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The U.S. Department of Housing and Urban Development (HUD) is cutting more than $40 million from the city’s Section 8 program subsidies, according to an analysis by the New York City Housing Authority. Congress voted in January to approve a 2004 Appropriations Act that uses an average unit cost from summer 2003, plus inflation, to calculate the disbursement of Section 8 funds to public housing authorities. Here in New York, that means HUD is only paying a subsidy of $638 per unit, while NYCHA estimates the units cost the city an average of $679. The agency might dip into its $15 million reserve fund, but that will not cover the entire shortfall. If NYCHA’s request for financial relief from HUD is not met, says NYCHA spokesperson Howard Marder, the agency will suspend all new Section 8 allotments. This comes at a time when NYCHA has already started wait-listing homeless adults seeking vouchers. Last week, Massachusetts officials announced that more than 600 families were losing their Section 8. [05/03/04]

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