Last Monday, November 10, the DC Council passed the “Fiscal Year 2009 Balanced Budget Request Emergency Act of 2008”.  There were no public hearings on this legislation.  The legislation passed unanimously by a vote of 13-0 with only Councilmember Marion Barry asking for a delay in the vote for public debate of the proposal.  

This emergency legislation closed a projected $131 million shortfall in projected 2009 revenues by agreeing to cuts proposed by Mayor Fenty. The Council then went further by creating a $47 million revenue surplus for possible further budget revenue shortfalls that are expected when the CFO announces revised revenue estimates next month (December) and again early next year (February). 

Unfortunately, the Council created that $47 million surplus by freezing program funding scheduled for fiscal year 2009, but not yet implemented.   One of those programs was $11 million dollars in increased HPAP assistance slated for 2009, but not yet used.  If the CFO’s revenue estimates in December or February show signs of improving the Council can unfreeze the $47 million in reserves and move the programs forward again.

GCAAR testified in favor of $19 million in increased this past spring when the 2009 fiscal year budget was debated and continued to express support for the HPAP program as recently as today in meetings with Councilmembers on other legislation.  However, there are distinct challenges facing the re-implementation of HPAP funding. 

First, the Council voted unanimously last week to freeze funding last week and there appears to be little appetite to debate the issue again before the CFO’s next revenue estimates.  At the moment, there is no legislation to debate or discuss. 

Second, GCAAR is in a challenging public policy situation.   Many of those who are lobbying for more money for HPAP, the Housing Production Trust Fund and other “affordable housing” programs have also expressed their support for higher taxes or shown little to no interest in lowering taxes. 

One glaring example of this on the Council is the Chairman of the Housing and Urban Affairs Committee, Councilmember Barry, who consistently advocates for both more money for affordable housing programs, like HPAP, and has voted to increase recordation and transfer taxes as high as 1.7%.   Another often outspoken supporter of affordable housing for renters and tenants, Councilmember Graham, has already stated in the November 10 debate that the Council should begin looking for “revenue enhancements.”

Unfortunately, it is unclear when or if HPAP funding will be re-instituted.  Ideally, it will be in December or February when the CFO revenue estimates give the Council more confidence and they vote to unfreeze the surplus revenues. 

On Wednesday, GCAAR’s Public Policy Committee will meet and on Friday, GCAAR’s Board of Directors will meet.  There is no doubt the HPAP issue will arise and a clearer vision moving forward will be formed.

Until then, I strongly encourage you to contact your DC Councilmembers (by phone, e-mailing, or attending the rally tomorrow) and expressing your concerns about HPAP and/or lower recordation and transfer taxes.   

Tomorrow’s rally, sponsored by CNHED, the Fair Budget Coalition and the Affordable Housing Alliance, will begin at 9am on the steps of Wilson Building. A variety of interest groups, including advocates of HPAP, downtown homeless shelter advocates, tenant rights advocates, rent supplement advocates, Section 8 advocates, Housing Production Trust Fund advocates, and many more have been encouraged to attend. Unfortunately, at the moment, the only specific affordable housing piece of legislation on the Council’s agenda is B17-943, the Housing Trust Fund Stabilization Bill.