SECTION: CAPITOL HILL HEARING TESTIMONY

LENGTH: 735 words

COMMITTEE: SENATE APPROPRIATIONS

HEADLINE: VA HUD APPROPRIATIONS

TESTIMONY-BY: BARBARA A. MIKULSKI, SENATOR

BODY:
June 14, 2001

STATEMENT OF

SENATOR BARBARA A. MIKULSKI VA-HUD APPROPRIATIONS SUBCOMMITTEE HEARING DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Welcome, Secretary Martinez. You have one of, the most difficult jobs in the government: providing housing assistance, re-building neighborhoods, and helping the elderly, the disabled and the homeless. A strong and pro-active U.S. Department of Housing and Urban Development (HUD) is critical to meet the goals we all share. Senator Bond and I share many of the same values and goals when it comes to housing: affordable housing, healthy neighborhoods and proper fiscal management. I believe this is a time to take stock, re-focus on HUD's core programs, and make HUD a true partner with our local governments. I know you share my vision and I look forward to working with you. As I review the President's budget, I see areas of common ground as well as areas of concern.

Faith-Based Initiatives

In the area of the President's Faith-Based Initiative, I believe we need to know more about this initiative and how it will impact HUD. HUD has a long history of working with faith- based organizations. We need to know how this new initiative is different and its potential consequences. I want to work with the Administration to make sure our faith-based organizations can participate in a constitutionally compliant manner.

Section 8 Housing Vouchers

Renewing Section 8 contracts remains our number one priority for this Subcommittee. Working families depend upon their vouchers and we will not allow anyone to be thrown on the street for lack of funding for the renewal of vouchers. I am pleased that your budget includes funding for new vouchers to help reduce the waiting lists in some areas. I am also interested in how we can use Section 8 vouchers in innovative ways, such as helping in the purchase of a home.

Flipping/Predatory Lending

Unfortunately, we continue to be plagued by flipping and predatory lending. I held a field hearing in Baltimore in May - a little over a year after the first flipping hearing in Baltimore. I wanted to see what we learned over the past year and what had changed. Some things had changed for the better, but unfortunately some things have stayed the same. It appeared that HUD underestimated the scope and severity of the problem, which led to a break-down in the process.

When I raised this issue with HUD earlier this year, the Department re-focused its attention on Baltimore. Mr. Secretary, I want to thank you for your prompt response and your attention to Baltimore on, this issue. HUD is now fully re-engaged in this effort, working with the City and local non-profits to prevent flipping and re-build communities plagued by this practice. Now we need to maintain the vigilance and we need to know the lessons learned. Senator Sarbanes and I look forward to hearing your suggestions for long term solutions to this national problem.

FHA Property Disposal

Too many neighborhoods have "HUD houses," which are often dilapidated and uninhabitable. We must improve the disposal process to get homes to qualified buyers, local governments, and qualified non-profits in a timely manner.

Public Housing

In the area of public housing, I am disappointed by the Administration's decision to cut $700 million from the public housing capital account. This account pays for the repair and maintenance of our nation's public housing stock. It can also be used for new construction. Cutting this program is the wrong thing to do. Our nation's public housing stock still needs substantial help. Now is not the time to pull back.

I am also puzzled by the decision to kill the drug elimination program. If we are going to have a war on drugs, we can not cut back on the programs that fight drugs in the first place. I will be working with my colleagues to restore these cuts because these programs are in the national interest.

Digital Divide/Computer Learning Centers

Mr. Secretary, as you know, I have been a long time champion of conquering the Digital Divide. I note that in your budget, you are asking for $80 million to build computer learning centers in low-income neighborhoods. I applaud this goal, but I believe it is critical that it is linked and coordinated with the Department of Education's program as well as the "E-Corps" within the Corporation for National Service.



LOAD-DATE: June 21, 2001