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HAC News: June 13, 2012

HAC News Formats. pdf

June 13, 2012
Vol. 41, No. 12

• House subcommittees act on FY13 USDA and HUD funding • The House’s USDA appropriations bill • The House’s HUD appropriations bill • HUD, USDA RD, and the CDFI Fund announce new Border Community Capital Initiative • FHFA requests comments on housing goals and preservation impact • USDA examines immigration policy’s impacts on agriculture • USDA announces June is National Homeownership Month • HAC sets webinar on “Mapping Poverty in Rural America”


June 13, 2012
Vol. 41, No. 12

HOUSE SUBCOMMITTEES ACT ON FY13 USDA AND HUD FUNDING. House appropriations subcommittees have approved both bills and the full House Appropriations Committee is expected to act on them in the next few weeks. The Senate bills (see HAC News, 5/2/12) still await consideration by the full Senate. Congress continues to move appropriations on a faster track this year than in the recent past, but final passage of most appropriations bills may not occur until a post-election lame duck session.

THE HOUSE’S USDA APPROPRIATIONS BILL would provide lower amounts than the Senate’s bill for almost all rural housing programs. It allocates slightly more to the Section 515 rural rental housing program than the Senate bill, although the House’s $31.3 million is less than half of the $64.5 million Section 515 received in FY12. The House bill also contains new language in every provision relating to housing programs and in some, but not all, provisions relating to other Rural Development programs, requiring USDA to provide detailed spending plans within 15 days of enactment. [tdborder][/tdborder]

USDA Rural Devel. Prog.
(dollars in millions)

FY11
Approp.a

FY 12
Approp.

FY13
Admin. Budget

FY13
Sen. Bill
(S. 2375)

FY13 House Subcomm. Bill

502 Single Fam. Direct
(Self-Help Setaside)
(Teacher Setaside)

$1,121

$900

$652.8
(141)
(67)

$900
(5)
0

$652.8
0
0

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

23.4

10

28

28

10

504 VLI Repair Grants

34

29.5

28.2

b

c

515 Rental Hsg. Direct

69.5

64.5

0

28.4

31.3

514 Farm Labor Hsg.

25.7

20.8

26

26

d

516 Farm Labor Hsg.

9.8

7.1

8.9

8.9

d

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

955.6
0
(2.03)
(3)

904.7
0
(1.5)
(2.5)

907.1
0
0
(3)

907.1
0
0
(3)

886.6f
0
(1.5)
(2.5)

523 Self-Help TA

37

30

10

30

15

533 Hsg. Prsrv. Grants

10

3.6

0

b

c

538 Rental Hsg. Guar.

30.9

130

150

150

150

Rental Prsrv. Demo. (MPR)

15

2

34.4

16.8

2

Rental Prsrv. Revlg. Lns.

1

0

0

0

0

542 Rural Hsg. Vouchers

14

11

12.6

11

10.8

Rural Cmnty. Dev’t Init.

5

3.6

8

6.1

3.5e

a. Figures shown do not include 0.2% across the board reduction.
b. Total for 504 grants and 533 grants is $33.1 million.
c. Total for 504 grants and 533 grants is $17 million.
d. Total budget authority for Section 514 loans and Section 516 grants is $13.8 million, compared to the Senate bill’s total of $17.5 million.
e. Of the $3.549 million total for RCDI, $3.302 million is directed to community facilities grants to tribal colleges.
f. HAC originally reported the House subcommittee’s level for Rental Assistance was $866.6 million, but the correct figure is $886.6 million. HAC apologizes for any confusion.

THE HOUSE’S HUD APPROPRIATIONS BILL boosts funding for HOME, Section 202, CDBG, and SHOP above the levels in FY12 and in the Senate’s bill. The Rural Innovation Fund is not funded and seems dead after being left out of HUD’s budget proposal again. The Rural Housing Stability Program is funded as part of homeless assistance grants. Veterans housing vouchers are funded at $75 million and Native American Block Grants are at $650 million, maintaining 2012 levels for both programs. The House bill does not fund Choice Neighborhoods or Sustainable Communities.

HUD Program
(dollars in millions)

FY11
Approp.a

FY12
Approp.

