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Federal Budget Shortfalls Strain Subsidized Housing
By Tim Taylor

JoAnn Jackson, a 60-year resident of the District, lives in a senior citizens’ building in Northwest and has been living in Section 8 housing for 10 years. With Section 8, she pays one-third of her fixed income in rent each month.

However, she is worried that in few months, her Section 8 benefits will be at risk due to federal budget shortfalls. And she also worries about many of her friends and associates who have been on Section 8 waiting lists for years, who will continue to wait if funding levels remain the same.

“The cuts are going to be very bad,” Jackson said. “Public housing is for people who can’t afford the condos and houses in the city, but the city can’t afford to have a lot of homeless people. It’s going to affect a lot of people.”

The budget cuts to which Jackson is referring come by way of a Joint Funding Resolution that will set funding levels for the U.S. Department of Housing and Urban Development (HUD) programs for fiscal year 2007 (through Sept. 30) at the previous year’s levels. Congress is expected to pass this resolution by Feb. 15, when the previous budget resolution, which also funds HUD at last year’s levels, expires.

The lack of an increase will cause public housing subsidies to be underfunded by 25%, according to a report released by The National Low Income Housing Coalition (NLIHC) last month. The report also explains that HUD needs an additional $487 million to cover all existing Section 8 housing and vouchers for fiscal year 2007. Without this money, 107,000 Section 8 vouchers cannot be renewed.

The NLICH projects that about 14,000 homeless people will have to endure another year of homelessness if funding for housing programs is not increased by at least $185 million.

In addition, Jackson said, decreases in federal funds will affect local businesses and housing management companies. She said that many buildings whose residents receive Section 8 benefits will be unable to repair and renovate their buildings to meet federal and local housing requirements.

Locally, the effects of these cuts may be even more sharply felt. The District of Columbia currently has 10,959 units subsidized under Section 8 vouchers and other federal multifamily programs, with contracts for 4,505 units set to expire between April 2006 and March 2007, according to the Urban Institute. Housing advocates estimate that the waiting list for Section 8 vouchers is close to 20,000 residents.

With the Census Bureau reporting 10,000 more D.C. residents falling below the federal poverty line in 2005 and with housing costs remaining high, the demand for subsidized housing is expected to only increase.

Ryan Juskus, coordinator of Affordable Housing Advocate of D.C., said that the current situation in the District, combined with the absence of a federal funding increase, is “very bad” for the city.

He said, however, that in order to make up for the federal shortfall, local officials will have to cut back in other areas of the city budget.

Charles Allen, a spokesman for D.C. Councilmember Tommy Wells (D-Ward 6), a member of the Housing and Urban Affairs Committee, said that city leaders are still trying to understand the impact of the budget reductions. He added that Wells has met with city housing officials to try and assess the budget cuts and how the city can respond.

Jackson suggested that city officials convert many of the condos into low-income and Section 8 housing to deal with the federal cutbacks and the long waiting list for vouchers. She pointed to the abundance of condos and apartments throughout the city, many of which are too expensive for city residents.

“There are too many condos being built,” she said. “They might as well be put to good use and help those of us that can’t afford to live in the city anymore without some assistance.”