Amendment Would Slash Rural Development Funding

AMENDMENT WOULD SLASH RURAL DEVELOPMENT FUNDING

The National Rural Housing Coalition has organized a sign on letter opposing the Coburn Amendment, which may come up in the Senate next week and would cut USDA Rural Development funds for 2012 by $1 billion. This cut would amount to 40% of RD programs and would be across all the agency’s functions. The Coalition’s letter has more information and is at the following link — https://org2.democracyinaction.org/o/5172/p/dia/action/public/?action_KEY=8587The sign on deadline is Friday, October 28.


Posted: October 26, 2011

RSH Grant Announcement

Rural Senior Housing Fund Application

The Housing Assistance Council (HAC) is pleased to announce a new grant program, the Rural Senior Housing (RSH) Fund. Eligible affordable housing organizations can apply for RSH grants to support activities that will build, preserve, or advocate for housing for low-income seniors (62 and older) living in rural areas. This new program is made possible through the generous support of The Atlantic Philanthropies.

The Applications period closed December 15. Please look for another application period in fall 2012. Sign up as a stakeholder to received program announcements and updates.

If you have any questions about the application or the RSH FUND, please contact Janice Clark, 202.842.8600 x 131 or email Janice@ruralhome.org.

Visit HAC’s Rural Senior Housing Initiative Page for updates from the program.

NALCAB Now Accepting Applications for Asset Building Grants

With generous support from Sam’s Club, the Open Society Foundation and the Northwest Area Foundation, NALCAB is providing subgrants ranging from $5,000-$20,000 to organizations meeting requirements outlined in the request for proposal (RFP) – https://cts.vresp.com/c/?NALCAB/c66a00974c/43478e6510/96625b35bc.

Grants are for a 12 month period beginning on or about November 1, 2011. With a single application, organizations may apply for funding from one or more of the three pools of funds that are available, based on their specific eligibility requirement.

Eligible groups are asset building nonprofit organizations located in the Northwest, Midwest, Southeast, and organizations providing entrepreneurship and small business development throughout the nation. Specific geographic or program priority is detailed in the RFP.

NALCAB seeks organizations that are building capacity in one or more of the following areas:

  • Real estate development for low-income people and communities including affordable housing and community facilities
  • Micro/Small Business Development
  • Providing family wealth building products andservices (including financial education)

The objective of these sub-grants is to strengthen the organizational capacity of participating entities to measurably advance existing asset building projects. In addition to grant funding, NALCAB will provide grantees with technical assistance in program/ project development and with leveraging other sources of funding for the identified project or program.Applications should be received no later than midnight PST on October 7, 2011 and may be submitted via email to Carol Rodriguez, Senior Program Manager at crodriguez@nalcab.org or U.S Postal Service.

USDA Rural Housing Programs for Seniors

Fiscal year 2012 funding is seriously threatened for U.S. Department of Agriculture (USDA) housing programs that maintain or create affordable housing options for elders in rural areas. Programs of other agencies – for example, the Section 202 program of the Department of Housing and Urban Development (HUD), weatherization programs, and the Low Income Housing Tax Credit – are also relevant in rural America. Several of them, including HUD’s 202 program and key USDA programs, have already seen steep budget cuts, drastically reducing their effectiveness in serving rural seniors. Congress should continue to fund these important programs at least at their 2011 levels.

Section 515 rental housing. This program has been the mainstay of USDA’s efforts to serve the poorest of the rural poor, including extremely low-income rural seniors, since 1963. The Section 515 program provides mortgage loans to develop rental housing for low-income households and is often used in conjunction with Low Income Housing Tax Credits. The program has proven extremely successful at providing decent, affordable housing for the lowest income rural seniors. Nearly 60 percent of Section 515 residents are elderly or have disabilities. Their average annual income is about $11,000. They have few other housing options.

Funding for Section 515 has been cut drastically over the past 17 years, sharply reducing production. The USDA appropriations bill passed by the House before the deficit reduction deal, H.R. 2112, would reduce program funding still further, from $69.5 million in FY11 to $58.6 million in FY12. The very low-income tenants served by Section 515 should not bear the burden of reductions in government spending: the program should remain at its FY11 funding level.

