House Appropriations Subcommittee Passes HUD Funding Bill, Slashes HOME Funding

On September 8, the Transportation-HUD Appropriations Subcommittee marked up and passed its FY 2012 appropriations bill.  The bill slashes the HOME program by 25 percent compared with FY 2011, funding it at $1.2 billion, and Housing Choice Voucher administrative fees by 24 percent compared with FY 2011, funding it at $1.1 billion.  The bill funds HUD at $38 billion, 7 percent or $3 billion less than FY 2011 and 9 percent or $3.7 billion less than the President’s request.

The Subcommittee bill provides $17 billion for Section 8 tenant-based rental assistance renewals—$374 million more than enacted in FY 2011 and $100 million below the President’s request.  It provides $9.4 billion for the Section 8 project-based rental assistance program—$166 million more than enacted in FY 2011 and $6 million less than the President’s request.

The bill provides $3.5 billion for the Community Development Block Grant (CDBG) program—$165 million more than in FY 2011 and $190 million less than the President’s request.  The bill also level funds homeless assistance grants at $1.9 billion, $471 million less than the President’s request.

The bill does not include funding for HUD’s Housing Counseling program or for either the HOPE VI public housing revitalization program (HOPE VI) or the Choice Neighborhoods Initiative (CNI).  Housing Counseling was not funded in the final FY 2011 appropriations bill and HOPE VI was funded at $100 million, including $65 million for CNI.

In his opening statement at the markup, Appropriations Committee Chairman Hal Rogers (R-KY) stated that many of the cuts to HUD are “targeted in administrative or capital accounts to streamline existing programs or eliminate ineffective, unproven programs.”  He added that “these strategic reductions mean that the bill places a high priority on individuals and families receiving public assistance, so that no one will see cutbacks or terminations in services.”

There were several housing-related amendments offered during the markup.  Rep. David Price (D-NC) offered an amendment to restore funding for the Housing Counseling program by moving it back under HOME and setting aside $88 million of HOME funds for it.  Both Subcommittee Chairman Tom Latham (R-IA) and Ranking Member John Olver (D-MA) commented that the Housing Counseling program had been moved out of the HOME program several years ago because it was not working well there and they did not think moving it back under the HOME program would address their concerns regarding HUD’s administration of the program.  However, there was bipartisan support for the work of the local housing counseling agencies.  Price withdrew the amendment with the understanding that the Subcommittee would continue to work on the issue.

The Subcommittee adopted by voice vote an amendment offered by Appropriations Committee Ranking Member Norm Dicks (D-WA) to move $21.9 million from HUD’s Working Capital Fund to the Fair Housing program and an amendment offered by Rep. Marcy Kaptur (D-OH) to move $2.68 million from HUD’s Working Capital Fund to the U.S. Interagency Council on Homelessness.

Price offered an amendment to fund the HOPE VI program at $250 million.  Latham opposed the amendment because the funding was not offset by reducing funding elsewhere in the bill and the amendment failed on a party-line vote.  Another amendment offered by Price requiring HUD to seek congressional approval before offsetting public housing agency reserves for FY 2012 was adopted by voice vote.

The Subcommittee passed the bill on a voice vote.  The full House Appropriations Committee has not announced a date for marking up the Subcommittee-passed bill. 

The Senate T-HUD Appropriations Subcommittee has not yet released its bill, but it is likely that it will hold a markup before the end of the month.

With none of the FY 2012 appropriations bills completed and FY 2012 beginning on October 1, Congress plans to pass a continuing resolution (CR) by the end of this month to continue funding for all federally funded agencies and to allow it to continue working on individual appropriations bills and one or more longer-term omnibus appropriations bills funding multiple agencies.