FY13
Admin. Budget

FY13
Sen. Bill
(S. 2322)

FY13 House Subcomm.
Bill

Cmty. Devel. Fund (incl. CDBG)
Sustainable Commun. Init.
Rural Innovation Fund

3,508
(100)
0

3,308.1
0
0

3,143
100
0

3,210 b
50
0

3,404 b
0
0

HOME

1,610

1,000

1,000

1,000

1,200

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

18,408
(50)

18,914.4
(75)

19,074.3
(75)

19,396.3
(75)

19,134.3
(75)

Project-Based Rental Asstnce.

9,257.4

9,339.7

8,700.4

9,875.8

8,700.4

Public Hsg. Capital Fund

2,044

1,875

2,070

1,985

1,985

Public Hsg. Operating Fund

4,626

3,961.9

4,524

4,591

4,524

Choice Neighbrhd. Initiative

0

120

150

120

Housing Trust Fund

0

0

1,000

0

0

Native Amer. Hsg. Block Grant

650

650

650

650

650

Homeless Assistance Grants

1,905

1,901.2

2,231

2,146

2,000

Rural Hsg. Stability Prog.

5

c

c

Hsg. Opps. for Persons w/ AIDS

335

332

330

330

330

202 Hsg. for Elderly

400

374.6

475

375

425

811 Hsg. for Disabled

150

165

150

150

165

Fair Housing

72

70.8

68

68

68

Healthy Homes & Ld. Haz. Cntl.

120

120

120

120

120

Self-Help Homeownshp. (SHOP)

27

13.5

0

13.5

20

Housing Counseling

0

45

55

55

45

a. Figures shown do not include 0.2% across the board reduction. b. Includes $3.1 billion in Senate and $3.34 billion in House for CDBG. c. Funded under Homeless Assistance Grants.

HUD, USDA RD, AND THE CDFI FUND ANNOUNCE NEW BORDER COMMUNITY CAPITAL INITIATIVE. Community development lenders and investors, which can include local rural nonprofits and federally recognized tribes, will be eligible for funds and technical assistance to support their lending or investing related to affordable housing, small businesses, and community facilities in the colonias along the U.S.-Mexico border. The collaboration may later be extended to other persistent poverty regions of the country. The announcement does not indicate when a NOFA may be issued. Contact Russell Quiniola or Thann Young, HUD, 1-877-787-2526.

FHFA REQUESTS COMMENTS ON HOUSING GOALS AND PRESERVATION IMPACT. The Federal Housing Finance Agency proposes continuing the existing structure of Fannie Mae and Freddie Mac housing goals (with no rural goals or subgoals) for 2012-2014, with new benchmark levels. FHFA also seeks comments on whether the regulation should address the possibility that Fannie or Freddie would receive credit under the housing goals for purchasing a multifamily mortgage that facilitates conversion of the property from affordable rents to market rate. Comments are due July 26, 2012. Contact Paul Manchester, FHFA, 202-649-3115.

USDA EXAMINES IMMIGRATION POLICY’S IMPACTS ON AGRICULTURE. As Congress considers possible changes in immigration laws, an Economic Research Service study finds that an increase in H2-A temporary workers would increase U.S. agricultural production and reduce wages. A decrease in the undocumented workforce would decrease production and raise wages. The study does not address impacts on housing.

USDA ANNOUNCES JUNE IS NATIONAL HOMEOWNERSHIP MONTH.

HAC SETS WEBINAR ON “MAPPING POVERTY IN RURAL AMERICA.” As a prelude to the 2012 edition of Taking Stock – HAC’s decennial report on social, economic, and housing conditions in rural America – HAC is releasing an updated poster map showing county-level poverty data from 2010 Census figures, as well as information on historic, regional, and persistent poverty in the United States. Register now for a webinar presentation of the poverty map and a discussion of poverty in rural America on Thursday, June 28, 2:00-2:45 pm (EDT).

