Housing memo, March 5, 1997

Memo To: RLE, SK From: J.P. Subject: Housing Subcommittee - Secretary Cuomo Testifying Date: March 5, 1997 Dear Bob: The Housing Subcommittee is conducting two hearings tomorrow on H.R. 2, the Housing Opportunity and Responsibility Act of 1997. The morning session beginning at 9:30am will feature HUD Secretary Andrew Cuomo. The Afternoon Session involving various housing groups will follow the Morning Session (regardless of time) and finish by 3:30pm. You should attend a portion of the Morning Session during the Cuomo Testimony. There are relatively few differences between H.R. 2 and H.R. 2406, the housing bill overwhelmingly passed last year and stalled in House-Senate Conference. The following constitute highlights from H.R. 2: H.R. 2 is designed to accomplish four objectives: 1) Require mutuality of obligation between the provider of assistance and receiver of federal aid. 2) Reform the rent rules that act as disincentive to work and family unification. 3) Eliminates federal mandates that concentrate poverty. 4) Encourages and rewards innovation by local government. Community Work and Family Self-Sufficiency: ► Requires adult residence to (a) enter a self-sufficiency program; ('KLvoluntegj/no less than eight community hours^arjDparticipate in an economic self-sufficiency program. ► Family must set a target date/ defining when they expect to be out of public housing. Family Choice of Rental Payment: ► Families are given a choice of paying rent as either (a) 30% of their adjusted income; or (b) a flat rent, which the Public Housing Authority (PHA) determines for each unit. ► This does not “repeal” the Brooke Amendment, a provision requiring 30% of household income determines the rent, however, it does give the flexibility to the family to choose either 30% income or ^Tat rate)that will not change as additional income is brought in the household. Merger of Section 8 certificates with Voucher Program: ► Similar programs with different legislative origins, thus under different rules. ► This is a noncontroversial provision supported by both sides in last year’s bill.