Feb. 10, 2020 – Housing aid and other safety net programs are again targeted for reduction in the Trump Administration’s budget for fiscal year 2021, which begins October 1, 2020. The budget request, released today, is the first step in the annual appropriations process.

For the third year in a row, the Administration proposes to eliminate most USDA rural housing programs and many HUD programs – though there are not quite as many zeroes this year as in the past. Also for the third year in a row, Congress is expected to develop its own funding proposals. As the tables below indicate, Congress has not been inclined to accept cuts to housing aid.

To follow the funding process as it develops, sign up for the biweekly HAC News newsletter.

USDA

The FY21 budget departs from this Administration’s previous proposals in recognizing a need for repair and preservation of existing properties, both rental and owner-occupied. It proposes to fund the Multifamily Rental Preservation demonstration (MPR) at $40 million, considerably higher than the $28 million appropriated for FY20, and much needed because late in 2019 USDA had a backlog of MPR commitments amounting to around $70 million. It also suggests level funding of $30 million for Section 504 repair grants for very low-income elderly homeowners (but nothing for Section 504 loans) and $10 million for Section 533 Housing Preservation Grants, which can be used for either rental or owner-occupied homes. The budget narrative does not explain this apparent shift in approach.

Like this Administration’s past budgets, this one would charge tenants in Section 515 or Section 514/516 rentals a minimum of $50 per month. The budget also proposes to delete language that was adopted in the final FY20 funding agreement and allows renewals of Section 521 Rental Assistance contracts for 20 years, subject to annual appropriations.

USDA Rural Development Appropriations[tdborder][/tdborder]

* For the self-help setaside in Section 502 direct, the figures in the table represent budget authority, not program levels.
** The budget would move vouchers into the Rental Assistance account.

HUD

As it has before, the Administration proposes to cut support for public housing, CDBG, HOME, Native American housing and SHOP, as well as the relatively new veterans home modification and rehabilitation program. It does propose increases above FY20 levels for project-based Section 8, Section 202 housing for the elderly, Section 811 housing for people with disabilities, and the healthy homes/lead hazard control account.

The Administration also includes a proposal to eliminate funding for the National Housing Trust Fund, although that funding comes from Fannie Mae and Freddie Mac and does not need to be included in this budget.

HUD Appropriations

HUD Program (dollars in millions)	FY19 Admin. Budget	FY19 Final Approp.	FY20 Admin. Budget	FY20 Final Approp.	FY21 Admin. Budget
CDBG	0	$3,300	0	$3,425	0
HOME	0	1,250	0	1,350	0
Self-Help Homeownshp. (SHOP)	0	10	0	10	0
Veterans Home Rehab	0	4	0	4	0
Tenant-Based Rental Asstnce. VASH setaside Tribal VASH	20,550 0 4	22,598 40 4	22,244 0 0	23,874 40 1	18,833 0 4
Project-Based Rental Asstnce.	10,952	11,747	12,021	12,570	12,642
Public Hsg. Capital Fund	0	2,775	0	2,869	0
Public Hsg. Operating Fund	3,279	4,653	2,863	4,549	3,572
Choice Neighbrhd. Initiative	0	150	0	175	0
Native Amer. Hsg. Block Grt.	600	655	600	646	600
Homeless Assistance Grants	2,383	2,636	2,599	2,777	2,773
Hsg. Opps. for Persons w/ AIDS	330	393	330	410	330
202 Hsg. for Elderly	563	678	644	793	853
811 Hsg. for Disabled	132	184	157	202	252
Fair Housing	62.3	65.3	62	70	65.3
Healthy Homes & Lead Haz. Cntl.	145	279	290	290	360
Housing Counseling	45	50	45	53	45