.jpg){kind=small}
.jpg)
.jpg){kind=small}
.jpg){kind=small}
SENATOR LAUTENBERG PROVISION WOULD EXTEND DEADLINE FOR HOUSING AUTHORITIES TO COMPLY WITH NEW ACCOUNTING SYSTEM
Senator Crafts Language to Extend Deadline, says Housing Authorities
in N.J. Must not be Forced to Comply with Unrealistic Deadlines
WASHINGTON, D.C. -- U.S. Sen. Frank R. Lautenberg (D-NJ) today announced that he successfully added language to the FY 2007 Supplemental Appropriations Bill that would extend a deadline for New Jersey housing authorities to convert to a new “asset management” accounting system mandated by the U.S. Department of Housing and Urban Development (HUD). Without the Lautenberg provision, housing authorities in New Jersey would stand to lose $750,000.
Currently, public housing authorities are under a strict HUD-imposed April deadline to convert their accounting methods to an “asset management” system or risk losing funding. The language hammered out by Sen. Lautenberg would extend that deadline by six months to September.
“Our housing authorities are on the front line every day in the effort to give everyone in New Jersey a home and an opportunity to build a better life for their families,” said Sen. Lautenberg. “HUD must not force unrealistic deadlines on our housing authorities who are trying to make housing more affordable for our residents. Housing authorities need more time to ensure a smooth transition to the new system.”Sen. Lautenberg said housing authorities in New Jersey and across the country are facing the largest cut in federal funding in public housing history and that action had to be taken to ensure working families were not removed from their homes.
Prior to 2006, public housing developments were operated under a single budget and accounting system. A Harvard study determined that public housing authorities could be more efficient by operating developments under an asset based management system. Asset based management requires each property to have a separate budget and accounting system.
Under the original HUD deadline, public housing authorities had to submit an application by April 15th to demonstrate that they have implemented asset based management. Public housing authorities that do not meet this deadline could lose an additional 20 percent of their funding.
Sen. Lautenberg’s language passed out of the Appropriations Committee yesterday and is expected to be considered by the full Senate next week.
