McKinney-Vento Homeless Assistance Grants (your Continuum of Care dollars) and HUD-VASH did receive *small increases* in the HUD budget. Here is what you can expect regarding CoC project renewals, new dollars for prevention and rapid re-housing, and new project funding.

• McKinney Vento received a $40 million INCREASE, to a total of $1.905 billion.
• Of the total McKinney dollars ($1.905 billion), Congress is setting aside $225 million for the Emergency Solutions Grant (ESG) program.
• $65 million of ESG will be available for prevention and rapid re-housing (HPRP-like activities.)
• $160 million will be available for current ESG activities UNLESS your community determines to utilize current ESG funds for prevention and rapid re-housing.
• Current funding levels (plus potential recaptured money) should fund all new renewals.
• There will likely be very little to absolutely no additional funds for new projects BESIDES the ESG activities mentioned above.

HUD-VASH Receives Increase; NEW HUD-VASH vouchers will be available

HUD-VASH* received adequate funding for all current HUD-VASH vouchers AND an INCREASE of $50 million which will fund 7,700 NEW HUD-VASH vouchers.**

* HUD-VASH is the US Department of Housing and Urban Development and Veterans Affairs Supportive Housing program. It targets Section 8 housing choice vouchers to veterans experiencing homelessness.

** There was a discrepancy with the HUD-VASH number and this number may be different than other information you have received. However, this number has been verified and is correct.

• The total FY2011 budget is $40 billion LESS than FY2010 which includes mandatory and discretionary spending.
•  The total HUD budget is decreased over FY10 by 6.4%. (The HUD budget is combined with the Transportation budget and is called for short the "T-HUD" budget. T-HUD is cut by 18 percent with the majority of cuts for the Transportation budget which is cut by 37 percent.)

Major Reductions to HUD Programs (and dollar reduction and percentage cut from 2010 funding enacted)

Source: National Low Income Housing Coalition

Programs that have been totally defunded*

Family Unification vouchers (-$15 million, -100%)**

Rural innovation fund (-$25 million, -100%)

Economic Development Initiative Grants (-$173 million, -100%) Brownfields Redevelopment (-$18 million, -100%)

Energy Innovation Fund (-$50 million, -100%)

Housing Counseling Assistance (-$87.5 million, -100%)

Programs losing 50 to 100 percent of funding

Housing for the Elderly, Section 202 (-$426 million, -51.6%)

Housing for People with Disabilities, Section 811 (-$150 million, -50.1%)

Programs losing 10 to 50 percent of funding

Sustainable Communities Initiative (-$50 million, -33.5%)

HOPE VI, public housing (-$35 million, -26.1%)

Public Housing Capital Funding (-$460 million, -18.4%)

CDBG Formula Grants (-$654 million, -16.4%)

Healthy Homes and Lead Hazard Control (-$20 million, -14.5%) HOME Formula Grants (-$218 million, -12%)

* "Programs that have been totally defunded" does not necessarily mean that current funding has been eliminated; it means that there will be no NEW funding at least not in FY2012.

** All current FUP vouchers are funded. There is no money for NEW FUP vouchers.