FY 2012 HUD/Transportation Appropriations Now Law, Includes Some Reg Relief for PHA's and FHA Mortgage Limit Increases.

Entire 457 page bill text of  HR 2112 is HERE.(HUD Section starts on page 355).

NLIHC has posted an additional table of comparisons of selected program funding levels HERE; it includes FY 2012 comparisons to FY 2010, FY 2011, and the FY 2012 President's requested budget. 

Fixed Income PHA Income Re-certifications Can Move to a 3 Year Cycle. Contrary to what I said in yesterdays post  the final bill does include a Section 236 [page 432] that has some PHA changes related to income eligibility. A key regulatory relief provision allows, subject to tenant self certification, 3 year income recerts for those with "fixed incomes". There are also changes to the definition of income limits for extremely low income families (it will be the higher of 30% of median family income or the poverty level). I am sure that industry groups and HUD will have more to follow on these and other eligibility changes in the coming days.

FHA mortgage limits are included in the bill [page 437], mortgage  limits did NOT increase for Fannie and Freddie. Realtor PR is HERE.

Originally created and posted on the Oregon Housing Blog.

HUD Conference Committee FY 2012 Budget vs FY 2011 Enacted and President's Proposed FY 2012.

Using NLIHC budget table , I have prepared a PDF file HERE that shows my calculation of the differences between FY 2012 conference committee reported HUD budget and FY 2011 enacted and FY 2012  budget request by the President.

Biggest loser I see are CDBG and HOME programs which were cut 12% and 38% from FY 2011 levels.   Tenant based voucher did better than expected with a more than 3% increase, but admin fees were cut by nearly 7%. Project based Section 8 increased by less than 1%.

Based on my read of report it does not look like any of the changes in public housing/voucher eligibility and reduction in frequency of income verification for fixed income recipients made it into the final bill. [Difficult to cut voucher admin costs by 7% without some regulatory relief...].

Full conference committee report is HERE. 

Originally created and posted on the Oregon Housing Blog.

HUD FY 2012 Conference Committee Report Out,

The House/Senate Conference Committee Report that includes FY 2012 HUD appropriations has been published in the Congressional Record.

Title II, the HUD portion of the bill, starts at page 33 HERE. Lots of different provisions, I note that it includes FHA mortgage increases and $125 million for HUD/NRC mortgage counseling.

I expect NLIHC will have a comparison table up today or tomorrow on their web page HERE. Both the House and Senate will have to pass the legislation before it goes to the President for signature, presumably by the end of this week.

Originally created and posted on the Oregon Housing Blog.

HUD HOME Budget Cuts Would Hurt Renters the Most; 91% of HOME $$ in Oregon Have Focused on Renters.

With action expected on the HUD FY 2012 appropriations bill next week, the National Housing Conference has put together a spreadsheet HERE showing how HOME dollars were spent by state from 1992-2011 including a count of completed units produced for different purposes. 

I culled out the Oregon data into PDF HERE and added some calculations to show how much was used for different purposes. Some observations:

1. Nearly 24,000 completed units in Oregon have received HOME assistance; 2,200 were home buyers and homeowners and the remainder of HOME assistance went for rental housing.
2. 91% of $$ and 90% of Oregon HOME units completed were for rental housing. 
3. The vast majority of Oregon HOME rental assistance went for Tenant Based Rental assistance. TBRA units accounted for 72% of all completed HOME units in Oregon--this was the HIGHEST percentage for any state in the country. The 14% of HOME funding spent for TBRA in Oregon was also the HIGHEST percentage in the country.
4. Oregon HOME non TBRA rental average costs per completed unit were 59% higher than the US average ($50,488 vs. $31,819). [This may have been because units were targeted for those with the lowest incomes. Feel free to add comments to this post if other known reasons account for cost differences].
5. All other HOME uses (home buyer, homeowner rehab, and TBRA) in Oregon had average per completed unit costs that were less than the national average.

 Originally created and posted on the Oregon Housing Blog.

Comparison of Select HUD Program Funding FY 2011 with FY 2010 and President's FY 2011 Budget Request.

