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Blog: 2015 Funding for HUD Looks Problematic for Low-Income Families

Jun 20, 2014 | By Carolyn Burstein, NETWORK Communications Fellow

The House passed its version of the Transportation, Housing & Urban Development (T-HUD) appropriations bill on June 10 and, as of this writing (June 19), the Senate is handling housing within a “minibus” (including Commerce-Justice-Science (S-2437), Transportation-HUD (S-2438) and Agriculture (S-2389). The Senate T-HUD bill is less damaging to low-income households than is the House bill. But dozens of amendments have been offered by both parties, some damaging to housing vouchers and to providing additional housing units. A conference committee will need to be formed to work out a compromise between the House and Senate bills.

The House appropriations bill for HUD, part of H.R. 4745, provides $44.7 billion -- $740 million less than Congress allocated for 2014. And the bill takes the majority of this $740 million out of programs for low-income families and individuals. The National Low-Income Housing Coalition (NLIHC) says that the alarming aspect of the House appropriations bill is that it fails to fully fund the Housing Choice Voucher Program, cuts funding for public housing, flat funds homeless assistance grants, cuts the HOME program by 30%, and makes deep cuts to HUD’s fair housing, healthy housing and research programs. The House bill’s disproportionate reductions in these programs will mean less rental assistance, less help in related areas and therefore greater hardships for low-income families.

More than half of the households living in public housing today are seniors or people with disabilities. The Center on Budget and Policy Priorities (CBPP) says that while most public housing developments manage to meet federal housing quality standards, chronic underfunding has created a large backlog of repair, renovation and other capital investment needs. A recent HUD report found that public housing developments had accumulated a $26 billion backlog of capital needs, and unfortunately, these needs will continue and be deepened over time.

The White House decried the low level of assistance to families in the House bill, even when comparing it to the depressed levels of 2014. Further, the proposed funding would not restore the sequestration cuts of 2013. Cuts to the homeless assistance grants would undercut the administration’s efforts to end chronic homelessnes