Congress Finally Passes Funding Bill for the Remainder of FY11

On April 15, President Obama signed into law the FY11 appropriations bill, H.R. 1473. The final passage of H.R. 1473 in Congress, more than six months into FY11, came after protracted argument over potentials cuts and seven short-term Continuing Resolutions (CRs) at FY10 spending levels. The bill cuts HUD’s budget by approximately 6.5% from FY10. While many programs received significantly decreased funding and some were eliminated altogether, the Project-Based Section 8 Rental Assistance account increased by 8%, in order to fully fund existing contracts and renewals. The HOME, Section 811 (Housing for Persons with Disabilities), and Section 202 (Housing for the Elderly) programs received 12%, 38%, and 52% cuts, respectively. Despite overall increase to tenant-based voucher funding to meet existing renewal need, the tenant protection voucher account dropped by 8.5%. Among other things, that funding provides tenant-based vouchers to qualified residents should the owner of their building prepay the HUD mortgage or opt out of a project-based assistance contract.

The USDA Rural Development budget featured decreases to Rental Assistance funds (2.5% below FY10, with a zeroing out of those funds specifically set aside for new preservation properties), Preservation Revolving Loan Fund (44.4% below FY10), and Section 533 Housing Preservation Grants (still to be determined amount, as the program will take some portion of a cut to a portfolio of other small grant programs). Surprisingly, the Multifamily Housing Revitalization Demonstration Program (MPR), which helps preserve existing USDA-financed properties, received $15 million. Though that represents a 40% decreased from FY10, neither the President’s budget request nor earlier versions of FY11 appropriations bills included any MPR funding.

The sharp decline in funding for many programs sets the stage for even more contentious debate and negotiation surrounding the FY12 budget.

Click here for summary information on the FY11 HUD appropriations. Click here for summary information on the FY11 Rural Development appropriations.

— Posted on 4/18/2011