Wednesday, April 13, 2011

Budget Compromise Hits Poor People

Photo by Larry Whitted
Affordable Housing and Homeless Will Face Cuts in FY 2011 budget

The details of the compromise reached last Friday night were released on Tuesday. It is striking how disproportionate the cuts are on the low income households. There were no cuts to tax breaks that are enjoyed largely by the middle and upper income folks. There is no support for generating additional revenue. The burden will fall on vulnerable populations who are facing foreclosure, those living in public housing, and the elderly or disabled who may be seeking affordable housing.

The House and Senate To Vote Tomorrow and Friday. Here is the Release and summary from the National Low Income Housing Coalition:

On Thursday, April 14, the House and Senate will vote on the FY11 appropriations “deal” that was struck late last Friday between the White House and House Republicans to prevent a government shutdown. They agreed to $38.5 billion in spending cuts.

On Tuesday April 12, the details of the deal became public. They include deep cuts to many HUD and rural housing programs, as well as other safety net programs. Specific cuts are listed below. And all agencies will be required to take an additional .2% cut across the board.

The total cuts to HUD will be 6.4% below HUD’s FY10 budget.

If you do not agree with these cuts, NLIHC invites you to please contact your Senators and Representatives TODAY and urge them to vote against the budget deal. Tell them to send the negotiators back to do a better job of resolving the budget standoff. What has been billed as a compromise does too much harm to low income Americans and asks too little of people with means.

While in reality it may be too late to stop this vote, it is crucial that you make your objections known to your elected representatives.

To contact your members of Congress, call the congressional switchboard at 877-210-5351. You can also go to the NLIHC website to take action.

Cuts to HUD programs include:

Tenant Based Rental Assistance (housing vouchers)

  • Admin Fees: $125 million cut
  • FUP: $15 million cut (No funding)
  • Veterans Affairs Supportive Housing Vouchers: $25 million cut
  • Tenant Protection vouchers: $10 million cut

Public Housing Operation Fund (locally CMHA) -$149 million cut

HOPE IV (Public Housing renovation and replacement fund)-$100 million cut

Public Housing Capital Fund (public housing maintenance and building fund)-$456 million cut

Native American Housing Block Grants -$50 million cut

Community Development Fund -(funds city investment in housing, eviction help, safety, and poverty reduction) $942 million (CDBG reduced by $643 million)

HOME Investment Partnerships (City, County and State funding to build housing)-$215 million cut

Lead Hazard Reduction (Protection for low income residents from lead paint hazards)-$20 million cut

Section 202 -(Affordable housing largely for seniors) $425 million cut

Section 811 -(affordable housing largely for the disabled) $115 million cut

Housing Counseling Assistance -(Pays for advocates to assist those facing foreclosure) $88 million cut (No funding)

Brownfield Redevelopment -(Cleaning up abandoned industrial sites) $18 million cut (No funding)

Energy Innovation Fund -$50 million cut (No funding)

Cuts USDA housing programs include:

Rental Assistance Program -$24 million cut

Rural Housing Insurance Fund -$151 million cut

Other safety net cuts

LIHEAP (Heating assistance for lower income households) -$390 million cut

WIC -(Women's Infant and Children food program) $504 million cut

Community Health Centers (Care Alliance and Neighborhood Family Practices locally) -$600 million cut

Brian Davis

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