House Passes FY08 HUD Appropriations Bill 

Shortly before midnight last night, July 24, the House of Representatives passed H.R. 3074, a bill making appropriations for the Departments of Transportation, and Housing and Urban Development, and related agencies for the fiscal year ending September 30, 2008, by a recorded vote of 268 to 153.

 As expected, the House bill funds the Public Housing Operating Fund at $4.2 billion in FY 2008, an increase of $336 million over FY 2007; and the Public Housing Capital Fund at $2.439 billion or level funding with FY 2007, $415 million above the President’s request. Additionally, Section 8 tenant-based renewals are funded at $14.745 billion; Section 8 project-based renewal assistance is funded at $6.239 billion; and HOPE VI is funded at $120 million (see chart below). Previously, in the FY 2007 funding resolution, Congress changed the Section 8 funding formula to leasing and cost data from the most recent 12-month period, defined as Jan 1, 2006 through Dec 31, 2006.  HR 3074 includes specific bill language which bases the FY 2008 tenant-based rental assistance renewal formula on the amount PHAs actually received in FY 2007.   

In the Committee Report accompanying the bill H.R. 3074, the House Appropriations Committee directs HUD to continue to provide quarterly detailed reports on PHAs with Capital Fund obligations of less than 90 percent. The Committee also instructs HUD to investigate the implementation of asset management, especially implementation of management fees, and report its findings to Congress by March 15, 2008. The Committee Report instructs HUD to issue Tenant Protection Vouchers (TPVs) for all units lost from the affordable housing stock, not just those units under lease. And the Committee directs HUD to issue its FY 2008 HOPE VI NOFA within 60 days of enactment and to provide technical assistance, both for new and old grantees – particularly grantees awarded before 2001.   

A floor amendment by Rep. Steve Chabot (R-OH) to reduce the Public and Indian Housing account by $330 million failed, as did an amendment by Rep. Barney Frank (D-MA) and Rep. Charles Rangel (D-NY) to suspend for one year the community service work requirement for residents of public housing. The amendment by Reps. Frank and Rangel originally passed by voice vote, then later in the evening – at the behest of the Republican leadership and by unanimous consent – the vote was vacated, and on demand of a recorded vote, failed by 207 to 220.  An amendment by Rep. Alcee Hastings (D-FL) to redirect $20 million in appropriations for the Public Housing Operating Fund – emphasizing the need for HUD to place a greater priority on security in public housing – was agreed to by voice vote.   

Also, a floor amendment by Rep. Gary Miller (R-CA) that would clarify Congress's intent to require HUD to implement Moving to Work (MTW) at its fully authorized level was offered and subsequently withdrawn on a point of order. Rep. Miller’s amendment would have directed HUD to promptly approve new PHAs to participate in MTW program whenever the number of agencies is less than the total number, a level currently authorized at 32 although only 24 agencies are currently allowed to participate in MTW. Currently, once PHAs leave MTW, HUD has said that no new agencies can be selected to fill their vacancies. Rep. Miller engaged Rep. John Olver (D-MA) in a colloquy (an exchange between Members of Congress to show legislative intent) with the hope of eliminating any confusion at HUD about the number of PHAs authorized to be designated as MTW. 

The Senate version of the FY 2008 HUD funding bill, S. 1789, was reported out of full committee on July 12, but is not expected to see Senate floor action until after the August recess.

President Bush has threatened to veto any appropriations bill that exceeds his budget request. 

For additional information, contact Gerard Holder at gholder@clpha.org.

COMPARATIVE FUNDING CHART FOR FY 2008