President Biden Releases Fiscal Year 2023 Budget Details
On March 28, 2022, President Biden submitted to Congress his Administration’s Fiscal Year 2023 (FY23) budget request. The budget request totals $5.8 trillion and provides the Biden administration’s spending and policy priorities. Of this amount, a request for $71.9 billion is made for the U.S. Department of Housing and Urban Development (HUD), and a request for $28.5 billion is made for the U.S. Department of Agriculture (USDA).
HUD Programs:
- Tenant-Based Rental Assistance (vouchers): The FY23 budget proposes over $32.1 billion for the voucher program, a $4.7 billion increase from the funding level provided in FY22 enacted levels. This includes $26.2 billion for Contract Renewals (HAP), $220 million for Tenant Protection Vouchers (TPV), $667 million for Section 8 Mainstream Renewals, $445 million for Mobility Services, a new program for 2023 that will assist families to move to high-opportunity neighborhoods, and $1.6 billion for Incremental Vouchers, a new effort that could result in 200,000 additional families receiving support, including those who are homeless or fleeing from domestic violence.
- Project-Based Rental Assistance (PBRA): The budget proposes about $15 billion for PBRA, including $14.325 billion to renew all expiring contracts. This PBRA request includes $375 million for performance-based contract administrators (PBCAs).
- Section 202 Housing for the Elderly: The budget requests $966 million for Section 202 housing, a decrease of $67 million from the FY22 enacted levels. This includes $742 million for contract renewals, $100 in new Capital Advance funding, and $120 million to fund service coordinators.
- Section 811 Housing for Persons with Disabilities: The budget requests $288 million for Section 811 housing, a decrease of $64 million from the FY23 enacted levels. This also includes $82 million for capital advance and project rental assistance.
- Housing Supply Fund: The budget requests a new $35 billion in mandatory funding over 10 years for a Housing Supply Fund to increase housing development. The fund would have two grant components: $25 billion in grants for Affordable Housing Production and $10 billion in grants to Reduce Affordable Housing Barriers.
- Climate Initiative/Green and Resilient Retrofit Program: Similar to last year’s budget request, this budget requests $250 million for targeted investments to improve the quality of housing through climate resilience and energy efficiency. Funds will be used to create a new Green and Resilient Retrofit Program within Multifamily Housing to be used as follows: “$207.5 million for grants and loans for energy retrofits, green investments, and climate resilience improvements for approximately 5,000 – 10,000 units nationwide; $31.5 million for utility benchmarking data collection and systems; and $11 million for administrative contract expenses which will enable HUD to quickly scale up the program and realize improvements.”
- Rental Assistance Demonstration: The budget requests $110 million for RAD conversion subsidy and modifications to the RAD statute to expand and improve the efficacy of RAD conversions to both PBRA ($50 million) and Project-Based Vouchers (PBV) ($60 million).
- HOME Investment Partnerships Program: For the HOME Investment Partnerships program, the FY23 Budget requests $1.95 billion for the HOME Investment Partnerships Program, which is $450 million more than the FY22 enacted level. This includes a new $100 million set-aside for a FirstHOME Downpayment Assistance initiative to States and insular areas to better ensure sustainable homeownership.
- Community Development Block Grant: The President’s FY23 budget requests $3.77 billion for the Community Development Fund, which is $470 million more than the FY22 enacted level.
To view the White House factsheet on the FY23 Budget request, click here.
To view HUD’s Budget in Brief, detailing program funding for FY23, click here.
USDA-RHS Programs: The President’s FY23 budget request includes $28.5 billion for USDA, a $3.4 billion increase from the FY 2022 enacted level. USDA’s FY23 budget includes a provision in the Budget for Section 515 properties to “decouple” rental assistance from the program, allowing tenants to receive or continue to receive rental assistance after a property has paid off its USDA mortgage. Under current law, rental assistance cannot be used in properties that do not have an active Section 515 or 514 loan. USDA’s budget summary shows $1.564 billion for 521 Rental Assistance, $200 million for Section 515 Rental Housing Direct Loans, $38 million for Section 542 vouchers, $75 million for MPR program, and $400 million for the Section 538 multifamily loan guarantee program, which are substantial increases from FY22 funding level to signal the administration’s commitment to affordable housing in rural communities.
To view the USDA Budget Summary, detailing program funding for FY23, click here.
The full budget proposal now kicks off spending debates in Congress to fund the government beyond September 30, 2023.
Members can catch-up on all past Washington Updates here.
Thanks,
NAHMA Government Affairs Team