April 13, 2011 – (RealEstateRama) — Late last week, budget negotiators struck a last-minute deal on the FY11 budget to reduce federal spending by $38.5 billion. This budget deal averted a government shutdown.

The details of the cuts were made public yesterday. They include substantial and damaging cuts to HUD programs that assist the lowest income people in our country, including many low income seniors and people with disabilities.

The House and Senate will vote on this budget deal Thursday. The National Low Income Housing Coalition (NLIHC) issued a Call to Action today to its national membership, asking advocates to urge their Members of Congress to vote down this proposal.

The FY11 appropriations compromise includes deep cuts to HUD programs like tenant-based rental assistance, public housing funding, housing assistance for low income people with disabilities and for senior citizens, and programs that improve the health and safety of homes and communities. The deal also includes cuts to USDA housing programs.

“The cuts to housing programs proposed in this budget are beyond unacceptable. They are just wrong,” said Sheila Crowley, President and CEO of the NLIHC. “What is being billed as a compromise between political parties is in fact a compromise of our government’s commitment to this nation’s most vulnerable citizens. We want the House and Senate to know we object.”

These cuts will affect our most vulnerable neighbors. The average national annual income for a public housing household is $13,400; more than half of public housing families are elderly, disabled or both; and more than 40% of public housing households include children. A recent report from HUD shows that only 32 units of adequate, affordable rental housing are available for every 100 extremely low income renters. In communities across the US, programs funded through HUD and USDA provide the only rental housing option for those with extremely low incomes.

Cuts to HUD programs include:

  • Tenant Based Rental Assistance
    • Admin Fees: $125 million cut
    • Family Unification Program: $15 million cut (funding eliminated)
    • Veterans Affairs Supportive Housing Vouchers: $25 million cut
    • Tenant Protection Vouchers: $10 million cut
  • Public Housing Operation Fund: $149 million cut
  • HOPE IV: $100 million cut
  • Public Housing Capital Fund: $456 million cut
  • Native American Housing Block Grants: $50 million cut
  • Community Development Fund: $942 million cut
    • CDBG: $643 million cut
  • HOME Investment Partnerships: $215 million cut
  • Lead Hazard Reduction: $20 million cut
  • Section 202: $425 million cut
  • Section 811: $115 million cut
  • Housing Counseling Assistance: $88 million cut (funding eliminated)
  • Brownfield Redevelopment: $18 million cut (funding eliminated)
  • Energy Innovation Fund: $50 million cut (funding eliminated)

Cuts USDA housing programs include:

  • Rental Assistance Program: $24 million cut
  • Rural Housing Insurance Fund: $151 million cut


Established in 1974 by Cushing N. Dolbeare, the National Low Income Housing Coalition is a membership organization 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;

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