HAC News: May 2, 2012

HAC News Formats. pdf, epub, mobi

May 2, 2012
Vol. 41, No. 9

• Senate committee rejects parts of Administration’s housing budget • Senate bill would add one year of eligibility for rural housing programs • Household Water Well System grants available • IDA funding offered for refugee programs • HUD issues final rule changes for State CDBG program • IRS rule addresses sale of LIHTC properties • List of Qualified Census Tracts for LIHTC updated • RD shifts from newspapers to electronic notices of changes in eligibility boundaries • Minorities account for three-quarters of rural population growth

[tdborder][/tdborder]
May 2, 2012
Vol. 41, No. 9

SENATE COMMITTEE REJECTS PARTS OF ADMINISTRATION’S HOUSING BUDGET. The Senate Appropriations Committee passed FY13 bills for HUD on April 19 and for USDA April 26. House committee action has not yet been scheduled. S. 2375 would fund most USDA housing programs at the higher of the FY12 appropriations level or the President’s FY13 budget request, although Section 515 and the MPR preservation demonstration would receive less than half their FY12 funding. The committee report chastises USDA for proposing different approaches to rental pre-servation in its FY12 and FY13 budgets and asks USDA for “an effective long-term strategy” for rental housing.

USDA Rural Devel. Program
(dollars in millions)

FY11 Approp.a

FY12 Final Approp.

FY13 Admin. Budget

FY13 Sen. Bill (S. 2375)

502 Single Fam. Direct
(Self-Help Setaside)
(Teacher Setaside)

$1,121

$900

$652.8
(141)
(67)

$900
(5)
0

502 Single Family Guar.

24,000

24,000

24,000

24,000

504 VLI Repair Loans

23.4

10

28

28

504 VLI Repair Grants

34

29.5

28.2

b

515 Rental Hsg. Direct

69.5

64.5

0

28.4

514 Farm Labor Hsg.

25.7

20.8

26

26

516 Farm Labor Hsg.

9.8

7.1

8.9

8.9

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

955.6
0
(2.03)
(3)

904.7
0
(1.5)
(2.5)

907.1
0
0
(3)

907.1
0
0
(3)

523 Self-Help TA

37

30

10

30

533 Hsg. Prsrv. Grants

10

3.6

0

b

538 Rental Hsg. Guar.

30.9

130

150

150

Rental Prsrv. Demo. (MPR)

15

2

34.4

16.8

Rental Prsrv. Revlg. Lns.

1

0

0

0

542 Rural Hsg. Vouchers

14

11

12.6

11

Rural Cmnty. Dev’t Init.

5

3.6

8

6.1

S. 2322 would keep SHOP at its FY12 level of $13.5 million. The National Housing Trust Fund would not be funded. Assistance for tenants, both project-based and tenant-based, would fare better than under the Administration’s budget, but Section 202 elderly housing would fare worse and Section 811 for people with disabilities would see a reduction from its FY12 level. HUD tenants would not be required to pay $75 minimum monthly rent.

HUD Program
(dollars in millions)

FY11
Approp. a

FY 12 Approp.

FY13 Admin. Budget

FY13 Sen. Bill (S. 2322)

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

3,508
(100)
0

3,308.1
0
0

3,143
(100)
0

3,210 b
(50)
0

HOME

1,610

1,000

1,000

1,000

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

18,408
(50)

18,914.4
(75)

19,074.3
(75)

19,396.3
(75)

Project-Based Rental Asstnce.

9,257.4

9,339.7

8,700.4

9,875.8

Public Hsg. Capital Fund

2,044

1,875

2,070

1,985

Public Hsg. Operating Fund

4,626

3,961.9

4,524

4,591

Choice Neighbrhd. Initiative

0

120

150

120

Housing Trust Fund

0

0

1,000

0

Native Amer. Hsg. Block Grant

650

650

650

650

Homeless Assistance Grants

1,905

1,901.2

2,231

2,146

Rural Hsg. Stability Prog.

c

5

c

Hsg. Opps. for Persons w/ AIDS

335

332

330

330

202 Hsg. for Elderly

400

374.6

475

375

811 Hsg. for Disabled

150

165

150

150

Fair Housing

72

70.8

68

68

Healthy Homes & Ld. Haz. Cntl.