Rental housing preservation. The majority of rental units produced using USDA’s Section 515 rental program and Section 514/516 farmworker housing program are more than 20 years old. They need repairs and updates to preserve the taxpayers’ investments. To assist preservation efforts, several years ago Congress created the Multifamily Preservation and Revitalization (MPR) program and the Preservation Revolving Loan Fund (PRLF).

The very popular MPR program uses a range of financing tools to help owners afford to improve their USDA-funded rental properties. Most often, it enables USDA to defer owners’ payments of mortgage principal. The Preservation Revolving Loan Fund, as its name suggests, provides loans to owners or purchasers for preservation of USDA rental properties.

Both the President’s budget for FY12 and H.R. 2112 would eliminate all funding for MPR and the PRLF. The budget – although not H.R. 2112 – would add some Section 515 funding to be used for preservation, but Section 515 funds are not as flexible as MPR’s. For example, under Section 515 USDA cannot defer principal payments. Both preservation programs should be funded at FY11 levels: $15 million for MPR and $1 million for PRLF.

Rental Assistance. USDA’s Section 521 Rental Assistance (RA) program helps tenants whose incomes are so low they cannot afford the rent in a Section 515 or 514/516 property. Rental Assistance is available only to tenants in USDA-financed properties and is an essential part of providing decent, affordable homes for the very lowest income rural Americans.

Both the Administration’s budget and H.R. 2112 would reduce Rental Assistance funding. The budget’s congressional justification assumes that more than 300 properties will leave USDA’s multifamily portfolio in 2012 because of irresponsible owners or prepayments. This would be a very significant increase over past years; in FY10, for example, the mortgages on 86 properties were prepaid, and the highest number prepaid in any year was 152 in 2004.

Given the average 27 units per property in the portfolio, and the fact that 60 percent of USDA’s tenants are elderly or disabled, it is estimated that over 8,100 tenant households – more than 4,800 of them elderly or disabled – would lose their homes and their Rental Assistance if USDA’s calculation is correct. It is hard to believe that these tenants will find other affordable housing. HUD’s recently released Worst Case Needs Report estimated there are already 7.1 million renter households with serious housing needs not receiving assistance. With such a large number already unable to find decent, affordable housing or to obtain assistance, there is no reason to believe that displaced USDA tenants would fare any better.

Section 504 repair grants and loans. With these small loans and grants from USDA, many very poor elderly recipients for the first time in their lives can have an indoor toilet, a sound roof, or a modern furnace. Maximum amounts are $7,500 for grants (for very low-income elderly only) and $20,000 for loans (for very low-income homeowners regardless of age). This is hardly an extravagant program. In 2010 its funding was $32 million for grants and $34 million for loans (which are repaid).

The budget and H.R. 2112 would eliminate Section 504 loans entirely. The budget would cut Section 504 grant funding significantly, although H.R. 2112 would maintain funding at the FY11 level. Like other USDA housing programs, the Section 504 programs should be funded at their FY11 levels, $30 million for grants and $23.4 million for loans.


Published September 2, 2011

Proposal to Move RHS to HUD

Trevino repeats opposition to proposal

At a September 13, 2011 hearing before the House Agriculture Committee’s Rural Development subcommittee, rural housing administrator Tammye Trevino was asked about the proposal to move USDA’s Rural Housing Service to HUD. She made clear that the move was not proposed by the Administration and that the Administration opposed it.

Second Hearing held on proposal to move RHS to HUD

On September 8, 2011 the House Financial Services Committee’s housing subcommittee held its second hearing on the draft bill that would move USDA’s Rural Housing Service (RHS) to HUD. The bill, which would also make changes to the Federal Housing Administration (FHA) and Ginnie Mae, has not yet been introduced.

