*BLOG POST UPDATED 2/16/18 TO REFLECT CENTER ON BUDGET AND POLICY PRIORITIES’ CHANGE IN RENT INCREASE IMPACT ESTIMATIONS

President Trump’s FY 2019 Budget cuts HUD funding by $8.8 billion or 18.3% compared to enacted FY 2017 funding [1]. This proposal represents a major shift in the federal government’s role in subsidized housing. Public Housing Capital, CDBG and HOME funding would be eliminated. Section 8 and Public Housing Operating would see significant reductions.

NEW YORK STATE LOSES $1+ BILLION IN ANNUAL HOUSING FUNDING [2]
-$630,485,078  Public Housing Operating & Capital Funds
-$285,649,007  Community Development Block Grant
-$91,239,293     HOME Investment Partnership

TRUMP ABDICATES FEDERAL ROLE IN PUBLIC HOUSING
By eliminating the fund for public housing capital, the President abandons public housing leaving state and local governments on the hook for outstanding capital repairs. This dramatic policy shift leaves NYCHA residents in the cold with $25 billion in needed upgrades for safe and decent living conditions.

DEFUNDED   Public Housing Capital
35% CUT        Public Housing Operating

TRUMP RENT HIKE & FUNDING SHORTFALL WILL INCREASE HOMELESSNESS
Rents will rise for HUD-assisted tenants from 30% of adjusted income to 35% of gross income. This rent increase combined with budget’s short-funding of Section 8 puts families receiving rental assistance at a greater risk of homelessness. Furthermore, the White House also proposed setting new minimum rent standards and establishing work requirements in leaked draft legislation earlier this year. The budget alludes to a package of comprehensive rental reforms, which will likely have the same proposals as the leaked draft.

204,400 HUD-Assisted Households Rent Increases by 23% or $1480/Year on Average [3]
20,897    Section 8 Voucher Households at Risk of Homelessness

AFFORDABLE  HOUSING NEED
90,000 Homeless New Yorkers, including more than 30,000 children.
1 Million Severely Rent-Burdened Families, pay more than half their income in rent each month.
$25 Billion NYCHA Capital Backlog, representing needed infrastructure investment.

JOBS & ECONOMIC BENEFIT AT RISK
In New York State, the annual affordable housing development & preservation impact [4]:
25,655 Apartments     |     65,800 Jobs     |     $10.9 Billion Local Income

Download NYHC State Impact Fact Sheet here and find references below.

[1] In an amendment issued by OMB Director Mulvaney, $2 billion was restored to the FY 2019 HUD budget after it was released.

[2] Center on Budget & Policy Priorities. 2018. https://www.cbpp.org/blog/trump-2019-budget-slashes-aid-for-families-struggling-to-pay-rent

[3] CBPP. 2018. https://www.cbpp.org/blog/trump-rent-plan-would-squeeze-low-wage-workers-others-struggling-to-afford-housing

[4] HR&A Advisors, Inc. 2017. Economic Impacts of Affordable Housing on New York State’s Economy. Prepared for NYSAFAH. http://www.nysafah.org/cmsBuilder/uploads/nysafah-economic-impact-of-affordable-housing-2017-update-(2011-2015)-final-(003).pdf 

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