Rural Development Under Secretary Testifies Before the Senate
This week, Ms. Xochitl Torres Small, USDA’s Under Secretary for Rural Development, testified before the Senate Banking, Housing and Urban Affairs Subcommittee on Housing, Transportation, and Community Development. At the hearing, titled Examining the U.S. Department of Agriculture’s Rural Housing Service, Under Secretary Torres Smalls discussed the importance of the funds and actions proposed in the Administration’s budget request, including support for rental assistance, preservation efforts and new construction of low-income housing in rural areas. Specifically, the proposed Fiscal Year 2023 budget includes significant investments in the Rural Housing Service, including $1.773 billion for USDA Multifamily Housing Programs, an increase of $256 million over the 2022 enacted level. Torres Small stated that these significant investments would help address housing insecurity and rent burdens in rural communities and the funding will be prioritized for projects that improve energy or water efficiency or facilitate climate resilience.
She also underscored why the need for increased production of rural housing is essential to both more aggressively preserving Multi-Family Housing’s existing portfolio while also building new stock. “RHS Multi-Family data indicates that $10 billion in Multi-Family Preservation and Revitalization funding will be needed by 2033 to preserve 137,000 units. The Rural Housing Service currently has approximately 400,000 units within its portfolio and in the absence of robust funding for Multi-Family Preservation and Revitalization, we will lose 333,780 units by 2050.” testified Torres Small. Specifically, she stated that the USDA will need $10 billion in the MPR preservation program by 2033 to preserve 137,000 units; without “robust funding,” USDA will lose 333,780 of its approximately 400,000 rental units by 2050.
To view the full Senate Committee hearing, click here.
House Financial Services Committee Submits Budget Views and Estimates for FY23
This week, the House Financial Services Committee, led by Chairwoman Maxine Waters (D-CA), submitted its Budget Views and Estimates for Fiscal Year (FY) 2023 to the House Budget Committee, to advise the Budget Committee on matters within the Financial Services Committee’s jurisdiction as it formulates the budget for FY 2023. The Committee recognizes the importance of HUD rental assistance programs and, in addition to passing the Build Back Better Act, supports at least $5 billion for Public Housing capital repairs and modernization, at least $1.1 billion for Section 811 Supportive Housing for People with Disabilities (Section 811) and Section 202 Supportive Housing for the Elderly (Section 202) to increase the supply of fair, affordable, and accessible housing, as well as at least $32.13 billion to sustain and expand Housing Choice Vouchers in the FY23 Budget.
The Committee also supports at least $1.9 billion in funding for the HOME Investment Partnerships Program (HOME) and existing funding for the Housing Trust Fund (HTF) through allocations from Fannie Mae and Freddie Mac. In 2021, the HTF received $740 million, an increase of $29 million over the previous year. The HOME Program and HTF play key roles in addressing the inadequate supply of affordable housing, particularly for the lowest-income families. As communities begin to recover from the COVID-19 pandemic, these programs will become even more essential to helping communities acquire and convert residential and commercial properties that come up for sale due to the economic downturn into affordable housing. For this reason, the Committee supports legislation to provide them with additional funding.
To view the House Financial Services Committee estimates for FY23, click here.