Fiscal Note
This policy resolution has no direct budgetary impact.
Title
To urge Congress and our Congressional delegation to find a permanent solution to resolve the shortfall in funding the Housing Choice Voucher (Section 8) Program.
Body
Background: The Department of Housing and Urban Development (HUD) has enacted numerous programmatic changes in the past few years. In 2005, HUD changed the way it funded the Housing Choice Voucher (Section 8) Program. Previously HUD funded the CDA for 1606 vouchers, a dollar amount was allocated but if the actual costs were higher HUD would make up the difference. In 2005, HUD capped the dollar allocation amount. Based on this, the CDA while authorized to issue 1606 vouchers, could no longer afford to have this many vouchers out. Utilization (vouchers in use) had to be lowered and monitored to stay within budget.
The 2009 federal budget was not approved until March of 2009. In the normal process the Executive budget would have been introduced in February of 2008 with a federal budget approved prior to the federal fiscal 2009 calendar year, which began on October 1, 2008. After a federal budget is approved, HUD has 60 days to inform Housing Authorities of their funding levels. Again normally the CDA should have received notice of its funding level in December of 2008. The CDA received notice from HUD of its 2009 calendar year funding in May of 2009.
The CDA has had to anticipate funding levels based on past experience and best guesses of HUD staff. For 2008 funding allocations, HUD based funding levels on expenditures of Housing Authorities as of December 31, 2007. For 2009 funding allocations HUD based funding levels on expenditures of Housing Authorities as of September 31, 2007. This change was mandated by Congress. This change is one of the reasons the CDA and many other Housing Authorities funding was different (less than) anticipated. The CDA and HUD staff did not see this change coming.
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