At the first hearing on May 25, 2011 Peter Carey testified for HAC, Self-Help Enterprises, and the National Rural Housing Coalition, opposing the move. The other witnesses at that hearing represented a variety of nonprofit and for-profit entities, most of them interested in FHA issues. The September 8 hearing featured agency representatives. Trevino Trevino, RHS Administrator, was one of the witnesses, along with Sen. Johnny Isakson (R-GA), Carol Galante from HUD/FHA, and Theodore Tozer from Ginnie Mae.

Both Tammye Trevino and Carol Galante testified against the move to HUD. Tammye described RHS’s knowledge of rural issues and its field network of rural offices. She pointed out that RHS, HUD, and other agencies are already working together to “align” their rental programs by using common forms, accepting each other’s inspections, and the like, and she mentioned that a similar effort for homeownership programs is now getting started. Tozer and Isakson focused their testimony on different issues, not mentioning RHS at all.

A number of committee and subcommittee members came in for at least part of the hearing. Subcommittee chair Judy Biggert (R-IL) asked Trevino about RHS’s institutional knowledge. Rep. Ruben Hinojosa (D-TX) thanked Trevino for her work to improve rural housing, but did not ask her any questions. The rest of the members asked questions of the other witnesses on other topics, such as how big FHA’s role in the mortgage market should be, whether Fannie Mae and Freddie Mac should be phased out, and how to help struggling homeowners.

Posted: September 9, 2011
Last updated: September 13, 2011

Compensation for Claims of Discrimination

Please note the following announcement from the US Department of Agriculture.

ATTENTION HISPANIC AND WOMEN FARMERS AND RANCHERS

Compensation for Claims of Discrimination

If you believe that the U.S. Department of Agriculture (USDA) improperly denied farm loan benefits to you between 1981 and 2000 because you are Hispanic or because you are female you may be eligible if:

  1. You sought a farm loan or farm-loan servicing during that period;
  2. The loan was denied, provided late, approved for a lesser amount than requested, approved with restrictive conditions, or USDA failed to provide an appropriate loan service; and
  3. You believe these actions were based on your being Hispanic or your being female. In 2011, a claims administrator will begin mailing claims packages to those who have requested one through the Call Center on the website. The claims package will have detailed information about the eligibility and claims process.

If you want to register your name to receive a claims package access the Hispanic and Women Farmer and Rancher Call Center or website.

Call Center: 1-888-508-4429

Website: www.farmerclaims.gov

For guidance, you may contact a lawyer or other legal services provider in your community. USDA cannot provide legal advice to you

If you are currently represented by counsel regarding allegations of discrimination or in a lawsuit claiming discrimination, you should contact your counsel regarding this claims process

Bismarck, ND Flooding Update from United Tribes Technical College

June 2, 2011 – We are now officially at flood stage along the Missouri River in Bismarck, North Dakota. Homes directly along the river or on river islands are now endangered and some are already experiencing flooding. Over 250 people have been displaced, and more will follow as the water rises. The water has reached 16 feet to a beginning flood stage at 1,637 feet at its deepest point in the reservoir. The flood gates at the Garrison Dam have been further opened and will continue to do so reaching some 120,000 cubic feet per second (cfs) by this weekend, and later 150,000 cfs.

The residents and other volunteers and city, state, N.D. Army Guard, and Corps of Engineers workers have been working night and day to build dikes and fill sandbags being put up around the city and at residences. Over ten miles of dikes or levees are being constructed to protect Bismarck and Mandan, both sitting on the edge of the Missouri. The crest of water will build and hit Bismarck next week. Meanwhile, over 10,000 residents have been evacuated at Minot, N.D. (nearly a third of the city) where flooding is taking place from the Souris River and tributaries.

Spillway releases at Garrison Dam have been increased to 105,000 cfs by Thursday.

Bismarck Mayor Warford and Mandan Mayor Helbling, along with N.D. Governor Dalrymple and North Dakota Adjutant General David Spryncynatyk, U.S. Corps officials and others have been holding daily news briefings for the public, aired over the local radio and television stations.

