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HUD to Make $150M Available For PHA Reserves

Tuesday, May 25, 2004 - 1:45AM

Alleviating some of the immediate pressure it caused by a recent decision to change its method for renewing existing Section 8 vouchers, the Department of Housing and Urban Development announced that it will make available $150 million in 2003 carryover dollars to replenish the reserves of approximately 525 public housing authorities (PHAs). The move will offset budget shortfalls in the Sec. 8 programs for fiscal year 2004. HUD Secretary Alphonso Jackson testified last week before the House Financial Services Committee and introduced a plan that will provide a "full inflation factor" for payments to PHAs. This adjustment to the funding formula will be retroactive to Jan. 1, 2004. Housing agencies stood to lose at least $270 million under the regulatory change, according to an estimate by the National Association of Housing and Redevelopment Officials (NAHRO).

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