Housing and Community Development
UPDATED February 2005
In the administration’s FY06 budget, most of the housing and community development programs face cuts of about $3.7 billion, resulting in an11.5 percent decrease from last year’s budget. Much of those cuts would come from a large reorganization plan that would transfer the Community Development Block Grant (CDBG) with other programs to the Commerce Department. The largest increase is in the Housing Choice Voucher program. Other programs such as Public Housing Operating Fund, HOME, and Homelessness Assistance would also see increases over ’05 levels.
Here are some of HUD’s programs and how they are affected:
Housing Vouchers
The Administration’s budget increases the Housing Choice Voucher program by $1.1 billion over ’05 funding. This Section 8 increase must cover the nearly doubling of tenant protection vouchers which helps those families losing their public housing. As the overall HUD budget shrinks, vouchers which support 2 million families with housing assistance consumes a greater share of the diminishing dollars. While not part of the budget, the administration is once again proposing changes to the structure of the program turning it into a block grant to public housing agencies.
Public Housing
The Public Housing Operating funds are increased from ’05 (but not to the levels of ’04). The Capital fund (which maintains the buildings) is cut as it was in ’05 with less money ear-marked for the set-aside program Resident Opportunity and Self Sufficiency Program (ROSS) and the emergency capital needs fund in case of emergencies and/or natural disasters.
Once again, the FY06 budget would zero out the HOPE VI program. Congress opposed the President’s request to eliminate the program in FY04 and ‘05 and reauthorized the program. The Administration’s budget also seeks to rescind the ’05 appropriation.
The HOME program would receive a small increase but would require more money for the American Dream down payment initiative, reducing the formula grant program.
The $4.1 billion Community Development Block Grant (CDBG) including several CDBG set-asides, the National Community Development Initiative, Section 108 loan guarantees, Brownfields, Enterprise Zone /Enterprise Communities and HUD's office of rural housing and economic development would be eliminated. A new Strengthening America's Communities (SAC) initiative would be created within the Department of Commerce to cover CDBG activities, along with the activities of 11 other programs from Agriculture, Health and Human Services, and Commerce. SAC would be funded at $3.71 billion in FY’06.
Homeless Assistance
The existing Homeless Assistance programs would receive a 16 percent increase from FY05.
| Other HUD Programs |
FY'05
Enacted
(in Millions) |
FY'06
Requested
(in Millions) |
People with disabilities (Section 811)
Housing Opportunities for People With Aids (HOPWA)
Lead Hazard Reduction fund
Fair Housing
Seniors housing (Section 202)
Housing Counseling Assistance |
$238
$281
$191
$26
$741
$42 |
$120
$268
$167
$16
$741
$40 |
The Catholic bishops support a national housing policy that includes: preservation and production of quality housing for low-income families, the elderly and other vulnerable people; as well as the participation and partnership of residents, nonprofit community groups, and churches to build and preserve affordable housing. Churches, community groups, the private sector, and state and local government must all do more to meet our common responsibility for housing. However, there is no substitute for an involved, competent, and committed federal government. (Homelessness and Housing, 1988)
Urge Members of Congress to continue the rental assistance program for the lowest income families and to provide the cities, municipalities, states, and community groups the financial wherewithal to establish and maintain the neighborhood infrastructure of low-income communities. (See Hillnotes for more details.)
Thom Shellabarger at the USCCB, 202 541 3189 or tshellabarger@usccb.org
Douglas Rice, Catholic Charities USA 703 549 1390 X195 or drice@CatholicCharitiesUSA.org