Conferees Agree on HUD Funding for 2012: Overall Budget Cut by 10%; HOME Program Slashed 38%.
On November 14, the H.R. 2112 Conference Committee issued its negotiated agreement on the minibus spending bill that includes the FY12 T- HUD and Agriculture appropriations bills. The House of Representatives passed the bill November 17. A Senate vote is anticipated at any time.
With few exceptions, the FY12 bill would dramatically cut funding for HUD programs below FY11 levels. Many of these programs were already cut in FY11 compared to FY10 levels. When the bill passes, HUD's FY12 budget will be $37.4 billion, a $3.7 billion cut below FY11 funding.
To see the HUD FY10, FY11 and FY12 budget comparison chart, click here.
Below are the funding levels and impacts related to select programs:
Tenant Based Rental Assistance Contract Renewals - $17.242 billion: The bill would provide $130 million less than HUD's estimated cost for renewing all vouchers. This could result in 12,000 to 18,000 vouchers being lost if public housing authorities cannot cover shortfalls with voucher reserves. The bill also includes a rescission of $650 million from voucher reserves.
Public Housing Capital Fund - $1.875 billion: The bill would provide 22% less than the President's FY12 request and 8% below FY11 funding levels. This could result in thousands of units lost and would put thousands of current residents at risk of living in substandard housing. HUD estimates that there is a backlog of over $25 billion in public housing capital needs.
Homeless Assistance Grants - $1.902 billion: The bill provides no increase over the FY11 level and is 20% below the President's FY12 request. Not providing the President's requested funding level would prohibit the full enactment of the HEARTH Act. As a result, 482,000 people experiencing homelessness would not be housed.