Given what LeadingAge understands to be contract renewal needs in the Section 202 account, the Senate bill would not fund any new 202 homes (compared to the House bill, which would provide $140 million for new Section 202 homes in FY20). The Senate bill’s lack of funding for new Section 202 homes is greatly concerning to LeadingAge. Advocates are urged to respond to a forthcoming action alert on the subject. Given the extreme need for affordable housing for older adults with very low incomes, LeadingAge is seeking $600 million for new Section 202 homes in FY20.
HUD’s Housing Finance Reform Plan largely focuses on reforming the work of the Federal Housing Administration (FHA). The plan calls for FHA to be a stand-alone government corporation within HUD. “To modernize FHA, Congress should re-charter it as an autonomous government corporation within HUD, which would provide the agency tools and resources necessary to make appropriate risk decisions to respond to changing markets,” the plan says.
Continuing Resolution
A Continuing Resolution (CR) to fund HUD programs after the October 1 start or fiscal year 2020 is all but guaranteed. Right now, talks are underway on Capitol Hill for a CR that lasts until sometime in November or even December.
On September 5, 2019, HUD released the long-anticipated implementing instructions for accessing new resources for the recapitalization of 202/PRAC properties.
Contact: Lisa Sanders
202-508-9407
lsanders@leadingage.org
September 5, 2019 Washington DC – Providers of affordable, high-quality homes for low-income older adults are celebrating today’s announcement by the U.S. Department of Housing and Urban Development (HUD)’s of implementing instructions for accessing new resources for recapitalization of project rental assistance contract (PRAC) properties.
It is hard to tell how many applications will be received for the current $50 million under the FY18 notice of funding availability (NOFA) because of certain challenges identified by LeadingAge members, challenges which have been shared with HUD in hopes of modifying the competition requirements in the next round. And a second tranche, including the balance of the FY18 funds and all the FY19 funds, is expected to be released in a second NOFA in 2020.
In the meantime, HUD has released a number of State-by-State RAD Fact Sheets which articulate well just how impactful the program can be in helping to preserve affordable housing.
The budget deal, passed by the House and expected to be passed by the Senate prior to its departure for August recess, would raise federal non-defense discretionary spending by $56.5 billion above the fiscal year 2019 cap over the two-year period. For FY20, nondefense discretionary spending would increase from $605 billion in FY19 to $632 billion; in FY21 nondefense discretionary funding would rise to $634 billion. An increase to the caps is critical to FY20 and FY21 appropriations for non-defense discretionary spending for HUD and USDA housing and Older Americans Act programs.
The budget deal, passed by the House and expected to be passed by the Senate prior to its departure for August recess, would raise federal non-defense discretionary spending by $56.5 billion above the fiscal year 2019 cap over the two-year period. For FY20, nondefense discretionary spending would increase from $605 billion in FY19 to $632 billion; in FY21 nondefense discretionary funding would rise to $634 billion. An increase to the caps is critical to FY20 and FY21 appropriations for non-defense discretionary spending for HUD and USDA housing and Older Americans Act programs.
In fact, HUD acknowledged that July contract renewals are going to be a bit late (though we’ve heard from no members in this category). However, funding obligations needed to issue PRAC renewals for July are reportedly going out now, so the July contract renewal delays should not last much longer.
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