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MHP Notes Don't Drop the BalIBy Ch p Affordable Housing p resident Bush has many balls 2. The other federal housing program targeted for cuts by I in the air these days: Iraq, the President is even morePerplexing--Section8would antiterrorism, the recession, tax be cut significantly, leaving an estimated '130,000 policy, etc. One bail that seems families without rental assistance. Recently the General to have been dropped is a Accounting Office found the voucher program to be the commitment to housing - single most cost-effective of the major federal housing assisting Iow wage workers, programs. With the support of both Republican and seniors and others obtain and retain affordable places in which to live. The President§ response to the growing housing needs of our nation has been negligent at best. Locally, Minnesota does not have the resources to fill the breach. Nationally, over the past several years the number of people living in shelters doubled and the number of households paying over one-half their income for housing went up 30%. With the floundering economy, jobless recovery, and continued layoffs, our nation§ affordable housing challenges will worsen. A recent poll by the National Low Income Housing Coalition also shows that likely voters across ideological lines care about housing issues: 57% of respondents thought it was more important for Congress to spend money on housing assistance than for Congress to cut taxes, including a strong majority of .rate voters (66%) and 41% of conservative voters. There is no commensurate response coming from the White House. In fact, President Bush~ 2004 budget undercuts the effectiveness of the top two federal housing initiatives that provide housing for Iow-income people. 1. Public Housing shelters three million people nationwide. Public housing operating budgets have been squeezed over the last several years and the President~ budget would further reduce funding by $1 30 million. The President also has proposed to end HOPE VI, HUDts primary program to restore worn .out public housing and demolish public housing units no longer functional. MHP Board Of Directors Democratic presidents the program has grown considerably since its enactment 30 years ago. Still, the resources are only adequate to serve one in four families qualifljing for federal rent subsidies. President Bush is the first president to propose less funding than is needed to continue assistance for those already participating in the program. Will the state of Minnesota make up the difference? Not this year. In comparison to amounts the state spent on housing in the current two-year budget cycle, the 2004-05 budget reduces funding for affordable housing production, rehab, and other. assistance by 33%. And while demand for shelter space will rise because of the economy, joblessness, and fewer housing resources, the 2004-05 budget reduces funding for homeless shelters and transitional housing by 29%. Between the state and federal housing cuts, this leaves the one in five Minnesota families paying more than 30% of income for housing, the 8,000 staying in shelters, and the 500 adults and 500 children per night turned away from shelters with little hope for housing assistance. Housing is fundamental to family success and community vitality. Building new housing provides a significant direct boost to the economy. As a public policy priority, housing is a ball that should not be dropped. Chip Halbach is the Executive Director at MHR Contact Chip at 651.649.1710 ext. 101 or chalbach@mhponline.org. Chair: Thomas A. Stre.itz, DaVid SchbO"ff, Greater Mahkato::.Chamber:6f.C:O~mef6~~: ,':~: Treasurer: Frank A tman, Community Re nvestment FUnd ' Barbara SimOni;ci~': ~C°Un :':;~a~el~ ~isfa'~ '::' ?! '" ::' '!: :~'? :::': Richard Amos, St Stepheng Human Services ' :': : 'suzanr~e.sn:~e~::'Ho~e'O'w~i :center: :-~'";' ? ""~ :':'"' Hoyt Hsiao, Shaw-Lundquist Associates, I nc: : '. ': i....: ~: :Margarel~:Lund;':N°rt~.un~perafive:D~el°i~erlt F~nd