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Federal Spending Bill Includes Housing Restorations, Cuts

Categories: Funding, Federal

01.14.2014

Budget expected to pass both House and Senate for Presidential signature

After months of behind-the-scenes negotiations, the US House and Senate Appropriations Committees yesterday released their budget for the 2014 federal fiscal year.

This budget provides significant relief to US Department of Housing and Urban Development (HUD) programs from the harmful effects of sequestration cuts. McKinney-Vento Homeless Assistance funding rose by 9%, which should minimize cuts to existing programs in next year’s Continuum of Care competition. This increase will have no impact on the 5% of programs that are on the chopping block in the current round of funding, however.

Both tenant-based and project-based rental assistance (Section 8) were increased in this budget. These programs, thankfully, will be funded above pre-sequester levels. The budget aims to avoid having any current tenant lose an existing voucher.

This is a substantial improvement over the sequestration budget levels. Overall, however, the budget remains a tight one. It will probably take a couple of months before New York State, the City and other localities know the exact program funding levels they will receive from HUD.

This budget also restores HOME to pre-sequester levels. This new amount, however, represents a nearly 50% cut from pre-2010 levels. Regarding HIV/AIDS housing, HOPWA will be almost fully restored to its pre-sequester level. Lastly, there will be another round of VASH vouchers this year.

One additional bit of good news: The budget contains language that will allow nonprofits to directly administer McKinney-Vento rental assistance, which will make it easier to run rapid rehousing programs and new Shelter Plus Care-type programs. The Network fought for this language to be included in the budget.

This budget is widely expected to pass both houses this week and be signed by President Obama soon after. Much thanks to all the Network’s members and allies who fought so hard to achieve this significant restoration.

If you have any questions, please call the Network’s Albany office at 518-465-3233.

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