BUSH ADMINISTRATION ANNOUNCES EMERGENCY FUNDS TO HELP PAY SKYROCKETING UTILITY BILLS FOR PUBLIC HOUSING RESIDENTS

en español

WASHINGTON - U.S. Housing and Urban Development Secretary Mel Martinez today announced that HUD will earmark an additional $105 million to help pay the utility bills of public housing authorities and resident management corporations blind-sided by extended spells of unusually cold weather and skyrocketing utility costs.

"The cold winter weather and high utility rates have dealt a double blow to housing authorities whose budgets were locked into estimates made months ago," Martinez said. "We're committed to helping housing authorities and resident corporations cover these extraordinarily high expenses."

Martinez noted that many utility bills are, on average, 18 percent higher than what housing authorities projected last year. In some cases, he said, the bills have climbed over 50 percent. He cited the Los Angeles Housing Authority's utility bill, which has increased 25 percent, as an example. "Increases of that magnitude are simply too large to absorb."

Martinez explained that $55 million of the $105 million will be put into a general resources fund used to meet the total subsidy requirements for the nation's 3,100 PHAs. With the additional funding the account will total $3.29 billion, which is divided among the housing authorities.

The remaining $50 million, he said, will go to meet dire emergency utility needs on a case-by-case basis.

A notice about how agencies may apply for relief is available from HUD field offices. Additional information is available from Regina McGill, division director of funding and financial management in HUD's Office of Public and Assisted Housing Delivery at (202) 708-1872.

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