Mr. Chairman, I offer an amendment. Mr. Chairman, I thank the chairman for working with us, and I understand the point of order. It is something we need to bring to the attention of the Committee on Appropriations. There has been much…
Mr. Chairman, I offer an amendment.
Mr. Chairman, I thank the chairman for working with us, and I understand the point of order. It is something we need to bring to the attention of the Committee on Appropriations.
There has been much discussion already today about the section 8 program and the need of millions of Americans who are now in the section 8 program and millions more who are waiting for affordable, safe, clean housing. This amendment would talk about the distribution of the dollars, once we restore the section 8, and as we are in the section 8 program today.
In 1993, this Congress passed an act that would limit the distribution of those dollars and use a 3-month window to decide how those dollars would be distributed. First, the dollars are not enough, then they use a 3-month window rather than 12 months of the fluctuating cost of public housing authorities to decide how much each public housing authority will get in the section 8 housing choice voucher program.
I want to thank my colleague, the gentleman from Michigan (Mr. Knollenberg), the chairman, and the ranking member, the gentleman from Massachusetts (Mr. Olver), for providing an appropriation in this bill to address some of that need in the 2006 budget. As of right now, as this bill was debated and as it passed the Congress in 2003, in 2004, my district and districts all over America lost hundreds of thousands of vouchers. And for my district, in the 13th Congressional District, that was 1,500 vouchers people had in 2004 that they do not have in 2005, and there is some help in this budget to rectify some of that.
I yield to the gentleman from Massachusetts.
Mr. Chairman, reclaiming my time, I thank the ranking member; and I hope to get it in an authorizing bill as well as to rectify it permanently.
We suggest that the formula would be better distributed on a fairer basis if it would use the 12-month rather than the 3-month window, so that the housing authorities can get the dollars they so sorely need and deserve.
I have a list here of several organizations who support this fairer funding amendment and will be working with the ranking member and the chairman of the authorizing committee to make sure that as we save the section 8 program that it is funded properly and that the money is then distributed properly.
Organizations such as the Center For Budget and Policy Priorities support the fairer distribution; organizations such as the National Association of Housing and Redevelopment Officials support the distribution using the 12-month window rather than the 3-month. The National Association of State Housing Agencies supports using the 12- month need and flexibility rather than the 3-month window, which has an unfair distribution of those dollars. Also, the National Leased Housing Association also believes that we ought to consider distributing those dollars on a 12-month average rather than a 3-month average. The National Low-Income Housing Coalition also believes we should do that as well.
It is important that as we look at the section 8 program, and as was mentioned earlier, and I will not go back over all of that again, that we not only know the need and how important it is but that public housing authorities must be able to meet those needs in a better and fairer way. We have to be able to do what is necessary so that the program is saved.
The portability of those vouchers is something we want to maintain so that individuals, families, and children are able to create and have safe, clean, decent housing. The disparity that exists
when you use the 3-month window is really appalling and not equal and not fair. This prevents the displacement and the air that adds to the displacement of our elderly and disabled and other tenants who are sometimes in private development. They need these protections, and they need to make sure the distribution of the funding is fairer.
I know Chairman Knollenberg has raised a point of order. Would my good Michigan colleague and chairman of the committee join me in a dialogue?
Mr. Chairman, reclaiming my time, I thank my colleague. I understand the gentleman's point of order, and I respect it highly as our chairman, but I wanted to ask if the gentleman would work with us to make a fairer distribution of the section 8 dollars as we go forward into next year.
I commend the chairman for putting in the extra dollars in this 2006 budget so that we can rectify some of that across the country.
Mr. Chairman, I thank the gentleman and appreciate his time and energy on that; and I am sure, Mr. Chairman, that we will work to strengthen the section 8 program in general and certainly the distribution of the funding. I hope that we will also work together to make permanent a 12-month distribution of those funds and not use the 3-month window, which will better serve the public housing authorities in this country.
Mr. Chairman, I rise today to offer an amendment addressing the growing concern I have with the unfair distribution of renewal funding for the Section 8 Housing Choice Voucher Program.
The trend of the past few years for providing allocations to state and local housing agencies for voucher renewal funding has been to base budget allocations on a 3-month ``snap-shot,'' from May through July in 2005.
The justification for selecting those 3 months is only because that was the most recent fiscal quarter for which data was available. There was no consideration of local market condition changes throughout the year in different areas of the country.
While I greatly appreciate Chairman Knollenberg and Ranking Member Olver for recognizing this disparity, and including a set-aside of $45 million to adjust the allocations of the housing agencies whose snap- shot did not accurately reflect leasing levels and costs for 2004, this ``fix'' still does not address the fundamental problem.
The essential problem is that we are basing yearly budgets on just 3 months of costs. That leaves 9 months of fluctuating market conditions unaccounted for.
At a time when rising energy costs are driving utility costs up, and job markets are fluctuating, particularly in areas like Michigan with its manufacturing base, we cannot ignore the impact of these market changes on subsidy needs.
Similarly, housing agencies are required to pay portability costs for families who are relocating, though agencies have control over rent subsidies for those areas. They must simply compensate by reducing or denying assistance for someone else.
This arbitrary snap-shot creates a disparity where some housing agencies wind up with more money than they need to meet their commitments, and others will have to turn families out into the cold because their under-estimated budgets could no longer support the same number of vouchers.
Mr. Chairman, my amendment would implement a formula for allocating renewal funding to state and local housing agencies that better captures the effects of fluctuating local conditions, while adding a cost containment incentive and retaining congressional control over total spending.
It would preserve a key feature of funding policy created last year in fiscal 2005 appropriations by continuing to base budgets on leasing and costs in the prior year, but to avoid unfair impacts of using a 3- month ``snapshot,'' the most recent data available for a 12-month period would be used.
My amendment would help prevent the displacement of the elderly, the disabled, and the other tenants of privately owned developments by guaranteeing stable funding for tenant protection vouchers by exempting those un-negotiable costs from proration.
If total funding allocations are below the sum of the calculated budgets, the distribution of funds would be prorated so each housing agency would receive the same percentage of funds they should have if fully funded. Thus in times of constrained resources, there would be a shared sacrifice; each agency would still receive the same proportional amount.
Agencies currently manage their program over a 12-month period, with fluctuation in costs and leasing from month-to-month. A 12-month snapshot would provide a smoother and more accurate reflection of an agency's program reality than a 3-month snapshot, which could represent a hill or a valley in its budget year.
I know some may worry that agencies reimbursed for their actual costs, have no incentive to keep costs down, but all agencies will be constrained by the amount Congress provides regardless, and they know that, which in and of itself is a reason to constrain costs. This formula is simply a more fair way of distributing limited resources.
Mr. Chairman, if Congress wants to legitimately help American families have access to safe, affordable housing we must work toward a fair, balanced policy and seriously consider real market factors that families must face in their communities.
Endorsers of the Proposed Hybrid Voucher Funding Policy
1. Center on Budget and Policy Priorities.
2. Jody Geese, Executive Director, Belmont Metropolitan
Housing Authority (Martins Ferry, OH).
3. Neal Molloy, Executive Director, Housing Authority of
St. Louis County, Missouri.
4. National Association of Housing and Redevelopment
Officials (detailed proposal only, excluding item 4(a)(i)).
5. National Council of State Housing Agencies.
6. National Leased Housing Association.
7. National Low Income Housing Coalition.
8. Ohio Housing Authorities Conference.
Mr. Chairman, I ask unanimous consent to withdraw the amendment.