U.S. Senate Subcommittee and U.S. House of Representatives Approve FY 2010 HUD Funding (Highlights)

July 29, 2009

The Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies (THUD) approved its version of the FY 2010 appropriations bill that includes funding for HUD programs earlier today.

In related news, the House of Representatives passed its own version of the FY 2010 THUD spending bill on July 23.  A detailed summary of the House-passed bill can be found below. 

Highlights of the Senate THUD Appropriations Subcommittee Mark

Section 8 Tenant-Based Program (Vouchers): The subcommittee mark includes $16.339 billion for the renewal of current housing choice vouchers, $150 million above the administration’s request.  The House-passed bill includes $16.387 billion for this purpose. (FY 2009 level: $15.034 billion)

Section 8 Project-Based Program (Public Housing):  The subcommittee mark provides $8.1 billion for the program, including $7.8 billion for the renewal of all expiring project-based contracts for a full 12 months. The House-passed bill includes a total of $8.7 billion for the program, including nearly $8.5 billion for renewals. (FY 2009 level for program: $7.5 billion)

HOPE VI (Mixed-Income Type Projects):  The subcommittee mark does not provide funding for HOPE VI.  Instead, the subcommittee provides $250 million for the Choice Neighborhoods Initiative put forward in the President’s FY 2010 budget.  The program as proposed would be broader in scope than HOPE VI, both in terms of eligible applicants and eligible activities.   Of the $250 million provided in the subcommittee’s mark, at least $165 million would be reserved for public housing.  The House-passed bill provides $250 million. (FY 2009 level: $120 million)

Community Development Block Grant (CDBG) Program:  The subcommittee mark apparently provides $3.99 billion for the CDBG formula program, approximately $177 million below the amount provided in the House-passed bill.  The administration requested $4.185 billion for the CDBG formula program for FY 2010.  (FY 2009 level: $3.642 billion)

Set-asides under the Community Development Fund in the subcommittee mark include $150 million for the administration’s proposed Sustainable Communities Initiative. 

Home Investment Partnerships (HOME) Program:  The subcommittee mark includes $1.825 billion for the HOME account, matching the President’s request.  It is not yet known how much of this funding would be available for distribution through the HOME formula program.  The House-passed bill provides $2 billion for the HOME formula program.  (FY 2009 level for the HOME formula program: $1.809 billion)

The full Senate Appropriations Committee holds its mark-up session currently scheduled for tomorrow (Thursday, July 30) at 3:00 pm EDT. 

Full House Passes FY 2010 HUD Funding Bill

As mentioned above, the House passed its version of the FY 2010 THUD appropriations bill on July 23 by a vote of 256 to 168.  The bill (H.R. 3288) provides substantial funding increases compared to FY 2009 levels.

The House-passed bill provides a total of $47 billion for HUD programs, an increase of approximately $5.5 billion compared to FY 2009 funding levels and $1.5 billion more than was requested for FY 2010 by the Obama administration in its budget proposal for the fiscal year beginning October 1.

HOPE VI (Mixed-Income Type Projects): The House-passed bill funds the HOPE VI program at $250 million for FY 2010, up from $120 million for FY 2009.  The administration’s FY 2010 budget proposal requests no funding for HOPE VI.  Instead, the administration requested $250 million for a new Choice Neighborhoods Initiative that would be broader in scope than HOPE VI, both in terms of eligible applicants and eligible activities.

CDBG Program: The bill includes $4.167 billion for the CDBG formula program, an increase of $525 million over the FY 2009 enacted level.  The administration has requested $4.185 billion for the CDBG formula program.

The bill provides $25 million for HUD’s Brownfields Economic Development Initiative for FY 2010.  The administration’s FY 2010 budget proposal sought to terminate the program. 

HOME Program: H.R. 3288 provides $2 billion for the Home Investment Partnerships (HOME) program account.  Because the bill does not include set-asides under the HOME account, the entire $2 billion would be available for allocation through the HOME formula.  This funding level matches NAHRO’s FY 2010 recommendation for the HOME program and represents an increase of approximately $191 million over the FY 2009 enacted level for formula funding. 

Section 8 Tenant (Voucher) and Project-Based (Public Housing) Programs: The bill includes a total of $18.242 billion for the Section 8 tenant-based program, an increase of more than $1.4 billion compared to the FY 2009 enacted level and nearly $400 million more than the administration’s request for FY 2010.  For Housing Assistance Payments (HAP) renewal funding, H.R. 3288 includes $16.387 billion. 

The bill includes a total $1.6 billion for administrative expenses associated with the tenant-based program, with no less than $1.550 billion of this funding to be allocated to public housing agencies for ongoing administrative fees.  The remaining $50 million would be available to the Secretary to allocate to public housing agencies that need additional funds.

H.R. 3288 also provides a total of $8.7 billion for the Section 8 project-based program, including $8.474 billion for renewing expiring or terminating section 8 project-based subsidy contracts.  The FY 2009 HUD funding bill provided a total of $7.5 billion for the Section 8 project-based program.  In addition to renewal funding, the bill provides not less than $232 million but not more than $258 million for performance-based contract administrators for Section 8 project-based assistance for FY 2010. 

H.R. 3288 includes $1 billion for the Housing for the Elderly (Section 202) program.  The Section 202 program was funded at $765 million for FY 2009. The bill provides $350 million for the Housing for Persons with Disabilities (Section 811) program, up from the FY 2009 enacted level of $250 million.  H.R. 3288 also includes $140 million for the Lead Hazard Reduction Program, the same amount provided for FY 2009.

Parma, OH, the only other city to manage its own Public Housing Agency in Ohio, it is located South of Cleveland, http://www.cityofparma-oh.gov/ .

Population of Parma is 85,000

Median Income $46,918

Public Housing in Parma

   742 Section 8 Choice Vouchers

   60 Public Housing Units

In Parma The Section 8 and Public Housing waiting lists are currently closed to new additions and the list has been closed for over two years and they do not anticipate opening it until 2010 or 2011 according to the Public Housing Web Site.

POVERTY LEVEL IN PARMA 2007 6.2%.

Middletown, OH

Population 48,237 per Census estimate 2007

Median Income $37,001

Public Housing Middletown

   1662+/- Section 8 Choice Vouchers

   1607 Public Housing Units (my best estimate on available info it is probably higher)

POVERTY LEVEL IN MIDDLETOWN 2007 22% UP FROM 12% IN 2000.

Meeting City Council met this date at 5:00 P.M. at Ed Rusk Senior Citizen Center on Verity Parkway for the purpose of discussing Middletown Housing Stock. In the absence of the Mayor, Vice-Mayor Tony Marconi opened the meeting with a moment of meditation and roll-call. Members present: Messrs. Marconi, Amburgey, Armbruster, Mulligan, Mrs. Williams and Miss Lawrence. Staff Present: Interim City Manager Steve Husemann, Clerk Parr, Chief Bruck, Planning Director Kohler, N. Self, V. Grooms and B. Murphy.

WELCOME Mr. Marconi welcomed those in attendance and explained the Housing Stock Meeting was brought about after discussion at the Council Retreat.

Clerk of Council