Final FY12 HUD and Rural Housing Funding Bill Passes in the House, onto Senate

National Low Income Housing CoalitionOn November 14, the H.R. 2112 Conference Committee issued its negotiated agreement on the minibus spending bill that includes the FY12 T-HUD and Agriculture appropriations bills. The House of Representatives passed the bill today, Thursday, November 17. A Senate vote is anticipated at any time.

With few exceptions, the FY12 bill would dramatically cut funding for HUD programs below FY11 levels. Many of these programs were already cut in FY11 compared to FY10 levels.

When the bill passes, HUD’s FY12 budget will be $37.4 billion, a $3.7 billion cut below FY11 funding.

To see NLIHC’s HUD budget chart, click here.

Below are the funding levels and impacts related to select programs that would be underfunded if the bill is enacted.

Tenant Based Rental Assistance Contract Renewals

$17.242 billion

The bill would provide $130 million less than HUD’s estimated cost for renewing all vouchers. This could result in 12,000 to 18,000 vouchers being lost if public housing authorities cannot cover shortfalls with voucher reserves. The bill also includes a rescission of $650 million from voucher reserves.

Public Housing Capital Fund

$1.875 billion

The bill would provide 22% less than the President’s FY12 request and 8% below FY11 funding levels. This could result in thousands of units lost and would put thousands of current residents at risk of living in substandard housing. HUD estimates that there is a backlog of over $25 billion in public housing capital needs.

Homeless Assistance Grants

$1.902 billion

The bill provides no increase over the FY11 level and is 20% below the President’s FY12 request. Not providing the President’s requested funding level would prohibit the full enactment of the HEARTH Act. As a result, 482,000 people experiencing homelessness would not be housed.

HOME Investment Partnership

$1 billion

The bill would cut HOME 38% below the FY11 funding level and by 39% below the President’s FY12 request. A cut of this depth would result in tens of thousands of affordable housing units not being created. This would include thousands of rental units that would not be created and thousands of rental subsidies that would not be provided.

Section 202 Housing for the Elderly

$374 million

The bill would cut the program by 51% below the President’s FY12 request and 6% below FY11 funding. The bill’s funding level would result in 2,500 to 3,000 units not being created for people who are elderly.

Section 521 Rural Rental Assistance

$904 million

The bill would provide just below the President’s FY12 requested funding level, which is a cut of 5% below FY11.

Section 515 Rural Rental Housing

$64.5 million

The bill would provide 32% less than the President’s FY12 request but a 7% cut below FY11 funding.

Good News

There is some good news in H.R. 2112.

  • The bill would create a Rental Assistance Demonstration (RAD) with key elements sought by NLIHC. The RAD would be a tool to preserve public housing and mod rehab units.
  • The bill would increase funding for Section 811 Housing for Persons with Disabilities by 10% over FY11 levels, restoring some of the cuts enacted in FY11.
  • The bill would include $50 million for public housing’s Resident Opportunity and Supportive Services (ROSS) program.
  • The bill would provide $45 million for Housing Counseling, partially restoring funding to the program, which received no funding in FY11. The bill would fund the program at 49% below the President’s FY12 request and the FY10 level.
  • HUD claims that the $9.34 billion that the bill would provide for Project Based Rental Assistance would allow renewals of all contracts for 12 months.

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