LegiStorm

Summary:

Most of the funding for the activities of the Department of Housing and Urban Development (HUD) comes from discretionary appropriations provided each year in the annual appropriations acts, typically as a part of the Transportation, HUD, and Related Agencies appropriations bill (THUD). HUD’s programs are primarily designed to address housing problems faced by households with very low incomes or other special housing needs. Following enactment of a series of continuing resolutions, on December 18, 2015, President Obama signed the FY2016 Consolidated Appropriations Act into law (P.L. 114-113). For HUD, it provided the following:  $46.98 billion in gross appropriations, which is more than was proposed by the House bill (+$571 million) and the Senate committee-reported bill (+$753 million). It provides an increase over FY2015 (+$1.6 billion), but a decrease relative to the President’s request (-$2.3 billion).  $38.3 billion in net budget authority, reflecting savings from offsets and other sources, which is $2.7 billion more than FY2015 ($1.6 billion more in appropriations; $1 billion less in offsets).  $19.6 billion for the tenant-based rental assistance account, which funds the Section 8 Housing Choice Voucher program and is the largest account in HUD’s budget. This amount is less than was proposed by the House or the Senate committee bills and requested by the President, but sufficient, according to the explanatory statement accompanying the legislation, to fully fund the renewal of all vouchers currently in use, based on the most recent data available.  $950 million for the HOME program, an increase over the FY2015 level (+$50 million). The House bill had proposed $767 million, while the Senate committee bill had proposed $66 million. The House bill had also included a provision to divert funding from the National Housing Trust Fund to the HOME program; the final FY2016 law did not include that provision.  An administrative provision to expand the number of Moving to Work (MTW) Demonstration participants by 100 agencies, which is a broader expansion than requested by the President (+15 agencies), but a narrower expansion than proposed in the Senate committee bill (+300 agencies). On June 25, 2015, the Senate Appropriations Committee reported its version of the FY2016 THUD appropriations bill (H.R. 2577, S.Rept. 114-75). Floor consideration of the bill commenced on November 16, 2015, but was not completed. For HUD, it proposed the following:  $46.2 billion in gross appropriations, which is approximately $850 million more in appropriations than was provided in FY2015 but about $3 billion less than was requested by the President and $183 million less than was approved by the House.  $37.6 billion in net budget authority reflecting savings from offsets and other sources, which is $1.9 billion more than FY2015 ($850 million more in appropriations and $1 billion less in savings from offsets).  A 93% cut in funding for the HOME Investment Partnerships Program relative to FY2015. It proposed no provisions related to the Housing Trust Fund, as proposed in the House. Department of Housing and Urban Development: FY2016 Appropriations Congressional Research Service  A $100 million decrease in Community Development Block Grant (CDBG) funding relative to FY2015 (-3%), but a $100 million increase over the President’s requested funding level.  Funding increases to cover the cost of renewing subsidies in the Section 8 tenantbased (Housing Choice Voucher) and project-based rental assistance accounts (+$630 million and +$1 billion relative to FY2015). It proposed funding for new incremental vouchers for homeless youth and homeless veterans. On May 13, 2015, the House Appropriations Committee reported its version of the FY2016 THUD appropriations bill, H.R. 2577 (H.Rept. 114-129). It was approved by the full House on June 9, 2015. For HUD, it proposed the following:  $46.4 billion in gross appropriations, which is approximately $1 billion more in appropriations than was provided in FY2015 but $3 billion less than requested by the President.  $37.7 billion in net budget authority, reflecting savings from offsets and other sources, which is $2 billion more than FY2015 ($1 billion more in appropriations and $1 billion less in savings available from offsets).  A 15% cut in funding for HOME relative to FY2015, with a provision to supplement that amount by diverting any funding for the Housing Trust Fund to the HOME program.  Roughly level funding for CDBG relative to FY2015, rejecting a cut proposed in the President’s budget.  Funding cuts (relative to FY2015) for Choice Neighborhoods (-75%) and the Public Housing Capital Fund (-10%).  Funding increases to cover the cost of renewing subsidies in the Section 8 tenantbased (Housing Choice Voucher) and project-based rental assistance accounts (+$614 million and +$924 million relative to FY2015). No funding for the new incremental vouchers that were requested in the President’s budget.  Rejection of the legislative reforms requested by the President, with reference to the authorizing committees being most appropriate to consider such reforms. On February 2, 2015, President Obama released his FY2016 budget request. For HUD, it proposed the following:  $49.3 billion in gross appropriations, which is approximately $4 billion more in gross appropriations than was provided in FY2015.  $40.6 billion in net budget authority, reflecting savings from offsets and other sources, which is $5 billion more than FY2015 ($4 billion more in appropriations and $1 billion less in savings available from offsets).  Increases in funding for most HUD programs, including funding for 67,000 new incremental Section 8 Housing Choice vouchers.  A 7% funding cut for CDBG, with a proposal to revisit the way funding is distributed to communities.  Several legislative reform proposals affecting the rental assistance programs, including changes to the way that income is calculated and recertified.