The objective locally is to fill another 4 million sandbags, in addition to the first 4 million already filled and distributed to homes and public areas. One of the main thoroughfares, Bismarck Expressway, has been blocked for strictly truck traffic hauling sand and dirt to emergency levee and dike sites on the west and southerly side of Bismarck. The hope is to complete most of these today and through the weekend to fight rising, incoming waters. North Dakota Army Guard members are throughout Bismarck, directing traffic and assuring that trucks can move to and from work points.

United Tribes is prepared and has set up a campus command center to coordinate all incoming requests from students and residents located in Bismarck-Mandan. The main campus is on high ground and is safe under projected conditions. To date, four student families and two staff families have been relocated on campus from their residences. We expect more as the tides of the flood rise. United Tribes Technical College has sent teams of staff and students to help with sandbagging. UTTC has stocked water, is securing more food stocks for a longer period of time, back-up supplies and other materials. The College is prepared to house 100 single persons along with families in both residential halls, houses and the main gymnasium and multipurpose center — all located on campus. We are seeking a larger, power generator in the event there is a power failure in the city and area.

Donations are welcome, particularly those in the form of checks or money orders.

All are welcome at United Tribes, but we are focusing on those residents who have little or no resources in the face of such emergencies–especially those who will be displaced from their homes. These include students and their families, staff and their families, others who are in public housing and any who need our help.

We are working closely with the mayors and the North Dakota Guard and law enforcement officials. The American Indian College Fund and others have reached out to us as we enter this disaster. Reports are that flooding will last all throughout June and July, before excess water from Montana and the reservoirs pass through.

We know our friends in Crow Country have had great difficulty, as well, and at five other TCU’s around the Nation. We wish all the best in safety and recovery.

Thank you, Pllamayepelo

United Tribes Technical College flooding webpage

City of Bismarck website providing further updates, access to maps and information

Conference committee sets FY12 funding levels for USDA and HUD

Update – November 18, 2011 – President Obama has signed the bill into law. The House passed it on November 17 by a vote of 298-121, and the Senate passed it the same day on a 70-30 vote.

Conference committee sets FY12 funding levels for USDA and HUD

November 16, 2011 – By November 18 the House and Senate are expected to pass, and President Obama to sign, a “minibus” that will fund USDA, HUD, and several other federal departments and agencies for the current fiscal year. It also includes a Continuing Resolution to carry the rest of the government through December 16. The funding levels in the bill could still be affected by deficit reduction actions of the Super Committee and Congress (see HAC News, 8/18/11). The conference report is posted at https://www.rules.house.gov/.

USDA

For USDA’s housing programs, the bill adopts most of the Senate’s amounts, higher than the House’s.

USDA Rural Devel. Program
(dollars in millions)

FY11
Approp.a

FY12 Admin. Budget

FY12 Hse. (H.R. 2112)c

FY 12 Sen. App. Cmte. (H.R. 2112)

FY 12 Final Approp.
(H.R. 2112)

502 Single Fam. Direct

$1,121

$211.4

$845.6

$900

$900

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

23.4

0

0

10

10

504 VLI Repair Grants

34

11.5

32

27

29.5

515 Rental Hsg. Direct

69.5

95.2

58.6

64.5

64.5

514 Farm Labor Hsg.

25.7b

27

18.3

23.4

20.8

516 Farm Labor Hsg.

9.8b

9.8

6.2

8

7.1

521 Rental Assistance
Preservation RA
New Constr. 515 RA
New Constr. 514/516 RA

955.6
0
(2.03)
(3)

906.7
0
(3)
(3)

890
0
(1.5)
(2.5)

904.7
0
(2)
(2)

904.7
0
(1.5)
(2.5)

523 Self-Help TA

37

0

22

30

30

533 Hsg. Prsrv. Grants

10

0

0

7.3

3.6

538 Rental Hsg. Guar.

30.9

0

0

130

130

Rental Prsrv. Demo. (MPR)

15

0

0

2

2

Rental Prsrv. Revlg. Lns.

1

0

0

0

0

542 Rural Hsg. Vouchers

14

16

11

11

11

Rural Cmnty. Dev’t Init.

