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April 15, 2004

House Ways & Means Budget Increases Funds for Public Housing & Level Funds Rental Voucher Program

On Wednesday, the House Committee on Ways and Means released its budget proposal for FY 2005. It includes $73.7 million for the Department of Housing and Community Development, approximately $3.6 million more than the Governor's budget that was released in January. This represents an increase of approximately $7 million from FY 2004.

Two top CHAPA priorities, public housing and the Massachusetts Rental Voucher Program, are the largest beneficiaries. The House Ways and Means Committee budget increases public housing operating subsidies by $5 million (from $25 million to $30 million), the same as the Governor's budget. However, the committee's proposal would eliminate the public housing rent escrow program that the Governor had revived and fully funded at $500,000.

The Massachusetts Rental Voucher Program would see an increase of $1.5 million from its FY 2004 appropriation. The Governor's budget cut MRVP by $2.5 million. In the Housing Services line item (includes Housing Consumer Education Centers), the committee's proposal would add an additional $400,000 to the account, for a total of $821,925 and earmark $400,000 for the Housing Consumer Education Centers.

The Ways and Means Committee has proposed an outside section that would implement monthly minimum rents for public housing residents. The monthly minimum rent would be $50 per household rather than the $50 per bedroom contained in the Governor's budget. The proposal includes language that would require housing authorities to grant exemptions in cases of "severe financial hardship."

The House will debate the budget during the week of April 26. The Senate Committee on Ways and Means is expected to release its budget in early May.

Key DHCD Programs:

Line Item Program Gov. FY 05 House W&M
7004-0000 Development Coord. Council $240,000 $240,000
7004-0099 DHCD Administration $6,741,726 $6,315,188
7004-3036 Housing Services $541,000 $821,925
7004-4314 Service Coordinators $490,401 $490,401
7004-9004 Public Housing Rent Escrow $500,000 $-0-
7004-9005 Public Hsng Operating Subsidies $30,271,292 $30,271,292
7004-9024 Mass. Rental Voucher Program $20,106,829 $24,283,345
7004-9030 AHVP $2,300,000 $2,300,000
7004-9033 Mental Health Rental Subsidies $2,000,000 $2,000,000
7004-9201 Interest Subsidies for Private Dev $5,500,000 $5,500,000
7004-9315 Federal LIHTC $1,500,000 $1,500,000
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