House Appropriations Subcommittee Approves Funding for Affordable Housing Programs
This week, the House Appropriations Subcommittee on Transportation, Housing, and Urban Development (THUD) approved its Fiscal Year (FY) 2020 HUD funding bill, providing over $50 billion to HUD. This allocation represents an almost $6 billion increase above last year’s FY 2019 enacted level and rejects the severe cuts proposed in the Trump Administration’s HUD budget request.
Key program funding levels in the bill include:
- $12.6 billion for Project-Based Rental Assistance, including $345 million for contract administration
- $803 million for the Section 202 Housing for the Elderly program, including $95 million for service coordinators
- $259 million for Section 811 Housing for Persons with Disabilities
- $23.8 billion for Tenant-based Rental Assistance (vouchers), including an additional $25 million for a voucher mobility demonstration.
- $3.6 billion for Community Development Block Grants (CDBG)
- $1.75 billion for HOME
In addition to increased funding levels, the Democratic-controlled House of Representatives took aim to halt recently proposed HUD policy changes. If enacted, the funding bill would:
- prohibit HUD from implementing the “mixed-status” immigrant family proposed rule or any final rule substantially based upon it.
- prohibit HUD from implementing and enforcing a proposed rule, Equal Access Rule, which repeals the Equal Access Rule for LGBTQ persons utilizing affordable housing programs.
- require all HUD CDBG grantees to develop a resiliency plan as part of the consolidated planning process.
Similar to the THUD House Subcommittee, the House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies (Agriculture) approved their proposed FY 2020 appropriations bill for the Department of Agriculture (USDA), the Food and Drug Administration, and related agencies. This bill rejects the Trump administration’s proposed cuts to USDA and includes increased funding for USDA’s Rural Housing Service (RHS) programs.
- $45 million for the Section 515 Multi-Family Housing Direct Loan Program
- $250 million for Section 538 Guaranteed Multi-Family Housing Loan Program
- $1.375 billion for Section 521 Rural Rental Assistance
- $35 million for Section 542 Rural Development Voucher
- $40 million for the multifamily rental preservation demonstration
Looking Forward
Upon their return from the Memorial Day recess, the full House Appropriations Committee will vote on the FY20 THUD and Agriculture bills. To date, the Republican-controlled Senate Appropriations Committee has not scheduled any markups of their FY20 funding bills. A negotiation on the budget and agency funding is expected to take place over the upcoming summer months. NAHMA will keep members updated throughout the summer.
HUD Secretary Carson Testifies at House Oversight Hearing
This week, the House Financial Services Committee held a hearing titled, “Housing in America: Oversight of the U.S. Department of Housing and Urban Development.” HUD Secretary Ben Carson was the only witness and testified on a range of housing policies and HUD programs, including the Administration’s proposed budget cuts to HUD, proposed rent reforms to rental assistance programs, housing finance reform, delays providing disaster recovery funding, and HUD’s recent proposed rule on “mixed-status” immigrant families.
In her opening statement, Committee Chairwoman Maxine Waters (D-CA) stated, “I am very concerned about Secretary Carson’s actions leading HUD…. Secretary Carson, across the board, these actions are inconsistent with HUD’s mission. Instead of helping the hardworking Americans and vulnerable families the agency is in place to serve, the Trump Administration is actively causing harm, striving to make housing less available, affordable and fair. Today, you will face some tough questions about your leadership decisions and mismanagement of the agency.”
In his opening remarks, HUD Secretary Carson stated, “Housing is simple to understand because we all need it. It is also a complex subject with many related pieces….Regarding Fair housing, HUD and the Justice Department are currently engaged in a national training program to educate landlords and property managers on how to make certain their housing is free from sexual harassment. …HUD is in the process of refining the regulations behind Affirmatively Furthering Fair Housing (AFFH).” Homelessness, “Based on data collected and reported to us by thousands of local communities across this country, HUD estimates that homelessness in the United States remains largely stable. Yet if you dig deeper into the data, we continue to see significant reductions among veterans and families with children.”
Healthy Homes, “Shortly after I took office, I ordered a wholesale reexamination of how the Department conducts REAC inspections. As we continue this top-to-bottom review, we took an important first step by dramatically reducing the advance notice we give public housing authorities (PHAs) and owners prior to their inspections. Today, HUD is giving 14 calendar days’ notice before our contract inspectors show up to these properties. Prior to this change, inspections were scheduled months ahead of time, allowing certain housing authorities and property owners to effectively game the system, making cosmetic repairs to their properties rather than adopting year-round maintenance practices.”
Affordable Housing, “In many parts of our country, there is an affordable housing crisis. Families are finding it difficult to afford a decent place to rent or buy that is close to good jobs, decent schools or even their own hometowns. The federal government cannot solve this problem alone. As I’ve often said, this is not a federal problem, it’s everyone’s problem. That is why we are exploring new ways to bring the power of the private, philanthropic, and faith-based sectors together to tackle this challenge.” The Secretary highlighted RAD and Opportunity Zones for their ability to attract private capital.
Throughout the hearing, HUD Secretary Carson had heated exchanges about his leadership and responded to harsh criticism from the committee’s Democratic members. The hearing can be viewed here.
HUD Innovative Housing Showcase (June 1-5)
As provided on HUD’s website, the Innovative Housing Showcase is a five-day event featuring new building technologies and housing solutions that are making housing more affordable for American families and homes more resilient during natural disasters. More than 2,500 persons, including policymakers, housing industry representatives, media and the general public, are expected to attend.
The Showcase will include panel discussions, on stage interviews, and demonstrations with exhibitors, lawmakers, entrepreneurs, and leaders in the housing industry. Along with our main stage speakers, there will be more than a dozen exhibitors, including prototype homes, displaying innovative building technologies that address affordability and resiliency. The Showcase will be open to the public and free of charge.