HomeMy WebLinkAboutMINUTES - 02111986 - 1.62 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS DATE: January 28, 1986
FROM: cc:
Perfecto Villarreal , Executive Director
SUBJECT:
1986 HOUSING FUNDS - NAHRO ACTION ALERT
I. RECOMMENDED ACTION:
That the Board of Commissioners forward letters to the United States
Congressional Representatives of this county and the United States Senators of this
state protesting the proposed reduction of 1986 funding for HUD-assisted housing
subsidies and the fiscal year 1987 federal budget proposals, as recommended by the
Advisory Housing Commission.
II. FINANCIAL IMPACT:
The proposed 50% reduction to fees paid to public housing agencies for
administering the Section 8 certificate/voucher program, the freeze of Public Housing
operating subsidies and the freeze of Section 8 rents at 1986 levels will severely
impact the Housing Authority's capacity to administer the Conventional Housing and
Section 8 programs.
III. REASONS FOR RECOMMENDATION/BACKGROUND:
We have received a NAHRO Action Alert reporting that based on federal budget
proposals for Federal fiscal year 1987, the Reagan Administration will ask Congress
to rescind the funds for public and Indian housing, rental rehabilitation, housing
development grants and 202 elderly-handicapped housing. Additionally, the
Administration proposes to reduce fees paid to public housing agencies for
administering the Section 8 certificate voucher programs by 50%, sharply reduce 1986
funding for HUD-assisted housing subsidies and freeze Section 8 rents at 1986 levels.
A copy of the NAHRO Action Alert, along with a copy of the January 3, 1986
Housing Affairs Letter detailing the withholding of $7 billion by the Office of
Management and Budget, is attached for your review.
As it is crucial to focus on saving the fiscal year 1986 programs now, we must
make our case to our congressional delegation. To initiate interaction with our
congressional delegation, the Executive Director forwarded letters to Congressmen
CONTINUED ON ATTACHMENT: ,YES SIGNATURE:
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDA N OF BOARD COMMITTEE
_._ APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON 7 9' APPROVED AS RECOMMENDED OTHER
VOTE: OF COMMISSIONERS
. _._ UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS A TRUE AND
AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND
ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD
OF COMMISSIONE S ON THE DATE SHOWN.
CC: ATTESTED �6
Phil Batchelori/Clere of the
Board of Commissioners
M382/7 83 BY DEPUTY
Board of Commissioners
January 28, 1986
Page -2-
Miller and Dellums and Senators Cranston and Wilson on December 26, 1985. We are
attaching a copy of Congressman Miller's response to our letter of December 26, 1985.
Congressman Miller points out that .he feels our concerns are very well founded and
requests input for a series of hearings .the State and Local Government Task Force of
the House Budget Committee will convene on the potential impact of additional budget
cuts.
At its Regular Meeting on January 27, 1986, the Advisory Housing Commission
moved to forward letters to the United States Congressional Representatives of this
county and the United States Senators of this state protesting the proposed reduction
of 1986 funding for HUD-assisted housing subsidies, the 50% reduction of
administration fees for administering the Section 8 certificate/voucher programs, the
freeze on Section 8 rents at 1986 levels and the fiscal year 1987 federal budget
proposals and to urge the Board of Commissioners to approve and send the attached
letters to the appropriate Representatives and Senators.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Should the Board of Commissioners elect to not protest the proposed funding
reductions, these reductions will severely impact the Housing Authority's capacity to
administer the Conventional Housing and Section 8 programs and the Housing Authority
would be unable to maintain a level of service equal to that now provided. In
addition, in order to continue operating the existing Section 8 certificate housing
programs which currently serve about 4,000 low income families and senior citizens,
state and local governments would be required to pay 50% of the administrative costs
of operating these housing programs.
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TO: NAHRO AGENCY MEMBERS
SUBJECT: .;The Reagan Administration. Plans -to Seek. Rescission of..Most
� � .a :�, ,, FY 486=:Funding for Housi g,�and UDAG ` 'nd°P oPose`, Fuither
he '87 B get. M.
