House Appropriations Committee Releases FY23 THUD Funding Bill
This week, the House Appropriations Committee released its draft fiscal year (FY) 2023 Transportation, Housing and Urban Development government funding bill. The FY23 bill provides a total of $62.7 billion for HUD – an increase of $9 billion above fiscal year 2022 and $1.1 billion above the President’s 2023 budget request. The legislation, if enacted:
- $14.9 billion for Project-based Rental Assistance to continue to house more than 1.2 million very low- and low-income households nationwide, an increase of $1 billion above fiscal year 2022. An additional $1.2 billion is provided for Housing for the Elderly to build approximately 3,500 new affordable housing units for low-income seniors and $400 million for Housing for Persons with Disabilities to construct approximately 2,100 new affordable housing units for persons with disabilities.
- $31 billion for Tenant-based Rental Assistance to continue to serve more than 2.3 million very low- and extremely low-income households nationwide. This level of funding also includes $1.1 billion to expand housing assistance to more than 140,000 low-income families, including individuals and families experiencing or at risk of homelessness, including survivors of domestic violence and veterans.
- $8.7 billion for Public Housing, $282 million above fiscal year 2022, including $3.4 billion to meet the full annual capital accrual need in order to improve the quality and safety of public housing for more than 2 million residents.
- $11.8 billion for Community Planning and Development, an increase of $2 billion above fiscal year 2022, including $3.3 billion for Community Development Block Grants, equal to fiscal year 2022. This also includes:
- $1.7 billion for the HOME Investment Partnerships Program which has helped preserve approximately 1.33 million affordable homes, an increase of $175 million above fiscal year 2022; and
- $50 million for a new down payment assistance program to help first-time, first-generation home buyers purchase a home.
- $600 million for Housing Opportunities for Persons with AIDS, to protect housing and services for more than 75,000 low-income people living with HIV, an increase of $150 million above fiscal year 2022 and $145 million above the President’s budget request.
- $415 million for the Office of Lead Hazard Control and Healthy Homes, an increase of $15 million above the President’s budget request, including $30 million to conduct lead inspections in Section 8 voucher units to improve the health and condition of housing where nearly 229,000 children reside.
- Increased investments to revitalize low-income housing and distressed communities through the Choice Neighborhoods Initiative, providing $450 million, an increase of $100 million above fiscal year 2022.
- An increase in supportive services for HUD-assisted households to improve their connections to jobs, healthcare, and educational opportunities by providing $175 million for Self-Sufficiency Programs, an increase of $16 million above fiscal year 2022.
The funding bill was passed out of the House Subcommittee on Transportation, Housing, and Urban Development on Thursday and is expected to pass out of the full appropriations committee for a final vote in the House sometime this summer. While the House is on track for final passage, it remains unclear, however, if the Senate will be able to pass their funding bills before the end of the current fiscal year on September 30, 2022.
House Bill Introduced to Expand LIHTC for Health-Oriented Housing
This month, Representative Terri Sewell (D-AL) introduced the Healthy Homes Act (HR 7990), a bill to provide a temporary expansion of the federal low-income housing tax credit (LIHTC) for healthcare-oriented housing. If enacted into law, the bill would also provide an increase of 50% of eligible basis for healthcare-oriented housing under LIHTC. The bill also clarifies the definition of healthcare-oriented housing as meeting one of five standards, including providing healthcare screening, health and nutrition workshops or having a healthcare service coordinator. The Healthy Homes Act was referred to the House Ways and Means Committee for further consideration. NAHMA will continue to monitor this legislation closely.
To view the full bill text, click here.
Legislation To Increase Access to Homeownership Introduced
This week, Senator Catherine Cortez Masto (D-NV) and Representative Gwen Moore (D-WI) introduced legislation that seeks to help working families afford their first mortgages. The Affordable Housing Bond Enhancement Act makes improvements to the Mortgage Revenue Bond (MRB) and Mortgage Credit Certificate (MCC) programs that make first-time homeownership possible for thousands of families every year. Since the programs’ inception, nearly 4 million families who earn below the area median income have become homeowners for the first time. This legislation, if enacted into law, would allow families to receive MRB loans to refinance their homes or make health and safety improvements. It also simplifies administration and makes it easier for lenders to use these programs while increasing Congressional oversight by requiring annual reporting. “The Mortgage Revenue Bond and Mortgage Credit Certificate programs have helped make possible the dream of homeownership for millions of Americans,” said Representative Moore in a recent statement. “To address the stark racial homeownership gap in Milwaukee, we must use every tool in the toolkit to put the goal of homeownership in closer reach to our residents. These programs have been around for decades and are due for reforms to make them more effective. I am sponsoring this legislation to make homeownership more affordable for eligible households, giving more Americans, in Milwaukee and across the nation, the opportunity to own a home and build generational wealth for their families or make needed modifications to their home.”
To view the press release, click here.