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.