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House Bill Boosts Section 8 Appropriations, Cuts Other HUD Programs

Shortly before Congress adjourned for its August recess, the House Appropriations Committee approved the FY 2005 VA/HUD appropriations bill, which sets funding levels for several key housing programs.

To offset an additional $1.2 billion appropriation for veterans’ medical assistance, lawmakers cut the NASA and Environmental Protection Agency budgets, along with most Department of Housing and Urban Development programs, by an average of 4% from their levels for the current fiscal year.

One notable exception was the Section 8 program. Many housing advocates had been worried that the program faced the possibility of substantial cuts during the budget wrangling process, but it ended up receiving a handsome increase over last year’s funding levels.

The legislation is expected to go to the House floor in early September.

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The Senate has not yet acted on its version of the bill, and NAHB is urging those who are working on the budget to maintain funding for housing programs at last year’s spending levels.

Highlights of the FY 2005 VA/HUD appropriations bill:

• HOME program: $1.9 billion in FY 2005, including $1.77 billion for HOME formula grants and $85 million for the American Dream Downpayment Act. The program received $2.005 billion in FY 2004.
• PATH program: $7 million, down from $7.5 million in FY 2004.
• Community Development Block Grants: $4.71 billion, a decrease from the $4.9 billion approved in FY 2004.
• Section 8: Tenant-based rental assistance is funded at $14.7 billion, $491 million over last year; $13.3 billion is provided for Section 8 voucher renewals, a $581 million increase; and project-based rental assistance is at $5.3 billion, up by $270 million.
• HOPE VI: $143 million, down from $149 million.
• Rural Housing and Economic Development: $24 million, a decline from $25 million.
• Brownfields Redevelopment: $24 million, down from $25 million.
• CDBG Section 108: $7 million, decreased from $7.3 million.
• Youth Build: $62 million, down from $65 million.
• Housing Counseling Assistance: $38 million, a decrease from $40 million.
• FHA Multifamily Loan Commitment Authority: $35 billion in FY 2005, an increase from $25 billion in FY 2004. HUD believes that this level of commitment authority will protect the program from future shutdowns.
• Flexible Voucher Proposal: Changes to the Section 8 program proposed by the Administration were rejected outright by the subcommittee.

For more information, e-mail Jenna Morgan Hamilton or call her at 800-368-5242 x8407.
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