Engel Pushes for Public Housing Funds

Press Release

ENGEL PUSHES FOR PUBLIC HOUSING FUNDS

Congressman Eliot Engel urged his colleagues in Congress to ignore President Bush's budget proposal to cut public housing funds, and instead allocate $5.3 billion for the Public Housing Operating Fund and $3.5 billion for the Public Housing Capital Fund.

He called public housing a national asset that helps to stabilize neighborhoods throughout America and serves nearly 3 million low-income, disabled, or elderly individuals and families.

The Operating Fund finances the portion of the operating costs not covered by the tenant's rent contributions. The Capital Fund finances major repairs and renovations of public housing property, including individual units.

The President in his budget asked for $2.3 billion for the Operating Fund and $2.024 billion for the Capital Fund Rep. Engel said, "The President has repeatedly underfunded this account resulting in a backlog of needed, but unfunded, repairs. The President's FY 2009 request would add to this backlog by failing to provide enough funding to meet this year's new capital needs."

He said, "Residents of public housing pay what they can, according to a formula based on their income, and Congress appropriates funding to make up the difference. The President's budget for the Public Housing Capital Fund marked the seventh consecutive year that funding for this account remained level or decreased."

Because the nation's public housing authorities accrue new capital needs at a rate of $2.3 billion per year, he said, the President's FY 2009 request of $2.024 billion for the Capital Fund doesn't even cover this year's new capital expenses. "Instead, it would mean that the $18 to $20 billion backlog in capital repairs to public housing developments across the country would continue to grow."

The 10-term congressman, who grew up in a Bronx housing project, said, "In order to cope with these cuts in funding, housing authorities are cutting security and social services, delaying or foregoing routine maintenance, and putting off major repairs and improvements. Full funding for these public housing programs will prevent this disruption of services and allow the public housing authorities to continue operating their projects in a safe and affordable manner."

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