I extracted select data from new NLIHC budget table HERE to construct table below. It shows comparisons of funding for select HUD programs in House /Senate Appropriations bill scheduled for vote later this week with FY 2010 funding and funding that had been proposed in President's FY 2011 budget. (% in far right columns are CHANGE %).

Biggest % drops were for housing counseling, Section 202 and 811, HOPE VI, and Public Housing Capital Fund. [Section 202 and 811 got more however than President had requested]. 

Project based assistance had greatest increase. 

Originally created and posted on the Oregon Housing Blog.

President's Proposed FY 2012 Budget: HUD Outlays as Share of Total Federal Outlays Will be At Lowest % in Last 40 Years.

In beginning to dig into FY 2012 proposed budget details, I looked at an Excel spreadsheet HERE that shows the historical percentage of Federal outlays by agency.  (Outlays are better to focus on IMHO as they show one year obligations instead of multi year budget authority). 

The graph below illustrates the Excel data and shows how HUD's share of outlays has changed over the 1972-2016 (estimated) period, including the estimate for FY 2012. 

Notably, the projected 1.3% of total federal outlays for HUD in FY 2012 is:

1. Lower than it has ever been under any Republican President in the last 40 years,
2. In fact, the LOWEST it has ever been under any President in the last 40 years,
3. Is LOWER than the 2008 HUD share of outlays (1.6%) [which some Republicans say they want to revert back to]; that 1.6%  also happens to be the same share of federal outlays that HUD had in 1972.

Double Click to Enlarge

 Originally created and posted on the Oregon Housing Blog.

House FY 2011 Appropriations Bill Would Gut Many HUD Programs, Cut At Least $5.6 Billion with Half a Year to Accomplish.

The House Republican leadership will be proposing a $100 billion reduction in a appropriations bill that would fund the federal government through the remainder of FY 2011 (Sept 30th). 

With a Republican majority this bill is likely to pass the House this week.  As the Senate is unlikely to pass this level of cut and the President will not sign a bill with this level, the stage is set for a March 4th showdown, when the current continuing appropriations bill expires.

A detailed list of cuts by program and agency are HERE. (HUD cuts can be found starting on page 18).  Actual proposed bill is HERE.

I am sure that advocacy groups will provide more detailed information about these cuts in the coming days. In the interim, I have attempted to extract the HUD cuts from Appropriations Committee documents. While it's possible I missed one or two, the table below shows the amount of cuts I found compared to the enacted FY 2010 appropriations and FY 2011 budget proposal that the President made LAST February.

Observations

1. Total HUD cuts compared to FY 2010 enacted would be at least $5.6 billion, compared to FY 2011 proposed they would be $6.1 billion. 
2. Compared to the FY 2011 proposed President's budget, the largest dollar cut would be for CD block grant program, a reduction of $2,880,100,000; with tenant based rental assistance slated for the second largest cut of $1,470,500,000. 
3. With almost half of the fiscal year complete, the impact of these cuts would be magnified, virtually doubling the number of assisted households/people and projects that would need to be cut to stay within the yearly budget.
4. Note that on Monday the President will propose his FY 2012 budget, which will likely also include some cuts in HUD programs, including CDBG.That bill will be on a much slower track that the FY 2011 Continuing Appropriations bill.

Program	Change , FY 10 Enacted	Change, FY 2011 Proposed
Oregon Housing Blog Calculated Subtotal	$                      (5,614,600,000)	$                             (6,143,340,000)
Project Based Rental Assistance	$                            715,500,000	$                                  (109,000,000)
FHA, MMIP Admin Expenses	$                              18,000,000	$                                      (7,600,000)
HUD WCF / IT Investments	$                              51,000,000	$                                  (319,000,000)
HUD, Transforming Rental Assistance -	$                           (350,000,000)
Tenant Based Rental Assistance	$                           (104,100,000)	$                              (1,470,500,000)
Public Housing Operating	$                           (149,000,000)	$                                  (203,000,000)
Public Housing Capital	$                       (1,072,000,000)	$                                  (616,400,000)
HOPE VI	$                           (200,000,000)	$                                  (340,000,000)
Native American Housing Block Grants	$                           (200,000,000)	$                                    (80,000,000)
Native Hawaiian Housing Block Grants	$                             (13,000,000)	$                                    (10,000,000)
Community Development Fund	$                       (2,950,000,000)	$                              (2,880,100,000)
HOME Investment Partnerships Program	$                           (175,000,000)
Housing Counseling Assistance	$                             (87,500,000)	$                                    (88,000,000)
Energy Innovation Fund	$                             (50,000,000)
Brownfields	$                             (17,500,000)
Choice Neighborhoods -	$                           (250,000,000)
Office of Lead and Healthy Homes	$                             (20,000,000)	$                                    (20,000,000)
Section 202	$                           (551,000,000)	$                                           300,000
Section 811	$                           (210,000,000)	$                                            (40,000)
Brownfields	(rescission)	$                                    (17,300,000)
HOPEVI	(rescission)	$                                  (198,000,000)
Sustainable Communities	(rescission)	$                                  (130,000,000)
Energy Innovation Fund	(rescission)	$                                    (49,500,000)

