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Thursday, March 24, 2011

Department of Housing and Urban Development (HUD): FY2012 Appropriations

Maggie McCarty, Coordinator
Specialist in Housing Policy

Libby Perl
Specialist in Housing Policy

Eugene Boyd
Analyst in Federalism and Economic Development Policy

Katie Jones
Analyst in Housing Policy

Bruce E. Foote
Analyst in Housing Policy

The President’s FY2012 budget was released on February 14, 2011. It included a request for nearly $47.8 billion in gross new appropriations for HUD in FY2012. After accounting for rescissions of prior-year unobligated balances and offsets available from the Federal Housing Administration (FHA) mortgage insurance programs, the President’s request for net new budget authority for HUD in FY2012 totals just over $41.7 billion.

The President’s budget requests funding for several new initiatives that were included in prior years’ budget requests. These include $200 million for the Transforming Rental Assistance initiative to convert some units of public housing and Section 8 project-based rental assistance to a new form of rental assistance, and funding for a Choice Neighborhoods program to replace the HOPE VI public housing program. The President’s budget lists homelessness assistance as a top priority and includes increased funding for homeless assistance grants, in addition to funding for new housing plus services demonstrations.

The President’s budget also includes some funding decreases relative to FY2010. These include a 17% reduction in funding for the public housing operating fund (compared to FY2010). The President’s budget also requests funding reductions for the two largest block grant programs in HUD’s budget, the Community Development Block Grant program (a 7.5% reduction compared to FY2010) and the HOME Investment Partnerships block grant (a 10% reduction compared to FY2010). Funding for the Section 811 Housing for Persons with Disabilities and Section 202 Housing for Persons who are Elderly accounts would also be reduced relative to FY2010 under the President’s budget request.

The largest accounts in HUD’s budget, the Section 8 Tenant-Based Rental Assistance account and the Section 8 Project-Based Rental Assistance account would receive the largest funding increases, about $1.2 billion and $900 million, respectively, compared to FY2010 levels.

In total, the President’s funding request for HUD would result in a $777 million increase in gross new appropriations in FY2012 relative to FY2010. However, because the President’s budget estimates a substantial increase (nearly $5 billion) in the amount of offsetting receipts available from the Federal Housing Administration (FHA) in FY2012 relative to FY2010, the net budget authority requested in the President’s budget would represent a decrease of about $4.3 billion in FY2012 relative to FY2010.

While the release of the President’s budget serves as a start to the process of debates over funding in the next fiscal year, action on the current fiscal year was not yet complete when the FY2012 budget was released. Funding for the government has been continued under a series of short-term continuing resolutions since the beginning of FY2011 on October 1, 2010. As a result, the 112
th Congress is in the position of holding hearings on the President’s FY2012 budget request at the same time it is debating how to finish work on FY2011 appropriations. (For more information on the status of the FY2011 appropriations process, see CRS Report R41233, The Department of Housing and Urban Development (HUD): FY2011 Appropriations, coordinated by Maggie McCarty.)

Date of Report: March 18, 2011
Number of Pages: 18
Order Number: R41700
Price: $29.95

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