120

120

120

120

Self-Help Homeownshp. (SHOP)

27

13.5

0

13.5

Housing Counseling

0

45

55

55

a. Figures shown do not include 0.2% across the board reduction.
b. Includes $3.1 billion for CDBG.
c. Funded under Homeless Assistance Grants; amount not specified.

SENATE BILL WOULD ADD ONE YEAR OF ELIGIBILITY FOR RURAL HOUSING PROGRAMS. The Senate USDA appropriations bill, S. 2375, includes a grandfathering provision for places that have gained population and would otherwise become ineligible for USDA housing aid. (See HAC News, 9/28/11.) The bill would keep them eligible through the end of FY13 on September 30, 2013.

HOUSEHOLD WATER WELL SYSTEM GRANTS AVAILABLE. Nonprofits can apply to the Rural Utilities Service to establish lending programs for homeowners. The deadline will be included in the notice in the Federal Register, 5/3/12 and at grants.gov. Contact Joyce M. Taylor, RD, 202-720-9589.

IDA FUNDING OFFERED FOR REFUGEE PROGRAMS. Nonprofits, government agencies, and educational institutions can apply to the Department of Health and Human Services for grants to establish and manage Individual Development Accounts for low-income refugees, to be used for purposes including homeownership. Deadline is June 18. Contact Yimeem Vu, HHS, 202-401-4825. The next deadline for the standard Assets for Independence IDA pro-gram is May 25. Contact James Gatz, HHS, 866-778-6037.

HUD ISSUES FINAL RULE CHANGES FOR STATE CDBG PROGRAM. The changes update the State CDBG program regulations and clarify program income requirements. A provision requiring entitlement jurisdictions to receive only an incidental benefit from State CDBG program expenditures is replaced by one that allows expenditures in entitlement areas if the activities significantly benefit residents of the state grant recipient and meet the nonentitlement jurisdiction’s needs, and if the entitlement jurisdiction makes a meaningful contribution to the project. See Federal Register, 4/23/12. Contact Eva C. Fontheim, HUD, 202-708-1322.

IRS RULE ADDRESSES SALE OF LIHTC PROPERTIES. A final rule to be published in the Federal Register, 5/3/12, provides guidance on contracts to sell properties at the end of their extended use periods and computation of sales prices. Contact David Selig, IRS, 202-622-3040.

LIST OF QUALIFIED CENSUS TRACTS FOR LIHTC UPDATED. The list of Difficult Development Areas published 10/27/11 remains in effect. Visit HUDUser.org. Paper copies are available for a fee to cover costs, 800-245-2691.

RD SHIFTS FROM NEWSPAPERS TO ELECTRONIC NOTICES OF CHANGES IN ELIGIBILITY BOUNDARIES. An Unnumbered Letter dated April 17, 2012 says email and web posts are more effective than local newspapers to notify stakeholders before changing the boundaries determining eligibility for rural housing programs, and lists types of entities that should be contacted. It also eliminates the use of narrative descriptions of boundaries, stating they have not proved useful. Contact an RD office.

MINORITIES ACCOUNT FOR THREE-QUARTERS OF RURAL POPULATION GROWTH. From 2000 to 2010, Hispanics became a higher proportion of the nationwide rural and small town population than African Americans, with variations among localities. A new HAC Rural Research Note on “Race and Ethnicity in Rural America” presents these facts and other current data. Contact Lance George, HAC, 202-842-8600.

FY 13 HUD Budget and Appropriations

(Information about FY13 USDA rural housing funding is available here.)

HOUSE PASSES FY13 HUD APPROPRIATIONS BILL

July 2, 2012 – On June 29 the House of Representatives passed H.R. 5972, its version of the FY13 appropriations bill for the departments of Transportation and HUD. Most program funding remains at the levels set by the House Appropriations Committee (see table below). Slight increases were adopted for two programs: the Housing Opportunities for Persons with AIDS (HOPWA) was increased by $2 million and Homeless Assistance Grants received an additional $5 million. To keep the bill’s total funding level unchanged, these amounts were offset by decreases in HUD’s salaries and expenses account and its working capital fund.

The House rejected amendments to the bill that would have cut funding for HOME and CDBG. Proposals to increase funding for several other programs failed.