Originally created and posted on the Oregon Housing Blog.

Omnibus Appropriations Bill FY 2011 HUD Items, Including List of HUD Earmarks for Oregon.

Main PR page HERE from Appropriations Committee has links to various documents. Note: Bill is NOT passed by Congress and subject to significant amendment before it does pass.

• Full Bill HERE, nearly 2,000 pages. HUD Section [Division L, Title II, begins on page 1,555).
• DOT/HUD Summary is HERE, HUD explanation begins on page 2.
• DOT/HUD earmarks are listed HERE, HUD earmarks begin on page 62).
• Explanatory Statement for Division L (Division of bill covering DOT/HUD) is not yet posted.

$2.6 Million in Oregon HUD Earmarks (All use funds from HUD Economic Development Initiative Program):

City of Astoria , OR	Construction of a Park	$800,000		Wu
City of Bend, OR	For design and construction of new research and development facility	$200,000	Merkley; Wyden
City of Grants Pass, OR	For the acquisition and renovation of a community center	$500,000	Wyden; Merkley
City of Salem, OR	Construct Waterline Improvements	$500,000	Wyden; Merkley	Schrader
Luke-Dorf, Inc., Portland, OR	For the construction of a Behavioral Healthcare Housing Facility, with medically-monitored treatment, for individuals	$300,000	Merkley; Wyden	Blumenauer
South Coast Development Council, Coos Bay, OR	Planning, Development and Construction of a Facility	$750,000	Merkley; Wyden	DeFazio
YWCA of Greater Portland, OR	For design and construction of a facility that provides safety and services to victims of Human Trafficking	$300,000	Wyden; Merkley

Originally created and posted on the Oregon Housing Blog.

HUD FY 2011 Budget Passes House: Amendment Will Get HUD Attention--All HUD Travel Funds Cut.

The HUD/DOT FY 2011 Appropriations bill passed the House yesterday, with amendments.  The bill status page HERE has links to Congressional actions, including amendments. 

One Democratic amendment from Kaptur of Ohio, TOTALLY eliminates all HUD travel funds. When I say "totally", I mean totally.

I have posted the Congressional Record discussion of that amendment HERE. The gist:

Rather than let HUD staff use our public dollars to travel to places 
like Rio de Janeiro, when people in our country are working so hard to 
try to work out these mortgages and the banks aren't answering the 
telephones, let HUD use all of its power and authority to bring the 
worst offenders and their buddies to focus their staff on doing 
mortgage workouts in places like Toledo, Ohio, Cleveland, Boise, Idaho, 
Las Vegas, Sacramento. We ought to be doing mortgage workouts, not 
taking what look like vacations to Rio de Janeiro.

I believe I projected in prior post that the Secretary's trip to Rio was going to be a PR problem, but I did not think it was going to take so long, or that a Democratic congresswoman would use it as part of the appropriations process to "send a message" to a Democratic Administration that has significantly increased funding for HUD programs. 

Originally posted and created on the Oregon Housing Blog.

House Appropriations Committee Action on HUD FY 2011 Appropriations: $1 Billion MORE than President's Request, $520 Million MORE than FY 2010 Budget.

All current materials on July 20 action by full committee can be found HERE.

