Section 502 homeownership which serves low and very low families with low interest homeownership credit was but from $1.8 billion in 1994 to about $585 million for FY ’97. While the Secretary of USDA may supplement this to a small extent out of his Fund for Rural America, we are looking at a 67% cut. Section 515 rural rental housing serves very low income households, often below 50% of median, through the development of affordable apartments. This program which provides virtually the only affordable apartments in rural areas has been cut from $540 million in 1994 to $150 million in FY ’97, resulting in a whopping 72% cut. We are not talking about across the board cuts, freezes, or sharing the pain, we are talking about wholesale decimation of the most fundamental of Rural Development’s rural housing programs. One has to wonder who is considering, or who cares about, the short and long-term impact of these devastating cuts.

Is this happening because the need has been adequately addressed? No! In Delaware alone, statistics demonstrate long waiting lists for assisted rental housing, a high incidence of substandard housing with two thirds of the 20,000 substandard units located in Kent and Sussex Counties, a homeless population that is routinely turns away people because of a lack of beds and operating money, a growing elderly population many of which live on fixed incomes, and thousands of families and children whose housing and futures are "at risk."

Is decent, affordable housing a national and state priority? No! Congress is trying to repeal the long standing goal of the 1937 Housing Act of a decent, safe, and sanitary home and suitable living environment for every American family. Do we think we’ll address housing needs better without such a goal? Rural housing is certainly losing its status within USDA. With the reality of recouping these tragic losses being slim, then it is fair to say that rural housing is certainly not a federal priority of any magnitude. Has the transfer of this goal and responsibility been made to the State yet? The modest requests and appropriations in Delaware for the Housing Development Fund reflect that the basic human need for housing and shelter is not yet viewed as crucial enough to require the requisite monetary attention of our state. While some good steps have been taken, they pale when looking at the documented and quantified needs.

While the general public decries housing subsidies and assistance, there are sufficient incentives and mechanisms within our tax codes to subsidize and reduce the tax liabilities of upper moderate and particularly wealthy income residents. Compare the tremendous cuts placed on the backs of the poor with the greatest subsidy that all of us homeowners receive. Has there been a reduction in the mortgage interest deduction (read subsidy) yet? No! Should the deduction be done away with? No! Should it be reformed to be more equitable? Of course!

My concern is that neither the federal or state governments have blueprints to work towards addressing our housing needs, and nor are adequate resources made available to make real progress. While there are quality studies such as the state’s Consolidated Plan, it seems wee go from study to study without making substantial progress. We seem satisfied with chipping away at the problem and treading water than making real progress.