FY 1999 Public Housing Funding

Summary

H.R. 4194 (House version)
The bill contains $2.818 billion for operating subsidies, $3 billion for modernization, $290 million for the Public Housing Drug Elimination Program (PHDEP) and $600 million for the HOPE VI-severely distressed housing program. The bill also includes set-asides of $100 million for inspections, technical assistance, and management reforms, as well as a $5 million set-aside for TOP.

H.R. 4194 (Senate version)
The Senate bill contains $2.818 billion for operating subsidies and $2.55 billion for modernization. Another $310 million is included for PHDEP and $550 million for HOPE VI. The Senate version also ends the 90-day delay in reissuance of Section 8 certificates and vouchers and extends some of the temporary reforms that have been enacted in the past through one-year appropriations measures. These include minimum and ceiling rents, the federal preference and one-for-one replacement repealers, earned income deductions, and the abolition of the Section 8 take-one-take-all and end endless provisions, among others. The bill also includes set-asides of $100 million for inspections, technical assistance, and management reforms, as well as a $5 million set-aside for TOP.

PHADA position

• The amount of operating funding is insufficient for HAs to satisfy their obligations while providing residents with safe, decent and sanitary housing. PHADA recommends appropriating $3.1 billion to meet housing authorities needs, but at a minimum the Performance Funding System (PFS) line item should be increased to $2.9 billion in FY 1999.

• PHADA believes HOPE VI should be ended as a separate set aside program and eligible activities in the program should be made allowable under modernization. PHADA strongly supports the House's $3 billion appropriation for modernization.

• Money for the set-asides should not come out of modernization funding; it should come from a separate funding item.

• PHADA supports the funding level of $310 million for PHDEP in the Senate version of the bill.

• PHADA supports ending the 90-day delay in the reissuance of Section 8 assistance.

• Given that it appears highly unlikely that an authorizing bill will be completed before the end of the fiscal year on September 30, PHADA recommends that the Senate's extension of the reforms be included in the final bill that is sent to President Clinton. Without extension of the reforms into FY 1999, HAs would confront a chaotic situation whereby they would have to reinstate old unworkable preference systems and eliminate their minimum rents.

Suggested action
Congress should increase PFS to at least $2.9 billion, modernization to $3 billion, and extend existing administrative reforms through FY 1999 (minimum rents, repeal of the one-for-one provision, etc.) if no permanent authorizing bill is enacted before October 1, the start of FY 1999.