"Very often, after these people lose their homes, they require public assistance and rent subsidies," he said.

He added that the money was often used for basic necessities like winter coats, heavy blankets, shoes and rent subsidies.

At least $42 million more came later in tax breaks and rent subsidies.

The package would spend $27.7 million on new or expanded programs, ranging from day care to rent subsidies.

They identify tenants who may be eligible for public assistance, food stamps or rent subsidies.

The city has more apartments built with the Federal mortgages and rent subsidies than any other urban area.

About $5.5 million would go to rent subsidies for people in existing housing, and $1 million to offset the effects of Federal tax changes.

There were also significant increases in rate and rent subsidies, together with £500 million worth of food subsidies.

The new program is expected to offer some 550 homeless families rent subsidies of between $300 and $400 a month, for up to two years.

President Bush has proposed cutting by nearly $200 million the federal program that provides for both construction and rent subsidies for low-income elderly.