1841, and Senator Wayne Allard (CO), Chairman of the Senate Banking, Housing and Urban Affairs Housing and Transportation Subcommittee, introduced a companion bill, S. 947. The bills were introduced at the request of the Administration, each with the title, "Housing Assistance For Needy Families (HANF)."

Under the proposed legislation, each state would receive the funds that have been allocated to its locally administered programs in FY2004. HUD would develop a formula to fund the states and would implement it in FY2006. States could not reduce the number of families served by the program even if federal funding is reduced. Tenants would still pay 30 percent of income for rent as in the current voucher program. HUD would no longer provide Fair Market Rent data. The department would, however, provide annual median rent data.

An April 29 Washington Post article reported that "Democrats almost uniformly oppose the plan." The article went on to say that a "few GOP governors and members of Congress have praised the idea publicly", while "some key Republicans have withheld support or criticized the plan outright." In an April 30 press release, Representative Ney makes it clear that he is neutral on the bill. He said: "While I recognize, as the Administration does, that we must constantly seek ways to improve America's communities and strengthen housing opportunities for all citizens, particularly our poor, I also recognize that the issue of reforming Section 8 is a contentious one, and one that deserves a sustained debate so that all interested parties are heard. To that end, while I am introducing this legislation at the request of the Administration, I am also entering this debate as a neutral party, focused on crafting the best piece of legislation to meet the housing needs of the poor."

House Subcommittee Approves Three Housing Bills

On May 7, the House Financial Services Housing and Community Opportunity Subcommittee approved three housing bills. H.R. 1614, introduced by Representative Jim Leach (IA) re-authorizes HOPE VI, the severely distressed public housing program, through FY2004. The program, which is strongly supported by the U.S. Conference of Mayors, has been very successful in replacing deteriorated public housing. Representative Leach's bill would make communities with populations 30,000 and below eligible for the program. Larger cities, of course, would still be eligible.

H.R, 1276, introduced by Representative Katherine Harris (FL), authorizes $200 million for the HOME Investment Partnerships program to assist low- and moderate-income homebuyers with downpayment assistance. The downpayment program has been a top priority for the administration over the last couple of years, and was funded at $75 million for FY2003.

Finally, H.R. 23 would allow state and local governments to use Community Development Block Grant (CDBG) funds to build tornado shelters in mobile home communities.