Congress has just over a month to complete the FY20 HUD appropriations bill or HUD and providers could be faced with another Continuing Resolution. The current Continuing Resolution keeps HUD and other federal programs funded at FY19 levels through November 21. LeadingAge is urging its members to reach out to their representatives and senators in support of strong funding for affordable housing for older adults.
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.
The Housing Opportunity Through Modernization Act of 2016 (HOTMA) was enacted on July 29, 2016 and contained several long-advocated for provisions intended to streamline administrative processes and reduce burdens on public housing agencies (PHAs) and private owners. This proposed rule would revise HUD regulations to put sections 102, 103, and 104 of HOTMA into effect, though changes would not actually be implemented until the beginning of the calendar year after HUD has issued an
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.
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.
The State of the Nation’s Housing 2019 describes housing production as not keeping pace with the nation’s growth of households. This low production creates higher housing costs, which increase housing affordability struggles for low and moderate income households, the report says. Even as rental housing costs continue to increase, more older adult households are renting.
The House-passed bill increases overall HUD funding by 7%, rejecting the White House’s request to cut the HUD budget by 18% for the fiscal year that begins on October 1. For HUD’s Section 202 Housing for the Elderly account, the bill would increase funding by almost 19% compared to fiscal year 2019 funding.
H.R. 3055 includes a total of $804 million for HUD’s Section 202 Housing for the Elderly program, full funding for Section 8 Project-Based Rental Assistance contract renewals, and increases for other HUD programs.
The House bill includes a total of $140 million for new homes under HUD’s Section 202 Housing for the Elderly program, a far cry from LeadingAge's continued ask for $600 million for new Section 202 homes.
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