Public housing: pressure rising, crush depth?
Via the ever-handy Knowledgeplex comes this Wilmington Star News story about how the broad-based budget cutting is bringing public housing under severe funding pressure:
After months of negotiations, the panel of 27 [public housing officials] agreed to a plan that was expected to increase daily operating subsidies by some $ 700 million in the first year, to $ 4.2 billion, while reforming how public housing is managed.
Michael Liu, the assistant secretary for [Public and Indian] Housing at the U.S. Department of Housing and Urban Development who wielded veto power over the process, rounded the room with handshakes. Housing agencies thought the new plan would start in 2006.
Then, last week President Bush released a 2006 budget proposal that would leave operating subsidies short of the deal by $ 800 million, a [$100 million — ed.] cut from previous years.
This arises as the whole public housing inventory is struggling:
Harvard University completed a congressionally mandated study [Adobe Acrobat — ed.] in June 2003 that showed severe operating shortages for many of the 3,200 housing authorities. Researchers devised a formula for how much each unit should cost to operate based on factors such as geography and private sector considerations.
Public housing is not alone: Section 8 is under similar funding pressure which is causing stress throughout the system.
Total spending on public housing has been sliding, from $ 7.1 billion in 2001 to $ 5.7 billion next year if Congress continues to follow Mr. Bush’s lead.
Sen. Mel Martinez, a Florida Republican a former HUD secretary under Mr. Bush before he resigned in 2003 to run for the Senate, called public housing “the least most successful part” of HUD.
‘”It ought to be giving a result for the investment, and we know public housing is not a good model,” said Mr. Martinez, a member of the Senate Housing and Transportation Subcommittee.
Cuts in operating subsidy are following on previous cuts in redevelopment funding:
The budget plan again proposes eliminating the HOPE VI redevelopment program, which has provided more than $ 5 billion over the last decade to demolish and replace dilapidated developments. The program was cut from $ 574 million to $ 149 million last year and to $ 144 million for 2005. Mr. Bush even plans to take back the 2005 grant money, which hasn’t been distributed.
Which is delaying renovations on properties that need it:
The Wilmington Housing Authority already has one HOPE VI redevelopment but failed to win a $ 20 million HOPE VI grant last year to replace the dilapidated Taylor Homes.
And shifting the renovation burden from Federal to state government:
The agency is applying again, this time for $ 8.9 million, while also applying for [North Carolina] state tax credits that officials say could finance the project if
