The Budget Control Act of 2011 requires the deficit reduction. This legislation was passed last year and allows a temporary increase in the debt ceiling to give Congress time to enact a more permanent solution.
The White House’s Office of Management and Budget (OMB) describes sequestration as “a blunt and indiscriminate instrument” that would result in an 8.2% cut to “critical housing programs” for low-income families and individuals.
And sequestration cuts to housing programs as estimated by OMB include:
Public housing operating fund cut by $325 million,
Project-based rental assistance cut by $772 million,
Public housing capital fund cut by $154 million,
HOME Investment Partnership program cut by $82 million, and
185,000 households would lose their tenant-based rental assistance vouchers,
92,400 households would lose their project-based rental assistance housing,
145,900 people would remain homeless, instead of being housed under the Homeless Assistance Grant program, and
140,000 currently housed families that include an elderly person or a person with a disability would receive reduced unit maintenance and lower levels of supportive services in units funded by Section 202 Housing for the Elderly or Section 811 Housing for People with Disabilities.