The FY 2020 HUD Spending bill was passed by Congress and signed by the President in December. The spending bill allocated $56 billion to HUD programs, which is $2.3 Billion more than last year and $12 billion more than the president’s request. With this spending bill, Congress continues to clearly reject the administration’s calls to drastically cut housing benefits that help millions of low-income seniors, people with disabilities, families with children, veterans, and others afford their homes. 

For the most part, HUD programs saw slight funding increases compared to FY19 levels. See key program highlights below:

Tenant Based Section 8: $23.874 Billion, an increase of $1.276 Billion 
Project Based Section 8: $12.6 Billion, an increase of $823 Million
PH Capital: $2.87 Billion, an increase of $94 Million
PH Operating: $4.5 Billion, a decrease of $104 Million
Section 202: $793 Million, an increase of $115 Million
Section 811: $202 Million, an increase of $18 Million
CDBG: $3.43 Billion, an increase of $60 Million
HOME: $1.35 Billion, an increase of $100 Million
Homeless Assistance Grants: $2.78 Billion, an increase of $140 Million

The increase in Section 8 funding is sufficient to cover all voucher renewals nationally. Funding also provides an increase of $91 Million in admin fees. However, there was a $10 Million decrease for Tenant Protection Vouchers, which can be used in conjunction with RAD.

NYCHA estimates the following impact:
Public Housing Capital Increase of $18 Million: This estimate is based on prior share of national appropriation and is subject to change based on formula eligibility.  New $35 Million set-aside in the emergency capital grants for PHAs in receivership or under the guidance of Federal Monitor. Potential of additional funds for NYCHA.$20 Million increase in competitive Lead-Based Paint grants compared to 2019 Enacted. NYCHA is no longer prohibited from applying for and receiving the funding due to Federal monitorship.
Public Housing Operating Funding Decrease of $21 Million. This estimate is based on prior share of national appropriation and is subject to change based on formula eligibility. New $25 Million set-aside for PHAs that experience financial insolvency. Stable funding for Family Self-Sufficiency ($80M total), Jobs-Plus ($15M total) and ROSS ($35M total).    

For HPD, the increased Section 8 budget authority is not expected to produce new vouchers since the agency is close to issuing the total number of vouchers permitted by a federal cap (36,600). NYHC plans to advocate for a legislative change to ensure that NYC can maximize use of Section 8 funding.

The increase in CDBG and HOME program funding will be used to further support and expand current uses NYC. CDBG supports code enforcement,housing litigation, emergency shelter, emergency repairs and property management. HOME supports senior housing, rental and downpayment assistance programs. NYHC will continue its fight for increased Public Housing funding as well as more funding for all HUD programs this year. For additional HUD program funding details, please see NLIHC’s updated budget chart.

The spending bill also includes policy changes to prevent the administration from undermining evidence-based approaches to ending homelessness through its Notice of Funding Availability (NOFA) for homeless assistance grants. This is an important victory for advocates, who warned that Trump efforts to change the NOFA would be harmful to efforts to end homelessness.

Congress also included language to force HUD to finally release critical mitigation funds for Puerto Rico. Congress approved over $16 billion in disaster mitigation funding for Puerto Rico nearly two years ago, but HUD has delayed releasing the aid.