HUD Agrees to Adopt Higgins’ Proposal, Western New York Will Save $8.7 Million
Washington, DC—Following the effort led by Congressman Higgins to urge the Department of Housing and Urban Development (HUD) to extend the deadline for housing agencies to be in compliance with new asset management rules, HUD has agreed to a deadline extension, saving housing authorities from losing $177 million nationwide, and saving Western New York $8.7 million.
“This is a victory for the 2 million people in this country who rely on public housing,” Higgins said. “Our local housing authorities deserve this deadline extension in order to better serve our families, seniors, and people with disabilities.”
The deadline extension will allow housing authorities additional time to comply with the new regulations for asset management set forth by HUD last fall. Under the new funding formula, some authorities lose funding and some gain funding. Authorities can stop their losses by complying with the new regulations by the set deadline. Housing Authorities were supposed to have 12-18 months to implement the new system, but the deadline set by HUD gave housing authorities just seven months.
“A smooth transition to the new system and a fair chance at stop-loss was crucial for housing authorities in New York State,” Higgins said.
Higgins, along with Congressman Eliot Engel (NY-17), led the New York Congressional delegation in asking HUD to push back this deadline, allowing housing authorities to stop their losses under the new funding formula. This week, HUD responded favorably to this request by announcing it would move the deadline from April 15, 2007 to October 15, 2007. The additional time will allow housing authorities the time they need to qualify for stop-loss, saving New York State $83 million, and Housing Authorities in Buffalo, Niagara Falls, Jamestown, Lackawanna, and Kenmore $8.7 million.