Feb. 19, 2020

HUD Seeks 15% Budget Cut but More Funding for Section 202 Housing

On February 18, 2020 by Jodi Boyne

Yes. You read that correctly. The U.S. Department of Housing & Urban Development (HUD) is seeking a 15% cut to its own funding in fiscal year 2021 that will have a detrimental impact on programs that serve older adults. 

HUD proposes to eliminate the Home Investment Partnership (HOME) program, the Community Development Block Grant programs and the national Housing Trust Fund, and not provide enough funding for voucher renewals in FY21.

In addition, HUD is also seeking authority to impose rent increases and work requirements for HUD-assisted residents. These proposals would immediately impact newly-housed seniors by redefining who is considered “elderly” to push more than 291,000 households currently considered elderly (because at least one person in the household is 62) to become not elderly under the proposed definition (which would require everyone in the household to be 62 years old). These households would then be under the proposal’s new rent and work requirements.

Congress has rejected similar requests for big cuts and damaging rent increases and work requirements for the last two years and we anticipate they will again oppose these proposals for FY21. We strongly oppose these proposals.

HUD did however request an 8% increase in funding for the Section 202 Housing for the Elderly Program and PRAC contract renewals, $100 million for new Section 202 homes, full renewal of Service Coordinator grants, an extension of HUD’s current 40-site Integrated Wellness in Supportive Housing (IWISH) demonstration, and accommodations in RAD for PRAC to allow for rents to meet service needs.

To read more, see HUD Proposes Budget Cuts.