 | Public Housing Authorities Directors Association
511 Capitol Court, NE, Washington, DC 20002
phone: 202-546-5445 fax: 202-546-2280 www.phada.org |
December 7, 1999
Honorable Andrew Cuomo
Secretary
U.S. Department of Housing
and Urban Development
451 7 Street, S.W.
Suite 10000
Washington DC 20410
Dear Mr. Secretary:
As you know, PHADA represents the professional administrators of approximately 1,700 housing authorities from all over the United States. I am writing concerning the recently-adopted legislation (H.R. 3425), which requires most federal agencies to impose across-the-board spending cuts in FY 2000 funding.
PHADA greatly appreciated the administration's opposition to earlier versions that would have required much deeper cuts than the final enacted law. We recognize the administration reluctantly accepted more moderate cuts in the spirit of compromise and in the interests of completing the FY 2000 budget process. With that said, we still have some concerns regarding how the cuts might actually be implemented.
As PHADA understands the law, HUD is required to impose a reduction of .38 percent in its overall budget of approximately $26 billion, of which about $22 billion is subject to the across-the-board cut. The Department has discretion on how to impose the cuts, but no one program may be reduced by more than 15 percent. We understand HUD staff is now reviewing various options and is seeking to minimize the impact to the greatest extent possible.
According to recent media reports, the Office of Management and Budget (OMB) has asked agencies to consider cutting programs that received more funding than originally requested in the President's FY 2000 budget. PHADA strongly opposes OMB's recommendation.
The President's proposed FY 2000 budget for both public housing operating subsidies and capital funds was not sufficient. Capital spending, for example, was reduced from $3 billion in FY 1999 to a proposed level of $2.55 billion in the budget request. Similarly, operating subsidies would have only been funded at about 92-93 percent of full capacity under the budget request. Given this, we believe OMB's suggestion is unfair and, if actually imposed, would result in funding shortfalls for many housing authorities, causing them to scale back on essential resident services.
Under your stewardship, HUD was able to work with Congress to obtain additional operating and capital funds at the eleventh hour during the appropriations process. Any reductions could thus negate the success achieved just a few short weeks ago. Accordingly, PHADA respectfully requests that you seek alternative sources in order to achieve compliance with the statute. If the Department must tap programmatic accounts to achieve compliance, we ask that HUD draw from all available funds equally so that no one program bears the brunt of the reductions.
Thank you for your consideration of PHADA's views in this matter. Please do not hesitate to contact me should you need any additional information concerning our position.
Sincerely,
James R. Tabron
President
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