Despite threats of a veto by the Administration, the House of Representatives went forward and passed the FY2008 Transportation, Housing and Urban Development, and Related Agencies conference report, including the 2008 budget for the Department of Housing and Urban Development (HUD). The House voted with bipartisan support 270-147, a strong majority but just a few votes short of the 2/3rd's necessary to override the veto threat.
Almost immediately, the White House issued a Statement of Administration Policy (SAP) on the bill, again threatening a veto because the bill exceeds the president's spending requests by $3 billion.
Responding to advocates from California and other states, Congress had already made several favorable adjustments in priority line items in the appropriations bill. If passed and made into law, it will:
• Increase the Housing Choice Voucher renewal funding to $16.4 billion, which is $516 million above 2007 spending and $436 million above the president's request. More importantly, the bill adopts the Senate approach to renewal funding, making it more likely that housing authorities will receive the funding they need to maintain their voucher programs. The president's request would force between 40,000 and 80,000 families and individuals to lose their housing vouchers.
• Add approximately 15,500 new vouchers for homeless veterans, the disabled and for family re-unification. Providing housing to these vulnerable segments of our population has been shown to save our government money over the long term.
• Increase Public Housing Operating Funds to $4.2 billion, which is $336 million above 2007 spending levels and $200 million above the president's request.
• Increase Community Development Block Grants to $3.79 billion, $100 million above FY2007, rejecting the President's plan to cut the program by $822 million. This level is still $400 million below 2001.
• Maintain Funding for Housing for the Elderly and Disabled at $735 million and $237 million respectively, rejecting the president's proposed 28% cut. Ten eligible seniors are on the waiting list for every one unit of housing available, yet each year the president proposes deep cuts to this program.
• Increase funding for federal Section 8 contract renewals to $6.4 billion, $405 million above 2007 spending levels and $568 million above the president's request.
• HOPE VI: $120 million, $21 million above 2007, rejecting the president's proposal to eliminate the program and rescind last year's funds, for competitive grants to public housing authorities to revitalize neighborhoods by replacing outdated public housing in disrepair with new mixed-income housing. This is still far short of the $778 million provided in 2004 not to mention the billions needed for public housing renewal.
On November 15, Senate and House Democratic leaders announced a strategy to complete the remaining 11 appropriations bills. The new strategy would compromise with the president's request for FY2008 spending, which the House and Senate have exceeded by some $22 billion in their spending bills. The proposal is to send President Bush an omnibus spending bill in December that exceeds his spending levels by only $11 billion.
Within hours, the White House responded that the proposal is insufficient and that the president intends to stick to his original request levels. Senate Minority Leader Mitch McConnell (R-KY) said that the president is serious about his total overall figure and he is not interested in any additional domestic spending.
The Senate was to have taken up the conference report before Thanksgiving recess but failed to do so. The Senate is expected to vote on the bill when it returns from recess the week of December 3. The Senate passed its spending bill on September 12 by a veto-proof vote of 88-7. A continuing resolution that expires December 14 currently provides funding for HUD program at 2007 levels.
Housing advocates nationwide are now focusing on a review of the HUD spending bill and strategies to override the expected presidential veto. The FY2008 conference report would provide modest yet critical funding for many programs. The report also includes important policy guidance on a range of HUD programs. Stay tuned for updates.
