The Ups and Downs of the Federal Budget

On February 13, President Obama released his 2013 budget request to Congress. Below is a summary that was prepared courtesy of the National Low Income Housing Coalition:

The request for HUD programs is a mix of deep cuts to one of HUD’s largest assistance programs, [increases to some programs], basic maintenance of other programs and troublesome policy recommendations.

The Project Based Rental Assistance program is cut deeply, and the budget request only maintains the FY12 funding level for other programs such as HOME. Homeless Assistance Grants are increased by several hundred million dollars and Section 202 Housing for the Elderly is increased after experiencing deep cuts in FY12.

The request for USDA Rural Housing programs roughly maintains the FY12 funding levels for the rental housing programs serving extremely low income households, but eliminates funding for the Section 515 rental housing direct program. Funding is provided for preservation of Section 515 properties.

The President’s request also includes several policy proposals, including a proposal to increase minimum rents paid by the lowest income HUD-assisted households, which NLIHC strongly opposes. The provision would raise minimum rents to a mandatory level of $75.

This request to Congress is the first step in the annual federal budget and appropriations process. Congress will consider the President’s funding request and the priorities for housing programs reflected in the request. Soon, Congress will begin crafting its own budget resolution and appropriations bills.
Budget Request Specifics

Administration request for major HUD programs serving extremely low income households:
• Tenant Based Rental Assistance- $19.1 billion
• Project Based Rental Assistance- $8.7 billion
• Public Housing Operating- $4.5 billion
• Public Housing Capital- $2 billion
• Homeless Assistance- $2.2 billion

Administration request for HUD programs providing capital for affordable housing:
• HOME- $1 billion
• Section 811- $ 150 million
• Section 202- $475 million

Administration request for rural rental housing:
• Section 514- $26 million
• Section 515- $0 (funding for preservation is included)
• Section 516- $9 million
• Section 521- $907 million

Administration request on the mandatory side of the budget for housing production for extremely low income households:
• National Housing Trust Fund- $1 billion. (Funding for the NHTF is separate from the HUD appropriations process.)

Additional Information
For information on additional HUD and USDA affordable housing and community development requests included in the President’s FY13 budget request, view the NLIHC’s budget chart. For additional resources, including a video of NLIHC's recent webinar, click HERE.