On May 19th, the Senate passed a two-bill appropriations package (HR 2577), which combines the Transportation-HUD bill (S 2844) with the Military Construction-VA bill. A policy rider stood in the way on the THUD side regarding HUD’s Affirmatively Furthering Fair Housing (AFFH) Rule. The AFFH Rule is a relatively new means for enforcing the Fair Housing Act of 1968 – a law designed to curtail housing discrimination.

Sen. Mike Lee (R-UT) proposed the rider which would defund AFFH, arguing that it would give HUD control over local zoning laws. Lee’s colleague, Sen. Susan Collins (R-ME) proposed her own amendment which keeps AFFH funding in place with the specific stipulation that HUD be prohibited from dictating local zoning ordinances. Collins’ amendment was passed 87-9 and was followed the same day by the passage of the entire $140B spending bill.

The Senate’s passage now puts pressure on the House to do the same. House Appropriators approved a $58.2B spending bill for transportation and housing programs for FY 2017 on May 24th.

Like in the Senate, however, policy riders may present an issue, including one controversial rider affecting commercial truck driver safety issues that made it through the House Appropriations Committee.

The House bill allocates $38.7B for HUD ($350M less than what the Senate proposes for HUD’s programs). The bill provides increases over FY 2016 for programs such as Housing Choice Vouchers ($560M increase), Project-Based Rental Assistance ($279M increase), and Housing for the Elderly ($72.3M increase). The Choice Neighborhoods program would be funded at $100M (a $25M cut, but still $20M more than the Senate’s budget). The House bill would also eliminate National Foreclosure Mitigation Counseling.

HUD Programs FY 2016 Enacted Funding FY 2017 President’s Proposed Budget FY 2017 Senate THUD Bill (5/19/16) FY 2017 House THUD Bill (5/17/16) Difference Between Senate / House
Project-Based Rental Assistance $10,622 $10,816  $10,901  $10,901 $0
Tenant-Based Rental Assistance $19,628.5 $20,854  $20,431 $20,188 $243
Homeless Assistance Grants $2,250 $2,664  $2,330 $2,014 $316
Rental Assistance Demonstration $0 $50  $4 $0 $4
Public Housing Operating Fund $4,500 $4,569  $4,675 $4,500 $175
Choice Neighborhoods Initiative $125 $200  $80 $100 $20
Housing for the Elderly Program $432.7 $505  $505 $505 $0
Housing for Persons with Disabilities Program $150.6 $154  $154 $154 $0
HOME Investment Partnerships $950 $950  $950 $950 $0
Housing Opportunities for Persons with AIDs $335 $335  $335 $335 $0
Public Housing Capital Fund $1,900 $1,865  $1,925 $1,900 $25
Community Development Block Grants $3,360 $2,800  $3,000 $3,000 $0

 

 

April 27, 2016 — A bill that will determine funding levels for U.S. Department of Housing and Urban Development programs during fiscal year 2017 is making its way through the Senate appropriations process. The Transportation, Housing, and Urban Development (THUD) bill was passed unanimously by the Senate Appropriations Committee last week. The Senate expects to vote on the measure during the next session, which begins May 9th. While it is far from perfect in the eyes of affordable housing advocates, it would expand several key programs and is seen as a tepid victory in the current spending climate.

In total, the bill would provide almost $1.5 million more in funding for affordable housing and community development programs. Project-Based Rental Assistance, Public Housing Capital and Operating Funds, Homeless Assistance Grants, Housing for the Elderly, and Housing Choice Vouchers would all see a boost. Enterprise published deeper analysis of these funding increases. Enterprise explains that in addition to lifting the RAD cap to 250,000, $4 million in funding for the program would help convert Section 202 Housing for the Elderly under RAD.

Conversely, the Choice Neighborhoods program would lose about a third of its funding.

The HOME Coalition supports the legislation, which would fund HOME at $950, the same level as the FY-2016 enacted level and proposed level in the FY-2017 Presidents’ Budget. In an e-mail, the HOME Coalition explained, “The HOME Coalition supports the proposed funding level for HOME in the Senate THUD bill, especially given the very low spending caps that the Appropriations Committee had to work with. The bill preserves the $950 million in funding that HOME supporters and Congressional champions secured in the FY 2016 budget after Congress initially proposed to deeply cut–or even essentially eliminate–the program.”

 

Federal Budget and Appropriations Process

The FY-2017 budgeting process began when President Obama put forth his proposed budget early this year. Following that proposal, the House and the Senate responded by setting the total level of discretionary funding for the fiscal year. The total level was approved by a vote and the appropriations committees in each chamber (House and Senate) became responsible for determining program-by-program funding levels. The total funding was divided up among 12 different appropriations bills, each assigned to a subcommittee. The bill most relevant to affordable housing is the Transportation and Housing and Urban Development (THUD) funding bill.

In an ideal world, all of these appropriations bills would pass by the start of the federal fiscal year on October 1. In reality, this has rarely happened in recent years. Instead, legislators work on creating an Omnibus bill, which combines the 12 appropriations bills into one comprehensive funding bill. Until this bill is passed, Congress continues funding the government by passing continuing resolutions. CRs, which are short-term funding bills that typically mirror funding levels from the previous fiscal year, keep the government from shutting down.

Once a bill passes in the House and the Senate, it goes to the President’s desk where it will either be vetoed or signed into law.