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DESCRIPTION:` It h-as been widely reported that the rRea gan 'Administration
will seek to strike a killing blow to housing and CD programs by asking Congress to rescind
(take back) the following funds already appropriated for FY '86:
• All Urban Development Action Grants;
• All Rental Rehabilitation Grants;
o All Housing Development Grants (HoDAGs) ;
• All public housing new construction;
• All public housing modernization, except .for emergency modernization;
• All Section 8 Existing
7.LL
o All Section8 Moderate Rehab ilitateon; and
s All public housing. operating subsidies carried over from FY . `85.
The President also proposes deferring $500 million of CDBG funds until FY '87. In addition,
the President's FY '87 budget request will propose to cut housing vouchers, freeze operating
subsidies, fund emergency modernization only, freeze FMRs, pay only one-half of the administra-
tive fee for Section 8 and vouchers , and reduce CDBG funding.
RECOMMENDED ACTION: Develop information on local impact if rescissions
are approved and forcefully make your case to your congressional delegation while they are home
and before they return in January. While NAHRO will .mount a major effort to save our programs
as Congress considers the budget, authorizations, and appropriations, it is crucial to focus
on saving the FY '86 programs now.
Plan to attend the NAHRO Legislative Conference February 2-4 to help make our 'voices heard:
NAHRO Staff Contact:`-�`Richard Y. :!Nelson
202 / 333-2020 Deputy Executive Director/Legislative Counsel
NATIONAL ASSOCIATION OF HOUSING
AND REDEVELOPMENT OFFICIALS
iervingihef'otion'sHo�singon 2600 Virginia Avenue, N.W.
Communituf�d..o.l.-,.,�„o..�t(loorl� lAlachir.ntnn n r 000-Z-
Housing Af fairs ze&eA
THE WEEKLY WASHINGTON REPORT. ON HOUSING No: 86 - 1
Washington, January 3, 1986 _
HOUSING WEEK:
Administration: OMB moves to sit on $7 1 HUD: Insurance woes to spur rent hike 5
billion in 1986 funds. bids. Tenants could be spotted more. 6
Public Housing: Operating subsidies 2 Sec. 8 existing FMRs. Procurement.
survive rescission. PFS rule slows. Index: Jan.-June HAL files. I-1
Finance: Market happywith new year. 3 Indicators: Rates down. New sales up. I-4
Bank Board rules on subsidiaries, Vacancy high. Construction steady.
other issues. Multi issues rated. 4
{ HOUSING AFFAIRS LETTER resumes;after year-
HOUSING AFFAIRS thrive °NY mortgage study r•-.. - ,f>,�1
p
Congress: Vets bill st mies. -Tax aid _.5 -Sepabateklwltthro gh .1-, including in
•.::. . . _-..
Outlook: Commerce De t sees 1986. 4, :.
g y ugh I-4 for reference;
for mortgage securities offered. insert pp 3&4 for easy reading.
OMB HOLDS BACK BULK OF 1986 HOUSING FUNDS resolution overturning .t he deferral. A
Office of Management & Budget (Orifi) with- rescission requires approval of both houses
holds $7 billion, in apportioning fiscal within 45 days that Congress is in session.
1986 funds for HUD-assisted housing. Rep. Boland (D-Mass.), chairman of House
Apportionment reflects Reagan Administra- Appropriations HUD Subcommittee, plans to
tion proposals to cancel or sharply re- introduce a resolution disapproving the
duce subsidy programs this year. deferral of housing funds, soon after Con-
Congress, which provided funds, may gress returns, on Jan. 21, Housing Affairs
force OMB to release money, after it re- is told. Boland must also approve any re-
turns later this month. programming of funds, if HUD is to increase
Meanwhile, HUD .must operate on assump- the number of vouchers to 50,000
tion that the bulk of the $10.7 billion
Congress provided for subsidy programs Administration aDparently 'counts on Con-
will not be available for new commitments. gress wanting to avoid automatic funding.
cuts, required by recent Gramm-Rudman leg-
OMB releases funds for an estimated islation, in asking for sharp reductions
53,864 additional subsidy units, includ- in HUD programs. (HAL 12/13p1)
ing 50,000 housing vouchers. Congress appears willing, however, to
Balance of incremental units appears
to be for meeting legal obligations or live with Gramm-Rudman, which would spread
small reductions evenly across a broad
special project commitments. range of programs. No activity would be
This includes 350 units of public hous- cut more than 5% in fiscal 1986, under
ing, 100 Sec. 202 elderly/handicapped, the automatic deficit reduction mechanism.
