August 02, 2010
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On July 29, the House approved the FY 2011 HUD funding bill, H.R. 5850, by a vote of 251 to 167. The bill provides $49 billion for HUD programs, $2.6 billion more than the FY 2010 enacted level and $1 billion more than the President’s Budget. A number of amendments seeking to cut overall spending in the bill were defeated.

The bill provides $1.825 billion for the HOME Investment Partnerships program (HOME), the same as last year’s funding level and $175 million more than the President’s Budget. The bill includes language requiring HUD to notify grantees of their formula allocation within 60 days of enactment of the bill.

The bill increases Housing Choice Voucher spending by $1.2 billion to provide $19.4 billion for vouchers in FY 2011, including $75 million for 10,000 new vouchers for homeless veterans and $85 million for two competitive demonstration programs to address families and individuals who are homeless or at risk of homelessness. The bill increases project-based Section 8 rental assistance by $830 million to provide $9.4 billion in FY 2011. The President’s Budget requested $19.6 billion for vouchers, a $1.4 billion increase over FY 2010, and $9.4 billion for project-based Section 8.

The Committee report accompanying the bill states: “as the Department rebids the contracts for performance-based contract administrators (PBCAs), the Committee strongly believes that there should be a preference for public entities whose mission is oriented towards a public purpose. In an increasingly tight fiscal environment, it is difficult to fund increases in programs, so these important federal funds should be used to support the public mission of safe, affordable rental housing.” NCSHA asked the Committee to include language directing HUD to establish a PBCA selection priority for state housing agencies.

The bill provides $4 billion for Community Development Block Grants (CDBG), $28 million more than the President’s Budget and the FY 2010 funding level.

The bill provides $200 million for the HOPE VI public housing revitalization program, the same as the FY 2010 funding level. The bill provides no funding for the President’s proposed Choice Neighborhoods Initiative, which would have replaced the HOPE VI program. The Committee report states that the initiative is unauthorized.

The bill provides $825 million for housing for the elderly, $551 million more than the President’s Budget and the same as the FY 2010 funding level, and $300 million for housing for persons with disabilities, $210 million more than the President’s Budget and the same as the FY 2010 funding level.

The bill also includes, within the Community Development Fund, $150 million for the Sustainable Communities Initiative, the same as the FY 2010 funding level and the President’s Budget, and $25 million for the Rural Innovation Fund, the same as the FY 2010 funding level and $25 million more than the President’s Budget. The Sustainable Communities Initiative would provide grants to assist local communities with integrated housing, transportation, and energy planning efforts. The Rural Innovation Fund is intended to encourage innovative practices in rural communities to further economic development.

The bill again extends the FHA and GSE (Fannie Mae and Freddie Mac) maximum loan limits enacted in the American Recovery and Reinvestment Act of 2009 (ARRA) through the end of FY 2011. The ARRA limits are the higher of: $217,050, and up to $729,750 in high cost areas, for the national maximum FHA loan limit and $729,750 for the maximum GSE loan limit.

The Senate Appropriations Committee passed its FY 2011 HUD spending bill on July 22; see NCSHA’s blog for details. Senate consideration of the Committee-passed bill has not been scheduled.

View NCSHA’s funding chart for more information.