NJ’s Updated State Allocation
Estimated at $3,730,000
The National Low Income Housing Coalition (NLIHC) has learned that an unfortunate provision in the Budget Control Act of 2011, the law that created the sequester, will take a 6.9% cut out of the National Housing Trust Fund (NHTF) and the Capital Magnet Fund (CMF) along with numerous other mandatory programs in FY17.
Based on Fannie Mae and Freddie Mac’s 2015 finance reports to the SEC, NLIHC estimated that the NHTF would receive $186.6 million in 2016); the revised amount is $173.7 million. New Jersey’s updated estimated allocation is $3,730,000.
The initial NLIHC estimate for the CMF of $100.4 million is revised to $93.5 million.
The good news is that cuts to both programs is not lost, but will be added back to the 2017 totals.
In a letter to the Speaker of the House Paul Ryan (R-WI), OMB Director Shaun Donovan reports that almost $19 million is not exempt from sequestration, including 2% to non-exempt Medicare spending, 6.9% to other non-exempt non-defense mandatory programs, and 9.1% to non-exempt defense mandatory programs.
These programs were not protected from the sequester by the Bipartisan Budget Act of 2015.
NLIHC’s recalculation of the NHTF allocation per state is based on $173.7 million. The new state allocations also are based on new estimates of construction costs in each state, one the five formula factors for distribution of NHTF funds among the states.
Because the NHTF statute requires a state minimum of $3 million, most of the sequester cut will fall on the states with larger allocations, especially California but also impact NJ. The NJ allocation is now $3,730,000.