A more detailed summary of the amendments and discussion on the House floor is available from the National Low Income Housing Coalition.

The full Senate has not yet scheduled a date for consideration of its T-HUD funding bill, S. 2322.

HUD Program
(dollars in millions)

FY11 Final
Approp.a

FY 12 Final Approp.

FY13
Admin. Budget

FY13 Senate Cmte. Bill
(S. 2322)

FY13 House Bill (H.R. 5972)

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

3,508
(100)
0

3,308.1
0
0

3,143
100
0

3,210 b
50
0

3,404 b
0
0

HOME

1,610

1,000

1,000

1,000

1,200

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

18,408
(50)

18,914.4
(75)

19,074.3
(75)

19,396.3
(75)

19,134.3
(75)

Project-Based Rental Asstnce.

9,257.4

9,339.7

8,700.4

9,875.8

8,700.4

Public Hsg. Capital Fund

2,044

1,875

2,070

1,985

1,985

Public Hsg. Operating Fund

4,626

3,961.9

4,524

4,591

4,524

Choice Neighbrhd. Initiative

0

120

150

120

Housing Trust Fund

0

0

1,000

0

0

Native Amer. Hsg. Block Grant

650

650

650

650

650

Homeless Assistance Grants

1,905

1,901.2

2,231

2,146

2,005

Rural Hsg. Stability Prog.

5

c

c

Hsg. Opps. for Persons w/ AIDS

335

332

330

330

332

202 Hsg. for Elderly

400

374.6

475

375

425

811 Hsg. for Disabled

150

165

150

150

165

Fair Housing

72

70.8

68

68

68

Healthy Homes & Ld. Haz. Cntl.

120

120

120

120

120

Self-Help Homeownshp. (SHOP)

27

13.5

0

13.5

20

Housing Counseling

0

45

55

55

45

a. Figures shown do not include 0.2% across the board reduction.
b. Includes $3.1 billion in Senate and $3.34 billion in House for CDBG.
c. Funded under Homeless Assistance Grants.

HOUSE APPROPRIATORS ACT ON HUD SPENDING BILL FOR 2013

June 27, 2012 – The House committee report (H.Rept. 112-541) includes strong language supporting the Self-Help Homeownership Opportunity Program (SHOP):

Proposed elimination of SHOP.—The Administration once again proposes to eliminate all funding for the SHOP program, citing the HOME program as an acceptable substitute funding source and citing the rising administrative costs of SHOP recipients. Regarding the first point, the Committee notes there are many differences between the SHOP program, which allows non-profits to create affordable housing through the unique ‘‘self-help’’ model of homeownership, and the HOME program, which provides funding to states and local governments to increase the stock of affordable housing.

There are several reasons why the Committee declines to eliminate SHOP: HOME funding has decreased significantly in recent years; the self-help and sweat-equity model enjoys broad Congressional support; and SHOP funding is much-needed in rural areas, where state-wide HOME funds are scarce and often set-aside for large tax-credit developments, rather than for self-help homeownership. Regarding rising administrative costs, the Committee directs HUD to evaluate the history of administrative costs in the SHOP program, including whether HUD’s imposition of various requirements, such as mandatory site visits and Energy-Star certifications, has resulted in SHOP grantees requiring higher administrative costs.

The Committee directs the Secretary to report to the House and Senate Committees on Appropriations within 180 days of enactment on whether current administrative costs are reasonable, what portion of administrative costs are attributable to HUD requirements, and what actions can be taken by both HUD and grantees to reduce the administrative burden in this program.

June 20, 2012 – On June 19 the full House Appropriations Committee passed the Transportation-HUD funding bill without changing the subcommittee’s funding levels shown in the table below. An amendment by Rep. Jeff Flake (R-Arizona) to cut $2 million from the HOME program was defeated.

June 8, 2012 – The House Transportation-HUD Appropriations Subcommittee on June 7 reported out a bill to fund HUD and several other agencies in fiscal 2013 (starting Oct. 1, 2012).

