House Approves T-HUD Funding Bill

Filed in Capitol Hill, Homeownership, Multifamily by on June 10, 2015 1 Comment

green percentThe House last night approved $55.3 billion in discretionary spending for the departments of Transportation, Housing and Urban Development, and related agencies (T-HUD) for the fiscal year ending Sept. 30, 2016.

This is an increase of $1.5 billion in funding from fiscal 2015 levels, but $9.7 billion below the administration’s request. As a result, the bill has drawn a veto threat from the White House.

Moreover, the Senate still must pass its T-HUD spending bill and reconcile differences with the House. Many Senate Democratic leaders have objected to the House-passed bill, saying that it makes cuts that are too drastic and in the wrong places. It is generally understood at this point that the House T-HUD spending bill will not be the final product sent to the president. NAHB will continue to work with lawmakers in both chambers to secure the highest possible funding levels for housing programs in the fiscal 2016 budget.

The Choice Neighborhoods and HOME programs were among those with the largest budget cuts in the House bill. Choice Neighborhoods, which is geared to revitalize high-poverty communities, was funded at a level of $20 million, which represents a 75% reduction from the current fiscal 2015 level of $80 million and $230 million below the administration’s budget request.

The HOME program received a funding level of $767 million, which is $133 million below the current level. To fill in this funding gap, the bill would redirect all funds from the National Housing Trust Fund into the HOME program, effectively eliminating the National Housing Trust Fund by restricting other funding streams.

Of note, 31 senators have sent a letter to Sens. Susan Collins (R-Maine) and Jack Reed (D-R.I.), the chairman and ranking member of the Senate Subcommittee dealing with housing appropriations, urging them to “reject any effort to reduce, divert, or eliminate funding” from either the National Housing Trust Fund or the HOME program.

The House bill also provides $19.9 billion in funding for the Housing Choice Vouchers program. This funding level is $1.2 billion less than the administration’s budget request, fails to restore the 67,000 vouchers lost due to the fiscal 2013 sequestration and is insufficient to renew 28,000 existing vouchers.

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

For more information, email Jessica Hall at NAHB or call her at 800-368-5242 x8253.

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  1. EdwardCostley says:

    Why the system is setup so that a small builder (10 to 25) houses per year can’t participate in the programs? They are all structured for 503c or nonprofits and local government and this does not encourage long-term employment. All this does is help the politician to get re-elected by hiring his so-called supporters who may or may not be in home building. This system increases the cost of construction.

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