5

8.4

3

4.2

3.6

a. Figures shown do not include 0.2% across the board reduction.
b. Figures shown for Section 514 and 516 farm labor housing are the amounts offered in the FY11 NOFA.
c. Figures shown do not include 0.78% across the board reduction.

HUD

HUD programs underwent cuts in most areas, compared to 2011 levels, and some smaller programs were eliminated, including the Sustainable Communities Initiative and the Rural Innovation Fund. HOME, public housing, and SHOP suffered steep reductions.The bill provides funding for renewals of current Section 202 contracts, but eliminates funding for development of new Section 202 senior housing.

HUD Program
(dollars in millions)

FY11
Approp.

FY12
Admin.
Budget

FY12
House Bill

FY12
Senate Bill
(S. 1596)

FY 12 Final Approp.
(H.R. 2112)

Cmty. Devel. Block Grants
Sustainable Commun. Init.
Rural Innovation Fund

3,508
(100)
0

3,781
150
(25)

3,500
0
0

3,001
(90)
0

3,308.1
0
0

HOME

1,610

1,650

1,200

1,000

1,000

Tenant-Based Rental Asstnce.
Vets. Affairs Spptve Hsg. Vchrs

18,408
(50)

19,223
(75)

18,467.9
(75)

18,872.4
(75)

18,914.4
(75)

Project-Based Rental Asstnce.

9,257.4

9,429

9,428.7

9,418.7

9,339.7

Transforming Rental Asstnce.

0

200

0

0

0

Public Hsg. Capital Fund

2,044

2,405

1,532.1

1,875

1,875

Public Hsg. Operating Fund

4,626

3,962

3,861.9

3,961.9

3,961.9

Public Hsg. Revtlztn. (HOPE VI)

100

0

0

0

0

Choice Neighbrhd. Initiative

0

250

0

120

120

Housing Trust Fund

0

1,000

0

0

0

Native Amer. Hsg. Block Grant

650

700

648.7

650

650

Homeless Assistance Grants

1,905

2,372

1,901.2

1,901.2

1,901.2

Hsg. Opps. for Persons w/ AIDS

335

335

334.3

330

332

202 Hsg. for Elderly

400

757

600

369.7

374.6

811 Hsg. for Disabled

150

196

196

150

165

Fair Housing

72

72

71.9

64.3

70.8

Healthy Homes & Ld. Haz. Cntl.

120

140

119.8

120

120

Self-Help Homeownshp. (SHOP)

27

0

15.9

17

13.5

Housing Counseling

0

88

0

60

45

Related information on HAC’s site:

FY 12 Budget and Appropriations

Proposals for FY12 funding provide VARYING housing details

April 15, 2011 – Several spending plans for fiscal year (FY) 2012 are currently under discussion in Washington while at least one more is still being developed.

  • Obama Administration budget (released February 14, 2011) – includes specific spending proposals for individual programs at USDA and HUD;
  • H. Con. Res. 34 (introduced on April 11, 2011 by Rep. Paul Ryan (R-Wisconsin), chair of the House Budget Committee and passed by the full House on April 15) – a budget resolution that provides no specifics about housing and proposes overall levels for general funding categories that would serve as ceilings for appropriations subcommittee discussions about FY12 spending;
  • President Obama’s deficit reduction proposal (announced on April 13, 2011) – proposes general funding and revenue figures, without specifics on housing;
  • Bowles-Simpson Fiscal Commission report (released December 1, 2010) – proposes general funding and revenue figures, without specifics on housing; and
  • a proposal by the “Gang of Six” Senators is expected to be released in May.

      The Senate is not expected to pass H. Con. Res. 34, and will establish different ceilings for its appropriations discussions for FY12.

      While the text of H. Con. Res. 34 itself does not detail housing-related suggestions, the background report issued by Republican members of the House Budget Committee suggests time limits and work requirements for housing aid recipients, as well as “narrowing the gap between assisted renters and unassisted renters with the same income levels.”

      FY12 HUD Budget and Appropriations

      (Information on USDA rural housing budget is available separately; click here.)

