By Eugene T. Lowe
June 27, 2005

HUD Secretary Alphonso Jackson delivered a keynote address June 11, during the Conference of Mayors 73rd Luncheon. Jackson emphasized the administration's accomplishments in homeownership, and outlined his proposal to rein in the increasing costs of the Section rental assistance or Section 8 Housing Choice voucher program. Throughout his speech, the Secretary praised host, Chicago Mayor Richard M. Daley, for the work being done with Chicago's public housing.

The Secretary said that, "When cities are strong and vibrant, America is strong and vibrant." A large part of what the administration is doing to help cities become strong and vibrant is its focus on homeownership. Noting that June is National Homeownership Month, and that "more people own homes than ever," Secretary Jackson said that "homeownership has the power to transform lives."

The Secretary cautioned, though, that while homeownership is a major administration initiative, there are other options that are important. He said that the affordable housing must be provided. Jackson said, "HUD can't get out of the affordable housing business. Rental assistance is very important."

With regard to rental assistance, the Secretary said, "We must fix the Section 8 program in this country, which is not serving communities well today." Jackson criticized the Section 8 "quota system" where 75 percent of vouchers go to the lowest 30 percent (recipients in terms of income), which he said is "not workable today." The Secretary said that in 1998, vouchers accounted for thirty'six percent of HUD's budget. Today, vouchers account for 60 percent of HUD's budget. He said further that the growth in vouchers has been 37 percent, while the growth index for housing has been 13 percent.

To address the Section 8 challenge, the Secretary said that the administration has proposed the "State and Local Housing Flexibility Act of 2005." The legislation recognizes that "one size housing does not fit all." Decisions will be made by local housing authorities. The Secretary said, "Washington does not know all." Jackson asked the mayors for their help and support to give housing authorities more flexibility. He stressed, "We are not giving you a mandate, we are giving you flexibility."

In commenting on the Strengthening America's Communities Initiative (the CDBG elimination proposal), the Secretary said that economic development programs should be consolidated. But Jackson reminded the mayors, as Senator Christopher Bond (MO) had reminded him, that while the administration proposes the budget, Congress passes the budget. The Secretary then said that, "As long as CDBG is at HUD we will work with the cities to make sure that the program works in an efficient way." The Secretary added, "It would be hypocritical for me to say that CDBG does not work after having managed several local agencies."

In closing, Jackson said that, "We might disagree on certain issues, but we will not disagree on the preservation of urban centers." Requesting support from the mayors, the Secretary said that "HUD cannot accomplish its work without you."