Affordable Housing Online Budget Estimator Documents Impacts of HUD Budget Cuts
Affordable Housing Online has released a new online tool that estimates the impact of the Trump administration’s proposed fiscal year (FY) 18 U.S. Dept. of Housing and Urban Development HUD budget cuts on states and local jurisdictions.
Data is available at a state level state by state and there is also data available for each participating jurisdiction.
Affordable Housing Online is also working on a HUD database of individual CDBG and HOME projects by location.
The tool shows the estimated loss of funding from key HUD programs:
- Community Development Block Grants (CDBG),
- the HOME program,
- the Public Housing Capital and Operating Funds, and the
- Housing Choice Voucher program.
The tool also provides estimates for the number of households and homes that would be impacted.
On March 16, 2017, the White House released its fiscal year (FY) 18 budget blueprint. The document included steep cuts in funding for affordable housing programs. These cuts total $6.7 billion to HUD programs from FY16 funding levels and $7.964 billion down from President Obama’s FY17 request. Please read our previous post on the budget – White House Proposes $18B to NDD Including HUD in FY17.
Based on HUD data, Affordable Housing Online estimates that New Jersey will lose $172,015,141 annually as the result of the proposed HUD budget cuts.
At a human level, these cuts could impact up to 42,348 households a year.
Specifically, estimated funding losses to specific programs include:
- Community Development Block Grant – $81,203,472
- HOME Investment Partnerships Program – $20,194,535
- Public Housing Capital Fund – $19,760,592
- Public Housing Operating Fund – $25,316,854
- Housing Choice Voucher – $25,537,204
The Community Development Block Grant (CDBG) program is used to fund a variety of community development projects from street scape projects to Meals on Wheels.
The Trump administration’s budget proposal would eliminate the program. Affordable Housing Online estimates that from 1977 to 2015, CDBG has funded over $5.4 billion in community development projects across New Jersey.
The HOME Investment Partnerships Program is used to fund affordable housing related activates such as home ownership and rental housing development. The Trump Administration’s proposed budget would eliminate the HOME program.
The Housing Choice Voucher program was funded at $19.638 billion in fiscal year (FY) 16. The FY17 budget requests voucher funding at the level of $20.854 billion which would translate into a potential loss of $19.3 (according to a leaked HUD budget.)
“Based on renewal requirements of $20.394 billion (FY16 level of $19.638 plus $766 million rental inflation), this level of funding would reduce funds available for renewals nationally by $1.094 billion.
Based on a CY 2016 average monthly voucher cost of $857, New Jersey Housing Authorities could lose approximately 2,484 vouchers with a total annual rent value of $25,537,204.”
Affordable Housing Online is working to further develop these numbers as they learn more about the Trump administration’s intentions.