USDA Rural Housing in the 2016 Budget

HUD proposed budget for 2016 boosts funding

February 2, 2015, 2:30 pm – Released on Feb. 2, the Obama Administration’s proposed FY 2016 budget includes requests for the US Department of Housing and Urban Development. The budget proposes increases above 2015 appropriated levels in almost all programs, as the table below shows. The only cut would be in Community Development Block Grants, but that program and many others are proposed at the same levels sought a year ago in the President’s 2015 budget.

USDA Rural Housing in the 2016 Budget

HUD proposed budget for 2016 boosts funding

Register for HAC’s WebinarFebruary 2, 2015, 2:30 pm – Released on Feb. 2, the Obama Administration’s proposed FY 2016 budget includes requests for the US Department of Housing and Urban Development. The budget proposes increases above 2015 appropriated levels in almost all programs, as the table below shows. The only cut would be in Community Development Block Grants, but that program and many others are proposed at the same levels sought a year ago in the President’s 2015 budget.

The good news is that there are substantial increases proposed in accounts such as HOME, homeless assistance grants, public housing operating and capital funds, Sec. 202 housing for seniors, Sec. 811 housing for the disabled, tenant-based rental assistance, fair housing, housing counselling, and lead hazard control.

But the bad news is that small rural programs are zeroed out. 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 third year in a row, there is a proposal to make the SHOP program a $10 million setaside within HOME.

Also proposed is a new $300 million “Local Housing Policy Grants” program for localities “to support new policies, programs, or regulatory initiatives, such as design options, process changes, and land use regulations….”

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, 2015.

The table below has more details on the 2016 proposals for HUD. [tdborder][/tdborder]

HUD Program (dollars in millions)	FY13 Approp.a	FY14 Approp.	FY15 Proposed Admn. Bdgt.	FY15 Approp.	FY16 Proposed Admn. Bdgt.
Cmty. Devel. Fund CDBG	3,308 2,948	3,100 3,030	2,870 2,800	3,066 3,000	2,880 2,800
HOME SHOP setaside	1,000 b	1,000 b	950 10	900 b	1,060 10
Self-Help Homeownshp. (SHOP)	13.5	10	b	10	b
Tenant-Based Rental Assistance VASH setaside	18,939.4 75	19,177.2 75	20,100 75	19,304 75	21,123 c
Project-Based Rental Asstnce.	9,339.7	9,516.6	9,346	9,330	10,360
Public Hsg. Capital Fund	1,886	1,875	1,925	1,875	1,970
Public Hsg. Operating Fund	4,262	4,400	4,600	4,440	4,600
Choice Neighbrhd. Initiative	120	90	120	80	250
Native Amer. Hsg. Block Grant	650	650	650	650	660
Homeless Assistance Grantsd	2,033	2,105	2,406.4	2,135	2,480
Hsg. Opps. for Persons w/ AIDS	334	330	332	330	332
202 Hsg. for Elderly	377	385.3	440	436	455
811 Hsg. for Disabled	165	126	160	135	177
Fair Housing	70.8	66	71	65.3	71
Healthy Homes & Lead Haz. Cntl.	120	110	120	110	120
Housing Counseling	45	45	60	47	60
Local Housing Policy Grantse	–	–	–	–	300
a. Figures shown do not include 5% sequester. b. In FY13, FY14, and FY15 SHOP was funded under the Self-Help & Assisted Homeownership Opportunity Program account. Recent Obama budgets have proposed making the program a setaside in HOME. The Congress has rejected that proposal. c. VASH vouchers for homeless veterans would be part of a new $177.5 million account of incremental rental vouchers for families, veterans, and tribal families experiencing homelessness and for victims of domestic violence. d. Includes the Rural Housing Stability Program, which is not yet operational. e. New proposed program.