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May 28, 2021

President Biden Releases FY22 Budget Details

Today, President Biden released his detailed budget plan for fiscal year 2022 (FY22). The $6 trillion proposal includes the two plans the President has already put forward—the American Jobs Plan and the American Families Plan—along with reinvests in housing, education, research, and public health.

Housing and Urban Development (HUD): For FY22, the President’s Budget requests $68.7 billion for HUD, approximately $9.0 billion more than the enacted level for 2021. The Budget request proposes several key tools to further increase the availability of affordable housing including providing $1.9 billion for the HOME program, $100 million for the Housing for the Elderly (Section 202) program for new Capital Advances to increase the supply of affordable housing for seniors by approximately 1,100 units and $80 million for the Housing for Persons with Disabilities (Section 811) program to support 900 new units to expand the supply of affordable housing for very low- and extremely low-income persons with disabilities to live independently in the community with connections to critical supportive services. Combined, these programs provide a total of $180 million to support a total of 2,000 new units for vulnerable populations.

Project Based Rental Assistance: The FY22 President’s Budget requests $14.060 billion for the Project Based Rental Assistance program, which is $595 million more than the 2021 enacted level. This includes:

  • $13.455 billion for contract renewals and amendments, including public housing properties that converted to PBRA via the Rental Assistance Demonstration (RAD),
  • $160 million for Moderate Rehabilitation and Single Room Occupancy renewal programs,
  • $50 million for RAD conversion subsidy,
  • $30 million for Budget-Based Rent Increases (BBRIs) to cover the cost of service coordinators,
  • Up to $10 million to support tenant capacity building activities under Section 514, and
  • $355 million for Performance-Based Contract Administration (PBCA).

Housing for the Elderly (Section 202): the Budget proposes $928 million which is $73 million more than the 2021 enacted level. This Budget includes:

  • $700 million to fund renewals and amendments of Project Rental Assistance Contracts (PRACs) and Senior Preservation Rental Assistance Contracts (SPRACs);
  • $100 million for new Capital Advances to increase the supply of affordable housing for seniors by approximately 1,100 units;
  • $125 million to fund the renewal of approximately 1,600 existing Service Coordinator and Congregate Housing Services grants plus new awards that will be determined based on the results of the 2021 Notice of Funding Availability (NOFA); and
  • $3 million for property inspections and related administrative costs.

Housing for Persons with Disabilities (Section 811): The Budget includes $272 million for the Section 811 program, which is $45 million more than the 2021 enacted level. This includes:

  • $190 million for Project Rental Assistance Contracts, Project Assistance Contracts (PAC), and State Project Rental Assistance (State PRA) renewals and amendments;
  • $80 million for Capital Advance and Project Rental Assistance to increase the supply of affordable, community-based housing for persons with disabilities; and
  • $2 million for inspections and related administrative costs.

To view the White House factsheet on the FY22 Budget request, click here.

To view HUD’s Budget in Brief, detailing program funding for FY22, click here.

Department of Agriculture (USDA): The President’s 2022 discretionary request includes $27.9 billion for USDA, a $3.8 billion or 16-percent increase from the 2021 enacted level. The Budget requests $1.45 billion in budget authority for Rental Assistance and $45 million for Vouchers ensuring that the residents living in USDA-financed multi-family housing properties can continue to benefit from these grants and vouchers. The requested amount will be used to renew existing contracts to provide rental assistance payments. The Budget continues to support $230 million in Section 538 Guaranteed Loans for Multi-Family Housing, which will be the focus of new construction in 2022 and requests $32 million in budget authority for the Multi-Family Housing Preservation and Revitalization program. The Budget proposes to consolidate the Multi-Family Housing Preservation and Revitalization programs with the Rural Housing Insurance Fund and the Voucher program with the Rental Assistance program account. The Budget also includes a set aside of $700 million to help connect rural residents and tribal communities to high-speed internet.

To view the USDA Budget Summary, detailing program funding for FY22, click here.  

The full budget proposal, submitted later than normal this year, now kicks off spending debates in Congress to fund the government beyond September 30, 2022.

