President’s FY 2017 HUD Funding Proposal Overview (Cuts to CDBG)

Last year, congress passed a resolution to suspend sequester budget caps – leading to an unexpectedly high HOME allocation and welcome relief across many HUD programs. The agreement was good for 2 years, thus, the FY 2017 budget is also exempt from sequester. As a result, the President’s FY 2017 HUD budget proposal is 4% higher than it was enacted at for FY 2016.

Though this translated to some programs having moderately higher funding levels proposed for FY 2017, unfortunately, the President proposed a $200M cut for CDBG and flat funding for HOME and many other programs (For a breakdown of funding for select HUD programs, scroll to the bottom of this email. For information on USDA housing and community development program funding, click here).

Despite the suspension of Sequester, the GOP-majority congress has taken an extremely hostile stance to the slightly increased overall spending being proposed.

HOW YOU CAN HELP BOLSTER CDBG & OTHER HUD PROGRAM FUNDING:

The best way to support CDBG is to contact your senator(s) and representatives. Go to http://www.house.gov/representatives/find/ to find your representative’s contact information, and here http://www.senate.gov/senators/contact/ to find your senator(s) information.

For tips and sample language regarding what to say in support of CDBG, HOME, and/or other HUD programs when you contact your senator(s) and/or representative, click here.

BUDGET PROPOSAL OVERVIEW:

Total HUD Budget:

2017 Proposed: $48.9B; 2016 Enacted: $47B; 2015 Enacted: $53.8B

  • CDBG:
    • 2017 Proposed:  $2.8B
    • 2016 Enacted:    $3.0B
    • 2015 Enacted:    $3.0B
    • Analysis: at $200M less than either 2015 or 2016 enacted levels, this is the lowest CDBG allocation proposal the President has ever made. It is also 33% lower than 2010 levels ($3.6B)
  • HOME:
    • 2017 Proposed:  $950M
    • 2016 Enacted:    $950M
    • 2015 Enacted:    $900M
    • Analysis: though equal to the 2016 enacted level, this sets a relatively low bargaining bar (the President’s 2016 budget proposal was $1.060B). Additionally, the budget includes a $10M set aside for SHOP–setting the actual HOME grant fund allocation proposal at $940M. This is 48% lower than 2010 funding levels.
  • National Housing Trust Fund: 
    • 2017 Prediction:  $136M
    • 2016 Prediction:  $182M
    • Analysis: Based on projected Fannie Mae and Freddie Mac revenue, HUD predicts the National Housing Trust Fund will receive $46 million less than what it will receive for 2016.
  • Homelessness Assistance:
    • 2017 Proposed:  $2.664B
    • 2016 Enacted:    $2.250B
    • 2015 Enacted:    $2.135B
    • Analysis: Homelessness assistance programs are receiving a $414M increase as part of a proposed $11 billion program that would fund vouchers and other types of housing assistance to “enable 550,000 families to escape homelessness over the next ten years.”
  • Housing Counseling:
    • 2017 Proposed:   $47M
    • 2016 Enacted:     $47M
    • 2015 Enacted:     $47M
    • Analysis: though equal to 2015 and 2016 enacted levels, this proposal sets a relatively low bargaining bar (the President’s 2016 budget proposal was $60M). It is also 46% lower than 2010 funding levels.
  • Local Housing Policy Grants: For the second year in a row, the President is proposing $300M fund that will be used for localities and regional coalitions to “…support new policies, programs or regulatory initiatives that create a more elastic and diverse housing supply…and demonstrate strong connections between housing, transportation, and workforce planning.”

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