FY 2018 Presidential Budget Proposals for HUD
The new President has presented his preliminary budget numbers to Congress and if accepted as final numbers, many HUD programs will be devastated as the result of a $6 billion cut. Following are highlights of the proposed HUD budget:
- The only bright spot is that funding for project-based rental assistance programs may survive the massive cuts and maintain current levels. This will hopefully maintain the basic viability of project-based assistance projects (such as Section 8);
- $1.3 billion reduction from the public housing operating fund. The current backlog in capital needs for public housing is $43 billion and growing at $3.4 billion annually. This 68% funding reduction will almost ensure a continued and rapid decline in the condition of public housing;
- $600 million cut in the public housing operating fund;
- Elimination of the Community Development Block Grant (CDBG) program ($3 billion);
- Elimination of the HOME Program (a program that provides significant soft financing for Low-Income Housing Tax Credit Projects);
- $300 million reduction in voucher funding (including Veterans vouchers), resulting in a loss of up to 200,000 vouchers;
- $42 million cut in the Section 202 program for the elderly (10%);
- $29 million reduction in the Section 811 program for the disabled (20%);
- $150 million reduction in Native American Housing funding (20%); and
- A cut of 5% in HUD salaries and administrative costs.
As noted, this is a preliminary budget, and must work its way thorough both houses of Congress. However, this is a clear indicator that the new administration will not be friendly to domestic programs in the years ahead. We should know by summers end the true extent by which the HUD programs will be cut.