January 17, 2014
The following post was prepared by Mary Childs-Mayer, NDC Director of Government Relations.
As many of you know, the last few months for fiscal year 2014 budget negotiations have been frustrating to say the least. Remember the government shutdown for two and a half weeks in October? I’m happy to share that this afternoon the House of Representatives voted and approved a $1 trillion omnibus spending bill sent over by the Senate that funds the government for the rest of fiscal 2014, and will let Congress avoid the risk of another ‘shutdown’ until the end of September. This bill will be sent on to the President to sign into law this weekend.
We saw large cuts in fiscal year 2013 for programs dedicated to housing and community development investments in communities throughout the United State due to a variety of factors including sequestration. Several of the HUD programs—including CDBG, HOME Investment Partnership program and SHOP—did somewhat better in the FY14 Appropriations bill than in the President’s Budget Request, but there is still significant improvement needed going forward. Below you will find the details of the FY14 budget and comments on the status of several programs:
- The total Community Development Fund is funded at $3.03 billion, down from the FY 2013 level of $3.078 billion after sequestration.
- The CDBG formula funding is $82 million more than the FY13 rate ($2.95 billion) and $250 million more than the President’s Budget Request ($2.78 billion).
- The Section 108 CDBG Loan program level was cut from $240 million to $150 million, and its Budget Authority was cut from $5.9 million in FY13 to $3 million. As you may recall, the President, House, and Senate sought to increase the program levels to $500 million and replace its Budget Authority with a user fee though HUD has not yet issued a rule outlining a fee structure for the program.
- HOME Investment Partnerships program received $1 billion, an increase over the current post-sequestration level of $948 million.
- Choice Neighborhoods funding is reduced from the current post-sequestration level of $114 million to $90 million under the omnibus bill, with at least $55 million guaranteed for PHAs.
- Homeless assistance grant funding receives a modest increase under the agreement.
- SHOP received $50 million, up from the President’s proposal of $10 million.
- Section 8 Tenant-Based Rental Assistance is set to receive a $1 billion boost for the renewal of existing vouchers, and administrative fee funding will increase by approximately $195 million. Initial estimates indicate that this increase may raise the administrative fee from 69 percent to 75 percent.
- Section 8 Project-Based Rental Assistance is funded at $9.9 billion, an increase over the current $8.9 billion funding level.
- The Section 202 Housing for the Elderly program saw a modest increase from $375 million in FY13 to $383 million in FY14.