Friday, September 19, 2008

Senators urge HUD to help Maine's PHAs

U.S. Senators Olympia Snowe and Susan Collins have asked the Department of Housing and Urban Development (HUD) to look for additional resources to assist Maine's public housing authorities that are struggling with rising energy costs.

"This is a critical issue," said the senators in a Sept. 18 letter to HUD Secretary Steven Preston. "Maine's public housing authorities are near the financial breaking point. With some agencies spending as much on heating oil as they had budgeted, many are left with huge shortfalls."

They cited the troubles faced by several agencies in their state. According to the senators, the Bangor Housing Authority is allotted $2.36 per gallon for heating oil and has spent $4.16 per gallon. The agency uses 300,000 gallons per year for their 563 units, leaving a $450,000 hole in its budget.

Other agencies have faced electric rates that have gone up 15 percent in June, and some landlords have indicated that they will stop accepting HUD voucher tenants because they cannot recoup all of their expenses, said the letter.

"We urge HUD to take immediate action to help cold-weather states, like Maine, during this time of record-high home heating costs," said the senators. "Given the crisis, we encourage HUD to examine any additional resources within the agency that may be available to assist Maine."
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