"I am very disappointed that the Administration has proposed continued cuts for core federal housing programs. The Administration's budget proposal puts HUD on a path that will lead, in time, to the dismantling of these important programs.

"For the 3rd year in a row, the Administration has proposed significant cuts to the public housing program, a program that serves over 1 million children and over 1 million elderly families. The budget calls for the complete elimination of the successful HOPE VI program, which turns outdated public housing eyesores into healthy, mixed income communities. HOPE VI has helped revitalize whole neighborhoods in many places around the country.

"This cut comes after the Administration's successful effort to terminate the public housing Drug Elimination Grant Program, as well as its efforts to cut public housing operating and capital funds. All told, the Administration has proposed nearly $2.5 billion of cuts in public housing over the past 3 years.

"The budget also cuts the funding available to public housing authorities for the important rental assistance voucher program. Moreover, their efforts to block grant the program will likely lead to additional cuts in the years to come. The voucher program serves 5 million low-income people, which has been proven to help people move successfully from welfare to work.

"The budget also proposes reductions in a number of other programs, including the Brownfields program ($25 million); the Rural Housing and Economic Development program ($25 million); Empowerment Zones ($45 million); Section 108 loans for economic development ($15 million supporting over $600 million in economic development loans); and housing funds for La Raza, funds used by a highly reputable organization to increase homeownership among Hispanics.

"The Bush Administration has consistently reminded the American public of the importance of housing and homeownership and its commitment to those policies and programs. This budget, however, shows that there is too much empty rhetoric when it comes to providing affordable housing opportunities to the nation's elderly, poor and working families."