President Trump’s FY 2018 Budget Blueprint plan was released today which will increase defense funding by $54 billion by cutting non-defense discretionary spending.  A more detailed plan is expected to be released later this spring.  The blueprint includes severe cuts to the Department of Housing and Urban Development (HUD) of 13.2 percent decrease from the 2017 annualized CR level.  The President has also proposed a $15 billion decrease to non-defense programs for the rest of 2017 (the current Continuing Budget Resolution expires April 28th) so we may feel the impact of cuts sooner than expected.

While this blueprint doesn’t provide funding levels for all HUD programs, it provides some specific program cuts allowing us to estimate the impact for other HUD programs. It is clear that low-income families and communities will be hurt by these cuts across New York State and across the country.

20,000 low-income families are in jeopardy of losing rental assistance across New York State.

• About 9% of New York State’s Section 8 Housing Choice Vouchers is estimated to be without funding, after accounting for the rise in the cost of vouchers.
• Seniors, disabled and children will be seriously harmed.
• For households currently receiving assistance:
  • 38% of households include elderly
  • 22% of households include disabled
  • 33% of households include children

NYCHA will be forced into operating deficit in the range of ~$150M.

• $100-150M budget cut is estimated for public housing managed by the New York City Housing Authority. NYCHA was on track for an operating surplus this year after adopting a 10-year strategic plan to improve management and raise revenue.
• $216M cut is estimated to NYCHA’s capital funding, which is sure to add to the $17 billion capital repair backlog.

Elimination of Key Housing and Community Development Programs.

• The Community Development Block Grant Program, established in 1974, one of longest continuously run programs at HUD, will be abruptly terminated. The CDBG program provides annual grants on a formula basis to 1209 general units of local government and States. In New York City low- and moderate-income neighborhoods will be hit hard by the loss of funding for homeless services, senior center upgrades, daycare services, building code enforcement and emergency building repairs among other uses.
• The HOME Investment Partnership Program, which suffered severe cuts in recent years, and is used for new construction of housing for very low-income renters including supportive housing for the formerly homeless and senior housing.It also provides direct rental assistance for homeless families.
• Section 4 Capacity Building for Community Development and Affordable Housing program aides community development corporations (CDCs) and community housing development organizations (CHDOs).
• Choice Neighborhoods supports struggling neighborhoods with distressed public or HUD-assisted housing.
• Self-help Homeownership Opportunity Programs provides grants to nonprofit organizations to facilitate housing opportunities.
• United States Interagency Council on Homelessness (Funding eliminated for this independent council)
• HUD Disaster Relief is defunded (It is unclear if any of the 1.4.billion of HUD disaster relief funding will be restored by increases to Homeland Security and other agencies).

Cuts to Programs Serving Vulnerable Populations

It is unclear how cuts will be made to operating contracts for senior and homeless housing buildings at full occupancy.

• Section 202 Supportive Housing for the Elderly Program, with a wait list of over 200,000 seniors in NYC, will see cuts undermining building operations for existing senior housing.
• Homeless Grants, providing operating support to disabled homeless individuals, including veterans, will be shortchanged.

Lead Paint Increase

President Trump’s proposal, which is contingent on Congressional budget approval, would contribute to a rise in homelessness, accelerate the decline of public housing infrastructure and curb production of affordable housing. NYHC will be advocating for Congress to maintain funding for HUD Program critical to addressing New York’s affordable housing crisis.