A NAHMAnalysis that details the House and Senate appropriations bills for Transportation, Housing, and Urban Development (T-HUD) and rural affordable housing programs in fiscal year 2015 is now available at NAHMA.org.
On May 6, 2014, the House Appropriations Committee released H.R. 4745, its T-HUD appropriations bill for FY 2015. The Senate Appropriations Committees T-HUD funding bill, S.2438, was released on June 3, 2014. The most controversial item in these bills is the appropriation of $9.75 billion for the Project-Based Section 8 (PBS8) program. This figure is $170 million less than the FY 2014 enacted level, and is also more than $2 billion short of the $11.9 billion needed to fully fund contracts upfront at the time of renewal in FY 2015. This funding cut reflects the adoption of a calendar year funding cycle for all PBS8 contracts. Overall, the FY 2015 appropriation figures for affordable housing programs administered by HUD are disappointing. While there were slight increases for some essential programs, the cuts and transition to a calendar year model for PBS8 may have serious negative consequences for property owners and managers.
Both of the FY 2015 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations bills follow the Presidents budget request closely, including Rental Assistance (RA) figures that are below the FY 2014 enacted level. Despite this cut to RA, lawmakers have stated that the proposed amounts will be sufficient to renew all expiring rental assistance contracts in FY 2015. Coupled with a cut to RA, NAHMA is concerned that the House and Senate have adopted the Presidents request to eliminate the automatic renewal of contracts that occur within the 12-month contract period.
To read this NAHMAnalysis, please click here