House Appropriations THUD Subcommittee Approves Spending Bill, Cuts HOME by $1 billion
In a party line vote, the House Appropriations Transportation-HUD (THUD) Subcommittee approved its FY 2024 appropriations bill, cutting HOME by over $1 billion but largely preserving other critical housing and community development programs.
Appropriators have significant challenges with the THUD spending bill in the upcoming FY 2024; contributions to the HUD budget from the Federal Housing Administration are down sharply as housing sales cool, and costs to renew existing rental assistance have increased. In total, appropriators need to fill a $13 billion funding gap just to maintain current levels of service.
Compounding the problem, the House drafted its spending bills at FY 2022 levels, which is more than $22 billion lower than the spending level agreed upon with the Senate in the debt ceiling deal that was approved in June.
Despite this significant cut, the House allocation for the Transportation-HUD bill is $2 billion higher than the proposed Senate allocation for the THUD bill. This is possible because of significant rescissions proposed in the House bill, including $25 billion from the Internal Revenue Service enforcement that they propose to allocate specifically to rental assistance programs.
In addition to deep cuts to HOME, the bill also eliminates the Choice Neighborhoods Initiative and rescinds $560 million funding from Lead Hazard Control and Healthy Homes. The bill maintains current spending for the Community Development Block Grant program at $3.3 billion. It also continues community project funding, or earmarks, through the Economic Development Initiative (EDI). EDI received $2.22 billion for specific projects across the country.
Maintaining current rental assistance was a priority for appropriators and the bill provides full funding for Section 8 Housing Assistance Payment Renewals, though it does cut Administrative Fees by $44 million. The Public Housing Operating Fund is reduced slightly by $6 million, but the bill provides $25 million in shortfall funding. The Public Housing Capital Fund is also slightly reduced, by $20 million.
A bright spot in the bill is language requiring HUD to comply with process requirements when seeking revisions to the Annual Contributions Contract, and language prohibiting HUD from moving forward with its PBCA draft solicitation issued last year.
Summary
- Public Housing Capital Fund: $3.18 billion, $20 million lower than FY 2023
- Public Housing Operating Fund: $5.103 billion, $6 million lower than FY 2023
- Choice Neighborhoods: Eliminated, $350 million lower than FY 2023
- Section 8 Housing Assistance Payment Renewals: $27.374 billion, $972 million higher than FY2023
- Ongoing Administrative Fees: $2.734 billion, $44 million lower than FY 2023
- Family Self-Sufficiency: $125 million, level funding
- Section 8 Project-Based Rental Assistance: $15.820 billion, $913 higher than FY 2023
- Community Development Block Grant: $3.3 billion, level funding
- HOME Investment Partnerships: $500 million, $1 billion lower than FY 2023
- Housing Opportunity for Persons with AIDS: $505 million, $6 million higher than FY 2023
- Homeless Assistance Grants: $3.729 billion, $96 million higher than FY 2023
The spending bill is expected to be considered by the full House Appropriations Committee shortly. The Senate has not begun its work on THUD, but is also expected to move its bill to subcommittee before the August recess. NAHRO will continue to keep members updated via Direct News emails and the NAHRO Monitor.