Senate Appropriations Committee Passes FY 2015 T-HUD Bill
On Tuesday, June 3, the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development held a markup on S.2438, the Subcommittee’s FY 2015 appropriations bill for housing and transportation programs. The markup was brief, and no amendments were introduced for the bill. There were also no statements or comments made on the appropriation level for Project-Based Section 8 (PBS8).
Then on Thursday, June 5, the full Senate Appropriations Committee held a markup for S.2438. Only two amendments relating to transportation programs were introduced; there was no mention of the PBS8 appropriation in either the Chair or Ranking member’s opening remarks. S.2438 passed with a recorded vote of 29 to 1. The markup for the FY 2015 Commerce, Justice, Science, and Related Agencies appropriations bill was held at the same time and consumed most of the Committee’s attention.
After the markup, the Senate Appropriations Committee Report was made available. In this Report, the Committee expressed its concern for the proposed funding cut and transition to the calendar-year funding model for contracts:
“The Committee reluctantly concurs with the administration’s proposal to shift the payment of contracts to a calendar year basis. This funding cycle is consistent with the practices for the tenant-based rental assistance and public housing programs. However, it is a departure from the long-standing practice that all project-based contracts should receive a full 12 months of financing from the contract renewal date to maintain investor confidence and support for the program. The Committee recognizes that this strategy temporarily defers the need for large budgetary increases to fiscal year 2016.
Unfortunately, due to the budget constraints for fiscal year 2015, the Committee accepts this approach as the best option for preserving HUD’s housing assistance programs. While the Office of Multifamily Housing is implementing many cost-savings measures, the revenue that such steps are expected to generate in the next fiscal year will be minimal compared to PBRA’s funding requirements. The Committee urges the Department to explore other opportunities to reduce program costs, while encouraging the Department to manage the funding provided to ensure an uninterrupted flow of funds to support this critical housing resource.”
NAHMA is disappointed that concerns for the PBS8 funding cut and calendar-year transition were not read aloud during the markup. Now that S.2438 will advance to the floor of the Senate, NAHMA is advocating for lawmakers to express this concern as a floor statement.
With the Committee Report released, we now have all appropriations numbers to compare. Below is a chart showing the Senate and House figures compared to the Obama Administration’s Budget Request and the FY 2014 enacted level:
|
Project-Based Section 8 |
Tenant-Based Section 8 |
HOME |
Section 202 |
Section 811 |
Community Development Block Grant |
| House Bill H.R. 4745 |
$9.75 Billion |
$19.35 Billion |
$700 Million |
$420 Million |
$135 Million |
$3 Billion |
| Senate Bill S.2438 |
$9.75 Billion |
$19.56 Billion |
$950 Million |
$420 Million |
$135 Million |
$3.02 Billion |
| FY 2015 Budget Request |
$9.75 Billion |
$20.05 Billion |
$950 Million |
$440 Million |
$160 Million |
$2.80 Billion |
| FY 2014 Enacted Level |
$9.92 Billion |
$19.18 Billion |
$1 Billion |
$383.5 Million |
$126 Million |
$3.03 Billion |
Similar to the House Committee Report, the Senate comments on HUD’s Performance Based Contract Administrator (PBCA) awards under the 2012 NOFA:
“The Committee notes that PBCAs are integral to the Department’s efforts to be more effective and efficient in the oversight and monitoring of this program [PBS8]. The Committee is also aware of ongoing litigation that will affect the future of these entities and will continue to monitor developments. The Committee believes that fair and open competition is the best way to ensure that the taxpayer receives the greatest benefit for the costs incurred. The Department is directed to ensure that the PBCA selection process be, to the greatest extent legally permissible, full, open, and fair.”
To view the Senate Committee Report, please
click here.
