February 14, 2020

President Trump Publishes FY21 Budget Request

This week, President Trump sent Congress his Fiscal Year (FY) 2021 budget request, “A Budget for America’s Future.” Similar to previous budget requests, the administration’s FY21 budget proposes steep cuts to affordable housing and community development programs, beginning October 1, 2020. A NAHMAnalysis is available on the proposed budget, including more details on funding levels and policy proposals for affordable housing programs. The following summary highlights notable programs and funding levels for HUD and USDA RD.

 Fiscal Year 2021 President’s Budget Request (HUD)

• Tenant-Based Rental Assistance (vouchers): The budget proposes over $18.833 billion for the voucher program, a 21% decrease from the funding level provided in FY20. This deep cut is based on a new change to create a new Moving to Work (MTW) account, which transfers around $4.2 billion for contract renewals from the overall voucher account. When the two accounts are combined, the FY 2021 proposal includes over $21 billion for voucher renewals, around a 2 percent decrease than the FY20 enacted level.
• Project-Based Rental Assistance (PBRA): The budget proposes around $12.642 billion for PBRA, including around $12.4 billion to renew all expiring contracts. This PBRA request includes $350 million for performance-based contract administrators’ (PBCA) administrative fees, $5 million more than appropriated in FY 2020.
• Section 202 Housing for the Elderly: The budget requests $853 million for Section 202 housing, an increase of $60 million from the FY20 enacted levels. This includes $641 million for contract renewals, $100 in new Capital Advance funding, and $95 million to fund service coordinators. The budget also includes a new request of $14 million for an extension of the Supportive Services IWISH Demonstration and to strengthen the evaluation the demonstration. NAHMA supports this extension and will work to get it enacted.
• Section 811 Housing for Persons with Disabilities: The budget requests $252 million for Section 811 housing, an increase of $50 million from the FY21 enacted levels.
• Elimination of Key Programs and Rent Reforms: Similar to previous requests, the budget proposes eliminating the Public Housing Capital Fund, HOME, Community Development Block Grant (CDBG), Housing Trust Fund (HTF), and Choice Neighborhoods programs. It also requests the same rent reforms under the Making Affordable Housing Work Act (MAHWA), which Congress previously rejected.

Fiscal Year 2021 President’s Budget Request (USDA-RHS)

Similar to the Administration’s FY20 budget request, this year’s USDA FY21 budget proposes to eliminate funding for rural housing programs, including Section 515 and Multifamily Preservation and Revitalization (MPR) Demonstration. 

• Section 521 Rental Assistance and Section 542 Rural Hsg. Vouchers: Similar to last year, the budget proposes to combine Section 542 Voucher funding with Section 521 RA in a single account. USDA’s budget summary shows a $1.410 billion line item for Section 521, and includes $40 million for Section 542 vouchers.
• Establishing a Minimum Rent: This year’s budget again proposes a minimum rent, requiring tenants in USDA-assisted rental housing to pay at least $50 per month with a hardship exemption from USDA.
• Section 538 Guaranteed Rural Rental Housing: The budget proposes $230 million for the Section 538 multifamily loan guarantee program, the same enacted FY20 funding level.
• Multifamily Preservation and Revitalization (MPR) Demonstration:   The budget combines all multifamily preservation and revitalization demonstration programs into one multifamily housing revitalization pilot program and provides funding at $40 million in FY 2021.

As mentioned in the NAHMAnalysis, NAHMA opposes the budget request; we will continue to work with Congress to increase investments in affordable housing and community development programs, and we encourage our members to join our advocacy efforts through meetings with legislators, property visits with elected officials, and other advocacy opportunities.