Over the last two years, the city has been able to obtain 12,000 new vouchers for Section 8 housing, up from 2,700 in the 2002 fiscal year.

To the delight of housing advocates, the final bill creates 90,000 much-needed new vouchers and requires that 75 percent go to the poorest of the poor.

But thousands of public school students would have to shift to private schools to offset the state's cost for the new vouchers.

Only two months ago, HUD negotiators had thought they might persuade lawmakers to authorize 15,000 new vouchers.

In 1998, Congress steered most new vouchers to the poorest households, those with incomes currently less than $15,600.

Evacuees who were receiving housing aid qualified for a new voucher, which pays landlords less than Section 8.

The staff member said lawmakers would authorize "a reasonable number" of new vouchers in President Clinton's 2000 budget request.

The new vouchers eased some of the growing demand for affordable housing, but pressure has continued to build.

HM Revenue & Customs will stop issuing new vouchers completely from 1 January 2011.

The proposed Bush budget allows for 34,000 new vouchers, to be added to the approximately 1.8 million already in use.