New Housing Provisions Proposed in White House Infrastructure Bill

This week, HUD Secretary Marcia Fudge and the Biden Administration unveiled new details of the housing provisions included in the American Jobs Plan, President Biden’s $2.3 trillion infrastructure proposal. While the Biden Administration previously proposed a total of $213 billion in housing investments, Secretary Fudge announced they have increased their proposal to $318 billion and shared further details on the housing investments’ new and expanded tax credits to modernize existing housing and produce more than two million additional affordable homes. The plan includes new and significant proposed investments in the Low Income Housing Tax Credit (LIHTC), the HOME program, and the Housing Trust Fund. It also includes increased investments in successful housing subsidy programs that pair with LIHTC to produce and preserve affordable housing for very- and extremely-low income renters.

Specifically, the plan would provide:

  • $55 billion for LIHTC,
  • $45 billion for the National Housing Trust Fund,
  • $40 billion for the Public Housing Capital Fund,
  • $35 billion for the HOME Investment Partnership Program,
  • $2 billion for new Project-Based Rental Assistance agreements, the first new funding in more than 20 years,
  • $12 billion for the Capital Magnet Fund,
  • $500 million in grants and low-interest loans to renovate multifamily housing to make it more energy efficient and resilient,
  • $2 billion to build and rehabilitate housing across rural America,
  • $2 billion to address housing, infrastructure, and community development needs in Indian Country,
  • $2 billion for senior housing through Section 202,
  • $3 billion to fund the inspection and removal of lead-based paint from 175,000 housing units,
  • $17.5 billion for the Department of Energy’s Weatherization Assistance program, and
  • $10 billion for a consumer electrification rebate program.

The plan would also provide:

  • $10 billion for a new Community Revitalization Fund for investments in community spaces,
  • $5 billion to incentivize local zoning reforms,
  • $2 billion for a new Community Development Block Grant Program for resilience activities in communities vulnerable to climate change,
  • $250 million for Main Street grants to revitalize small downtowns, and
  • Additional funding to make housing more energy efficient and resilient.

The White House said it would continue negotiating on the infrastructure package following a Republican counteroffer but also stated that it would demand clear direction on how to advance the infrastructure legislation once Congress returns from their recess on June 7th.

To view the HUD American Jobs Plan factsheet, click here.

To view the White House factsheet providing additional details on the proposed funding, click here. 

Rep. Peters Introduces the Build More Housing Near Transit Act

Representative Scott Peters (D-CA) recently introduced H.R.2483, the Build More Housing Near Transit Act to encourage the construction of low and middle-income housing in transit-served, walkable locations. The bipartisan bill, which reflects language included in last year’s H.R. 2, the Moving Forward Act, would provide incentives for transit applicants who meet requirements related to building more housing along the future transit corridor. It covers projects submitted under the Federal Transit Administration’s New Starts and Core Capacity programs, which fund projects like commuter rail, light rail, and bus rapid transit through the Capital Investment Grants (CIG) Program. The bill has been referred to the House Financial Services Subcommittee on Highways and Transit for further consideration.

For more information on the Build More Housing Near Transit Act, click here.

Secretary Fudge Elected as Chair of the U.S. Interagency Council on Homelessness

This week, HUD Secretary Marcia Fudge was elected chair of the United States Interagency Council on Homelessness (Council), and Department of Veterans Affairs Secretary Denis McDonough was elected as the Council’s vice chair. The Council is an independent federal agency within the U.S. executive branch that leads the implementation of the federal strategic plan to prevent and end homelessness and consists of representatives from 19 federal agencies. Both Secretaries Fudge and McDonough were unanimously elected to chair and vice chair. As chair, Secretary Fudge stated that she is committed to leveraging the Council to tackle homelessness through a Housing First approach, as well as through meaningful interagency collaboration, increasing public and congressional attention to homelessness, and supporting implementation of the federal strategic plan to end homelessness.

To view the Council’s press release on the election of Secretary Fudge as the new Chair, click here.

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