Appendix 1: Summary Analysis of Voucher Provisions of House and Senate FY 2006 Bills, 8/24/05

HIGH STAKES FOR THE HOUSING VOUCHER PROGRAM IN THE 2006 APPROPRIATIONS BILL

APPENDIX 1:
SUMMARY ANALYSIS OF VOUCHER PROVISIONS OF HOUSE AND SENATE FY 2006 BILLS

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Key Features of the Bills
FY 2005

House Bill

Senate Bill

Voucher renewal funding
$13.36 billion

$14.19 billion

$14.09 billion

Tenant Protection vouchers
$162 million

$166 million

$192 million

Administrative fees
$1.200 billion

$1.225 billion

$1.295 billion

Total tenant-based account
$14.7 billion

$15.6 billion

$15.6 billion

Voucher funding formula Budget-based; determined by agency’s average leasing and voucher costs during May – July 2004. Budget-based; determined by each agency’s share of renewal funding in FY 2005. Budget-based; determined by agency’s average leasing and voucher costs during the most recent 12-month period.

Voucher funding adjustments available to state and local housing agencies For first-time renewal of “tenant-protection” or HOPE VI vouchers. (1) Up to $45 million for agencies harmed in 2005 because their average costs for FY 2004 were higher than during May – July 2004.
(2) Same as FY 2005.
Same as House bill.

Renewal of Section 811 Mainstream Vouchers Included in Section 811 account. Included in Section 811 account. Included in Tenant-based Rental Assistance account, with potential to deepen shortfalls.

CBPP Analysis of the Bills

Vouchers cut in 2005 and left unfunded in 2006
75,000

18,200

32,600

Total vouchers funded
(subtracting wasted vouchers)

1,968,300

2,036,800

(2,025,100)

2,022,400

(2,020,200)

Amount of funding wasted because formula would overfund some agencies
Likely some, but amount undetermined

$79 million

(equivalent to

11,660 vouchers)

$15 million

(equivalent to

2,250 vouchers)

Vouchers in use cut because formula would underfund some agencies*

27,900

6,000

Agencies facing voucher cuts because of underfunding*

1,013 agencies administering 47 percent of vouchers

629 agencies administering 27 percent of vouchers

Agencies facing significant cuts (at least 50 vouchers or 5 percent of vouchers in use)*

387 agencies administering 29% of vouchers

54 agencies administering 11% of vouchers

Cost of full funding of bill’s formula
$13.92 billion

$14.56 billion

$14.25 billion

Funding proration required under the funding formula*
4.08 percent

2.13 percent

0.22 percent

Agencies that would receive funding for more vouchers under the funding formula*

833 agencies, administering 31 percent of vouchers

1,148 agencies administering 53 percent of vouchers

*For the purpose of making a fair comparison of the effects of the different voucher funding policies proposed in each bill, these figures assume that $14.19 in renewal funding is applied to each bill’s voucher funding formula.

Key Features of the Bills	FY 2005	House Bill	Senate Bill
Voucher renewal funding	$13.36 billion	$14.19 billion	$14.09 billion
Tenant Protection vouchers	$162 million	$166 million	$192 million
Administrative fees	$1.200 billion	$1.225 billion	$1.295 billion
Total tenant-based account	$14.7 billion	$15.6 billion	$15.6 billion
Voucher funding formula	Budget-based; determined by agency’s average leasing and voucher costs during May – July 2004.	Budget-based; determined by each agency’s share of renewal funding in FY 2005.	Budget-based; determined by agency’s average leasing and voucher costs during the most recent 12-month period.
Voucher funding adjustments available to state and local housing agencies	For first-time renewal of “tenant-protection” or HOPE VI vouchers.	(1) Up to $45 million for agencies harmed in 2005 because their average costs for FY 2004 were higher than during May – July 2004. (2) Same as FY 2005.	Same as House bill.
Renewal of Section 811 Mainstream Vouchers	Included in Section 811 account.	Included in Section 811 account.	Included in Tenant-based Rental Assistance account, with potential to deepen shortfalls.
CBPP Analysis of the Bills
Vouchers cut in 2005 and left unfunded in 2006	75,000	18,200	32,600
Total vouchers funded (subtracting wasted vouchers)	1,968,300	2,036,800 (2,025,100)	2,022,400 (2,020,200)
Amount of funding wasted because formula would overfund some agencies	Likely some, but amount undetermined	$79 million (equivalent to 11,660 vouchers)	$15 million (equivalent to 2,250 vouchers)
Vouchers in use cut because formula would underfund some agencies*		27,900	6,000
Agencies facing voucher cuts because of underfunding*		1,013 agencies administering 47 percent of vouchers	629 agencies administering 27 percent of vouchers
Agencies facing significant cuts (at least 50 vouchers or 5 percent of vouchers in use)*		387 agencies administering 29% of vouchers	54 agencies administering 11% of vouchers
Cost of full funding of bill’s formula	$13.92 billion	$14.56 billion	$14.25 billion
Funding proration required under the funding formula*	4.08 percent	2.13 percent	0.22 percent
Agencies that would receive funding for more vouchers under the funding formula*		833 agencies, administering 31 percent of vouchers	1,148 agencies administering 53 percent of vouchers
*For the purpose of making a fair comparison of the effects of the different voucher funding policies proposed in each bill, these figures assume that $14.19 in renewal funding is applied to each bill’s voucher funding formula.