Following passage of this omnibus funding bill, which will mark the completion of the FY 2014 appropriations process, Congress will take a brief break from the appropriations process. The President is expected to release his FY 2015 Budget Proposal at some point in February, which will launch the FY 2015 appropriations process.
The Transportation, Housing and Urban Development, and Related Agencies (THUD) portion of the bill provides funding that represents a compromise between the funding levels of the House THUD Subcommittee passed bill and the Senate Appropriations Committee passed bill. It appears that appropriators attempted to restore HUD program funding to FY13 pre-sequester levels, though they were not able to achieve this for all programs.
McKinney-Vento Homeless Assistance Grants funding will be increased to $2.1 billion, more than $80 million above the FY13 pre-sequester level of $2.03 billion. The President proposed funding the program at $2.38 billion, the Senate proposed $2.26 billion, and the House proposed only $2.08 billion. This funding level would fully fund the Emergency Shelter Grants and could make up for some of the funding cut in FY13 by the sequester. However, the funding is not expected to be sufficient to cover the cost of renewals for the Continuum of Care program that would be underfunded due to sequestration cuts.
The bill includes several provisions regarding the Continua of Care, including:
Requiring CoCs to meet performance requirements as determined by the Secretary,
Permiting permanent housing to be administered by private nonprofit agencies, and
Requiring a report on the authority needed, effectiveness, and advantages or disadvantages of private nonprofits administering permanent housing.
Section 202 Housing for the Elderly will be funded at $384 million, an amount higher than the FY13 pre-sequester level and the House proposal of $375 but lower than the other proposals and FY11 funding. The President requested and the Senate proposed $400 million for Section 202 in FY14. The bill includes language that would allow the HUD Secretary to apply residual receipts from the Section 202 account to demonstration programs to test models that provide services to elders in housing in order to delay or reduce the need for nursing home care. Additional provisions would amend the Housing Act of 1959 by changing references to the Section 202 capital advances, which are no longer provided under the new structure. A provision would specify that funding could be provided for projects that identify a funded health and supportive services program and meet certain criteria.
The bill will reduce funding for the Section 811 Housing for Persons with Disabilities program to $126 million, an amount nearly $40 million below FY13 pre-sequester funding. The President, the House and the Senate each sought only $126 million in FY14 funding. The bill would allow the HUD Secretary to apply residual receipts from the Section 811 program to current program operations. The bill would also allow funds to be applied to project rental assistance for State housing finance agencies; in the FY12 Continuing Resolution, the Secretary was allowed to apply funds for a demonstration regarding project rental assistance and state housing finance agencies.
Click here for more detailed analysis of HUD programs from NLIHC.