[Congressional Record Volume 150, Number 71 (Wednesday, May 19, 2004)]
[Extensions of Remarks]
[Page E912]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E912]]
              SECTION 8 HOUSING FLEXIBLE VOUCHER PROPOSAL

                                 ______
                                 

                         HON. STEVEN R. ROTHMAN

                             of new jersey

                    in the house of representatives

                        Wednesday, May 19, 2004

  Mr. ROTHMAN. Mr. Speaker, I rise today in opposition to the 
administration's proposed restructuring of the Section 8 Housing 
Program, particularly in regard to the block grant funding proposal, 
which is especially important to low-income men and women in my home 
state of New Jersey.
  The Section 8 Housing Program currently assists two million 
individuals including elderly citizens, persons with disabilities, and 
low-income working families to meet their housing needs. The proposed 
Section 8 restructuring will leave states and local public housing 
authorities starved of the necessary financial resources they need to 
keep up with the demand for housing. Local housing authorities will be 
forced to either substantially raise rent or cut the number of vouchers 
distributed, severely hampering the program's effectiveness in helping 
Americans afford a safe and secure place to live.
  Nationally, the Congressional Budget Office recently estimated that 
proposed changes to the Section 8 Housing Program will lead to the 
elimination of 600,000 vouchers by 2009, which equals thirty percent of 
all vouchers now in use. In 2005 alone an estimated 250,000 families 
could lose their housing assistance, including 7,181 families in New 
Jersey. For example, in Fiscal Year 2005, the Jersey City Housing 
Authority, located in my district, will face an expected $3,117,611 in 
funding reductions resulting in an estimated cut of 351 currently 
assisted families. The Housing Authority of Bergen County, also located 
within my district, expects a funding cut of $4,056,468, resulting in 
434 families currently receiving assistance to lose their vouchers.
  While losses such as these could be devastating to many families, 
several of my colleagues have argued the proposed restructuring is 
necessary in part to counteract escalating costs of the Section 8 
Housing Program. Indeed, the cost of the Section 8 voucher program has 
increased, but these increases have been reasonable, legislatively 
driven, and impermanent. Over half of the growth in cost has resulted 
from Congressional decisions to increase the number of families the 
Section 8 Housing Program assists, often as a result of ending other 
federal public housing initiatives. Another 37 percent of the growth 
has resulted from an increasing gap between housing costs and the 
earnings of low-income families. In addition, the program has expanded 
because of efforts to improve its efficiency; the share of authorized 
vouchers rose from 90.5 to 96 percent between 2001 and 2003. Cutting 
the funding would, therefore, punish the program for more effectively 
achieving its objectives. Furthermore, the actual Section 8 Housing 
Program costs have risen at a low annual rate of only four percent, and 
the Congressional Budget Office expects future growth to slow markedly 
due to the cooling of the housing market, with an expected small 1.8 
percent growth in fiscal year 2005.
  Studies have shown that a large percentage of low-income families and 
individuals spend more than half of their income on housing, severely 
inhibiting their ability to meet other basic needs. Affordable housing 
is the foundation of economic self sufficiency, the loss of which is a 
barrier to employment that affects children, families, and entire 
communities. Cutting housing funding and reducing opportunities for 
American families to live in safe housing, will directly correlate with 
escalating costs in federal spending for welfare, crime, health, and 
homelessness in the coming years.
  Mr. Speaker, I ask that we guarantee the Section 8 Housing Program an 
adequate level of funding by rejecting the administration's proposal. I 
hope that my colleagues will join me in taking preemptive action 
against escalating financial and social costs in the future by 
providing stable housing for our working poor today.

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