December 20, 2019

Congress and White House reach spending deal to avoid another government shutdown

This week, Congress completed the fiscal year 2020 (FY20) appropriations process, passing two major spending packages in both chambers. President Trump legislation before tonight’s midnight deadline to fund the government. Overall, the funding levels for both HUD and USDA are positive and maintain funding increases from FY19, despite both agencies facing significant cuts proposed in administration’s FY20 budget request and the threat of yearlong continuing resolutions.

For HUD, the FY20 bill provides $56.5 billion, a $2.7 billion increase from last fiscal year, and over $12 billion more than the administration’s FY 2020 request. For USDA Rural Development, the FY20 bill provides mostly the same funding with some increases to preserve rural housing. Similar to the past few years, Congress has rejected the administration’s proposed rent reforms to HUD’s rental assistance programs. Congress also rejected the administration’s proposed elimination of several key affordable housing programs, including: Public Housing Capital Fund, Housing Trust Fund, HOME, CDBG, Choice Neighborhoods, and the U.S. Interagency Council on Homelessness.

The FY20 program funding levels are provided below:

Housing and Urban Development

Fiscal Year 2020 Appropriations Act ($ in millions)

HUD Affordable Housing and Community Development Programs

Last Year

(FY19)

FY20

Enacted

(current)

Tenant-Based Rental Assistance

22,598

23,874

Contract Renewals

20,313

21,502

Project-Based Rental Assistance

11,747

12,570

Housing for the Elderly (Section 202)

678

793

Capital Advance

51

90

Service Coordinators

90

100

Home Modifications – Aging in Place

10

10

Supportive Housing for Persons with Disabilities (Section 811)

184

202

Capital Advance

30

40

Community Development Fund

3,365

3,400

HOME

1,250

1,350

 

USDA – Rural Development

Fiscal Year 2020 Appropriations Act ($ in millions)

RHS Programs

Last Year

FY19

FY20

Enacted

(current Year)

Section 521 Rental Assistance

1,331

1,375

Section 515 Rental Housing Direct Loans

40

40

Multifamily Revitalization

51.5

60

Preservation Demonstration

24.5

28

Section 542 Rural Housing Vouchers

27

32

Section 538 Loan Guarantee

230

230

 

  • Housing Choice Voucher (HCV) program – the bill continues to fund a “Family Mobility Demonstration.” This includes $25 million to implement a voucher mobility demonstration program ($20 million to support PHA programs designed to empower families to successfully move to, and remain in, lower-poverty areas) and up to $5 million for incremental housing vouchers for families with children that participate in the demonstration.
  • PBCAs – including $345 million for contract administrators and a request for sufficient time for public comments on any PBCA procurement solicitation.
  • Section 202 program – the bill provides $90 million for new capital advances and project rental assistance contracts, up to $100 million for service coordinators and the continuation of existing congregate service grants, and $10 million for the new aging in place home modification grant program.
  • Section 811 program – the bill provides just over $40 million for new capital advance and project rental assistance awards.
  • USDA Rural Housing – the bill allow owners of USDA-financed rental properties (Section 514 and Section 515) to request Rental Assistance agreements (Section 521) with terms of 20 years rather than one year; the funding for longer contracts will still be subject to annual appropriations.
  • LIHTC – the bill directs over $1 billion in Low Income Housing Tax Credits to fire-damaged parts of California.

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