Federal Budget and Appropriations
Enterprise supports affordable housing and community development programs by advocating for increased federal resources through the budget and appropriations process. Below is a list of Enterprise’s Appropriations Priorities for Fiscal Year (FY) 2018.
See Enterprise's updated budget chart for more information on FY 2018 program funding.
Increasing Funding for Affordable Housing and Community Development Programs
Enterprise urges Congress to end strict budget caps and sequestration and for further investment in affordable housing and community development.
Spending cuts and chronic underfunding have had a direct, negative impact on low-income families and their ability to access affordable housing. Studies show that low-income residents are facing rent increases, developers are producing fewer affordable units, public housing agencies have stopped issuing housing vouchers, and community development organizations are offering fewer services.
Sequestration and chronic underfunding put our nation’s long-standing investment in affordable housing and community development at risk. For this reason, Enterprise has joined a broad and diverse range of organizations to call for an end to strict budget caps and sequestration.
Enterprise serves on the Steering Committee of the Campaign for Housing and Community Development Funding (CHCDF), an education, strategy, and action hub for national organizations dedicated to adequate federal housing and community development funding for lower-income families and communities. Find more information on CHCDF here.
Enterprise also participates with Non-Defense Discretionary United (NDD United), a coalition of leaders joining forces in an effort to save public services from devastating budget cuts. NDD programs are core services government provides for the benefit of everyone - including housing and community development, medical research, public health, infrastructure and education. For more information, please visit the NDD United website.
Section 4 Capacity Building for Community Development and Affordable Housing (Section 4)
The Section 4 Capacity Building for Community Development and Affordable Housing program (Section 4) is the sole HUD program for non-profit capacity building. Section 4 creates jobs, supports small businesses, builds housing, and strengthens communities. From 2004 to 2014, Section 4 created or preserved over 95,000 homes and attracted over $15.7 billion in investment for lower-income neighborhoods and communities across the country. Since 1993, Enterprise has distributed over $125 million to more than 1,250 community development organizations throughout the country through the Section 4 program.
Every Section 4 dollar must be matched directly by $3 of private funding for capacity building. Since 2002, Section 4 grantees’ development projects have exceeded this requirement by attracting nearly $27 in other public and private investment for every dollar in Section 4 support.
Enterprise urges Congress to provide funding of at least $35 million for Section 4 in fiscal year (FY) 2018. This year 1,156 organizations nationwide signed our letter urging Congress to fully fund Section 4.
See Enterprise's Section 4 blog post to see how you can take action and support the program.
HOME Investment Partnerships (HOME)
The HOME Investment Partnerships (HOME) program is the largest federal block grant to state and local governments to create affordable homes for low-income families. Over the past 25 years, the HOME program has financed the construction of nearly 1.2 million affordable homes and made homes affordable for another 283,000 families through resident-based rental assistance.
HOME funds provide critical gap financing that make affordable housing developments feasible. Nearly a quarter of HOME funds support Low-Income Housing Tax Credit developments, and the remainder are used in conjunction with a variety of other housing programs. The HOME program has demonstrated a leverage ratio that far exceeds the minimum requirements of 25 cents per dollar – each dollar of HOME actually leverages another $4.16 of other funds. Since its inception, HOME has leveraged more than $115.5 billion for affordable housing development
The HOME program has been cut significantly in recent years, from roughly $2 billion to less than $1 billion. Fully funding the HOME program would help states and localities ensure that the most critical developments can obtain the necessary financing.
Enterprise actively participates in the HOME Coalition to help increase awareness of the HOME program and its importance to the creation of affordable housing. Over 1,500 organizations, businesses and agencies signed a national letter urging Congress to fund the HOME Program at $1.2 billion in FY 2018.
In 2015, the HOME Coalition published Building HOME: The HOME Investment Partnership's Impact on America's Families and Communities, a comprehensive report on the successes and effectiveness of the HOME Program. In addition to new data and analysis, the report contained over 100 HOME Success Stories.
You can take action and support the HOME Program now:
- Sign up for Action Alerts from the HOME Coalition
- Sign on to the HOME Coalition's letter urging Congress to fund HOME at $1.2 billion in FY 2018
- Submit a HOME Success Story using this success story template. Submit HOME success stories to Clay Kerchof (email@example.com).
Project-Based Section 8 Rental Assistance (PBRA)
The Project-Based Section 8 Rental Assistance (PBRA) program provides affordable homes for roughly 1.2 million low-income households. Through contracts with owners of privately owned multifamily rental housing, PBRA makes rents affordable while bringing a steady stream of capital into properties, enabling them to leverage private dollars to maintain and improve the properties.
The PBRA portfolio leverages more than $17 billion in private financing and equity to support the properties in which it is located. Each year, the program also generates $460 million in property taxes for local municipalities and supports 100,000 jobs.
The amount of PBRA funding each owner receives is the difference between what a household can afford (generally 30 percent of income) and the approved rent for the apartment. Most PBRA households are either low-income seniors (47 percent) or people with disabilities (33 percent), who are often on fixed incomes that are insufficient to cover rent in the private market.
Section 8 Housing Choice Voucher (HCV)
The Section 8 Housing Choice Voucher (HCV) program makes rental housing in the private market affordable to 2.2 million extremely and very low-income households. Like PBRA, HCV contracts cover the difference between the amount that these low-income households can afford to pay in rent and fair market rents. More than 75 percent of the families receiving HCVs are extremely low-income, meaning they have incomes at or below 30 percent of area median income.
Enterprise is a member of the Preservation Working Group (PWG), which is dedicated to the preservation and development of federally assisted multifamily affordable housing. For more information on the Preservation Working Group, please visit the PWG webpage.