Housing Funding Increases in FY 2009 Omnibus Bill, FY 2010 Budget Outline

By &
3 min read

Tax Credit Advisor, April 2009: Federal funding for housing is increased in the omnibus appropriations bill (H.R. 1105) for Fiscal Year 2009 signed into law (P.L. 111-8) on 3/10/09, and in an outline of President Obama’s proposed budget for the fiscal year (FY 2010) that will begin 10/1/09.

H.R. 1105 provides funding for the balance of FY 2009 for federal agencies and departments for which regular FY 2009 appropriations bills weren’t previously enacted, including for the U.S. Departments of Housing and Urban Development (HUD) and Agriculture.

The omnibus bill provides $41.5 billion for HUD for FY 2009, a 10% increase over FY 2008. Increases above FY 2008 funding levels are provided for numerous HUD programs, including the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs, project- and tenant-based rental assistance, supportive housing programs for the elderly (Section 202) and disabled (Section 811), and public housing capital and operating funds.

H.R. 1105 contains $120 million for HOPE VI public housing revitalization grants, a 20% increase, and directs HUD to issue the FY 2009 notice of funding availability for the program within 60 days of enactment.

H.R. 1105 provides roughly level funding in FY 2009 for rural housing programs administered by the USDA’s Rural Housing Service. The act, however, says new Section 538 guaranteed rural rental loans will not be eligible for interest subsidies, though they will not be subject to a guarantee fee. The act orders a study of the efficacy of the RHS Multi-family Housing Revitalization Program. This study is supposed to recommend improvements and about whether the program should be made permanent. The act also orders a Government Accountability Office study of the rural farm labor housing program.

The FY 2009 appropriations are in addition to the extra funds provided by the economic stimulus act for federal housing programs, including those of HUD and RHS.

(H.R. 1105, text & explanatory statement, http://www.rules.house.gov/111/ LegText/111_omni2009_2.htm)

FY 2010 Budget Proposal

On 2/26/09, President Obama issued an outline describing his forthcoming proposed federal budget for FY 2010. The blueprint provides the total proposed appropriation level for individual departments and for certain programs. Detailed budget documents will be released in April.

The White House is proposing $47.5 billion in total spending for HUD for FY 2010, compared to $41.5 billion for FY 2009. The outline says the budget proposal will include $4.5 billion for the CDBG program, and increases – without specifying dollar amounts – for Section 8 project-based and tenant-based rental assistance.

The proposed HUD budget will also include $1 billion to fund the new National Affordable Housing Trust Fund, which was established by law in 2008 but hasn’t yet been capitalized.

The HUD budget outline also proposes the establishment of a new Energy Innovation Fund, to spur energy efficiency in housing including through retrofitting of older housing and the leveraging of private-sector funds for these activities. It would also create a new Choice Neighborhoods Initiative, to support transformative activities that upgrade high-poverty neighborhoods.

The FY 2010 budget summaries don’t contain any figures for proposed spending levels for rural housing programs.

(FY 2010 proposal: http://www. whitehouse.gov/omb)