NAMI E-News March 7, 2005 Vol. 5-7
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Cuts Sought for Section 8 - Need Advocacy
Housing Update, Action Needed: Deep Cut Sought for HUD 811 Program, New
Housing Production Proposed for Elimination
As was reported in a NAMI E-News Alert last month, the Bush Administration's FY
2006 seeks to cut funding for a key housing resource for people with severe
mental illnesses and their families by 50% and completely eliminate funding for
production of new units of supportive housing. NAMI is currently working with
colleague disability organizations to oppose this unprecedented assault on a
critical source of permanent supportive housing for non-elderly adults with
severe disabilities.
ACTION REQUIRED
NAMI advocates are strongly encouraged to send a letter to both their U.S.
Senators and their House member urging them to reject this proposal. Go to the
link below to access a letter that you can send.
Send a Letter
The Administration's request for FY 2006 would devastate the Section 811 program
and end the 30-year plus commitment from the federal government to production of
new units of supportive housing for people with severe disabilities. NAMI
affiliate leaders are especially encouraged to send this letter on their
affiliate letterhead.
BACKGROUND
The President's budget would cut Section 811 in half, dropping funding down to
$120 million from its current level of $238 million. More importantly, the
budget proposes to completely eliminate all funding for new unit production in
FY 2006 by zeroing out the capital advance/project-based side of the program.
This is the 75% of HUD 811 funding that supports capital grants and project-
based rental assistance for non-profit disability groups to develop new units of
permanent supportive housing.
Instead, the President's FY 2006 budget proposes to direct the remaining $120
million in the Section 811 program to renewal of existing rent subsidies (both
tenant-based and project-based), with a small amount left to fund new tenant-
based subsidies. Specifically, 80 million would be directed to tenant-based
renewals, $5 million for project- based renewals (also known as PRACs) and $45
million of new tenant-based contracts. This means that more than 70% of all 811
funds would be consumed by the cost of renewing (i.e. keeping in place) housing
funded under the program in previous years.
Moreover, the elimination of the capital advance/project- based side of the
program would end a 30-year commitment from HUD to support the production of new
housing targeted to non-elderly people with severe disabilities (including
severe mental illnesses). Reliance solely on tenant-based assistance (portable
rent subsidies that rely on voucher recipients being able to find rental housing
on their own) also represents a major change in the targeting of 811 away from
people with more severe impairments who need housing related supports.
By contrast to the 50% cut to the Section 811 program, the budget proposes to
level fund 811's cousin for the elderly, Section 202 at $741 million. In fact,
under the proposed budget Section 202 would actually produce more new units in
FY 2006 through the redirection of funds previously allocated to planning
grants.
Go to the link below to read additional "Talking Points" on the threat to
Section 811.
Talking Points
If you have questions, comments or concerns, please send an
email to elise@nami.org
NAMI - The Nation's Voice on Mental Illness
2107 Wilson Blvd., Suite 300
Arlington, VA 22201
http://www.nami.org
Last Updated on
03/08/05
webmaster@namiscc.org
