WASHINGTON, D.C. – September 9, 2011 – (RealEstateRama) — On September 7, the House subcommittee in charge of appropriations for housing programs released its draft budget, which if enacted would have both positive and negative consequences for America’s lowest income people.
Deep cuts to housing programs were expected, and public housing accounts took the hardest hit. The House Subcommittee on Transportation, Housing, and Related Agencies slashes the public housing capital fund in their draft bill.
“Public housing is the backbone of housing assistance for extremely low income Americans,” said Sheila Crowley, President and CEO of the National Low Income Housing Coalition. “If these cuts stand, it won’t just mean public housing agencies will have to do more with less. It will mean thousands more public housing units will be lost, and thousands more households will be put at risk of homelessness.”
The bill also eliminates funding for the U.S. Interagency Council on Homelessness, the office coordinating the federal government’s strategy to end homelessness. The housing counseling program, which was eliminated in the final continuing resolution on the budget for FY11, is not restored in the House draft bill. Other valuable programs such HOME and Fair Housing, were severely cut.
Some key programs were saved from these deep cuts. Tenant-based rental assistance and project-based rental assistance funding will continue to serve currently housed households and new housing vouchers for veterans are included at the FY10 funding level. The bill restores some funding for the Section 202 and Section 811 programs, which fund housing for elderly people and people with disabilities and were cut in FY11. Funding for Homeless Assistance is maintained at the FY11 level.
Below is a summary of housing program funding levels:
- Public housing capital fund: 25% cut below FY11
- U.S. Interagency Council on Homelessness: Eliminated
- HOME program: 25% cut below FY11
- Native Hawaiian Housing Block Grant: Eliminated
- Housing counseling: Not restored after FY11 elimination
- Homeless Assistance Grants: Level with FY11
- Community Development Block Grants: Level with FY11
- Housing Opportunities for Persons with AIDS: Level with FY11
- HOPE VI and Choice Neighborhoods Initiative: Eliminated
- Section 202 Housing for the Elderly: 50% increase over FY11
- Section 811 Housing for Persons with Disabilities: 31% increase over FY11
Further details on proposed funding levels can be found at http://www.nlihc.org/doc/FY11_12_Budget_Chart_HUD.pdf
Established in 1974 by Cushing N. Dolbeare, the National Low Income Housing Coalition is dedicated solely to achieving socially just public policy that assures people with the lowest incomes in the United States have affordable and decent homes.
Amy Clark, 202.662.1530 x227;