Obama administration backs private twist to public housing
By Alec MacGillis
Washington Post Staff Writer
Wednesday, July 14, 2010
The Obama administration has set off a pitched debate among housing officials and advocates by promoting far-reaching legislation to overhaul the way the nation's 2,400 public housing authorities operate, with potentially major ramifications for their 2.3 million residents.
At the heart of the bill is a bold proposal to encourage housing authorities to rely more heavily on private financing to pay for their $30 billion in renovation needs. But critics fear the measure could introduce a range of problems, most notably a loss of public housing should the properties end up in private hands.
"Everyone seems to understand that there's not going to be a massive new infusion of capital funds, and without that, what do you do?" said Linda Couch, senior vice president of the National Low-Income Housing Coalition. "The controversy is bringing in private financing. Therein potentially lies public housing's solution, but private financing could also be public housing's enemy."
Rep. Maxine Waters (D-Calif.), chairman of the housing subcommittee, was even more negative, warning that the bill could "lead to the permanent loss of public housing" and that proper vetting should take "at least two years."
"The department talks about this proposal being voluntary in nature, but if you continue to reduce the capital fund budget, this could become the only way an agency could address its capital needs," said Tim Kaiser, director of the Public Housing Authorities Directors Association. "That's a very big concern."
Still others criticize a provision that would let residents of public housing projects that convert to the new approach move out after two years and get a coveted Section 8 voucher to use elsewhere. Some advocates say this is unfair to those on voucher wait lists.
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http://www.washingtonpost.com/wp-dyn/content/article/2010/07/13/AR2010071305644.html