November 18, 2011
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On November 18, President Obama signed into law the conference agreement on H.R. 2112, providing funding for HUD and USDA housing programs in FY 2012.  The House had passed the bill by a vote of 298 to 121 and the Senate passed it by a vote of 70 to 30.  NCSHA’s November 15 blog outlines key funding levels and provisions included in the bill.

The bill includes $37.4 billion for HUD, $3.7 billion, or 9 percent, less than HUD’s FY 2011 funding level.  The bill includes a 38 percent cut to the HOME Investment Partnerships (HOME) program, a 12 percent cut to the Community Development Block Grant (CDBG) program, and a 7 percent cut to Housing Choice Voucher administrative fees, all compared with FY 2011. 

It provides practically level funding, compared with FY 2011, for Housing Choice Voucher renewals, project-based Section 8 renewals, and homeless assistance grants.  It also includes funding for HUD’s Housing Counseling program, which received no funding in FY 2011. 

The bill includes a 20 percent cut to the Section 502 single-family subsidized direct loan program, a 21 percent cut to Section 542 rural voucher assistance, a 5 percent cut to the Section 521 rural rental assistance program, and level funding for the Section 502 unsubsidized guaranteed loan program, all compared with FY 2011.   

The bill increases the Federal Housing Administration (FHA) loan limit to  the lower of $729,750 or 125 percent of the highest median home price in each metropolitan statistical area (MSA), effective the date of enactment of the bill through December 31, 2013.  The loan limits for FHA and Fannie Mae and Freddie Mac all fell to the lower of $625,500 or 115 percent of the highest median home price in each MSA on October 1, 2011.  The provision does not affect the loan limits for Fannie Mae or Freddie Mac.

NCSHA’s budget chart shows how the final bill compares to FY 2011 appropriations, the President’s FY 2012 Budget proposal, and the FY 2011 Senate and House-proposed funding levels.