Policy

HUD Budget Focuses on Ending Family Homelessness

HAC’s Analysis of the FY 17 USDA Budget

According to HUD, the agency’s fiscal year 2017 budget proposal “prioritizes ending family homelessness and increasing opportunity for residents of low-income neighborhoods.”

Access a recording and materials from HAC’s webinar on the FY 17 Budget.

Included in the HUD proposal is $11.3 billion in new mandatory spending aimed at ending family homelessness by 2020. Most of this funding would go toward vouchers, permanent supportive housing, and rapid rehousing assistance.

Most HUD programs, as the chart below reflects, would receive level or increased funding in the budget proposal. The Community Development Block Grant (CDBG) program is an exception, as it faces a cut in the budget proposal. The budget also calls for increased CDBG setasides (now at 10%; proposed for 15%) for colonias areas in Texas, New Mexico, Arizona, and California.

As in past budgets, small HUD programs targeted toward rural communities are not slated for funding. The Rural Innovation Fund is not mentioned and its predecessor, the Rural Housing and Economic Development program, is mentioned only to say that no funding is sought. For the fourth year in a row, there is a proposal to make the SHOP program a $10 million setaside within HOME.

Also proposed as mandatory spending is a $300 million “Local Housing Policy Grants” program for localities and regional coalitions to “…support new policies, programs or regulatory initiatives that creaste a more elastic and diverse housing supply…and demonstrate strong connections between housing, transportation, and workforce planning.” A similar program was proposed last year, but rejected by Congress.

The budget and appropriations process now moves to Congress, which will hold hearings and decide on spending bills, all pointing toward the new fiscal year beginning on Oct. 1, 2016.

The table below has more details on the 2017 proposals for HUD. [tdborder][/tdborder]

HUD Program
(dollars in millions)

FY14
Approp.

FY15
Approp.

FY16Budget
Proposal

FY16
Approp.

FY17 Budget Proposal

Cmty. Devel. Fund
CDBG

3,100
3,030

3,066
3,000

2,880
2,800

3,060
3,000

2,880
2,800

HOME

1,000

900

1,060

950

950

Self-Help Homeownshp. (SHOP)

10

10

10a

10

10a

Tenant-Based Rental Assistance
VASH setaside

19,177.2
75

19,304
75

21,123
b

19,628
60

20,854
7d

Project-Based Rental Asstnce.

9,516.6

9,330

10,360

10,622

10,816

Public Hsg. Capital Fund

1,875

1,875

1,970

1,900

1,865

Public Hsg. Operating Fund

4,400

4,440

4,600

4,500

4,569

Choice Neighbrhd. Initiative

90

80

250

125

200

Native Amer. Hsg. Block Grant

650

650

660

650

700

Homeless Assistance Grantsc

2,105

2,135

2,480

2,250

2,664

Hsg. Opps. for Persons w/ AIDS

330

330

332

335

335

202 Hsg. for Elderly

385.3

436

455

432.7

505

811 Hsg. for Disabled

126

135

177

150.6

154

Fair Housing

66

65.3

71

65.3

70

Healthy Homes & Lead Haz. Cntl.

110

110

120

110

110

Housing Counseling

45

47

60

47

47

Local Housing Policy Grants

300

300e

a. The FY 17 Administration budget, like past budget requests, proposes to make SHOP a setaside in HOME. Congress has consistently rejected that proposal.
b. The FY 16 budget would have made VASH vouchers for homeless veterans part of a new $177.5 million account covering others as well.
c. Includes the Rural Housing Stability Program, which is not yet operational.
d. The FY 17 budget proposes $7 million for a HUD-funded tribal VASH set-aside
e. proposed as mandatory spending