[Congressional Record Volume 149, Number 36 (Thursday, March 6, 2003)]
[Extensions of Remarks]
[Page E382]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        HOUSING GROUPS OPPOSE ADMINISTRATION SECTION 8 PROPOSAL

                                 ______
                                 

                           HON. BARNEY FRANK

                            of massachusetts

                    in the house of representatives

                        Wednesday, March 5, 2003

  Mr. FRANK of Massachusetts. Mr. Speaker, one of the areas where 
national policy is weakest is that of affordable housing. The very 
prosperity of the nineties that so benefited most Americans in fact 
exacerbated the housing crisis for many, because of the unevenness of 
the housing market and of that prosperity. Sadly, recent proposals from 
this administration not only do nothing to alleviate these areas of 
housing crisis, they would worsen them. One of the areas where the 
administration's proposals would worsen an already bad situation is 
that of Section 8 Housing, the main program by which we help people 
rent housing when they cannot afford decent homes on their own. Not 
only has the program been insufficiently funded recently, the 
administration's new budget proposal seeks to make this a block grant, 
removing any federal protections for those in need, and subjecting them 
to the already strong pressures that many state budgets face. A 
coalition of some of the most important groups in the housing field, 
including many of those business organizations that seek to help us 
meet the need for affordable housing, recently wrote to Secretary 
Martinez expressing their strong opposition to this proposal. Their 
letter lists several reasons why this program would be harmful to our 
major current effort to help low income people meet their housing 
needs, and given the expertise and commitment of those who have signed 
the letter, as well as their reasoning, I ask that it be printed here 
so that the members may benefit from their very sound judgment.
                                                February 25, 2003.
     Hon. Mel Martinez,
     Dept. of Housing & Urban Development,
     Washington, DC.
       Dear Secretary Martinez: The undersigned groups are writing 
     to express our concern regarding HUD's FY04 Budget proposal 
     to block grant the Housing Choice Voucher program.
       The voucher program, created under the Nixon 
     Administration, has become the cornerstone of federal 
     affordable housing policy and has broad support among many 
     constituencies.
       In recent years, an increased number of conventional 
     apartment owners have begun participating in the voucher 
     program. While the program is not perfect, professional 
     apartment owners in partnership with the current voucher 
     administrators have made great strides in helping low-income 
     families find quality affordable rental housing--a 
     partnership that helps the community as a whole.
       Apartment owners and managers look to uniformity and 
     consistency of program rules and funding levels when deciding 
     to participate as voucher landlords. HUD's proposal creates 
     uncertainty in this regard, the result of which will have a 
     chilling impact upon market participation in the program.
       In addition, multifamily property owners often operate in 
     multiple States. If each State creates its own program, it 
     would necessitate the understanding of new rules created by 
     up to 50 different administrators. Further, any shifting of 
     federal funds to state block grants raises serious concerns 
     about future funding availability, begging the question of 
     why States would be interested in HUD's proposal.
       A dramatic shift in program rules and administrators will 
     also jeopardize the new homeownership voucher programs 
     launched by local agencies in partnership with the real 
     estate and lending community. This homeownership initiative 
     holds promise for increasing opportunities for low-income 
     families.
       Devolution may have a place in any sound federal housing 
     policy, but not in relation to the House Choice Voucher 
     program. We stand ready to work with HUD on alternative 
     approaches to strengthening its tenant-based assistance.
           Sincerely,
       Council for Affordable and Rural Housing.
       Institute for Responsible Housing Preservation.
       Institute of Real Estate Management.
       National Apartment Association.
       National Association of Realtors.
       National Leased Housing Association.
       National Multi House Council.

                          ____________________