File: 
NCSHA Letter on FY 2010 HUD Appropriations.pdf

Summary

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    July 10, 2009

    The Honorable John W. Olver
    Subcommittee on Transportation, Housing and
     Urban Development, and Related Agencies
    1111 Longworth HOB
    U.S. House of Representatives
    Washington, DC 20515
     
    Dear Mr. Chairman:
     
                As you prepare to mark up the FY 2010 HUD appropriations bill, we urge you to restore HOME formula grant funding to at least its FY 2004 level, as adjusted for inflation, of $2.4 billion; to increase Section 8 funding adequate to renew all expiring project-based contracts for a full year, fully fund all authorized vouchers, and provide for new incremental vouchers in FY 2010; to provide at least $1 billion for the National Housing Trust Fund; and to include necessary resources for HUD and state Housing Finance Agencies (HFAs) to fulfill HUD’s new Low Income Housing Tax Credit tenant data collection requirements.
     
    HOME Investment Partnerships Program
     
               In these tight budgetary times, the HOME formula grant is one of the best housing investments Congress can make. HOME allows states and localities to determine how to put limited HOME funds to their best use. Increased appropriations for HOME will help states and localities respond to the urgent housing needs they face in the midst of the economic crisis.
     
               HOME has an outstanding track record of success. Since Congress created it in 1990, HOME has financed more than 1.1 million affordable homes, helping almost 600,000 renters and more than 500,000 homeowners.
     
               The need for HOME funding vastly exceeds the amount available. While we appreciate Congress’ 7 percent increase in FY 2009 HOME funding over the FY 2008 appropriation, this increase did not make up for previous reductions. HOME’s FY 2009 appropriation is 9 percent less than its FY 2004 amount. Its formula grant is 3 percent less than in FY 2004. 
     
               This year, the Administration proposes to fund HOME at the same level as FY 2009, $1.825 billion. We urge you to increase HOME funding to $2.4 billion in FY 2010 to make up for prior year reductions and inflation’s impact on each HOME dollar’s buying power.
     
               We support the Administration’s proposal to eliminate the American Dream Downpayment Initiative. To maximize HOME’s effectiveness, we recommend you devote every available HOME dollar to the state and local HOME formula grant, not set-asides that restrict state and local flexibility to direct their HOME funds to their most pressing housing needs. 
     
    Rental Assistance
     
               We also recommend Congress provide adequate Section 8 funding for vouchers and project-based contracts. These two programs serve some of our lowest income, most vulnerable people. The Administration proposes spending $17.8 billion for vouchers, a 6 percent increase over last year’s appropriation, and $7.7 billion for project-based rental assistance, an 8 percent increase over last year’s appropriation. We urge you to appropriate at least the Administration’s requested amounts to ensure all vouchers already in use are renewed and to fully fund all contract renewals to regain owner confidence in the program.
     
               Thank you for funding new incremental vouchers in FY 2009. However, additional new incremental vouchers are needed so we can help some of the millions of families who qualify for voucher assistance, but do not receive it. 
     
                We urge you also to provide flexible rental assistance to state Housing Finance Agencies (HFAs) that they can use for either project-based or tenant-based rental assistance. Such funding would allow states to address their production and affordability needs most effectively and to serve more extremely low-income families by combining it with state-administered Housing Credit, Housing Bond, HOME, and other production resources. 
     
                States consistently target their Housing Credit, Bond, and HOME resources to households with incomes below the programs’ statutory income limits. Yet, it is difficult—and sometimes impossible—to reach these households at a rent level they can afford without rental subsidies.
               
    National Housing Trust Fund
     
                We urge you to provide at least $1 billion for the National Housing Trust Fund in the FY 2010 appropriation legislation, preferably through a dedicated, mandatory funding source that will not affect funding for other HUD programs. New funds provided through the Trust Fund will allow HFAs to extend the reach of their current resources and allow them to write down the cost of rental developments and pay some operating costs, making rents more affordable to very and extremely low-income families.
     
    Low Income Housing Tax Credit Tenant Data Collection
     
                We urge you to also include funding for HUD and HFAs to implement the new Low Income Housing Tax Credit (LIHTC) tenant data collection requirements enacted in the Housing and Economic Recovery Act (HERA) of 2008. HERA requires that HFAs submit Housing Credit tenant data to HUD. It also requires HUD to establish data standards and definitions, provide technical assistance to states, compile the data, and make it publicly available. 
     
                HERA authorized $2.5 million for FY 2009 to enable HUD to carry out its responsibilities under the data collection requirement.  We urge you to appropriate that funding, as well as an additional $3 million to help HFAs set up new data collection and submission systems.
     
                Before closing, I want to thank you for funding the Tax Credit Assistance Program (TCAP) in the American Recovery and Reinvestment Act (ARRA) of 2009. This program is allowing stalled Housing Credit developments to move forward, thereby producing essential affordable housing units and jobs. As you know, this program is just getting started. We look forward to sharing with you its results and evaluating the need for additional TCAP assistance in the future.
     
                We recognize it will be difficult for you to accommodate competing needs within the HUD spending bill. We urge you to consider the proven effectiveness of HOME and Section 8 and the need for additional resources for the Trust Fund and the Housing Credit tenant data collection requirements as you make your funding decisions.
     
    Sincerely,
     
     
    Barbara Thompson
    Executive Director