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HAC News: January 22, 2014

HAC News Formats. pdf

January 22, 2014
Vol. 43, No. 2

• Spending set for 2014 • Rural Housing Cuts Avoided • HUD programs have some cuts, some increases • Congress changes HUD’s definition of “extremely low-income” • First Promise Zones include two rural areas • HUD suggests owners warn tenants before mortgages mature • Poverty guidelines updated • Study examines high poverty neighborhoods • HAC reports on USDA housing programs in FY13

January 22, 2014
Vol. 43, No. 2

SPENDING SET FOR 2014. Both the House and Senate have passed, and President Obama has signed, the FY14 omnibus spending package, the first full federal appropriations law enacted in over a decade. Next year’s funding discussions will begin soon, though reports are that the President’s proposed FY15 budget may be late, coming out in March rather than early February.

RURAL HOUSING CUTS AVOIDED. USDA rural housing programs did not suffer the cuts originally proposed by the Obama budget. Section 502 direct loans received $900 million, Section 521 rental assistance got $1.11 billion, and Section 515 rental loans, $28 million. The bill also directs that communities currently eligible for USDA rural housing assistance will remain so through the end of the fiscal year. In addition, it expands the Section 502 packaging demonstration, directing USDA to contract with five intermediaries. [tdborder][/tdborder]

USDA Rural Devel. Prog.
(dollars in millions)

FY13
Finala

FY14
Admin. Budget

FY14
House Bill
H.R. 2410

FY14
Senate Bill
S. 1244

FY14
Final
H.R. 3547

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

$900
(5)
0

$360
0
0

$820.2
0
0

$900
(5)
0

$900
(5)
0

502 Single Family Guar.

24,000

24,000

24,000

24,000

24,000

504 VLI Repair Loans

28

26.3

25.4

26.3

26.3

504 VLI Repair Grants

29.5

25

18.6

28.7

28.7

515 Rental Hsg. Direct Loans

31.3

28.4

28.4

28.4

28.4

514 Farm Labor Hsg. Loans

20.8

23.5

23.9

23.9

23.9

516 Farm Labor Hsg. Grants

7.1

14

8.2

8.3

8.3

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

907.1
0
0
(3)

1,015
0
0
(3)

1,012
0
0
0

1,015
0
0
0

1,110
0
0
0

523 Self-Help TA

30

10

17.1

25

25

533 Hsg. Prsrv. Grants

3.6

0

0

3.5

3.5

538 Rental Hsg. Guar.

150

150

150

150

150

Rental Prsrv. Demo. (MPR)

17.8

20

17.3

20

20

Rental Prsrv. Revlg. Lns.

0

0

0

0

0

542 Rural Hsg. Vouchers

10

12.6

9.7

12.6

12.6

Rural Cmnty. Dev’t Init.

6.1

0

6

6

6

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

HUD PROGRAMS HAVE SOME CUTS, SOME INCREASES. HUD’s programs received a mix of level funding, reductions, and increases for FY14. HOME is at $1 billion, the same as in 2013, and CDBG is increased slightly. Other programs with increases include tenant- and project-based rental assistance, homeless assistance, public housing operating, and Section 202 elderly housing. In addition to HOME, programs with level funding include Native American housing and housing counseling. Cuts are made to public housing capital, fair housing, AIDS housing, Section 811 for the disabled, SHOP, and healthy homes.

HUD Program
(dollars in millions)

FY13
Finala

FY14
Admin. Budget

FY14
House Bill

FY14
Senate Bill
S. 1243

FY14
Final
H.R. 3547

Cmty. Devel. Fund
CDBG
Sustainable Commun. Init.
Rural Innovation Fund

3,308
2,948
0
0

3,143
2,798
0
0

1,697
1,637
0
0

3,295
3,150
75
0

3,100
3,030
0
0

HOME

1,000

950

700

1,000

1,000

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

18,939.4
(75)

19,989.2
(75)

18,610.6
(75)

19,592.2
(78)

19,177.2
(75)

Project-Based Rental Asstnce.

