The Senate Appropriations Subcommittee on Transportation, Housing and Urban Development approved Tuesday (June 23, 2015) a FY-2016 THUD funding bill that would drastically reduce a key funding source for many affordable housing tax credit developments. It slashes funding for the HOME program to a fraction of its current levels, which are already historically low. If this bill succeeds, HOME will be funded at $66 million, which is just 7% its FY-2015 funding level of $900 million. The full Senate Appropriations Committee subsequently passed the measure on June 25 without altering any of the funding levels. Two amendments introduced by Senator Jack Reed (D-RI) and Senator Chris Coon (D-DE) would have restored funding to the HOME programs; however, both amendments were defeated on party line votes. The measure will next be considered by the full Senate but is unclear when the measure will be scheduled.
NH&RA encourages all of our members to reach out to Senators on the Appropriations Committee to restore funding for HOME and other HUD programs. HOME provides critical gap funding for housing credit developments. HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. HOME funds are awarded annually as formula grants to participating jurisdictions. The program’s flexibility allows state and local governments to use HOME funds for grants, direct loans, loan guarantees or other forms of credit enhancements, or rental assistance or security deposits.
| President’s FY 2016 Budget | Passed House of Rep. (HR 2577) | Senate Committee 6/25/2015 | |
| Project-Based Rental Assistance | $10,760,000,000 | $10,654,000,000 | $10,426,000,000 |
| Tenant-Based Rental Assistance | $21,123,496,210 | $19,918,643,000 | $19,934,000,000 |
| VASH | $0 | $0 | $75,000,000 |
| Public Housing Capital Fund | $1,970,000,000 | $1,681,000,000 | $1,743,000,000 |
| Public Housing Operating Fund | $4,600,000,000 | $4,440,000,000 | $4,500,000,000 |
| HOME Investment Partnerships | $1,060,000,000 | $900,000,000 | $66,000,000 |
| Choice Neighborhoods Initiative | $250,000,000 | $20,000,000 | $65,000,000 |
| Supportive Housing for the Elderly (Section 202) | $455,000,000 | $461,000,000 | $420,000,000 |
| Supportive Housing for Persons With Disabilities (Section 811) | $177,000,000 | $152,000,000 | $137,000,000 |
| HOPWA | $332,000,000 | $332,000,000 | $330,000,000 |
| Community Development Block Grant (CDBG) | $2,880,000,000 | $ 3,060,000,000 | $2,900,000,000 |
| Homeless Assistance Grants | $2,480,000,000 | $2,185,000,000 | $2,235,000,000 |
| Rental Assistance Demonstration | $0 | $0 | $0 |
Click here for additional analysis on HR 2577.
In addition to the funding levels outlined above, the Senate measure also includes some policy changes including:
- Lifting the Rental Assistance Demonstration (RAD) cap from 185,000 units to 200,000 units of public housing
- Authorizing 150,000 HUD-assisted units to participate in a Pay for Success (PFS) pilot program.
- Expanding the Moving to Work (MTW) Demonstration to an additional 300 public housing agencies.
