On Monday, the President released his FY21 Budget Proposal. The President’s FY21 HUD budget represents a 15% decrease in spending for critical affordable and public housing programs compared to FY20 enacted funding levels. It includes the complete elimination of several impactful and proven HUD programs and insufficient funding for existing rental assistance vouchers.
Below is a preliminary analysis of the top impacts to NYC’s affordable and public housing programs. These funding levels compare the President’s FY21 budget proposal to the FY20 enacted funding NYC received from HUD. The below figures also operate under the assumption that NYC will receive the same enacted FY20 funding from HUD for FY21.
- Elimination of Public Housing Capital Fund – reflects a loss of all funding – $549 million in FY20. NYCHA and its residents are in the midst of a crisis, NYCHA needs more funding not less to make critical capital repairs.
- Reduction in Public Housing Operating Fund – 10% loss of funding for day-to-day operation and maintenance of NYCHA properties compared to current funding.
- More than 20% decrease in Section 8 Contract Renewals – based on current funding levels, proposal could lead to a loss of approximately 9,000 existing vouchers from HPD and NYCHA programs in NYC and an additional 600-700 vouchers administered by NYS HCR in the five boroughs.
- Elimination of Community Development Block Grants – Loss of $167M for NYC compared to current funding. Last year, HPD used approximately $130M in CDBG funds to enforce housing quality standards, including code inspections, emergency repairs, housing litigation, and emergency shelter.
- Elimination of HOME Investment Partnerships Program – Loss of $70M for NYC compared to current funding. Last year, HPD used these funds for new construction of special needs housing (including seniors), down payment assistance, and rental assistance for homeless families.
- Elimination of the VASH program, Family Unification Program, and the Mobility Demonstration.
For additional housing program funding levels, please see NLIHC’s comprehensive budget chart.
Harmful Policy Provisions
Making Affordable Housing Work Act – Trump reintroduces his dangerous rent reform proposal for HUD-assisted households that the NYHC has fought hard against since he first proposed the idea in 2017. It would lead to dramatic rent increases for some of the most vulnerable New Yorkers. Public Housing residents, who are non-elderly or disabled, would face up to a 40% rent increase. Section 8 voucher holders who are non-elderly or disabled would see an average rent increase of 20%.
While Congress has rejected the President’s budget cut proposals in previous years, with NY’s current homeless and affordable housing crises, we cannot afford to be complacent! NYHC will continue to fight for adequate HUD funding levels and against dangerous policy proposals, but Congress must also hear from you about the importance of HUD programs in your community or to your organization and how cuts would hurt vulnerable and low-income NYers!