Legislative Update 

Governor Seeks $62.5 in Operating Subsidy

Governor Deval L. Patrick's state budget request for next fiscal year 2012 (beginning 7/1/11) includes the same amount of housing authority operating subsidy as this year, $62.5 million. His original budget requested two years ago was $71.3 million, the amount sought by housing authority for this state budget. The current $62.5 million resulted in a 4.7% reduction in housing authority budget non‑utility allowable expense caps. The gap between rent revenues and the well documented real cost of operating public housing continues to widen, placing more units in jeopardy. The property maintenance and management costs, most of which are mandated for 45,000 state aided units, continue to rise while rental income has moderated due to tenant unemployment. Subsidy of $62.5 million is insufficient to preserve family and elderly units.

This will be an extremely tough budget year with the state's rainy day fund already reduced, taxes already raised, federal recovery funds expended and unemployment numbers still high. The federal stimulus package like ARRA was a stop gap method of softening the state finding shortfall. Local housing officials and residents need to advocate aggressively presenting their State Legislators with compelling arguments as to why the preservation of local public housing for the elderly, veterans, low income residents and the homeless must remain a top budget priority in fiscal 2012. Members are urged to document the local impact of budget cuts on operations and maintenance, and on their ability to reoccupy units in a timely fashion. Ask Legislators to support $71 million in operating subsidies line item 7004‑9005, the same amount the Administration requested two fiscal years ago.

Governor's Proposed Budget for FY12 for Housing Programs (source CHAPA)

2011 Legislative Education Day - March 22 at State House, Boston 

Members are urged to attend the annual MassNAHRO Legislative Information Day at the State House on March 22 along with their state legislators. The competition for state resources will be intense, but all politics is local. Public housing homes merit saving.