Budget Crisis Impacts Affordable Housing Funding
The number of households in America who must devote more than 50% of their income to rent will rise 11% by 2025, according to a new report “Projected Trends in Severely Cost-Burdened Renters: 2015-2025.”
Housing cost-burdened renters will rise from 11.8 million to 13.1 million.
“In the unlikely event that income growth greatly outpaces rent gains, the number of severely cost-burdened renters will remain near current record levels.”
“Given these data, it is critical for policymakers at all levels of government to prioritize the preservation and development of affordable rental housing as there are simply not enough quality, affordable rental units to provide housing for the millions of households paying over half their income in rental costs.”
The findings in this report come at a time when it is critical that Congress provide adequate funding for housing programs and raise the budget caps.
Renewal costs for the federal Housing Choice Voucher program require increases next year simply to serve the same number of households currently served and receipts from the Federal Housing Administration (FHA) are down compared to FY15.
Level funding into 2016 would result in a shortfall of about $3 billion for HUD programs in FY16. A year-long continuing resolution that funds federal programs would be below sequester cap levels and result in funding levels for housing and community development programs in FY16 of as much as 4% below FY15 levels.
Click here to read the full report.