wfn.org | [PCUSANEWS] '06 U.S. budget shortchanges housing programs

[PCUSA NEWS <PCUSA.NEWS@ECUNET.ORG>]

Note #8747 from PCUSA NEWS to PRESBYNEWS:

05283
May 26, 2005

'06 U.S. budget shortchanges housing programs

Administration spending plan benefits the rich at expense of the poor

by Erin Hoekstra and Carolynn Race
Presbyterian Church (U.S.A.) Washington Office

	Is not this the fast that I choose: to loose the bonds of injustice,
to undo the thongs of the yoke, to let the oppressed go free, and to break
every yoke? Is it not to share your bread with the hungry, and bring the
homeless poor into your house, when you see the naked, to cover them, and not
to hide yourself from your own kin? 
					   - Isaiah 58:6-8

WASHINGTON ? Housing is considered affordable when housing expenses do not
exceed 30 percent of an individual's or family's income. 

	When wages and housing expenses correspond in a way to make housing
affordable, low-income families are more likely to have enough money for
food, medicine and other basic necessities.

	In the past few years, the cost of housing has increased
dramatically, although the federal minimum wage has been unchanged at $5.15
an hour. 

	A report by the Joint Center for Housing Studies at Harvard noted
that a steady increase in rents over the past decade has corresponded with a
decrease in the incomes of renters since 2001. This combination has left
low-income working people unable to make ends meet, and according to the
National Low Income Housing Coalition, fully one-third of the U.S. population
falls into this category. 

	Because of a lack of affordable housing in this country, many people
are forced to spend more than 50 percent of their income on housing.

	At the same time, funding for the U.S. Department of Housing and
Urban 
Development (HUD) is adhering to the Bush Administration's focus on an
"ownership society" ? for example, shifting funds from construction of
much-needed affordable housing units to down-payment assistance and
homeownership counseling. 

	As a recent study noted, "Federal subsidies for homeownership among
middle- and upper-income households via homeownership-related tax deductions
greatly exceed those for public and subsidized housing, and the funding gap
is widening." (See "The Crisis in America's Housing: Confronting Myths and
Promoting a Balanced Housing Policy," January 2005, Center for Community
Change, Center for Economic and Policy Research, Children's Defense Fund,
Community Learning Project, and the National Low Income Housing Coalition).

	The increasingly high cost of housing exacerbates the strain on the
emergency food system and federal food programs (like food stamps) to provide
adequate and nutritious diets to low-income people who are extremely
cost-burdened by monthly housing costs. As people spend more of their income
on housing, they have less money for necessities. 

	Families and individuals must make difficult choices, and one of the
only "flexible" expenses in a monthly budget is food. Thus, they may have to
focus on quantity over quality of food, skip or cut down meals, or turn to
food banks or community kitchens in order to have enough food to eat during
the month.

	In 1998, the 210th General Assembly of the PC(USA) called upon
Presbyterian churches "to work with policy makers to create fair and just
economic and housing policies, and to create funding to implement those
policies, which will benefit every citizen of this nation, including the poor
and homeless." 

Impact of federal budget on housing and poverty

	In April of this year, Congress passed (by votes of 214-211 in the
House and 52-47 in the Senate) a five-year, $14 trillion budget resolution to
guide spending for the 2006 fiscal year. According to The Washington Post,
the budget includes "the first curbs on entitlements for the poor in nearly a
decade." 

	The budget resolution includes big cuts in domestic programs ? $35
billion in entitlement cuts, including a potential $10-13 billion cut in
Medicaid and food stamps ? and $212 billion in domestic discretionary program
cuts over five years, while making room for substantial tax cuts that
primarily benefit wealthy households.

	According to the Center on Budget and Policy Priorities, if the
discretionary funding levels are adhered to over five years, domestic
discretionary programs ? non-entitlement programs like housing and community
development, K-12 education, environmental protection, law enforcement, WIC
(Women, Infants and Children), community health centers ? would be cut by
$200 billion over five years. 

	In 2006 alone, domestic discretionary programs are slated for $23
billion in cuts (almost 6 percent) compared to 2005 funding levels adjusted
only for inflation. Since it is only a blueprint, the budget resolution
provides no details about which specific programs might absorb these cuts.

Selected federal programs for affordable housing

	Section 8 Voucher Program: These vouchers allow for more housing
options for renters and are intended to make up for the difference between
the actual earnings of low-income individuals and the cost of housing.
Participants are expected to use 30 percent of their income to pay rent; HUD
reimburses the landlord for the remainder. About two million vouchers are in
use, but the need and demand for vouchers far exceeds availability. In many
parts of the country, there is such a high demand for rental units that will
accept these vouchers that the waiting periods are about two years long; some
cities have been forced to close their waiting lists. Many advocates consider
Section 8 to be one of the most successful programs in making housing
available to low-income people and families.

	Low Income Home Energy Assistance Program (LIHEAP): LIHEAP provides
federal funds to help low-income people pay for heating and/or cooling their
homes. The program is implemented by state-based organizations (like public
housing authorities). These funds are used for bill payment, energy crisis
assistance, and weatherization or energy-efficient home repairs.

	Housing Opportunities for Persons with AIDS (HOPWA): People living
with HIV or AIDS are at increased risk of losing housing due to the high cost
of medical care and the difficulty of maintaining a job while managing the
disease. Housing is especially important for people with AIDS because of the
connections between housing and health. HOPWA funds can also be used to
provide supportive services to people with AIDS.

	McKinney-Vento Homelessness Assistance Grants: At least 3.5 million
people experience homelessness each year. Serving more than 700,000 of these
homeless individuals, the McKinney-Vento Assistance Grants provide money for
emergency shelter, transitional 
housing, and sometimes permanent housing. In addition, the program provides
funding for outreach and supportive services.

	Community Development Block Grant (CDBG): CDBG is a federal program
aimed at creating viable communities by providing funds to improve housing,
the living environment, and economic opportunities, principally for persons
with low and moderate incomes. It was created to address the critical social,
economic and environmental problems faced by the country's cities, towns, and
smaller urban communities.

To subscribe or unsubscribe, please send an email to
pcusanews-subscribe-request@halak.pcusa.org or
pcusanews-unsubscribe-request@halak.pcusa.org

To contact the owner of the list, please send an email to
pcusanews-request@halak.pcusa.org