HUD SECRETARY MARTINEZ APPEARS BEFORE CONGRESSWOMAN LEE'S HOUSING PANEL
Washington, DC - Congresswoman Barbara Lee today questioned Housing and Urban Development (HUD) Secretary Mel Martinez about the Bush Administration cuts to HUD funding before a Housing subcommittee hearing.
"I have been very disturbed about the administration's HUD budget
since its release, and I don't feel any better about it after hearing personally from Secretary Martinez at today's hearing, said Lee. "Once again, the poor and lower income Americans who use FHA loans are bearing the brunt for Bush's $2 trillion plus tax
cut that truly will benefit wealthy Americans. This is terrible social and economic public policy."
The Bush administration cuts $200 million from the HOME formula grants program which is a critical housing production program. It also hikes FHA loan fees by $86 million and tightens FHA loan underwriting guidelines when FHA and Ginnie Mae
programs have a combined current surplus of $3 billion.
The Bush budget cuts funding for public housing by $859 million including a devastating 23% cut in the Public Housing Capital
Fund which funds repair and maintenance of public housing units, terminates the public housing Drug Elimination Program, and
reduces the number of incremental Section 8 vouchers by 57%.
"It is a simple fact that in most areas, regular police will not
go into public housing developments," said Lee. "This cut in the Drug Elimination program on top of the Administration's cut in the COPS program means that the Bush administration is writing
off public safety for anyone in low income housing. This is an outrage."
Due to the energy crisis in California, Congresswoman Lee also questioned Secretary Martinez about the cost of energy in public housing. The Bush budget freezes LIHEAP funds next year and
provide absolutely no funding in the LIHEAP emergency
account. Secretary Martinez said he is using Department of Energy data
from last year to budget for public housing energy
costs even though energy prices, particularly in California, are
soaring well above these estimates. Public housing managers will
have to find the funds to pay for these expected higher energy costs
out of services and maintenance accounts.
"Even though he knows the estimates are out of date and flat out wrong, he said in the hearing he intends to continue to base the budget on them," said Lee. "I'm very disappointed with his statement, and I will encourage him to work with me and my colleagues to pass supplemental appropriations to deal with the public housing energy crisis."
"Secretary Martinez is really being strapped by the Bush budget," concluded Lee. "He can't even make adjustments for rising energy costs. It is truly sad for the people who are working hard and trying to maintain a decent place to live."
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