House Approves HUD Funding Bill

Filed in Capitol Hill, Housing Finance by on June 23, 2014 0 Comments

In a tight budgetary environment, the House last week approved the fiscal 2015 Transportation, Housing and Urban Development and Related Agencies (T-HUD) appropriations bill.

The $52 billion spending bill represents an overall increase of $1.2 billion more than last year’s funding level. However the legislation allocates approximately $1 billion less for HUD programs due largely to a decline in Federal Housing Administration receipts available to offset spending in the bill. By contrast, the Senate version provides an overall spending level of $54.4 billion, $2.4 billion more than the House bill

The HOME Investment Partnerships Program (HOME) would receive a 30% cut to $700 billion from its fiscal 2014 funding level of $1 billion. HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households.

While the Senate still must pass its T-HUD spending bill and reconcile differences with the House, the $700 million spending target for the HOME program in the House version would be the lowest level in the program’s history.

The House spending bill would also provide $9.7 billion for Project-Based Rental Assistance (PBRA), which is $171 million, or 2 % less than the fiscal 2014 level. It would also move the funding for PBRA to a calendar year payment system for contract holders.

The bill would establish a funding level of $19.4 billion for the voucher program, which is $180 million, or 2% less than the fiscal 2014 total.

The House has also passed its fiscal 2015 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies (Agriculture) funding bill, which contains funding for many of the rural housing programs.

The Senate Appropriations Committee approved its fiscal 2015 T-HUD bill on June 5. The full Senate was expected to vote on a package of three appropriations bills — T-HUD, Agriculture, and Commerce, Justice and Science — this week, but the legislation was removed from floor consideration and it is still uncertain when it will come to a vote.

See NAHB’s chart for additional information on HUD and USDA housing program funding levels.

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