      FOR FINAL FY12 HUD FUNDING, click here

      NO SENATE VOTE SCHEDULED ON MCCAIN AMENDMENT

      11:00 a.m. Eastern time, November 1, 2011 – The Senate is voting on a series of amendments to H.R. 2112, but has not scheduled a vote on the McCain amendment to eliminate SHOP funding. A vote on H.R. 2112, the “minibus” appropriations bill covering USDA as well as Commerce/Justice, and Transportation/HUD, is expected shortly. C-SPAN’s live broadcast is available here.

      mccain to offer amendment eliminating shop funding for fy12

      October 18, 2011 – HAC has learned that Senator John McCain (R-Arizona) plans to offer an amendment eliminating funding for HUD’s Self-Help Homeownership Opportunity Program (SHOP) in FY12.

      The Senate began consideration of HUD’s funding bill for FY12 on October 17, 2011. The Transportation-HUD bill has been combined with the appropriations bills for USDA and Commerce-Justice into a “minibus” version of H.R. 2112.

      The bill under consideration includes $17 million for SHOP, a steep reduction from the $27 million the program received in FY 2010 and 2011. The House’s appropriations bill for FY12 provides $15.9 million. Like McCain’s amendment, the Administration’s budget proposed defunding SHOP entirely.

      Senate Acts on hud programs

      A Senate subcommittee on Sept. 20 and the full appropriations panel on Sept. 21 approved fiscal year 2012 spending bills for HUD, the Dept. of Transportation and several other agencies.

      There were substantial differences in the Senate bill compared to the version reported out by the House Appropriations T-HUD Subcommittee on Sept. 8. The Senate funded and the House did not fund housing counseling, Sustainable Communities and Choice Neighborhoods. The Senate provided less funding for CDBG, HOME, Sec. 202, Sec. 811, fair housing and HOPWA – but more for rental assistance vouchers, public housing capital and operating funds, and SHOP.

      Senators also approved language directing better controls and oversight of HOME, after a recent press series criticized the program for slow spending and other problems.

      The Rural Innovation Fund did not receive any funding in either the House or Senate bills and appears to be dead.

      Further action on the T-HUD and other appropriations bills is unclear. An omnibus package combining most of the bills is a likely possibility, with no further action taken on individual measures. Congressional leaders plan to enact a continuing resolution through Nov. 18 to begin the new fiscal year. However on Sept. 21 such a measure failed to pass the House.

      HUD Program

      (dollars in millions)

      FY10 Approp.

      FY11

      Approp.b

      FY12

      Admin. Bdgt.

      FY12

      House Bill

      FY12

      Senate Bill

      Cmty. Devel. Block Grants

      Sustainable Commun. Initiative

      Rural Innovation Fund

      $4,450

      (150)

      (25)

      3,508

      (100)

      0

      3,781

      150

      (25)

      3,500

      0

      0

      3,001

      (90)

      0

      HOME

      1,825

      1,610

      1,650

      1,200

      1,000

      Tenant-Based Rental Asstnce.

      Vets. Affairs Spptve Hsg. Vchrs

      18,184

      (75)

      18,408

      (50)

      19,223

      (75)

      18,467.9

      (75)

      18,872.4

      (75)

      Project-Based Rental Asstnce.

      8,551.5

      8,882

      9,429

      9,028.7

      9,018.7

      Transforming Rental Asstnce. a

      0

      200

      0

      0

      Public Hsg. Capital Fund

      2,500

      2,044

      2,405

      1,532.1

      1,875

      Public Hsg. Operating Fund

      4,775

      4,626

      3,962

      3,861.9

      3,961.9

      Public Hsg. Revtlztn. (HOPE VI)

      135

      100

      0

      0

      0

      Choice Neighbrhd. Initiative

      65

      0

      250

      0

      120

      Housing Trust Fund

      0

      1,000

      0

      0

      Native Amer. Hsg. Block Grant

      700

      650

      700

      648.7

      650

      Homeless Assistance Grants

      1,865

      1,905

      2,372

      1,901.2

      1,901.2

      Hsg. Opps. for Persons w/ AIDS

      335

      335

      335

      334.3

      330

      202 Hsg. for Elderly

      825

      400

      757

      600

      369.7

      811 Hsg. for Disabled

      300

      150

      196

      196

      150

      Fair Housing

      72

      72

      72

      71.9

      64.3

      Healthy Homes & Lead Haz. Cntl.

