- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
Funding FY15 USDA Housing Programs Passed by House & Senate Approp. Committees; HUD Not Far Behind
BROADCAST EMAIL –
Legislative Update
June 2, 2014
The House and Senate Appropriations Committees have passed their respective versions of Fiscal Year (FY) 2015 funding bills for the United States Department of Agriculture (USDA) (including Rural Development (RD)) and sent them to the full House and Senate for consideration. (The House bill number is not yet available but the Senate's version is S. 2389) As CARH members can see from the attached charts, while funding levels in the two bills are very similar, they are not identical and the differences will need to be addressed. This reconciliation between the bills should occur when the full House and Senate take up their respective bills or when conference occurs later this summer. Also, as this is an election year, it is very possible there will be a Continuing Resolution in the first part of FY 2015, or some form of an Omnibus measure since the new fiscal year begins on October 1, 2014, a month before the Congressional elections.
For rural rental housing, perhaps the most significant issue is the Section 521 Rental Assistance (RA) Account. The Administration requested $1.088 billion, which the House adopted; the Senate has recommended $1.093 billion. These amounts are less than the $1.110 billion appropriated in FY 2014. Of immediate concern is whether the funding recommended by either Committee will be sufficient to fund all existing contracts and at the same time also enough RA for preservation activities. The Administration, in its budget request, proposed reducing the RA account by $21 million below the FY2014 level, and stated the difference would be made up with residents paying a $50 minimum rent, and a prohibition on "re-renewals." There was also a provision giving the USDA Secretary broad discretion in renewing RA contracts, obstensively to prioritize renewals in the event of future shortages. USDA asked for this discretion to help create flexibility. Both the House and Senate rejected the $50 minimum rent and the proposed USDA Secretary discretionary language. However, the House and Senate did agree to the proposal that RA contracts are to be funded for one year durations and that they cannot be re-renewed, or renewed a second time, during this 12-month time period. Taken on its face, instead of increasing USDA discretion, this language removes what little discretion USDA had with contracts. USDA must renew every RA contract for 12 months and must do so at a level sufficient to avoid re-renewals. It would appear that it is now incumbent on RD field staffs to approve budgets to fund 12 months of operations. Certainly, it is now more important than ever for owners and managers to fully fund all RA contracts, including adequate funding needed for any preservation activities, so there is no second budget or second RA renewal later in the year.
Of course, CARH is concerned with and continues to work with RD and the House and Senate on improving the Section 538 program, rural vouchers, the MPR demonstration program, project preservation, and management fee increases. All of these topics and more will be addressed during CARH's Annual Meeting and Legislative Conference next week.
In terms of funding for the Department of Housing and Urban Development (HUD), the full House Appropriations Committee voted to report to the full House its version (H.R. 4745) last week. The House is not in session this week but is expected to begin consideration as early as next week. The full Senate Appropriations Committee will begin consideration of its bill tomorrow, June 3. CARH is particularly concerned with funding for the HOME program, Rental Assistance Demonstration (RAD) and Section 8. Under H.R. 4745, HOME would be cut to $700 million from the Administration's requested level of $950 million, which is also $300 million less than the FY 2014 funded level. We are also working with other groups to help provide HUD with the flexibility to implement RAD and raise the unit limitation on the 1st component and secure HUD's small funding request. CARH is also concerned, if not for FY2015 then for FY2016, that project based Section 8 be fully funded. Currently, HUD is using administrative measures to close funding gaps but those will likely be exhausted in the near term. Of course, CARH is concerned with, and continues to work on, other measures such as the tenant-based voucher resources and HUD's small loan risk sharing program.
Just as with RD's budget, funding for a variety of HUD programs and the Housing Credit will be explored throughout the CARH meeting next week. For those CARH members who have not yet registered, you still have the opportunity to attend the meeting. Click here for a copy of the meeting brochure, which includes the registration form.
Please contact the CARH national office at carh@carh.org or 703-837-9001 should you have questions or concerns.