[Congressional Record Volume 143, Number 105 (Wednesday, July 23, 1997)]
[Senate]
[Page S7972]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page S7972]]
                       VA-HUD APPROPRIATIONS BILL

 Mr. KERRY. Mr. President, I want to thank Senator Bond, 
Senator Mikulski, and all the members of the VA-HUD Appropriations 
Subcommittee for all their hard work in bringing this bill to the floor 
so quickly and with such widespread support. I want to add my voice to 
the many others offering you congratulations for such a good product.
  I appreciate the understanding and expertise both of you bring to 
this bill. Your sensitivity to the need to create new affordable 
housing and homeownership opportunities serves every Member of the 
Senate well.
  Unfortunately, no amount of good intentions and hard work can make up 
for the basic lack of funding for housing programs in this bill. While 
the bill maintains funding for most crucial programs, existing funding 
levels will not really solve the housing problems we face in this 
country.
  Let us take a moment to put the problem into a broader context. There 
are about 16.5 million families that are eligible for housing 
assistance in America. Yet, only 4.3 million of these families receive 
any housing assistance whatsoever. This includes households living in 
public housing, assisted housing, housing built with the tax credit and 
HOME funds.
  Of the 12 million unassisted families, about 5.5 million are faced 
with desperate housing needs, yet are receiving no help at all from the 
Federal Government.
  These families are paying over half their incomes every month to keep 
a roof over their heads. Or, they live in housing that is falling down 
around them. These families teeter on the edge of homelessness. One 
unanticipated problem--a temporary layoff, an illness of a parent or 
child, even an unexpected car repair bill--can force these families to 
choose between paying the rent and buying groceries.
  The committee did a good job of addressing many competing needs and 
interests that go far beyond housing programs. But they have simply not 
been given enough resources to address the larger need for adequate 
affordable housing.
  The fact is, we are facing a likely reduction in the total affordable 
housing stock in America. We expect about 100,000 units of public 
housing to be demolished in the next several years. Private owners of 
some assisted housing are likely to prepay their subsidized mortgages 
to get out from under the affordable housing restrictions. Many owners 
of section 8 project-based housing will simply choose not to renew 
their contracts, eliminating some of the highest quality affordable 
housing stock in the inventory.
  We cannot continue to go in this direction unless we are prepared to 
face a huge increase in the problem of homelessness. Already, in a time 
of low unemployment and strong economic growth, we have seen an 
increase in homelessness of 5 percent, according to a Conference of 
Mayors study.
  Mr. President, one casualty of the fiscal constraints that the 
committee labored within is the Low Income Housing Preservation and 
Homeownership Act [LIHPRH], better known as the Preservation Program. 
This program has preserved over 80,000 units of affordable housing 
permanently. Another 30,000 units in 37 States await funding. While the 
GAO has raised some concerns about this program, I want to make sure 
the facts get in the record. The average cost of preserving this 
housing is $30,000 to $33,000 per unit. This housing could not possibly 
be replaced for such a cheap price in my home State of Massachusetts, 
nor, I suspect, in many other States, either.
  Given the overall reduction of affordable housing, the modest 
investment it would take to preserve this housing, housing that is 
unlikely to otherwise be replaced, is a wise investment indeed.
  I urge the committee to work in conference to find some funding for 
this crucial program. I know Senator Bond's interest in accomplishing 
this goal, along with appropriate reforms to the program.
  In doing so, I urge the chairman to adopt a priority for direct sales 
to tenants. One of the key elements of the Preservation Program has 
been to empower residents to participate in the decisionmaking 
regarding how their homes are to be preserved. Sales to the residents 
who live in these communities is the most direct way to achieve this 
important goal. It gives the tenants the opportunity to build equity, 
like other homeowners; it gives tenants a greater stake in the 
management of the property. In sum, Mr. President, it builds a bridge 
to the middle class for the residents of these projects. I would be 
happy to work with the chairman to achieve this goal.
  Mr. President, I thank my colleagues for all their hard work. I 
support this bill and urge my colleagues to do so, as well. I will 
continue to work for more funding for housing programs, and look 
forward to the day when the chairman and ranking member are able to 
fully fund the needs of public housing, assisted housing, and the many 
other demands they face as well.

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