Senate Crunches HUD Budget

McKinney flat funded
HOME and CDBG slashed

Senator Patty MurraySenator Patty Murray, the chair of the US Senate Appropriations Transportation/HUD Sub-committee released the FY2012 HUD Budget on September 20, 2011. Funding for McKinney-Vento homeless assistance grants was level funded at $1.9 billion. This is the same level as approved by the House.

The HOME program was cut by 37.8% to $1 billion. CDBG was cut by 14.5% to $2.85 billion. These cuts would cost NJ almost $30 million.

VASH was funded at $75 million the same as in the House.

Click here to read the full overview of the legislation. Specific language in the legislation includes:

Homeless Assistance grants: $1.9 billion for homeless assistance grants. This level of funding is equal to the fiscal year 2011 enacted level. In response to the increase in family homelessness, the bill includes $286 million for the Emergency Solutions Grant program to prevent families from becoming homeless, or rapidly re-house those that are homeless. According to NAEH, flat funding would:

Provide sufficient funding for CoC renewals. However, there would likely be little money left over for new projects. Flat funding would not allow for full implementation of the HEARTH Act.


Senate Budget Report

House Budget

Impact of HOME/CDBG Cuts

Community Development Block Grants (CDBG): $2.85 billion is provided for CDBG grant funding for States and communities across the Nation. This is $485 million below the fiscal year 2011 enacted level.

HOME Investment Partnership: $1 billion for the HOME Investment Partnership program, which is $607 million less than the fiscal year 2011 enacted level. This funding supports the creation and rehabilitation of low-income housing across the country. The bill also includes reforms to ensure that funds are used in a timely fashion for worthy projects.

Public Housing Operating and Capital Funds were cut but not as deeply as in the House budget. A total of $1.9 billion was allocated for the public housing capital fund, a decrease of $165 million below the fiscal year 2011 enacted level. The bill also includes $4 billion for the public housing operating fund, which is $655 million below the fiscal year 2011 enacted level.

Section 8 Tenant-based rental assistance: $18.9 billion for housing choice vouchers. This level of funding is $501 million above the fiscal year 2011 enacted level.