The newly released proposed FY2010 budget includes cuts to valuable housing programs, including Local Rent Supplement and housing first. We are currently in the process of parsing through the proposed budget numbers to find where the money is being reallocated.
The city’s tactic of cutting funding to these programs is a temporary fix and will have negative long term repercussions. We are hoping that the city can responsibly raise revenue in order to protect these and other critical housing programs.
The the rise in foreclosure underscores the need for action and leadership from our public officials. Though the numbers are not as significant as our neighbors in Northern Virginia and Prince George’s County, this is a frightening trend that cannot be ignored.
HAT’s suggestion to the City Council and other public officials is that HPAP (Home Purchase Assistance Program) can be utitlized to stabilize the bottom third of the housing market, thus securing the real estate values in the city. Sadly, HPAP remains woefully underfunded. In FY2010 budget, HPAP has been scaled back to accomodate less than 300 borrowers, reduced by 40% of its historic annual capacity.