Letter to Senators Dianne Feinstein and Barbara Boxer

I am writing to request that you support legislation that addresses the crisis in renewal of HUD McKinney-Vento Homeless Assistance Act permanent housing programs. These programs are crucial to the local homeless housing and services system in our community. Nationwide in fiscal year 2003, more than 30,000 of these units are up for renewal requiring a total of $232 million -- at a cost of $194 million for expiring Shelter Plus Care subsidies and $41 million for the Supportive Housing Program permanent housing component. We commend the House and Senate for recommending $193 million for expiring Shelter Plus Care subsidies. However, no funds were allocated for the Supportive Housing Program permanent housing component.

I urge you to work to ensure renewal of expiring operating and rent subsidies under both the Supportive Housing Program permanent housing component and Shelter Plus Care programs for the 2003 funding year. Specifically, please contact the leadership of the Senate Full Appropriations Committee—Chair Senator Robert Byrd (D-WV) and Ranking Member Senator Ted Stevens (R-AK) and the VA-HUD Appropriations Subcommittee Chair Senator Barbara Mikulski (D-MD) and Ranking Member Senator Kit Bond (R-MO) – and let them know that these renewals are crucial to you. Please urge them to adopt a compassionate and pragmatic solution; namely, renewing these permanent housing subsidies through the Housing Certificate Fund (HCF), which renews expiring Section 8 subsidies. This action would ensure that both the vulnerable tenants of Shelter Plus Care and Supportive Housing Program permanent housing—and the private and non-profit landlords who operate it—can count on the ongoing affordability of this housing, just as Section 8 tenants and developers can.

In passing its version of the FY 2003 VA/HUD budget in July, the Senate Appropriations committee took an important first step, providing $193 million within its $1.215 billion homeless assistance allocation to renew expiring Shelter Plus Care subsidies for another year. On October 9, the House Appropriations Committee followed suit in passing its FY 2003 budget bill—also providing $193 million for SPC renewals within its overall $1.25 billion homeless assistance allocation.

But Congress must move beyond incomplete and stopgap measures—in the final VA-HUD budget bill, Congress must both:

* address the renewals of the Supportive Housing Program permanent housing component for FY 2003 ($41 million); and

* send a clear signal to tenants, non-profit developers, tax credit investors, and other stakeholders in this important housing that Shelter Plus Care and Supportive Housing Program permanent housing component will have a reliable source of renewal funding beyond this fiscal year.

Both of these goals would be accomplished by funding renewals under these programs from the Housing Certificate Fund. This is the action that the conference committee should take when it finalizes the HUD budget. At minimum, the final bill must address the imminent renewals for the Supportive Housing Program permanent housing component as well as Shelter Plus Care renewals.

Local government agencies and private non-profits are using Shelter Plus Care and Supportive Housing Program funds to end homelessness. I urge you to visit one of our local programs to meet some of the formerly homeless people who have become independent and productive citizens as a result of that work.