Bush Administration, HUD Again Try to Dismantle the Housing Choice Voucher Program

As one advocate said recently about the U.S. Department of Housing and Urban Development (HUD), there really is no bottom to the barrel when it comes to finding a supply of HUD officials solely committed to eroding federal housing programs. In April HUD and the Bush administration proposed companion House and Senate legislation, entitled the “State and Local Housing Flexibility Act of 2005,” which would fundamentally change the face of the Housing Choice Voucher program.

The danger behind this latest effort is that unlike the prior legislation and HUD antics last year that drastically cut public housing authorities’ budgets, putting housing authorities and advocates in rare alignment against HUD and the Bush administration, many housing authorities are now voicing their support for this proposed legislation. While distressing, this position is not altogether surprising. With their shrinking budgets, housing authorities are finding it difficult to maintain their current programs while meeting all of the voucher program’s existing requirements.

This latest proposal would move housing authorities nationally to a “flexible” voucher program, similar to the Moving to Work authority that the Chicago Housing Authority and other housing authorities enjoy already, giving housing authorities greater leeway as to how they run their voucher programs and to whom they offer vouchers. The legislation include the following highlights:

• Vouchers would no longer be reserved for the lowest-income families. Currently 75 percent of vouchers must go to families with incomes of $15,000 a year or less. The proposed legislation would allow housing authorities to target families of higher incomes. No longer focusing on those who need it most, the new program would require 90 percent of vouchers to go to families making about $30,000 or less.
• Beginning in 2008, five-year time limits may be imposed on all families who are not elderly or disabled. Advocates may recall that one of the Bush administration’s earlier failed proposals, HANF (Housing Assistance to Needy Families), had this same objective of limiting families’ participation in the program, regardless of their financial circumstances.
• Under the new program, families may be required to work, comply with a self-sufficiency contract, or meet other requirements in order to receive assistance. This component was also part of the HANF initiative.
• Housing authorities may determine how much tenants would have to pay in rent regardless of the tenant’s income. Housing authorities may establish minimum rents or “flat” rents of any amount. The bills allow for no hardship exceptions, even for families facing unemployment or medical emergencies. This proposal will likely force many families to have to pay more than 30 percent of their income toward rent.
• Limits may be set on the amount that the voucher is worth. This proposal may severely limit the choice of neighborhoods for families, especially large families and families trying to move to racially diverse, economically thriving communities.
• Housing authorities may severely curtail portability. Families’ efforts to move to other housing authorities’ jurisdictions will be conditioned upon the consent of the departing and receiving housing authority. Because of the budget constraints, housing authorities will likely reject requests for moves to economically thriving communities due to the increased expense. Housing authorities will be subject to regional boundary restrictions, that is, moves out of state will be prohibited unless the housing authority’s jurisdiction falls within a certain region.
• Federal law would no longer require agencies to consult with voucher holders, any other stakeholders, or the public. Voucher holders will be prohibited from serving on the housing authority board. Voucher holders would not be able to comment on proposed changes in housing authorities’ policies regarding the administration of their voucher programs.

Before we allow this proposal to move forward, remember that much of what HUD and the Bush administration proposed in previous years faced bipartisan criticism and eventual defeat. Federal, state, and local Republican and Democratic officials understand that housing security is a critical component toward anchoring a family’s economic stability.

For more information, contact katewalz@povertylaw.org at 312.263.3830 ext. 232.