Affordable Housing Budgets Affected By Economy



Cities, counties and states across America are struggling to close budget gaps - some of which are significant. Most often we hear about extreme cases like California, which will have to find nearly $25 billion in either spending cuts or additional revenue for its most recent fiscal year. But even smaller cities like Falls Church, Virginia have money troubles that require hard choices to be made. Government salaries and entitlement programs aren't the only things being subjected to significant cuts. Affordable housing programs are being affected, too.

Earlier this year, the Falls Church City Council had to make one of those hard choices, voting 3 - 2 to cut $2 million of affordable housing funding from the FY 2011 budget. Those who opposed the cuts expressed concern for the future of low-income housing projects in the city. Their fears seem to have been realized. In light of this most recent setback, the Falls Church Housing Corporation announced it will no longer pursue projects within the city limits, citing the lack of funding as a primary reason for its decision.

One of the dissenting votes for the funding cut came from Ms. Robin Gardner, who said the vote was an indicator of the Council's general attitude toward low-income housing. City Mayor Nader Baroukh denied that he opposes affordable housing projects, and said the decision to cut funding was an unfortunate necessity caused by the city's current financial position. Several affordable housing advocates attended the Council meeting and spoke out against the cuts. One even recommended the vote be delayed until the next Council meeting.

Council members gave no indication as to when, or if, the money will be re-allocated should the city's financial picture improve. The silver lining in these budget crises comes by way of the Federal government, which recently allocated an additional $1 billion in funding for low-income housing-related programs.