Bob Kerrey: “I am very concerned that in Nebraska and its neighboring States, section 8 projects for the elderly will be…”

“I am very concerned that in Nebraska and its neighboring States, section 8 projects for the elderly will be disadvantaged under the language in the conference report, unless a special effort is made to preserve them. Fair market rents in these areas for zero and 1-bedroom apartments are low which cause high rents necessary to sustain section 8 projects with appropriate services for the elderly. These projects often have elevators, additional facilities for food, recreation and services, and extra management services such as 24-hour-in-house staff. They are above the 120 percent of FMR threshold for renewal at current rents. In order to bring these project rents down to FMR, all or most of the debt services would have to be eliminated. Debt reduction of this magnitude would most certainly give rise to significant tax liabilities. Is it your intent that debt restructuring occur?”