Media Center

Today, Congressman David Scott contested the elimination of popular housing and development programs in the Administration’s FY 2006 budget for the Department of Housing and Urban Development (HUD) in a Financial Services Committee hearing on Capitol Hill. The budget proposes elimination of the HOPE VI program, cuts in Section 8 vouchers and Community Development Block Grant (CDBG) funds, and reduction in housing counseling funds.

“Unfortunately, this budget cuts housing programs that serve low-income families, the elderly and disabled persons throughout Georgia,” Congressman Scott said. “I have heard from nearly every city and county in my district about the devastating effects that the cuts in CDBG funds and Section 8 vouchers will have on their communities,” Scott continued. The CDBG program is the largest source of federal financial assistance in support of state and local governments’ community development and neighborhood revitalization activities.

The HUD FY2006 budget would be slashed by $3.85 billion, from $32.358 billion to $28.51 billion, or by 12 percent. Specifically, the Section 8 voucher program would face cuts of $90 million, CDBG would be reduced by 35% and transferred to the Commerce Department, and the HOPE VI program would be eliminated.

“I am disappointed that the budget eliminates HOPE VI for the third straight year,” Congressman Scott said. “Both the housing authorities of Fulton County and Atlanta have used HOPE VI grants to raze old developments and replace them with mixed-income communities. If the Administration wants to create an ownership society then it should not cut HOPE VI.”

The FY 2006 budget proposes to cut home counseling funding from $41.664 million to $39.7 million. “Given the devastating impact of predatory lending in many communities, Congress should not cut back on efforts to educate consumers about the home buying process,” Congressman Scott said.

Congressman Scott is a member of the Financial Services Committee and Housing Subcommittee.