Last week, the Trump Administration released its Budget Proposal for FY 2019, and much like the previous year's Budget Proposal, it contains a number of surprises. Below are a few highlights.
- Elimination of key HUD programs, including HOME, the Choice Neighborhoods Initiative, the Public Housing Capital Fund, and CDBG. The Budget Proposal also states that state and local governments are to fill the gap left behind by the elimination of these programs (it should be noted that the previous Budget Proposal discussed state and local governments partnering with private entities to fill the gap left behind by the elimination of key HUD programs, but talk of such private-public partnerships is noticeably absent from the FY 2019 Budget Proposal).
- Maintaining 2017 enacted level ($145 million) to combat childhood exposure to lead-based paint.
- Establishment of so-called "EnVision Centers" which would guide tenants in affordable housing towards what the Administration describes as "self-sufficiency". These centers would have a nexus of resources from non-profit, corporate, HUD, and state/local governments in order to achieve the goal of "self-sufficiency" for tenants. The Budget also requests a program evaluation be conducted as these centers begin operation. The first of 10 planned "EnVision Centers" would be located in Detroit, MI.
- In keeping with the theme of "self-sufficiency", the Administration proposes the allocation of $75 million for HUD's Family Self-Sufficiency Program and $10 million for the Jobs-Plus Initiative.
- Allocation of $100 million for RAD to help the redevelopment of public housing units to PBV and PBRA units.
- The Budget Proposal requests $33.8 billion to be allocated for all rental assistance programs- a decrease of 11.2% from 2017 enacted levels. Additionally, the Public Housing Capital Fund would not receive any additional funds (the Administration believes the provision of affordable housing should be shifted more towards state and local governments).
- There is a total of $39.2 billion allocated for HUD in the Budget Proposal- a decrease of $8.8 billion/18.3% from 2017 enacted levels.
There was also an Addendum published alongside the Budget Proposal this year to account for the Bipartisan Budget Act of 2018, which raised spending caps for the remainder of FY 2018 and FY 2019-
- Additional $2 billion for HUD is requested, half of which would be used to protect elderly and disabled residents from rent increases (the $1 billion would be spread out among the Public Housing Operating Fund, Housing Choice Vouchers, PBRA, Housing for the Elderly, and Housing for Persons with Disabilities).
- $700 million of the requested additional funds would go to Section 8 Tenant-Based Rental Assistance.
On a final note, it is important in the coming weeks that IRHP's members make clear to their representatives in Congress the value of the programs the Trump Administration wishes to defund and/or eliminate as the next omnibus is negotiated. As a reminder, Congress has until March 23rd to pass a new spending package.
FY 2019 Budget Proposal (HUD appropriations on pages 63-65)- https://www.whitehouse.gov/wp-content/uploads/2018/02/budget-fy2019.pdf
Addendum (HUD appropriations on page 10)- https://www.whitehouse.gov/wp-content/uploads/2018/02/Addendum-to-the-FY-2019-Budget.pdf
Budget Appendix (for HUD appropriations)- https://www.whitehouse.gov/wp-content/uploads/2018/02/hud-fy2019.pdf