HUD

May 17, 2004

Secretary Alphonso Jackson
U.S. Department of Housing & Urban Development
451 7th Street, S.W.
Washington, D.C. 20410

Dear Mr. Secretary:

On April 22, 2004, the U.S. Department of Housing and Urban Development (HUD) issued Notice PIH 2004-7 (HA) implementing the Office of Public and Indian Housing’s interpretation of the Housing Choice Voucher Program appropriations provisions in the Fiscal Year 2004 (FY2004) Consolidated Appropriations Act. NCSL’s Economic Development, Trade & Cultural Affairs Committee heard briefings regarding this notice from several sources during our recently completed 2004 Spring Forum. Committee members were sufficiently concerned with the interpretation and the timing of implementation that they adopted an Action Calendar Resolution calling for a withdrawal of this notice and the establishment of a consultation process with state officials to design an appropriately timed implementation strategy. Please find a copy of that resolution, “HUD Implementation of Section 8 Housing Voucher Program Funding,” enclosed for your review.

NCSL is concerned that HUD’s interpretation of those provisions will reduce the number of vouchers available to public housing authorities (PHAs), 23 of which are state-operated. Furthermore, the timing of this notice does not allow state legislatures or housing agencies, whose fiscal years typically begin on July 1, to adapt programs or funding streams to accommodate these changes. We are also concerned that a reduced number of vouchers will deprive low-income households who are either new to the program or on waiting lists of this much needed housing assistance. If they become homeless, they are likely to turn to state homeless assistance programs at a time when, as you know, state budgets are suffering and unable to provide new services.

NCSL agrees that HUD must implement the changes to the Section 8 program that Congress has requested, but we question the interpretation chosen and the timing of the action. We ask that you withdraw the notice, allow PHAs to use the full number of authorized vouchers with the appropriation provided by Congress, and to begin a consultation process with state officials in order to best achieve Congress’ goal in a timely fashion that does not jeopardize either the Section 8 program or state programs.

NCSL appreciates your support on this issue and looks forward to working with you and the Department of Housing and Urban Development to achieve our mutual goals of aiding America’s working families to establish safe and healthy households while maintaining fiscal responsibility during these difficult budgetary times. Please do not hesitate to contact me or Jeremy Meadows of NCSL's Washington staff (202-624-8664 or jeremy.meadows@ncsl.org) to further discuss our concerns and possible solutions.

Sincerely,

Peter Lewiss
Representative, Rhode Island House of Representatives
Chair, NCSL Standing Committee on Economic Development,
Trade & Cultural Affairs

CC:      President George W. Bush
            Senator Ted Stevens, Chair, Senate Appropriations Committee
            Senator Robert C. Byrd, Ranking Member, Senate Appropriations Committee
            Senator Richard C. Shelby, Chair, Senate Banking, Housing & Urban Affairs Committee
            Senator Paul S. Sarbanes, Ranking Member, Senate Banking, Housing & Urban Affairs Committee
            Congressman C.W. Bill Young, Chair, House Appropriations Committee
            Congressman David R. Obey, Ranking Member, House Appropriations Committee
            Congressman Michael G. Oxley, Chair, House Financial Services Committee
            Congressman Barney Frank, Ranking Member, House Financial Services Committee

Standing Committee on Economic Development, Trade & Cultural Affairs
HUD Implementation of Section 8 Housing
Voucher Program Funding

WHEREAS, the Department of Housing and Urban Development (HUD) Section 8 housing voucher program is a federal program that subsidizes housing for many low-income Americans across the country;

WHEREAS, the HUD appropriation in the federal Fiscal Year 2004 Omnibus Appropriations bill allocates $310 million for the Section 8 program;

WHEREAS, public housing authorities, at least 23 of which are state-run agencies, have responded to criticism from the Congress and HUD for not fully utilizing all allocated vouchers by increasing utilization;

WHEREAS, HUD has changed policy and issued a notice stating that it will only issue payments based on the number of vouchers under lease on August 1, 2003, adjusted for inflation;

WHEREAS, households currently on Section 8 waiting lists or at risk of being terminated from Section 8 leases under HUD’s new policy will become homeless and likely turn to state programs for assistance;

WHEREAS, state budget conditions continue to be constrained;

WHEREAS, ample time is needed to afford states the opportunity to adequately respond programmatically and budgetarily to this change in HUD policy;

WHEREAS, analysis of the Omnibus Appropriations bill shows that HUD’s plans will leave $175 million of the $310 million of funds Congress appropriated for voucher renewals unspent;

NOW, THEREFORE BE IT RESOLVED, that the National Conference of State Legislatures (NCSL) calls on HUD to withdraw the April 22, 2004 notice, PIH 2004-7;

THAT HUD immediately institute a consultation process with state and local government officials to design an implementation strategy that meets congressional requests without precipitously overburdening state and local programs;

THAT HUD immediately begin a consultation process with state and local government officials to craft a proposal to improve and reform the Section 8 program in a reasonable timeframe; and

BE IT FURTHER RESOLVED, that a copy of this resolution be delivered to the President, the Secretary of Housing and Urban Development, and the Chairs and Ranking Members of the House and Senate Appropriations Committees and other members of Congress as deemed appropriate.

NCSL Spring Forum, May 1, 2004.