US House Passes Rural Development Budget with Deep Cuts

On June 16, the U.S. House of Representatives passed its FY12 appropriations bill, H.R. 2112, which includes significant cuts to USDA Rural Development (RD) housing programs. The decreased funding levels, unchanged from the committee-passed version of the bill, would greatly affect both rural multifamily rental housing preservation and assistance to rural residents with the lowest incomes. According to analysis by the Housing Assistance Council (HAC), H.R. 2112 would reduce funding for Section 515 rural rental housing and Section 514/516 farm labor housing by approximately 16% and 37%, respectively, compared to FY11. Section 521 rental assistance, which helps those with the lowest incomes, would decrease by approximately $66 million or 7% from FY11. These cuts are all great than those present in the President’s FY12 budget request. RD’s rental preservation revolving loan fund and rental preservation demonstration program (MPR) would receive no funding in FY12, matching the President’s request, as would the set-aside for preservation rental assistance within the Section 521 program, which was not funded in FY11 either. Click here for HAC’s analysis, which includes a link to the bill.

Advocates expect the U.S. Senate to include higher funding levels in its version of the bill, though official work in that chamber is not yet underway. The HUD appropriations bill is expected to surface sometime in July.

— Posted on 6/27/2011