The bill boosts funding for HOME, Sec. 202, CDBG, and SHOP. HOME, Section 202, and SHOP got significant increases above FY 2012 levels to $1.2 billion, $425 million, and $20 million respectively. The Rural Innovation Fund is not funded and seems dead after being left out of HUD’s budget proposal again. The Rural Housing Stability Program is funded as part of homeless assistance grants. Veterans housing vouchers are funded at $75 million and Native American Block Grants are at $650 million, maintaining 2012 levels for both programs. The House bill provides no funding for Choice Neighborhoods or Sustainable Communities. The table below provides details.

The full House Appropriations Committee is expected to act on this bill in about two weeks. The Senate Appropriations Committee passed its version of 2013 HUD appropriations, S. 2322, on April 19, with significant differences from yesterday’s House bill. Congress continues to move appropriations on a faster track this year, but it also remains unclear when the process will be complete. Final passage of most appropriations bills may not occur until a post-election lame duck session.

The bill is available on https://appropriations.house.gov/UploadedFiles/BILLS-112HR-SC-AP-FY13-THUD.pdf.

HUD Program
(dollars in millions)

FY11 Final
Approp.a

FY 12 Final Approp.

FY13
Admin. Budget

FY13 Senate Bill
(S. 2322)

FY13 House Subcomm.
Bill

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

3,508
(100)
0

3,308.1
0
0

3,143
100
0

3,210 b
50
0

3,404 b
0
0

HOME

1,610

1,000

1,000

1,000

1,200

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

18,408
(50)

18,914.4
(75)

19,074.3
(75)

19,396.3
(75)

19,134.3
(75)

Project-Based Rental Asstnce.

9,257.4

9,339.7

8,700.4

9,875.8

8,700.4

Public Hsg. Capital Fund

2,044

1,875

2,070

1,985

1,985

Public Hsg. Operating Fund

4,626

3,961.9

4,524

4,591

4,524

Choice Neighbrhd. Initiative

0

120

150

120

Housing Trust Fund

0

0

1,000

0

0

Native Amer. Hsg. Block Grant

650

650

650

650

650

Homeless Assistance Grants

1,905

1,901.2

2,231

2,146

2,000

Rural Hsg. Stability Prog.

5

c

c

Hsg. Opps. for Persons w/ AIDS

335

332

330

330

330

202 Hsg. for Elderly

400

374.6

475

375

425

811 Hsg. for Disabled

150

165

150

150

165

Fair Housing

72

70.8

68

68

68

Healthy Homes & Ld. Haz. Cntl.

120

120

120

120

120

Self-Help Homeownshp. (SHOP)

27

13.5

0

13.5

20

Housing Counseling

0

45

55

55

45

a. Figures shown do not include 0.2% across the board reduction.
b. Includes $3.1 billion in Senate and $3.34 billion in House for CDBG.
c. Funded under Homeless Assistance Grants.

HUD SPENDING FOR 2013 ADVANCES IN SENATE

The Senate Appropriations Committee on April 19 reported out a bill to fund HUD and several other agencies in fiscal 2013 (starting October 1, 2012). Congress is moving appropriations on a much faster track this year, especially in the Senate, but it is still unclear when the process will be complete. The House of Representatives is also expected to move 2013 spending bills soon.

The Senate bill keeps HOME, SHOP, Indian housing and several other accounts at 2012 levels; increases public housing, rental assistance and homeless grants; and cuts a few other programs such as Section 811. The Rural Innovation Fund was not funded and seems dead after being left out of HUD’s budget proposal again.

The table below provides details.

HUD Program
(dollars in millions)

FY11
Approp. a

FY 12 Approp.

FY13 Admin. Budget

FY13 Sen. Bill (S. 2322)

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

3,508
(100)
0

3,308.1
0
0

3,143
(100)
0

3,210 b
(50)
0

HOME

1,610

1,000

1,000

1,000

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

18,408
(50)

18,914.4
(75)

19,074.3
(75)

19,396.3
(75)

Project-Based Rental Asstnce.

