[Congressional Record Volume 145, Number 96 (Thursday, July 1, 1999)]
[Senate]
[Pages S8092-S8093]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. JEFFORDS (for himself, Mr. Kerry, Mr. Grams, Mr. Sarbanes, 
        and Mr. Wellstone):
  S. 1318. A bill to authorize the Secretary of Housing and Urban 
Development to award grants to States to supplement State and local 
assistance for the preservation and promotion of affordable housing 
opportunities for low-income families; to the Committee on Banking, 
Housing, and Urban Affairs.


              affordable housing preservation act of 1999

 Mr. JEFFORDS. Mr. President, today I am pleased to introduce 
with Senator Kerry, Senator Grams, and Senator Wellstone the Affordable 
Housing Preservation Act of 1999.
  My work on this bill began several weeks ago out of discussions with 
Vermont housing advocates and private section 8 property owners, and as 
well as with Senator Allard, Senator Grams and Senator Gramm during 
consideration of the Financial Modernization bill. We all acknowledge 
that this issue has rapidly become a serious national problem--one 
where thousands of low income elderly, disabled, and families with 
children are increasingly unable to afford privately-owned low income 
housing units.
  Housing and Urban Development Secretary Andrew Cuomo and Commissioner 
Apgar recently took the step of exercising authority provided by 
Congress to use additional vouchers to stem the tide of Section 8 opt 
outs and prepayments. The Affordable Housing Preservation Act will 
provide a more permanent solution to this crisis.
  The Jeffords/Kerry Affordable Housing Preservation Act will provide a 
longterm solution by building on local partnerships between non-
profits, state and local governments, and private landlords to keep 
existing projects available for low income tenants. The bill preserves 
existing low income projects, as well as increase the units to expand a 
tight housing marketplace through new acquisition and rehabilitation.
  In Vermont rents have increased 11 percent over the past three years, 
making it increasingly difficult to find affordable shelter. To make 
matters worse, the lack of low income housing makes it simply 
impossible to find a place to live in areas like Burlington, where the 
vacancy rate is less than one percent.
  The need to preserve existing housing from opt outs and prepayments 
is only exceeded by the need to expand the number of housing units for 
low-income families, elderly and disabled. The affect of more Section 8 
vouchers is undermined when there is nowhere to use them. On any given 
day in Burlington there are just 60 available rental units in a city of 
more than 40,000 people.
  In such circumstances, low income families cannot even find a place 
to live, much less find one that's affordable. This problem has been a 
key factor in increasing homelessness, as families seeking help from 
Burlington's emergency shelter rose over 60 percent between 1997 and 
1998.
  As Section 8 federal subsidies come up for renewal more often, the 
risk of opt outs by private landlords increases. Housing projects in 
Brattleboro and Montpelier currently face opt out situations where 
landlords will raise rents to levels that Section 8 tenants cannot 
afford.
  The Affordable Housing Preservation Act will build foundations for 
cooperation where efforts to raise public and private money are 
enhanced through federal matching grants. Vermont's community based 
non-profit organizations have achieved much success by encouraging 
private landlords seeking to exit the affordable housing business to 
transfer ownership to these groups.
  Although ``sticky vouchers'' provide much needed short term relief, 
the Affordable Housing Preservation Act offers a long term solution to 
the opt out and prepayment problem by expanding community-based housing 
preservation and acquisition initiatives. This bill will give hope by 
providing help for those elderly, disabled, and families facing 
eviction or homelessness.
  I look forward to working with the Chairmen and Members of the 
Housing Committees in the Senate and House to fix this problem and 
provide a new direction for the nation in affordable housing.
 Mr. KERREY. Mr. President, I am pleased to have worked with 
Senator Jeffords to draft the legislation we are introducing today, the 
Affordable Housing Preservation Act of 1999. The legislation will 
establish a matching grant program that provides money to states and 
localities that are willing to put up some of their own funds for the 
purposes of preserving affordable housing. In order to receive a grant 
under this program, the owner would have to commit to maintaining the 
existing affordability restrictions for a minimum of 15 years.
  In addition, the legislation will encourage transfer of ownership of 
these properties to non-profit housing corporations that work closely 
with residents. We believe that non-profit ownership will, in the long 
run, ensure the maximum possible commitment to affordability at the 
lowest possible cost. The current ownership structure for assisted 
housing constantly puts us in this bind of having to provide more and 
more money just to keep what we have already built and paid for. With 
non-profits, we will not face the constant dilemma of opt-outs, 
prepayments or expiring affordability restrictions. Nonetheless, 
private owners who want to continue to provide affordable housing will 
be eligible under this bill.

[[Page S8093]]

  I appreciate the efforts of Senator Jeffords in facing this problem 
head-on. We are facing an increasing crisis in affordable housing. 
Ironically, this crisis worsens as the strong economy pushes rents ever 
higher, out of the reach of many working Americans and the poor. This 
legislation will help us preserve this crucial affordable housing 
resource.
  In the long run, however, preservation of affordable housing, while 
necessary, won't solve the problem facing millions of American 
families. The real problem in many cities around the country is that 
there is not enough production of new housing. We need to find ways to 
fund the construction of new, affordable, multifamily housing for low 
income and working families, and we need to fund the 100,000 additional 
vouchers we authorized in last year's public housing bill. This is not 
just a poor person's issue. In many states around the country--
Massachusetts, Nevada, New York, Connecticut, New Jersey, Alaska, and 
others--a family would need to work as many as three full time jobs at 
$7 per hour, well above the minimum wage, just to afford the rent on a 
typical 2 bedroom apartment. This is unsustainable economically, and it 
is simply not fair.
  In sum, Mr. President, the Jeffords-Kerry bill builds effectively on 
efforts HUD is taking to save existing housing stock. Now, we need to 
provide the funding to make sure these efforts can move forward, as we 
consider longer term solutions in the months ahead.
                                 ______