HUD CLARIFIES SHORT-TERM FUNDING NOTICE FOR PUBLIC HOUSING AUTHORITIES

WASHINGTON - In light of a shortfall in funding during 2002, and the fact that the Department of Housing and Urban Development (HUD) has not received its 2003 budget and continues to operate under a continuing resolution, HUD announced today that it expects Public Housing Authorities (PHAs) to operate at a funding level of approximately 90 percent, should Congress pass HUD's requested budget.

On January 6, 2003 HUD notified PHAs whose fiscal year began January 1, 2003 to explain that they would initially receive operating subsidy funding at a minimum level of 70 percent of last year's budget. Today's correspondence to the PHA executive directors clarified that the funding level was a temporary estimate until HUD's requested 2003 budget is finalized by Congress, at which point HUD intends to fund PHA 2003 budgets at or near 90 percent.

For most of the past decade, HUD has funded PHAs at less than 100 percent. As recently as 1996, funding levels were as low as 89 percent.

"Under the current circumstances, HUD is doing everything it can to ensure that PHAs get the resources to serve those in need," said Assistant Secretary Michael Liu. "We understand the delicate balancing act we are asking Public Housing Authorities to temporarily perform. We are optimistic that once Congress passes HUD's requested budget that we will have the funding to serve their fiscal needs."

Media with additional questions should call Donna White at (202) 708-0980 ext. 6612.

Read the letter to PHA Executive Directors

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