House THUD Appropriations marked up at reduced levels for HUD with some bright spots

by Sarah Jawaid, National Housing Conference

The House Appropriations Committee released their fiscal year 2013 Transportation, Housing and Urban Development funding bill earlier this week, and it was marked up in a House THUD subcommittee hearing today. This bill comes in at $51.6 billion in discretionary spending – a reduction of about $4 billion below FY12 levels and about $2 billion below the President’s budget FY13 request. The bill includes $33.6 billion for HUD, a decrease of $3.8 billion below FY12.

• $26.3 billion for Public and Indian Housing; this is an increase of $759 million above last year’s level and $250 million below the President’s request

• $8.7 billion for Project-based vouchers at the President’s level which would short fund the account 

• $19.1 billion for Tenant-based voucher program, slightly above the President’s request but contract renewals are at the President’s level which assumes savings from revenue raising provisions 

• $75 million to fully fund the President’s request for VASH vouchers 

• $650 million for Native American Block Grants 

• No funding for the Choice Neighborhoods or Sustainable Communities programs. 

• $3.3 billion for CDBG – an increase of $396 million above last year’s level 

• $1.2 billion for HOME – an increase of $200 million above last year’s level

Both majority and minority committee leadership stated that this was a good bill given the tough allocation but expressed some concerns that they hoped would be dealt with as the process continues. Ranking Member Rep. Olver was encouraged to see the process moving forward and thought the bill did well for programs such as HOME, CDBG and VASH. However he was concerned with short funding the project-based Section 8 account and zeroing out of Sustainable Communities. The bill is expected to be marked up in the full committee in the coming weeks before going to the House floor and then conference with the Senate.