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02.16.16

Housing programs strong in President’s final budget

The Administration’s HUD budget provides $48.9 billion, $1.9 billion over the FY 2016 enacted level. The following are selected program funding levels:

  • $20.832 billion for the Section 8 tenant based voucher program;
  • $11 billion for project based Section 8 rental assistance;
  • $1.94 billion for the Public Housing Capital Fund;
  • $4.363 million for Public Housing Operation Fund;
  • $950 million for HOME;
  • $2.8 billion for CDBG, $200 million less than FY 2016 enacted level;
  • $200 million for Choice Neighborhoods; and
  • $50 million for the Rental Assistance Demonstration (RAD) program.
  • $136 million projected for FY2017 for the Housing Trust Fund (HTF) (funded through a mandatory assessment from Fannie Mae and Freddie Mac).
  • $80 million in FY2017 for the Capital Magnet Fund (CMF) (the budget projects FY 2016 outlays for HTF and CMF but it is unclear if that will materialize in 2016 into actual amounts as this budget document does not change 2016 appropriations or budgets).

The Rural Housing programs are being funded at USDA at the same levels as recent years, for the most part, but at relatively low program levels for national programs. The exceptions are the Section 521 Rental Assistance program and Section 502 single family programs. Section 521 faced a crisis last year as the Administration failed to properly budget for the program, assuring Congress and the public that funding was adequate at the start of the last fiscal year only for it to become clear that funding was short, by more than $200 million or about 20%. Congress came to the aid of the program in a bi-partisan effort to restore proper funding and to back-fill missed payments. Selected program funding levels are:

  • $1.405 billion for the Section 521 Rental Assistance program;
  • $230 million budget authorization for the 538 Guaranteed Loan program;
  • $33.1 million for the Section 515 Rural Rental Housing Loan program;
  • $23.9 million for the Section 514 Farm Labor Housing Program, the same as the FY 2016 funding level;
  • $18 million for the Section 542 Rural Housing Vouchers, this would be $3 million over the FY 2016 funding levels;
  • $900 million for the Section 502 Single Family Housing Direct Loan program; and
  • $24 billion for the Section 502 Single Family Housing Guaranteed program.