House HUD Funding Bill Covers Renewals, Not New Construction

Posted on May 22, 2018 by Bobbie Guidry

Affordable housing programs received a bit of good news last week when the U.S. House Appropriations Committee provided $941 million more for the U.S. House & Urban Development Department (HUD) in fiscal year 2019 (FY19) than last fiscal year. 

The bill does not include any of the rent reforms floated by the Trump Administration, but we share that bit of good news with a note of caution as this does not mean these proposals cannot be added later to any version of the bill. 

The bill provides $632 million for the Section 202 program, which appears to be solely for renewals of existing 202 homes and $90 million for Service Coordinators. LeadingAge remains committed to securing new construction funds for the Section 202 program in FY19, which was funded at $105 million in FY18. 

The bill funds Project-Based Rental Assistance contract renewals at $11.7 billion, short of what we understand to be the full funding level of $12.2 billion needed for these renewals that provide the operating subsidy for about two-thirds of Section 202 homes. 

The bill provides $20.1 billion for housing choice voucher renewals, slightly lower than what is needed for full voucher renewals in FY19 ($20.5B). About 24 percent of voucher households are older adult households. 

The bill provides $1.2 billion for the HOME program, less than last fiscal year’s appropriation of $1.36 billion, $2.54 billion for homeless assistance grants and the same of level of funding for public housing. Nationally, 33 percent of public housing homes are occupied by older adult households. 

The Senate is expected to take up its FY19 HUD funding bill the week of June 4.