(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.

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.

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.

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.

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

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