Section 8 Housing Faces Cuts

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The Federal Department of Housing and Urban Development's website touted April as Fair Housing Month.

But, for housing advocates, this federal agency has done something quite UN_FAIR

SOUNDUP CHANTING FROM PROTEST

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Affordable Housing advocates from around the country recently protested last-minute funding changes for Section 8.

Martha Yaeger is the coordinator for the New Hampshire Housing Forum

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The problem with what's happening is the federal government, the Congress appropriated enough money to fully fund existing vouchers for the '04 fiscal year. Ten months into the fiscal year, they are changing the funding formula which is shorting many housing authorities, including New Hampshire"

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HUD - The Department of Housing and Urban Development--explains that it will pay vouchers based on a unit-cost reported as of last August.

Of course, landlords could have increased their rents since then.

And that would have raised the cost for the vouchers for the full fiscal year.

Shelia Crowley is the president of the National Low Income Housing Coalition.

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"Its the first time in the 30 year history of the program that the federal government has failed to assure payment on every single voucher that has been put out, this is a change in policy that has gone against what every president has done since 1974, Republican or Democrat."

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New Hamsphire's housing advocates met with the Granite State Congressional delegation.

1st District Representative Jeb Bradley.

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What's happening right now is people are trying to figure out how to proceed and request that HUD reverse that decision.

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Senators John Sununu and Jud Gregg have jointly signed a letter asking the agency to review its decision and respond to the concerns of New Hampshire housing authorities.

Representative Bradley has sent a letter of his own asking that any policy change that causes low income families to lose their vouchers must be avoided.

Low Income Housing Activist Martha Yeager

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"Our hope is that Congress will make it very clear to HUD that they expect them to fulfill the intention of the appropriation legislation, that they will fully fund and that they will change this order. Changing the rules of the game 10 months into the fiscal year is not fair."

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This funding crunch must be resolved quickly, because some housing agencies end their fiscal years in June.

This means, if HUD bases the year's funding on last August's lease costs...and meanwhile, rents have gone up...those agencies may not be able to pay out all vouchers before the beginning of their next fiscal year.

And that could mean eviction for some families, within weeks.

The current crisis highlights a related issue...the Bush administration has been eyeing ways to completely revise the way Section 8 vouchers are funded. Representative Jeb Bradly

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"There has been a concern, in particular, in the past several years that the cost of section 8 housing has increased far greater than market-based rents through the rest of the economy So I think there is a concern why section 8 housing has been going up so much, almost at 10 percent when market rents have not increased that much.

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One factor is that landlords must meet federal standards to accept Section 8 vouchers.

That could contribute to higher costs.

Plus, since families only pay 30 percent of their total income...the vouchers make up the rest.

If rents increase faster than wages, the the cost of the vouchers increase.

Federal funding is based on averages, but Local rents can deviate wildly from that estimate.

Housing advocate Martha Yeager

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"New Hampshire housing is very expensive, its among the top ten most expensive places to live in the country. and that's in part because of the Boston market. But that has pushed further and further into the state and has rippled. People that lived in manchester can now no longer afford Manchester rents so they've moved to Laconia because people from Boston have moved to Manchester."

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As local housing authorities struggle with the realities of rising rents, the Bush administration is proposing a whole new approach.

The current system is based on the number of families and vouchers for them.

The White House wants to move to a block grant system, arguing local authorities need flexibility and simplicity to determine who qualifies.

Representative Jeb Bradley agrees that Section 8 needs to be re-examined.

But he says trying to impose a major policy change at the last minute isn't the way to go.

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"That this decision not be applied retroactively I think that's one of the key determinants right off the bat, so hopefully, if there's enough pressure from members of Congress, which there will be the Housing and Urban Development agency will reverse itself."

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New Hampshire's congressional delegation wants The Bush Administration to discuss possible changes to the Section 8 program.

But until then, New Hampshire's public housing authorities may have to scramble to find the dollars they thought Washington would be sending north.

For NHPR News, I"m Priscilla Huff in Washington