9,257.4

9,339.7

8,700.4

9,875.8

Public Hsg. Capital Fund

2,044

1,875

2,070

1,985

Public Hsg. Operating Fund

4,626

3,961.9

4,524

4,591

Choice Neighbrhd. Initiative

0

120

150

120

Housing Trust Fund

0

0

1,000

0

Native Amer. Hsg. Block Grant

650

650

650

650

Homeless Assistance Grants

1,905

1,901.2

2,231

2,146

Rural Hsg. Stability Prog.

c

5

c

Hsg. Opps. for Persons w/ AIDS

335

332

330

330

202 Hsg. for Elderly

400

374.6

475

375

811 Hsg. for Disabled

150

165

150

150

Fair Housing

72

70.8

68

68

Healthy Homes & Ld. Haz. Cntl.

120

120

120

120

Self-Help Homeownshp. (SHOP)

27

13.5

0

13.5

Housing Counseling

0

45

55

55

a. Figures shown do not include 0.2% across the board reduction.
b. Includes $3.1 billion for CDBG.
c. Funded under Homeless Assistance Grants; amount not specified.

PROPOSED HUD BUDGET FOR 2013 IS A MIX OF CUTS AND HIKES

The HUD budget includes some good news and some bad, cutting some programs sharply while increasing or maintaining others. Increases are in:

  • tenant-based rental assistance,
  • public housing operating and capital funds,
  • homeless assistance grants,
  • Section 202 senior housing,
  • Choice Neighborhoods, and
  • housing counseling.

Level funding from 2012 to 2013 would be in:

  • HOME,
  • veterans supportive housing vouchers,
  • Indian housing block grants, and
  • Healthy Homes and lead hazard controls.

Cuts or eliminations are asked for:

  • project based rental assistance (a very deep cut of $639 million),
  • CDBG (cut by $165 million),
  • SHOP (zero funding),
  • Section 811 housing for the disabled, and
  • fair housing

Proposed increases are in some accounts that were cut sharply in 2011 or 2012, such as counseling and Section 202.

The Rural Innovation Fund again does not receive funds and appears to be dead. This abandonment is especially troublesome given HUD’s roll out of this program in their 2010 budget request, as a replacement for the older Rural Housing and Economic Development program. Congress provided one year of funding for the RIF (FY10), but then the request was mostly abandoned by HUD.

HUD’s Self-Help Homeownership Opportunity Program (SHOP) also does not receive funds, with potential applicants once again directed to HOME. HUD says “all SHOP activities are eligible under the HOME program,” so go apply there. This ignores the fact that HOME was cut by $650 million in FY12, is under some stress from misguided bad publicity, and could hardly work as a program funded by dozens of state and local jurisdictions.

There is also a proposal to increase minimum rents to $75 for the lowest income HUD-assisted households. The National Low Income Housing Coalition and other advocates strongly oppose this proposal.

The table below provides details.

HUD Program
(dollars in millions)

FY11
Approp. a

FY12
Admin.
Budget

FY 12 Approp.

FY13 Admin. Budget

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

3,508
(100)
0

3,781
(150)
(25)

3,308.1
0
0

3,143
(100)
0

HOME

1,610

1,650

1,000

1,000

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

18,408
(50)

19,223
(75)

18,914.4
(75)

19,074.3
(75)

Project-Based Rental Asstnce.

9,257.4

9,429

9,339.7

8,700.4

Public Hsg. Capital Fund

2,044

2,405

1,875

2,070

Public Hsg. Operating Fund

4,626

3,962

3,961.9

4,524

Public Hsg. Revtlztn. (HOPE VI)

100

0

0

0

Choice Neighbrhd. Initiative

0

250

120

150

Housing Trust Fund

0

1,000

0

1,000

Native Amer. Hsg. Block Grant

650

700

650

650

Homeless Assistance Grants

1,905

2,372

1,901.2

2,231

Hsg. Opps. for Persons w/ AIDS

335

335

332

330

202 Hsg. for Elderly

400

757

374.6

475

811 Hsg. for Disabled

150

196

165

150

Fair Housing

72

72

70.8

68

Healthy Homes & Ld. Haz. Cntl.

120

140

120

120

Self-Help Homeownshp. (SHOP)

27

0

13.5

0

Housing Counseling

0

88

45

55

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

Posted: February 13, 2012
Last updated: July 2, 2012