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Initial Reports on President’s FY13 Budget Request

Following the release today of the President’s FY13 budget request, the National Low Income Housing Coalition (NLIHC) issued an initial analysis that reveals a proposed cut of more than $600 million from the enacted FY12 funding level for the Project-Based Rental Assistance program. The President asked for $8.70 billion for the program that funds renewals of most project-based rental assistance contracts, down from the $9.43 billion requested for FY12 (Congress ultimately approved $9.34 billion).

The FY13 budget item for the Tenant-Based Rental Assistance (TBRA) program includes a request for $75 million (the same amount requested and enacted for FY12) in tenant protection voucher funding, which encompasses the enhanced vouchers offered to residents at properties with an owner opting out of the project-based Section 8 contract. Overall, the TBRA funding request, for which Housing Choice Voucher contract renewals account for the vast majority, represents a slight increase from FY12 enacted level. The President also asked for increased funding for HUD line items such as public housing operating and capital accounts, homeless assistance grants, and Section 202 grants, while requests for HOME and Community Development Block Grant funds were level with FY12.

The USDA Rural Development (RD) FY13 budget request included a zeroing out of the Section 515 program (direct loans for rental housing), but also featured a significant increase to the program designed to help preserve existing Section 515 properties, the Multi-Family Housing Revitalization Demonstration Program (MPR). In FY12, Congress funded MPR at $2 million after the President failed to include it in his budget request, yet for FY13 the President requested $34.4 million for the MPR. The request for the Section 521 Rental Assistance (RA) program represents a nominal increase needed to fund all expiring contracts, but, just as in FY12, does not include a set-aside for Preservation properties. However, RD maintains the authority to establish such a reservation on its own.

The President’s FY13 budget request begins the appropriations cycle, acting as the jumping off point for the US House and Senate to draft appropriations bills with their own figures. More details will follow, but click here for NLIHC’s updated budget chart and click here for Housing Assistance Council’s preliminary analysis of the RD budget.

— Posted on 2/13/2012