      140

      120

      140

      119.8

      120

      Self-Help Homeownshp. (SHOP)

      27

      27

      0

      15.9

      17

      Housing Counseling

      87.5

      0

      88

      0

      60

      a. New program proposed by the Administration.

      b. Figures shown do not include 0.2% across the board reduction.

      senate acts on hud programs

      The Senate Appropriations Subcommittee for Transportation, HUD and Related Agencies approved a HUD spending bill for FY 2012 on September 20. Full details are not yet available, but a Committee release shows cuts to some HUD programs and level funding for others:

      • $2.85 billion for CDBG (a cut of $485 million from the 2011 level);
      • $1 billion for HOME (a cut of $607 million from 2011), with reforms to ensure timely use;
      • $18.9 billion for housing choice vouchers, including $17.4 billion for renewals and $75 million for homeless veterans;
      • $1.9 billion for the public housing capital fund and $4 billion for public housing operating accounts;
      • $9.4 billion for project based rental assistance;
      • $1.9 billion for homeless assistance grants;
      • $125 million for housing counseling; and
      • $90 million for the Sustainable Communities Initiative.

      Further information will be posted here and in the HAC News after the full Senate Appropriations Committee acts on September 21.

      HUD spending bill advances with cuts

      On September 8, 2011 a House appropriations subcommittee voted out a 2012 spending bill for HUD, the Department of Transportation, and several smaller accounts. Most HUD programs saw reductions, and no earmarks are included in the bill. The Rural Innovation Fund, housing counseling and several new proposals from the Obama Administration were not funded.

      Senate appropriators are expected to take up their version of this legislation later in September. Final action on 2012 HUD spending may be part of an omnibus bill or a continuing resolution.

      The table below has details of the House bill. Its full text and a summary are available at appropriations.house.gov.

      HUD Program
      (dollars in millions)

      FY10 Approp.

      FY11 Approp. (c)

      FY12 Admin. Budget

      FY12
      House
      Bill

      Cmty. Devel. Block Grants
      Sustainable Commun. Initiative
      Rural Innovation Fund (a)

      $4,450
      (150)
      (25)

      $3,508
      (100)
      0

      $3,781
      0
      (25)

      $3,500
      0
      0

      HOME

      1,825

      1,610

      1,650

      1,200

      Tenant-Based Rental Asstnce.
      Veterans (VASH) Vouchers

      18,184
      (75)

      18,408
      (50)

      19,223
      (75)

      18,467.9
      (75)

      Project-Based Rental Asstnce.

      8,551.5

      8,882

      9,429

      9,028.7

      Transforming Rental Asstnce. (b)

      200

      0

      Public Hsg. Capital Fund

      2,500

      2,044

      2,405

      1,532.1

      Public Hsg. Operating Fund

      4,775

      4,626

      3,962

      3,861.9

      Public Hsg. Revtlztn. (HOPE VI)

      135

      100

      0

      0

      Choice Neighbrhd. Initiative

      65

      0

      250

      0

      Housing Trust Fund

      0

      1,000

      0

      Native Amer. Hsg. Block Grant

      700

      650

      700

      648.7

      Homeless Assistance Grants

      1,865

      1,905

      2,372

      1,901.2

      Hsg. Opps. for Persons w/ AIDS

      335

      335

      335

      334.3

      202 Hsg. for Elderly

      825

      400

      757

      600

      811 Hsg. for Disabled

      300

      150

      196

      196

      Fair Housing

      72

      72

      72

      71.9

      Healthy Homes & Lead Haz. Cntl.

      140

      120

      140

      119.8

      Sustainable Cmties. Init.

