As in previous years, the President's Fiscal Year 09 budget for federal housing programs represents significant cuts to low-income housing programs.

• The Tenant Based Rental Assistance Account is funded at $16 billion. Contract renewals for Section 8 vouchers are funded at approximately $14 billion, compared to the $15.5 billion needed to fund all authorized vouchers. According to the Center on Budget and Policy Priorities, this will mean a loss of 100,000 vouchers currently in use nationwide. Tenant Protection Vouchers (provided to replace project-based section 8 subsidized housing units) would receive $150 million, a 25% cut from the FY 08 appropriation. Family Unification Program vouchers (provided to families for whom the primary reason for the separation, or imminent separation, of family members is the lack of adequate housing), funded last year at $20 million, are eliminated, as are vouchers for non-elderly disabled vouchers, a $30 million cut.
• A positive development in the budget is a proposal to fund $39 million worth of new vouchers for elderly and disabled households displaced by Hurricane Katrina, and currently receiving housing assistance through the Disaster Housing Assistance Program (DHAP). DHAP is scheduled to expire in March 2009; these newly funded vouchers would allow approximately 3800 elderly or disabled households to continue to receive assistance beyond DHAP.
• The President has requested $7.16 billion for renewal of project-based section 8 funding. This represents a significant increase over FY 08, but continues to be less than what is needed for HUD to renew all contracts in FY 09 with a full 12 months of funding. [The instability in federal funding for project-based section 8 can have a negative impact on building maintenance, and the willingness of a building owner to continue in the program at the time the contract is up for renewal with HUD.]
• Despite a multi-billion dollar backlog in needed capital repairs to public housing units, the President's budget proposes to cut the Public Housing Capital Fund by $400 million, or 17%, requesting only $2 billion for the account. HUD plans to conduct a new capital needs study in 2008 as directed by Congress. HUD contends that the backlog of capital repairs has been reduced through demolition of substandard units and the modernization and redevelopment of several hundred thousand units.
• The Public Housing Operating Fund would receive a $100 million increase, to $4.3 billion, to reflect higher costs for day-to-day expenses. Despite the increase, the resulting $4.3 billion proposed allocation would fund only 83% of what is actually needed to operate public housing. [In NYC, public housing has been in crisis for some time as the New York City Public Housing Authority (NYCHA) has insufficient funding to meet its operating expenses. While the City has resumed contributions to NYCHA's operating costs, NY State fails to pay operating costs of buildings built by the state and operated by NYCHA.]
• Advocates, once again, will need to press Congress to: strengthen funding for the Section 8 housing voucher program, both tenant-based and project-based; increase funding for operating costs for public housing; and, ensure that there is adequate funding to address capital repairs to public housing units.
• NYC Housing Advocates: Join tenants from across New York City at 6:30 p.m. on Wednesday, March 19th, to demand that Congress and the Department of Housing and Urban Development (HUD) provide full funding for project-based Section 8. Judson Memorial Church, 55 Washington Square South, New York, NY  10012. For more information, please contact: mary@tandn.org.