Federal budget talks spark concerns over housing program’s renewal

As Congress enters the thick of budget negotiations for 2024, concerns are growing over the potential renewal of a longstanding program that gives agencies including the Chicago Housing Authority flexibility over how to use funds allocated for housing and vouchers.

Under the program, the U.S. Department of Housing and Urban Development allows the CHA and other housing authorities to redirect those funds to other public services, which critics argue prevents thousands of Chicagoans from accessing vital housing assistance, the Chicago Tribune reported.

Moving to Work — the name of the program, which was established in 1996— gives leeway to housing authorities in addressing local housing needs and helping residents attain employment and self-sufficiency. However, opponents of the recent use of the program contend that these agencies are diverting millions of dollars away from housing assistance, leaving many families on voucher waitlists and hindering construction of essential public housing.

Some housing advocates argue that the program’s current allocation of funds is less effective than vouchers in assisting low-income families. They have called for more oversight and a reconsideration of Moving to Work contracts.

“Chicago is a very extreme example, but it’s a really important example of a housing authority and how they are using their MTW flexibilities not necessarily to benefit the residents,” Deborah Thrope, deputy director of the National Housing Law Project, told the outlet.

The program is set to expire in 2028 and currently under consideration for a 15-year extension through 2043 by the Senate Committee on Appropriations. Housing advocates argue that increased oversight is necessary, especially for agencies like the CHA, which redirected approximately $74 million in federal voucher dollars away from housing assistance in 2022, affecting over 6,000 families, the newspaper reported, citing Washington-based think tank Center on Budget and Policy Priorities.

Tracey Scott, CEO of the CHA, defended the program, emphasizing its importance in meeting the city’s housing needs, while others argue that the funds should be entirely directed towards housing.

In 2022, the CHA allocated more $916 million from its $1.2 billion budget to the Moving to Work program. The funds were distributed across various purposes, including the voucher program, property management, capital repairs, personnel and resident services.

The CHA maintains that the program has allowed it to serve more families over the years, citing an increase from 49,921 families in 1999 to 63,449 families in 2022. In addition, the CHA claims that it has the capacity to build additional housing units, with more than 19,000 units in the pipeline, the outlet reported.

— Quinn Donoghue

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