Policy

HUD FY 14 Budget and Rural Housing Programs

HUD Budget Proposes Cuts for Some Programs, Increases for Others in FY 2014

USDA RD Budget

April 10, 2013 – The Obama Administration’s budget proposes increases in some areas but also many reductions for the U.S. Department of Housing and Urban Development in the fiscal year beginning October 1, 2013. Cuts are proposed for CDBG, HOME, SHOP, and Section 811 housing for the disabled. The Housing Trust Fund would be funded at $1 billion. Increases are proposed for homelessness programs, rental assistance, the Public Housing Operating and Capital Funds, Section 202 housing for seniors, Choice Neighborhoods, and housing counseling. The VASH program of vouchers for veterans would be continued at $75 million.

CDBG and HOME are probably the HUD programs most relied on by rural nonprofits. They are cut while other narrower HUD accounts receive substantial increases.

For the first time an Obama budget proposes to fund the Self-Help Homeownership Opportunity Program (SHOP). But the request is for only $10 million, and the program would be part of HOME. This is an improvement from the assumption in past Obama budgets that state and local administrators of the HOME program could fund SHOP projects.

Also there is again no funding requested for and no mention at all of the Rural Innovation Fund, which replaced the Rural Housing and Economic Development Program (RHED) in 2010 appropriations, at HUD’s urging. Since 2010 the RIF also has been left out of every Obama budget for HUD (2011, 2012, 2013 and 2014). RHED is mentioned in the budget, but with a zero funding request.

The table below provides details. [tdborder][/tdborder]

HUD Program

(dollars in millions)

FY11 Final

Approp.a

FY 12 Final Approp.

FY13 Final Approp.b

FY14 Admin.’s Proposed Budget

Cmty. Devel. Fund (incl. CDBG)

Sustainable Commun. Init.

Rural Innovation Fund

3,508

(100)

0

3,308.1

0

0

3,328

0

0

3,143

0

0

HOME

Self-Help Homeownshp. (SHOP)

1,610

1,000

1,000

950

(10) d

Tenant-Based Rental Asstnce.

Vets. Affairs Spptve Hsg. Vchrs

18,408

(50)

18,914.4

(75)

18,939.4

(75)

19,989.2

(75)

Project-Based Rental Asstnce.

9,257.4

9,339.7

9,339.7

9,872

Public Hsg. Capital Fund

2,044

1,875

1,886

2,000

Public Hsg. Operating Fund

4,626

3,961.9

4,262

4,600

Choice Neighbrhd. Initiative

0

120

120

400

Housing Trust Fund

0

0

0

1,000

Native Amer. Hsg. Block Grant

650

650

650

650

Homeless Assistance Grants

1,905

1,901.2

2,033

2,381

Rural Hsg. Stability Prog.

c

c

5

Hsg. Opps. for Persons w/ AIDS

335

332

334

332

202 Hsg. for Elderly

400

374.6

377

400

811 Hsg. for Disabled

150

165

165

126

Fair Housing

72

70.8

70.8

71

Healthy Homes & Ld. Haz. Cntl.

120

120

120

120

Self-Help Homeownshp. (SHOP)

27

13.5

13.5

10 e

Housing Counseling

0

45

45

55

  1. Figures shown do not include 0.2% across the board reduction.
  2. Figures shown do not include 5% sequester.
  3. Funded under Homeless Assistance Grants.
  4. Funded separately in prior years.
  5. Proposed for specific funding under HOME.