With higher home heating and electricity bills catching manyhomeowners off guard this winter, the Bush administration reportedthat it will make additional emergency funds available for publichousing authorities (PHA) and resident management corporations.

U.S. Department of Housing and Urban Development (HUD) SecretaryMel Martinez announced earlier this week that his agency willearmark an additional $105 million to help pay utility bills. “Thecold winter weather and high utility rates have dealt a double blowto housing authorities whose budgets were locked into estimatesmade months ago,” Martinez said. “We’re committed to helpinghousing authorities and resident corporations cover theseextraordinarily high expenses.”

Martinez pointed out that many utility bills on average are 18%higher than what housing authorities projected last year, and insome cases bills have soared over 50%. Martinez cited the LosAngeles Housing Authority, whose bills have increased by 25%, as anexample. “Increases of that magnitude are simply too large toabsorb.”

Of the additional funds, $55 million will be put in a generalresources fund used to meet the total subsidy requirements for thenation’s 3,100 PHAs. The deposit will bring the new account totalto $3.29 billion. The remaining $50 million will be on hand to meet”dire emergency utility needs” on a case-by-case basis.

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