      0

      150

      0

      Self-Help Homeownshp. (SHOP)

      27

      27

      0

      15.9

      Housing Counseling

      87.5

      0

      88

      0

      a. Replaced the Rural Housing and Economic Development program.
      b. New program proposed by the Administration.
      c. Figures shown do not include 0.2% across the board reduction.

      HUD Budget Would Reduce Spending for CDBG, Public Housing, Elderly, and Disabled

      The Administration’s budget for the Department of Housing and Urban Development in fiscal year 2012 would reduce funding for some of HUD’s major programs, while adding a full $1 billion for the never-funded National Housing Trust Fund. The Community Development Block Grant program would lose 15 percent of its current funds and the HOME program about 10 percent. Section 8 vouchers and public housing operating funds would be cut, as would Section 202 housing for the elderly and Section 811 housing for people with disabilities. The Self-Help Homeownership Opportunity Program (SHOP) would not be funded.

      Increases are proposed for homeless assistance grants. The Rural Innovation Fund (which replaced the Rural Housing and Economic Development program in FY10) would again receive $25 million.

      The table below shows not only the FY12 budget proposal, but also the funding levels proposed for the remainder of FY11 in H.R. 1, introduced on February 11 by House Appropriations Committee Chairman Harold Rogers (R-KY). H.R. 1 would eliminate two-thirds of the funding for CDBG and more than two-thirds for Section 202 and Section 811. It would eliminate housing counseling funds and would reduce funding for HOME, public housing, and Native American housing. It would continue funding for the Rural Innovation Fund and SHOP.

      Under the current continuing resolution, which expires March 4, HUD programs are funded at their FY10 levels. Congress will consider funding for the rest of FY11 (from March 4 through the end of the federal fiscal year on September 30, 2011) before it begins work on appropriations bills for FY12.

      HUD Program
      (dollars in millions)

      FY10 Approp.

      FY11 Admin. Budget

      FY11 Proposed CR
      (H.R. 1)

      FY12 Admin. Budget

      Cmty. Devel. Block Grants

      $4,450

      4,380.1

      1,500

      3,781

      Sustainable Commun. Initiative

      (150)

      (150)

      0

      (b)

      Rural Innovation Fund (a)

      (25)

      0

      25

      25

      Catalytic Investment Grants

      (150)

      0

      HOME

      1,825

      1,650

      1,650

      1,650

      Tenant-Based Rental Asstnce.

      16,339

      17,310

      14,080

      15,223

      Project-Based Rental Asstnce.

      8,551.5

      9,382.3

      8,882

      9,035

      Transforming Rental Asstnce.

      350

      200

      Vets. Affairs Spptve Hsg. Vouchers

      75

      0

      75

      75

      Public Hsg. Capital Fund

      2,500

      2,044

      1,428

      2,405

      Public Hsg. Operating Fund

      4,775

      4,829

      4,626

      3,962

      Public Hsg. Revtlztn. (HOPE VI)

      135

      0

      0

      0

      Choice Neighbrhd. Initiative

      65

      250

      65

      250

      Housing Trust Fund

      1,000

      Native Amer. Hsg. Block Grant

      700

      580

      500

      700

      Homeless Assistance Grants

      1,865

      2,055

      1,865

      2,372

      Hsg. Opps. for Persons w/ AIDS

      335

      340

      335

      335

      202 Hsg. for Elderly

      825

      273

      238

      757

      811 Hsg. for Disabled

      300

      90

      90

      196

      Fair Housing

      72

      61

      72

      72

      Rural Hsg. & Econ. Dev. (RHED) (a)

      0

      0

      0

      0

      Healthy Homes & Lead Haz. Cntl.

      140

      140

      120

      140

      Sustainable Housing & Communities (b)

      0

      150

      Self-Help Homeownshp. (SHOP)

      27

      27

      0

      27

      0

      Brownfields Redevelopment

      17.5

      0

      0

      0

      Housing Counseling

      87.5

      88

      0

      88

      a. The Rural Innovation Fund replaced RHED.
      b. Funded as part of CDBG in 2010 and separately in the FY12 budget.

      Posted: February 14, 2011
      Last updated: October 18, 2011