9,339.7

9,872

9,450.7

10,772

9,516.6

Public Hsg. Capital Fund

1,886

2,000

1,500

2,000

1,875

Public Hsg. Operating Fund

4,262

4,600

4,262

4,600

4,400

Choice Neighbrhd. Initiative

120

400

0

250

90

Housing Trust Fund

c

1,000

c

c

c

Native Amer. Hsg. Block Grant

650

650

600

675

650

Homeless Assistance Grants

2,033

2,381

2,088

2,261

2,105

Rural Hsg. Stability Prog.

b

5

b

b

b

Hsg. Opps. for Persons w/ AIDS

334

332

300

332

330

202 Hsg. for Elderly

377

400

375

400

385.3

811 Hsg. for Disabled

165

126

126

126

126

Fair Housing

70.8

71

55.8

70

66

Healthy Homes & Lead Haz. Cntl.

120

120

50

120

110

Self-Help Homeownshp. (SHOP)

13.5

10

10

13.5

10

Housing Counseling

45

55

35

55

45

a. Figures shown do not include 5% sequester. b. Funded under Homeless Assistance Grants. c. National Housing Trust Fund is “mandatory” funding, not discretionary, so does not need to be funded through appropriations legislation, although the Admin-istration did include it in its budget request.

CONGRESS CHANGES HUD’S DEFINITION OF “EXTREMELY LOW-INCOME.” The FY14 omnibus spending law makes several policy changes in HUD programs, including one that will help residents of poor rural areas to qualify. For the Housing Choice Voucher, public housing, and Section 8 Project-based Rental Assistance programs, “extremely low-income” is defined as the higher of 30% of area median income (the current standard) or the federal poverty level. The statute directs HUD to put this change into effect quickly.

FIRST PROMISE ZONES INCLUDE TWO RURAL AREAS. On January 9 President Obama announced the first five places to win “Promise Zone” designations, giving them preference for a variety of federal programs. The rural grantees are the Choctaw Nation of Oklahoma and a group of counties in southeast Kentucky served by Kentucky Highlands Investment Corporation. The cities of Los Angeles, Philadelphia, and San Antonio were also selected.

HUD SUGGESTS OWNERS WARN TENANTS BEFORE MORTGAGES MATURE. A HUD letter encourages owners of HUD-subsidized Section 236 rental properties to notify tenants months before their mortgages mature, at which time owners are usually allowed to convert to market rate rents. HUD offers preservation resources to owners. Contact HUD, 236preservation@hud.gov.

POVERTY GUIDELINES UPDATED. The Department of Health and Human Services has issued its annual poverty guidelines, adjusted based on the Consumer Price Index. Contact Kendall Swenson, HHS, 202-690-7507.

STUDY EXAMINES HIGH POVERTY NEIGHBORHOODS. Concentration of Poverty in the New Millennium, published by The Century Foundation and the Rutgers Center for Urban Research and Education, finds that the number of high-poverty census tracts decreased from 1990 to 2000 but increased again from 2000 to 2010 and is now greater than ever. The largest increase in number of these tracts was in micropolitan areas (10,000-50,000 population). The report also has data by race/ethnicity, region, and state, and brief discussion of the problems known to be caused by concentrations of poverty.

HAC REPORTS ON USDA HOUSING PROGRAMS IN FY13. HAC’s annual review of USDA Rural Development’s performance summarizes USDA obligation data by program area and by state. In addition, the report includes historic activity for selected rural housing programs.

SECTION 502 TRAINING FROM HAC. Join the Housing Assistance Council on March 25-27, 2014 in Memphis, TN for the Section 502 Packaging Training for Nonprofit Developers, a valuable training for any organization that packages or intends to package USDA Rural Development Section 502 Loans.

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).

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