2,300 regular Sec. 8 existing and 1,114 Fiscal 1987 may be another matter. That
Sec. 8 moderate rehabilitation. is when Gramm-Rudman is expected to take
Big savings in budget authority result a significant bite out of federal spending.
from use of vouchers, which have 5-year
contracts, compared with 15- to 30-year Programs for which all new development
subsidy commitments under other programs. money is withheld by OMB include rental
Congress provided for 97,000 newly as- rehabilitation and rental development
sisted units,. including only 36,000 vouch- grants (HoDAGs) and Indian housing.
ers, in the 1986 HUD appropriation. (HAL It releases $458.3 million of the $1.5
11/8pl) billion for public housing modernization,
mainly to satisfy emergency needs.
Administration proposes .now to defer all OMB also frees the full $1.47 billion
of the $7 billion. The President is expect- for public housing operating subsidies,
ed to ask for rescission (elimination) of including $263 million carried over from
$5. 7 billion of this, when he submits his 1985. (See story p2)
new budget in Feb. (HAL 12/20p2)
Funds can be deferred indefinitely, .un- Other programs taking no cuts include:
less either House or Senate approves a housing counseling ($3.46 million) , fair
page 2 HOUSING AFFAIRS LETTER January 3, '1986
4y
housing assistance ($11.44 million) , HUD.- financially viable. ;:This represents all
research ($18.57 million), and Urban home='''
steading ($15:59 million) . funds available. ;
HUD wins a concession on urban develop
OMB also:allows HUD $62.2 million for. - .,
rental`'ass'i'stance payment (deep subsidy) ment action grants'(UDAGs):'`OMB wanted to �.
amendments on state-financed, noninsured . defer or rescind the entire $330. million ,::.;
Sec. 236 projects. 'Another $60 million is in the fiscal 1986 appropriation; .but
apportioned for "flexible" subsidies, to agrees to let HUD use $87.5 million for
help keep troubled FHA-insured projects a Jan. round of UDAG awards.
PUBLIC HOUSING 1986 funds. HUD did not receive its ap-
PHAs TO GET FULL OPERATING SUBSIDIES portionment of funds until Tues. , 12/31.
Public housing agencies (PHAs) can ex-
It normally takes the department about
pect:.100% of�the'o eratin subsidies the
.,. p ., g � yi .,,ja`�.week to' pFepare the paperwork :nee dedMto,... ._
i'would:'receive _under the"performance:`fund allocate money to field offices, `which `
ing system. (PFS) , _Housing Affairs learns. "
'.',then forward to the PHAs. -
It will be'another' week or so, however,
before PHAs with Jan. l fiscal years re- PFS TINKERING REGULATIONS DELAYED
ceive their 1986 subsidies. Public housing agencies (PHAs) with fis- _
The possibility of a percentage reduc- cal years beJan. 1 will receive op-
tion in the PFS-based amount eases, after orating subsidies based on current perform-
President's Office of Management & Budget ante funding system (PFS) regulations,
releases entire fiscal 1986 operating sub- rather than recently revised rules.
sidy appropriation, plus funds carried over HUD postpones, to April 1, effective
from previous years. date of PFS "tinkering" changes. HUD plan-
ned to make them effective Jan. 1, but
Authority .to use carry-over money assures Congress adjourned before 30 continuous
full PFS funding this year, even if Presi- session days required for implementing
dent is forced to order automatic, across- new HUD rules after publication.
the-board spending cuts in-Feb. , says HUD The revisions simplify calculation of
official. a the Allowable. Expense Level and clarify
It was feared that the recently enacted what PHA income estimates are subject to
Gramm-Rudman-Hollings deficit reduction year-end adjusting, in determining oper-
legislation might require some trimming of ating subsidy amounts. ` (HAL 11/22p3)
operating subsidies: (HAL 12/2Op6) They .also make, clear that any court
It was also speculated that OMB would judgments or other funds awarded PHAs
propose a rescission of funds left over for such things as tenant damages will not
from 1985. reduce the annual subsidy.
