President’s Budget Could Hurt Safety Net

HOME Program Flat Funded and Section 811 Cut

HUDOn February 13, 2012, the President released his proposed budget for FY 2013. While, the proposed HUD budget includes some very positive proposed investments for homeless programs that show the Administration’s continued commitment to ending homelessness, there are also important proposed cuts that need to be reversed to ensure that communities continue to have the capacity to create supportive housing and make progress toward ending homelessness. These concerning pieces of the proposed budget may widen holes in the safety net for the most vulnerable Americans.

Programs with proposed level funding or even cut include:

  • HOME – The budget maintains last year’s 40% cut to the HOME program. HOME provides key gap funding for supportive housing;
  • Section 811—Housing Program for Persons with Disabilities—cut by 9% from FY 12. This is a $150 million cut, a 50% reduction in the funding the program was receiving in FY10. The 811 program provides much-needed funding for people with disabilities.;
  • CDBG – The overall funding for the Community Development Fund would be cut again in FY13, by 5% to $3.143 billion. Community Development Block Grant Formula funding would remain the same as was enacted in FY12 at $2.95 billion, a 12% reduction from FY11;
  • Project Based Rental Assistance – a proposed 7% reduction in Project-Based rental Assistance funding to $8.7 billion; and
  • Funding for Department of Health and Human Service’s (HHS) Community Services Block Grant program would receive a significant cut of 48%, dropping to $350 million.

Click here for Monarch’s previous posts on the proposed budget

And here for a comparison chart from the National Low Income Housing Coalition (NLIHC.)