President Kicks Off Holiday Weekend With Proposal to Increase HUD Funding
The President’s full FY 2022 budget proposal released May 28, provides additional details to the topline numbers outlined by the Administration in April. Overall, the President proposes to increase HUD funding by 15%, focusing increases core programs, climate change resiliency, disinvested communities, and HUD staff capacity.
The Administration proposes full funding for Section 8 On-going Administrative Fees, which HUD estimates to be $2.79 billion. In addition to fully funding Admin Fees, the President calls for an additional $490.7 million in Admin Fee for PHAs to use for mobility-related social services. If funded, it would be the first time since FY 2003 the full cost of operating the voucher program has been met. NAHRO commends the Administration for the recognition of the work that PHAs are doing in communities and the resources needed to continue those vital services.
NAHRO is glad to see the Administration’s support for affordable housing and community development reflected in the FY 2022 proposed budget. This 15% increase in HUD funding includes a significant increase for the public housing capital fund to preserve existing affordable housing, $500 million more for the HOME Program, which will build more affordable housing, and an increase in resources to support the Housing Choice Voucher Program. These are all vital steps in helping to house our nation’s families, seniors and children.
NAHRO President Sunny Shaw, in response to the budget proposal
As previously reported, the proposal provides for $30.4 billion in Housing Choice Vouchers, including for 200,000 additional vouchers with a focus on those who are homeless or fleeing domestic violence, increasing the overall level of Tenant-Based Rental Assistance funding by $5.4 billion.
The Administration also provides $3.2 billion in Public Housing Capital Fund formula funding and an additional $245 million for a competitive program focused on green and climate resilient investments in public housing. Combined, the $3.445 billion in Capital Funding exceeds the accrual rate of capital needs, estimated in 2010 by HUD to be $3.4 billion per year. This is the first time an Administration has proposed meeting the annual capital needs of Public Housing.
Several programmatic increases are pegged for set aside competitive programs or specific purposes. Of the $500 million increase to HOME, $100 million is dedicated to homeownership support, designed to work with a proposed new loan program at the FHA. The entire $50 million proposed increase to the Choice Neighborhood Initiative is set aside for implementation of green investments in communities. Likewise, the entire $295 million increase to the Community Development Block Grant program is dedicated to an opt-in program targeting historically disinvested communities.
The Administration also provides $50 million within both Tenant-Based Rental Assistance and Project-Based Rental Assistance for energy-efficiency RAD conversions. The budget proposes eliminating the sunset date.
The President also proposes a 10% increase to HUD PIH salaries and expenses, a focus on rebuilding HUD capacity during historically low staffing levels.
- Public Housing Capital Fund: $3.2 billion, $435 million increase over FY 2021 enacted
- Public Housing Operating Fund: $4.887 billion, $48 million increase over FY 2021 enacted
- Choice Neighborhoods: $250 million, $50 million increase over FY 2021 enacted
- Section 8 Housing Assistance Payment Renewals: $25 billion, $1.92 million increase over FY 2021 enacted
- Ongoing Administrative Fees: $2.79 billion, $631 million increase over FY 2021 enacted
- Family Self-Sufficiency: $120 million, $15 million increase over FY 2021 enacted
- Section 8 Project-Based Rental Assistance: $14.06 billion, $595 million increase over FY 2021 enacted
- Community Development Block Grant: $3.77 billion, $295 million increase over FY 2021 enacted
- HOME Investment Partnerships: $1.85 billion, $500 million increase over FY 2021 enacted
- Housing Opportunity for Persons with AIDS: $450 million, $20 million increase over FY 2021 enacted
- Homeless Assistance Grants: $3.5 billion, $500 million increase over FY 2021 enacted
The President’s budget is merely a proposal, a political document that outlines the spending priorities of the Administration. It carries no force of law. Congress ultimately makes spending decisions, and they routinely ignore the President’s request, even when the executive branch is held by the same party Congress.
Though the budget is months overdue, the House Appropriations Committee is expected to begin considering spending bills in June. However, there are still big questions about FY 2022. The Budget Control Act, which for the past decade constrained federal spending at arbitrary limits and set in motion sequestration, expired in the current fiscal year. With no spending limits in place, it’s unclear how the new, 117th Congress will approach spending. Also complicating both the approach and the timeline is work on an infrastructure package.