Any automatic reduction resulting from From Fed'l Register 12/23p52280. Info_:
the new law should not exceed 5% of avail- Sally Watts, 202-755-7084.
able operating subsidies. The carryover FEDERAL FUNDING GUIDE NOW AVAILABLE
money is more than adequate to offset this, THROUGH HOUSING AFFAIRS LETTER
we're told. The new "Government Assistance Almanac
Many PHAs will have to wait for their is a guide to all federal aid programs,
new operating subsidies until after the including housing, community development.
start of their fiscal year this week, be- It describes 1,013 programs in almost
cause of the lateness in OMB's release of 600 pages, with a thorough index.
*CDS--Community Document Service. CDS will copy/sup- The book carries over 3,800 addresses
ply an. document we reference as *CDS, for subscrib- and phone numbers of federal contacts, and
era only. Prepaid fees, PER ITEM: $3 to 5pp, $4 to
10, $$6 to 20, $8 to 35, $10 to 50, $12 to 65, $14 to funding summaries for 4 fiscal years.
80, $16 to 100, and additional $2 for each 20pp, or Now, you can order this book through CD
fraction thereof, over 100, as specified, to sub-
scriber's address. If billed, add $3 to total. Other Publications (8555 16th, Silver Spring,
items; :beat efforts, with fees. Prepaid escrow ac-. MD 20910) . Enclose your Check for $23.45
count. $50 drawn down with order. CDS, 8555 16th,
Silver Spring, MD 20910. (301) 588-6380.. each--prepaid only 10—day guarantee.
Copy::;.:ht L986 by Co Pub!icat.ions. Reoroductio n or rhotoconyinq, for external or internal use, is
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plos su,)nLied 'wLthout oblLgation. HOUSE':(, Al--ERS LETTER, issued ':ieekly 5.0 i., s a year by Co Pub-
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• DISTRICT OFFICES:
_ GEORGE MILLER
3CIVIC DRIVE,#14
7TH DISTRICT,CALIFORNIA
PLEASANT HILL,CA 94545
23
2228 RAYBURN HOUSE OFFICE BUILDING 14 15)687-3260
WASHINGTON,DC 20515 , ROBERT T.HUGHES
JOHN
LAWRENCE
95 �Congrvo of the Mb teb otateg
DISTRICT ADMINISTRATOR
JOHN LAWRENCE
ADMINISTRATIVE ASSISTANT 3220 BLUME DR.
CHAIRMAN,SELECT COMMITTEE ON j0ou!6e of Aeprvmitatibe� SUITE 281
CHILDREN.YOUTH AND FAMILIES RICHMOND, 94806
-
ala bington, ;DCC 20515 '4'S'2222-42'2
COMMITTEE ON INTERIOR AND INSULAR AFFAIRS
ANTIOCM CITY HALL
CHAIRMAN,SUBCOMMITTEE ON WATER AND POWER P.O.Box 130
January 2, 1986 ANTIOCH,CA 94509
COMMITTEE ON THE BUDGET (415)778-3777
COMMITTEE ON EDUCATION AND LABOR
TTY(202)225-1904
Perfecto Villarreal n "
Executive Director eft,
Housing Authority of the County RdV' 8°'
of Contra Costa SsRFI
3133 Estudillo Street
P.O. Box 2396
. Martinez, CA 94553
Dear Perfecto:
I am responding to your letter of December 26 concerning the potential impact
of the rumored recommendations of the Reagan Administration with respect to
housing and community development programs in the FY 1987 budget.
Frankly, I think your concerns are very well founded. Housing has borne more
of the massive budget cuts of the past five years than any other single area of
the budget, and I would imagine that the President's often stated desire to
make further reductions will be reflected in the budget he sends to Congress in
February. Moreover, themassivebudget cutbacks mandated by the recently
enacted deficit reduction law make it certain that there will be very
significant reductions not only in housing, but in a wide range of programs
upon which states and local communities have long depended.
As chairman of the State and Local Government Task Force of the House Budget
Committee, it is my intention to convene a series of hearings on the potential
impact of additional budget cuts as soon after submission of the President's
budget as possible. I would appreciate having your input as to the scope of
those hearings. However, I do not hold out the false hope that my hearings
will eliminate the cutbacks which are certainly coming;, rather, I hope that we
can work together constructively to plan the best policies we can under what
will be very difficult circumstances.
G MILL R
Member of C ngress
GM/jal