[Congressional Record Volume 146, Number 106 (Tuesday, September 12, 2000)]
[Senate]
[Pages S8416-S8418]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BOND:
  S. 3033. A bill to delegate the Primary Responsibility for the 
Preservation and Expansion of Affordable Low-Income Housing to States 
and Localities; to the Committee on Banking, Housing, and Urban 
Affairs.


                       housing needs act of 2000

  Mr. BOND. Mr. President. I rise today to introduce an important piece 
of housing legislation that addresses the affordable-housing needs of 
needy Americans. The Housing Needs Act of 2000 is a direct response to 
the affordable housing crisis being experienced by millions of 
Americans today. By working with State and localities, this legislation 
will produce thousands of affordable housing units and ensure that 
existing federally-assisted housing properties are maintained for lower 
income families.
  As Chairman of the Appropriations Subcommittee on VA, HUD, and 
Independent Agencies, I have become increasingly alarmed by the news 
reports and housing studies that have shown that lower income Americans 
are having a difficult time finding decent, safe, and affordable 
housing. The Administration's response to this problem has been to 
provide section 8 tenant-based assistance or vouchers. However, I have 
heard from communities in Missouri to here in the Washington, D.C. area 
that it is becoming increasingly difficult to use vouchers to find 
affordable housing. It has also come to my attention that despite the 
resources given to the Department of Housing and Urban Development 
(HUD), the Federal government has lost thousands of scarce affordable 
housing that were once subsidized by the Federal government. Instead of 
preserving these scarce and valuable housing resources, the Department 
has replaced these units with vouchers. While some families have been 
able to locate replacement housing, many have experienced displacement 
and hardship, resulting in returning the voucher unused or becoming 
homeless.
  Due to these well-publicized problems, I instructed my subcommittee 
staff to conduct a review of the section 8 program and to provide 
recommendations on how to meet better the housing needs of lower income 
Americans. The recommendations of the report are captured in the 
Housing Needs Act of 2000, which I am introducing today.
  Before I discuss the contents of the bill, I summarize the key 
findings of the Subcommittee Staff report entitled ``Empty Promises--
Subcommittee Staff Report on HUD's Failing Grade on the Utilization of 
Section 8 Vouchers.'' The key findings of the report are (1) housing 
units for low-income families are disappearing; (2) worse case housing 
needs are worsening; and (3) section 8 vouchers are proving to be less 
and less effective in meeting the housing needs of low-income families.
  Specifically, the staff reported that over the past 4 years, nearly 
125,000 housing units have been lost to the national inventory of 
affordable housing. These units have been lost due to the decision of 
landlords to leave or opt-out of the section 8 program, HUD's policy to 
voucher out properties that they have acquired title to and those that 
the Department actually owns.

[[Page S8418]]

  The staff also found that a record high of 5.4 million households 
have major housing needs. Based on HUD's Worst Case Housing Needs 
study, many of these households are our most vulnerable individuals 
such as the elderly, disabled, and children.
  Lastly, the staff reported that about 1 out of every 5 families that 
received a voucher are unable to find housing and thus, the voucher 
remains unused. The report also found not enough landlords were 
participating in the voucher program, the payment standard of the 
vouchers were too low for the market area, and voucher holders had 
personal problems which affected the utilization of vouchers.
  Mr. President, the staffs' findings were disturbing to me. As a 
result, I am here today to introduce the Housing Needs Act of 2000 to 
address the report's findings.
  Briefly, the legislation creates a new affordable housing block grant 
production program that would allocate funds to state housing agencies. 
States currently administer other federal programs such as the Low-
Income Housing Tax Credit program, HOME block grant program, and the 
Community Development Block Grant program, which have expanded and 
increased the capacity of states to create affordable housing units. 
Thus, state housing finance agencies have the tools to make this 
program work effectively. I am a big believer in local decision-making. 
States and localities know and understand their housing problems and 
needs and are in the best position to make decisions on their housing 
needs.
  The legislation would also create a new section 8 success program 
that would allow public housing agencies (PHA) to raise the payment 
standard for vouchers up to 150 percent of the fair market rent. This 
will greatly improve the ability of voucher holders to use the vouchers 
in economically strong markets. As the Subcommittee Staff report found, 
19 percent or one in five families that receive a voucher cannot use 
it. I believe that this new success program will improve greatly the 
number of voucher holders actually to use the voucher.
  Lastly, the bill includes a number of smaller provisions that would 
enhance the ability of state and local housing entities to produce low-
income housing and ensure that HUD maintains section 8 assistance on 
properties that it has acquired through foreclosure.
  I urge my colleagues to support this critical piece of legislation. 
Families all over the country are experiencing hardships never before 
seen. It is clear that vouchers alone do not adequately address the 
housing needs of our vulnerable populations. I believe strongly that 
the Housing Needs Act of 2000 provides a much-needed, flexible, 
balanced approach to ensure that the affordable-housing problems can be 
solved.
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