Perna, you say above that the federal government gives each state "X" amount of money, which is what the feds have decided to be that state's share of the HUD money. Where did you get that from?

Many states have tried to get federal aid granted in the form of "block grants" that the individual state can then disburse as they see fit. There are good arguments for doing things that way . . . as well as some sound arguments for not doing things that way. This is an on-going debate, which is far from resolved. Currently, it is not totally (or even largely) left up to any state to decide how HUD money is going to be disbursed. It might be your belief that it should be done that way, and you might have a real good argument for that, but it simply is not how the system does work - at this time.

HUD operates a number of different programs. There may, indeed, be programs that involve some block grants to local authorities. In fact, here is an example of one: The Community Development Block Grant program.

That program I've just described is one small part of where HUD money goes. It really has nothing to do with my friend's situation. The "project-based section 8 assistance" that my friend gets is money that goes from the federal government to the owner of the property on which he lives. That money doesn't first go to the State, which then decides how the money should be disbursed.

I've been informed by the property management where my friend lives that the upcoming change in HUD administration will involve the setting up of regional HUD offices that will not even be set up according to state boundaries. She said that, eventually, our area in New Mexico will be administered out of Denver, CO. So the disbursement of HUD funding is much less under the control of individual states than you seem to believe.

One HUD program is the Section 8 Voucher program (not what my friend is under.) A renter who is granted a Voucher can move to any state in the Union and use it wherever he/she goes. That renter could conceivably live in a different state every year, using the same voucher. He/she just has to find a local landlord who will accept the voucher. The landlord must then have his property inspected by local HUD authorities. Do all local HUD authorities march in lock-step? Surely they don't. That leads to inconsistencies. But the inconsistencies do not come out of states' differing tax policies.