Policy

Administration Budget Proposes Minimum Rents and New Limits on Rental Assistance

HUD Budget

March 4, 2014: The Obama Administration released its budget proposal for FY15. Most of the figures for USDA rural housing programs are familiar: they are either the same levels suggested in past Obama budgets, or the same as the final appropriations for FY14.

Differences include decreases in two major single-family programs. Section 523 self-help housing funds would be cut from $25 million this year to $10 million. Section 502 direct loans would be cut from $900 million this year to $360 million; as in the past, the Administration states it would rely on the Section 502 and 538 guarantee programs to finance single- and multifamily housing.

The budget promises a legislative proposal for Rental Assistance and rental preservation programs. Legislation on preservation was mentioned in the FY14 budget as well, but no proposal was made public.

Significant changes are proposed for the Section 521 Rental Assistance program in FY15. The budget’s explanatory text states:

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USDA Rural Devel. Prog.
(dollars in millions)

FY13
Approp.a

FY14
Approp.

FY15
Admin. Budget

502 Single Fam. Direct
Self-Help setaside

$900
5

$900
5

$360
0

502 Single Family Guar.

24,000

24,000

24,000

504 VLI Repair Loans

28

26.3

26.3

504 VLI Repair Grants

29.5

28.7

25

515 Rental Hsg. Direct Loans

31.3

28.4

28.4

514 Farm Labor Hsg. Loans

20.8

23.9

23.9

516 Farm Labor Hsg. Grants

7.1

8.3

8.3

521 Rental Assistance
Preservation RA setaside
New Cnstr. 515 RA setaside
New Cnstr. 514/516 RA setaside

907.1
0
0
3

1,110
0
0
0

1,089
0
0
0

523 Self-Help TA

30

25

10

533 Hsg. Prsrv. Grants

3.6

3.5

0

538 Rental Hsg. Guar.

150

150

150

Rental Prsrv. Demo. (MPR)

17.8

20

20

Rental Prsrv. Revlg. Lns.

0

0

0

542 Rural Hsg. Vouchers

10

12.6

8

Rural Cmnty. Dev’t Init.

6.1

6

0

a Figures shown do not include 5% sequester or 2.5% across the board cut.