Congress Provides Significant Increases for Housing in FY 2018 Omnibus
The House and Senate have both passed the FY 2018 Appropriations Omnibus, which includes significant funding increases and policy provisions that will strengthen affordable housing and community development programs at the Department of Housing and Urban Development (HUD), Department of Treasury, and Department of Agriculture’s Rural Housing Service. Department of Housing and Urban Development
Department of Housing and Urban Development
The Appropriations Omnibus includes $42.7 billion in net discretionary funding for HUD, a $3.9 billion boost over FY 2017 enacted levels. Most programs at HUD would see funding increases, and many of these programs are higher than what either the House or Senate included in their draft FY 2018 bills appropriations bills. Some highlights from the bill include:
- HOME Investments Partnership Program is funded at $1.36 billion, up from $950 million in FY17, which represents an increase of over $400 million over FY 2017 and the highest funding HOME has seen in seven years. The bill would also extend the suspension of the 24-month commitment deadline through 2020.
- Community Development Block Grant (CDBG) is funded at $3.3 billion, $300 million up from FY 2017 enacted levels.
- Section 4 Capacity Building Program (Section 4) is funded at $35 million, $5 million of which is reserved for rural capacity building activities, which are both the same as in FY 2017.
- Choice Neighborhoods Initiative is funded at $150 million, up from $137.5 million in FY 2017.
- Section 202 Housing for the Elderly is funded at $678 million, which represents a major increase up from $502 million in FY 2017. This appropriation sets aside $105 million for new Section 202 construction and project-based rental assistance, which represents the first significant amount of new construction funding since FY 2011.
- Project-Based Rental Assistance (PBRA) will receive $11.515 billion, up from $10.8 billion in FY 2017.
- Tenant-Based Rental Assistance (TBRA) will receive $22.015 billion, up from $20.292 billion in FY 2017, which represents a $1.72 billion increase above FY 2017.
- The Public Housing Operating Fund will receive $4.55 billion, up from $4.4 billion in FY 2017.
- The Public Housing Capital Fund will receive $2.75 billion, up from $1.942 billion in FY 2017, which represents a significant $810 million increase over FY 2017 enacted levels. This funding is vital to address the estimated $26 billion capital repairs backlog for Public Housing Authorities nationwide.
- The Rental Assistance Demonstration (RAD) cap will be raised to 455,000 units, up from 225,000 units. This will allow public housing authorities to address the estimated $26 billion PHA capital repairs backlog. RAD authority is also extended to the Project Rental Assistance Contract (PRAC) inventory, allowing roughly 120,000 units of senior housing to be preserved.
- Community Development Financial Institutions (CDFI) Fund will receive $250 million, up from $248 million in FY 2017.
USDA Rural Housing Service
- Section 515 Rental Housing Direct Loans will receive $40 million, up from $35 million in FY 2017.
- Section 521 Rural Rental Assistance is funded at $1.345 billion, down from $1.405 billion in FY 2017.
Neighborhood Reinvestment Corporation
- NeighborWorks is funded at $140 million, even with FY 2017 enacted levels.
For more information on program funding levels, see Enterprise's updated budget and appropriations chart.
Enterprise thanks everyone who advocated for housing and community development by visiting, calling, writing, and tweeting your Members of Congress as well as those who shared their personal stories of how stable housing has connected them to better opportunities. Your efforts have been a crucial part of this achievement.
We would also like to thank appropriators and their hardworking staff for their strong leadership in prioritizing affordable housing and community development programs, including but not limited to Sen. Susan Collins (R-ME), Sen. Jack Reed (D-RI), Rep. Mario Diaz-Balart (R-FL-25), and Rep. David Price (D-NC-4). Enterprise looks forward to continued partnership in advocating for the housing needs for low-income households and communities