"NYSPHADA POSITION PAPER"
created on 2010-10-04 14:57:02
LEGISLATIVE and REGULATORY AGENDA
The New York State Public Housing Authority Directors Association (NYSPHADA) represents 60 small, medium and large public housing authorities (PHAs), comprised of over 185,000 public housing units and over 100,000 Section 8 units across New York State. We thank you for your consideration of our views, and remain available to provide additional information at your request.
NYSPHADA SUPPORTS THE FOLLOWING POSITIONS:
FEDERAL FISCAL YEAR 2011 FUNDING:
NYSPHADA respectfully urges fair and adequate Fiscal Year 2011 funding for public housing authorities. NYSPHADA joins the Public Housing Authorities Directors Association (PHADA), the National Association of Housing and Redevelopment Officials (NAHRO) and the Council of Large Public Housing Authorities (CLPHA) in support of the following Fiscal Year 2011 funding levels:
Public Housing Operating Fund: $5.084 billion
Public Housing Capital Fund: $5 billion
Housing Choice Vouchers: $17.165 billion
Restoration of Drug Elimination Grant Program: $310 million
HOPE VI Program: $800 million
Service Coordinators for the Elderly and Disabled: $50 million
Resident Opportunity and Supportive Services Program: $55 million
OPERATING FUND:
NYSPHADA advocates a $5.084 billion funding level for the Operating Fund. This is the minimum funding level required annually for public housing authorities across the country to meet their operating needs.
Furthermore, New York State public housing authorities are additionally burdened by State pension requirements, high insurance costs, and other State and local requirements. These unique factors are not taken into account by HUD’s operating fund formula, although such inflexible costs are borne by the operating fund to the direct detriment of other operating fund needs. In order for public housing authorities to fulfill properly their mandates, operating funds must be provided at full formula funding levels. While not a high enough funding level, given existing Federal budget constraints we are appreciative that the House of Representatives and the Senate Appropriations Committee provided identical operating fund levels of $4.83 billion,
equivalent to the President’s budget request.
CAPITAL FUND:
NYSPHADA advocates a $5 billion funding level and increased flexibility for the Capital Fund. The current backlog of unmet capital needs has been estimated at more than $32 billion, based on a 2008 study by the Center on Budget and Policy Priorities. The new capital funds provided by the stimulus have been gratefully received and utilized in a cost-effective and nimble fashion. However, long neglected capital fund projects remain in waiting. Capital fund monies not only create jobs and stimulate the local economy, but they often create energy savings that can reduce the stress on the operating fund. In addition, capital improvements strengthen the government’s investment in its own existing infrastructure and preserve our Nation’s affordable housing stock. We are disappointed that the President proposed a Fiscal Year 2011 decrease in capital fund monies, and grateful that the House and Senate provided $455 million above the President’s request, or $2.5 billion.
HOUSING CHOICE VOUCHERS:
The industry requested a Fiscal Year 2011 funding level of $17.165 billion for the Housing Choice Vouchers Program (HVC.) We support the Senate appropriations level of $17.17, which would provide full funding for the HVC Program. The House provides $17.08 billion.
We thank Congress for their ongoing commitment to this important program.
HOPE VI PROGRAM:
NYSPHADA advocates an $800 million funding level for the HOPE VI Program. HOPE VI enjoys wide bipartisan support and has been credited with changing the face of public housing in America. While NYSPHADA supports the underlying concepts of the Choice
Neighborhoods Initiative (CNI), we believe it should not supplant the successful and still much-needed HOPE VI Program. There remain a sufficient number of distressed public housing properties across the country that require a dedicated redevelopment resource through
HOPE VI. Any funding for the new and untested CNI should not come at the expense of HOPE VI, or public housing operating and capital fund levels. We thank the House of Representatives for passing a funding level of $200 million for the HOPE VI program.
REINSTATEMENT OF THE DRUG ELIMINATION PROGRAM:
NYSPHADA urges a new funding stream, at a minimum level of $310 million, for initiatives to increase the safety and security of public housing authorities. Programs to increase the safety of our residents and communities include: PHA-supported police, security guards, security cameras, protective fences, after-school programs, Boys & Girls Clubs, and adult education classes. These programs also create sustainable jobs while serving an important public policy purpose. The loss of the Drug Elimination Program in 2002 has had a deleterious impact across the country. Its reinstatement is long overdue.
PUBLIC AND ASSISTED HOUSING PROGRAM REFORM:
Funding flexibility, rent reform and reduction of regulatory burdens are essential changes needed for public housing authorities to continue to provide housing and services to the same number of families during today’s economic conditions.
We strongly support much needed improvements to the Department of Housing and Urban Development’s grants management systems. Greater consistency, transparency, communication and timeliness are essential in order for PHAs to have reasonable expectations of their future Federal funding streams and the ability to run efficient business models.
NYSPHADA supports the development of rent simplification proposals. Specifically, we support budget revenue neutral efforts to: encourage residents to increase their earned incomes; maintain housing affordability; and achieve real simplification. We also support the goals of HUD’s existing Moving to Work Demonstration program, and believe this or a similar program should be expanded and strengthened.
NYSPHADA recognizes that funding for the Section 8 program requires a significant proportion of the Department of Housing and Urban Development budget. We support efforts to reform the Section 8 Housing Choice Voucher Program in order to provide a consistent funding policy, program flexibility and regulatory relief that will result in the same number of units funded, at a lesser cost to the government.
ENERGY SAVINGS:
NYSPHADA is committed to continuing its efforts to reduce energy consumption levels, whether through the further development of energy consortiums or the participation in energy performance contracts. The practical implementation of such programs has proven to be challenging, particularly for small and medium-sized public housing authorities. We encourage Congress and the Administration to assist us in our shared mission of energy reduction, by allowing greater flexibility of existing funding streams and increasing incentives to encourage participation. We commend the Administration for making reduction of Federal energy usage such a high priority.
Thank you for your consideration of our views.