By Eugene T. Lowe
August 9, 2004

During the week of July 19, the VA-HUD Appropriations Subcommittee and the full Appropriations Committee approved cuts in all HUD programs except the Section 8 Housing Voucher program. The Community Development Block Fund, which includes Community Development Block Grants, was cut by $210 million, while the HOME program was reduced by $85 million. Homeless assistance grants were cut by $53.5 million. But Section 8 vouchers were funded at $13.303 billion.

The House action followed a vigorous campaign by the housing community, including the Conference of Mayors, to fully fund the Section 8 voucher program when that program became seriously challenged by a HUD policy change in late April. In response, the VA-HUD Subcommittee cut all HUD programs by 4.3 percent to fund Section 8. Needless to say, the housing community is outraged by the subcommittee and full committee actions, and is mounting an effort to restore the cuts.

In a letter to Representative Bill Young (FL), Chairman of the House Committee on Appropriations, The U.S. Conference Mayors and other national organizations representing elected and appointed local officials, strongly opposed the 4 percent reduction in programs such as the Community Development Block Grant, HOME Investment Partnerships, and other housing programs. The letter said: "We believe that all Section 8 expiring rent subsidy contracts must be fully funded. We also believe that formula funding for CDBG and HOME must be at no less than their current levels of $4.4 billion and $1.85 billion, respectively. The need for affordable housing that exists in the communities our members serve is overwhelming, and the resources these programs provide are essential. Housing and community development programs should not be pitted against each other."

Even though the House approved more than $13 billion for Section 8 rental vouchers, the Council of Large Public Housing Authorities (CLPHA) said: "Unfortunately, the voucher program is still not adequately funded, thus the sacrifices to the other programs are not justified." CLPHA said further in a press release: "Moreover, the bill would maintain language that the U.S. Department of Housing and Urban Development (HUD) interpreted in a way that is causing the crisis in the current fiscal year and that threatens to increase rents, and in some cases, eliminate critical housing subsidies for the seniors, persons with disabilities and families with children dependent on the program."

The bill is expected to go to the floor when Congress returns in September. The Senate appropriations subcommittee and full committee are also expected to take up the HUD spending bill following the congressional recess.