(PASSAIC) -- Assemblyman Gary S. Schaer and Passaic City Mayor Samuel Rivera today announced they have secured $1.8 million to offset a crippling reduction in federal section 8 funding that would have forced 363 Passaic families out of their homes.

"With the help of Governor Corzine and Mayor Rivera, Passaic's lowest income residents will have the opportunity to live and work without the dark cloud of an eviction notice hanging over their heads," said Schaer (D-Passaic). "For low-income families, federal cuts in Section 8 funding are real. These cuts present serious challenges for municipalities struggling to provide affordable housing for working families."

In February, the Passaic Housing Authority was notified by the federal government that funding for Section 8 housing in Passaic City would be cut by $1.8 million. As a result, the authority was forced to freeze admission of new participants into Section 8 assistance for the rest of 2006, raise minimum tenant payments, and requested Housing and Urban Development (HUD) approval to reduce payment standards from 100 to 80 percent of Fair Market Rents. Additionally, the housing authority, which currently serves 1,589 Passaic families, would only have been able to support housing assistance for 1,377 families had the federal cuts not been restored.

The cuts in federal funding, which would have forced 363 Passaic families onto the streets, will be offset through a combination of state and local funding sources, said Schaer.

Mayor Rivera authorized the reallocation of $700,000 in Passaic City funds budgeted for housing assistance and $100,000 in Passaic Housing Authority funds to help bridge the gap left by the federal cuts.

The remaining $1 million will come from $170,000 in federal Section 8 funding assistance and a maximum of $830,000 from the New Jersey Department of Community Affairs (DCA).

The commitment of DCA funds to Passaic stems from an agreement worked out between Schaer and DCA Commissioner Susan Bass Levin over the course of past week. The agreement calls for the Passaic Housing Authority to submit expense reports to DCA - up to the maximum agreed allocation of $830,000 - for the remainder of 2006.

"Affordable housing is a real issue for New Jersey's cities and Passaic is no different," said Passaic Mayor Samuel Rivera. "I thank Assemblyman Schaer, Governor Corzine and Commissioner Bass-Levin for working with me to fill the funding gap for housing assistance that is vital to our neediest residents."

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