HUD FY 2011 Budget "Mark" is:

• $2.5+ Billion MORE than FY 2010 approved budget. This is reduced to $520 Million MORE after $2 billion in increased receipts are added back [This likely includes higher FHA receipts; if these increased receipts are reduced in future budget scoring, this may mean offsetting reductions in HUD program funding would be required].
• $1+ Billion MORE than President's request for FY 2011.
• Some key new programs are left unfunded in the Chair's mark, including Tenant Rental Assistance Transformation,  Choice Neighborhoods, Energy Innovation Fund, and Catalytic Investments.
• Contrary to President's budget request for reductions in HUD 202 and 811 program funding, those programs are funded at the same level as in FY 2010. (Think I had that right when this process started:)

I have pasted below a HUD table I prepared using a "TOP Line Summary" from the Committee.

Cylinder	Program	FY 2010 Enacted	FY 2011 President's Request	Chairman's Mark	Mark vs FY 2010 Enacted	Mark vs FY 2011 Request
Total	HUD - TOTAL Budgetary Resources Excluding Receipts	46,926.23	48,474.70	49,483.21	2,556.98	1,008.51
Total	Receipts and collections	-867	-2,904.00	-2,904.00	-2,037.00	0
Total	HUD - TOTAL Budgetary Resources	46,059.23	45,570.70	46,579.21	519.98	1,008.51
PH	Tenant-Based Rental Assistance - renewals	16,339.20	17,310.00	17,080.00	740.8	-230
PH	VASH	75	0	75	0	75
PH	Homeless Demonstration	0	85	85	85	0
PH	Mainstream Voucher Renewals	0	113.66	113.66	113.66	0
PH	Family Self-Sufficiency Coordinators (FSS)	60	60	60	0	0
PH	Transforming Rental Assistance Demonstration	0	350	0	0	-350
PH	Public Housing Operating Fund	4,775.00	4,829.00	4,829.00	54	0
PH	Public Housing Capital Fund	2,500.00	2,044.20	2,500.00	0	455.8
PH	Resident Opportunity and Supportive Services (ROSS)	50	0	50	0	50
PH	HOPE VI	135	0	200	65	200
PH	Choice Neighborhoods	65	250	0	-65	-250
PH	Native American Housing Block Grants	700	580	700	0	120
CPD	CDBG	4,450.00	4,380.10	4,352.10	-97.9	-28
CPD	Sustainable Communities	[150.00]	[150.00]	[150.00]	0	0
CPD	Catalytic Investments Competition Grants	[0.00]	[150.00]	[0.00]	0	[-150.00]
CPD	Rural Innovation Fund	[25.00]	[0.00]	[25.00]	0	[25.00]
CPD	HOPWA	335	340	350	15	10
CPD	Brownfields Redevelopment	17.5	0	17.5	0	17.5
CPD	Homeless Assistance Grants	1,865.00	2,055.00	2,200.00	335	145
CPD	Section 108 Section 108	600 6.00	000 0.00	10 00 10.00	400 4.00	10 00 10.00
CPD	HOME	1,825.00	1,650.00	1,825.00	0	175
CPD	SHOP	82	0	82	0	82
CPD	Capacity Building	0	60	0	0	-60
Housing	FHA - Reverse Mortgages (HECM)	0	250	150	150	-100
Housing	Project-Based Rental Assistance	8,551.53	9,382.33	9,382.33	830.8	0
Housing	Housing for the Elderly	825	273.7	825	0	551.3
Housing	Housing for Persons with Disabilities	300	90.04	300	0	209.96
Housing	Energy Innovation Fund	50	0	0	-50	0
Housing	Housing Counseling Assistance	87.5	88	88	0.5	0
Other	Policy Development and Research	48	87	50	2	-37
Other	Fair Housing and Equal Opportunity	72	61.1	72	0	10.9
Other	Healthy Homes and Lead Hazard Control	140	140	140	0	0
Other	Salaries and Expenses	1,346.00	1,379.07	1,379.07	33.07	0
Other	Working Capital Fund	200	243.5	243.5	43.5	0
Other	HUD OIG	125	122	122	-3	0

The fully Senate Appropriations Committee has yet to act on the HUD FY 2011 Budget; the HUD Subcommittee met yesterday. Their PR on the sub committee mark can be found within web page HERE.

Originally created and posted on the Oregon Housing Blog.