On May 11, the House Financial Services Committee examined a bill (H.R. 1999) to convert the existing Section 8 voucher program into a flexible voucher program. Rep. Gary Miller (R-CA) sponsored the legislation.
Department of Housing and Urban Development (HUD) Secretary Alphonso Jackson explained the administration’s rationale for reforming the Section 8 voucher program: “The program currently doesn’t provide families with the right incentives. The Federal government has allowed families who declare no income to live rent-free and to receive a check to pay for utilities. There is little incentive for families to seek housing outside of the voucher program; in fact, there is a disincentive to make positive life decisions.” He also noted that a HUD statute requiring that 75 percent of all vouchers be issued to families making under 30 percent of the area median income has “led to a higher rate of subsidy per family and created a system where families are more likely to stay in the program longer,” adding, “We believe that since 1998, the fastest-growing segment of voucher recipients has been families that have been in the program for longer than five years. The current program design has made housing assistance a permanent support for some families. Moreover, results from the welfare-to-work voucher demonstration indicate that providing vouchers to welfare recipients may have contributed to a short-term reduction in earnings and employment, and an increase in welfare dependence. Rather than a ‘hand up,’ Section 8 Housing Vouchers have turned into a ‘hand out.’”
Pointing out that the administration’s proposal, which is embodied in H.R. 1999, would provide more flexibility to public housing authorities (PHAs), Secretary Jackson stated that the Flexible Voucher Program (FVP) “would allow local PHAs to determine the appropriate mix of low-income families to serve by targeting 90 percent of all assistance to those earning at or below 60 percent of Area Median Income the same targeting specified in the HOME Investment Partnerships and Low-Income Housing Tax Credit programs.” He also noted that the bill would make permanent the Moving to Work demonstration project, under which PHAs create incentives for voucher recipients to find jobs, improve their employment opportunities, achieve economic self-sufficiency, or pursue homeownership.
During the question and answer session, many Democratic members expressed their concern that the FVP would increase the number of homeless people in the United States. Ranking Member Barney Frank (D-MA) pointed to a HUD memo indicating that enhanced vouchers would be abolished after one year under the program, so many people needing that additional assistance would be evicted. Rep. Maxine Waters (D-CA) also noted that there is a large gap in minority communities between people who have Section 8 vouchers and those who need them, and suggested that there may be a direct relationship to the unemployment rates in those areas. Secretary Jackson reiterated his belief that there should be a time limit for Section 8 eligibility, stating that once people take advantage of the Moving to Work programs, they would be able to afford higher rents without federal assistance.
