House Appropriators: New Section 202 Homes Needed

Legislation | July 08, 2020 | by Linda Couch, Linda Couch

Bill includes a total of $860 million for new Section 202 homes.

On July 8, the House Appropriations Subcommittee on Transportation, Housing and Urban Development and Related Agencies passed its fiscal year 2021 spending bill. The bill provides a total of $50.6 billion for HUD – an increase of $1.5 billion above the FY 2020 enacted level and $13.3 billion above the President’s 2021 budget request. House Subcommittee bill includes a total of $860 million for new Section 202 homes, a significant increase over FY20’s $90 million for new Section 202 homes.

Most of the $860 million for new Section 202 homes is within the bill’s off-budget, supplemental portion to spur economic recovery necessary because of the coronavirus’s impact on the nation. But, the traditional portion of the Subcommittee’s bill itself includes about $110 million for new Section 202 homes, an increase above FY20’s $90 million. Between FY17, when the 202 program was revived, and FY20, $251 million has been appropriated for new Section 202 homes. Only $50 million of these funds have been released thus far via a NOFA.

Total funding in the bill for the regular, non-economic stimulus portion Section 202 account is $893 million. This is $100 million more than FY20-enacted level, and $40 million more than President’s request for the Section 202 account. In addition to the $110 million for new Section 202 homes, the bill also provides full renewal funding for PRACs and SPRACs, $110 million for Service Coordinator grant renewals, $14 million for two-year extension of HUD’s IWISH demonstration, and $10 million for intergenerational housing via LEGACY Act provisions. The bill makes headway on LeadingAge’s priorities for FY21 HUD funding.

In addition, to support economic recovery, the bill would provide $750 million for new Section 202 Housing for the Elderly homes.

For Project-Based Rental Assistance, the bill provides $13.4 billion for renewals.

In addition, to support economic recovery, the bill includes $750 million for capital improvements for properties receiving Project-Based Rental Assistance:

  • $250,000,000 of the grants made available under this heading in this title shall be for grants for activities that mitigate threats to the health and safety of residents; reduce lead-based paint hazards, and other housing related hazards including carbon monoxide, radon, or mold; improve water and energy efficiency; or reduce the risk of harm to occupants or property from natural hazards,
  • That the grants shall include a financial assessment and physical inspection of such property, and
  • That eligible owners must have at least a satisfactory management review rating, be in substantial compliance with applicable performance standards and legal requirements, and commit to an additional period of affordability determined by the Secretary, but of not fewer than 15 years.

The full House Appropriations Committee is expected to consider the bill before July 17. The Senate Appropriations Committee has yet to schedule its mark up of an FY21 HUD appropriations bill. While the House and Senate will likely pass their respective FY21 HUD appropriations bills before Congress departs for Fall campaigning, no final spending bill is expected before November’s elections. At least one Continuing Resolution is expected to keep HUD and other federal programs running at FY20 levels after the October 1 start of FY21.

House THUD Subcommittee draft FY21 bill.

House THUD Subcommittee summary of FY21 draft bill.

Subcommittee piece on how the bill addresses homelessness.