The House approved, by a vote of 210-206, a rescission package on June 7. “The Spending Cuts to Expired and Unnecessary Programs Act” (HR 3), based on an earlier proposal by the White House, includes nearly $15 billion in cuts to previously approved funding. The bill cuts almost $40 million from HUD’s Public Housing Capital Fund, $40 million from the U.S. Department of Agriculture’s Section 521 Rental Assistance program, and $141 million from the Department of the Treasury’s Capital Magnet Fund. The NLIHC-led Campaign for Housing and Community Development Funding (CHCDF) sent a letter to Congress opposing the rescissions. The bill now heads to the Senate, where senators from both parties have voiced opposition to cutting previously appropriated funding.
The rescission package specifically targets funding provided by the Public Housing Capital Fund for the Resident Opportunity and Self-Sufficiency (ROSS) program. This program allows public housing authorities (PHAs) to hire service coordinators who help public housing residents access resources in their communities to help them gain self-sufficiency.
The proposed cuts to the Section 521 Rental Assistance Program would cause the USDA to be unable to fully fund rental assistance contracts for the current fiscal year. This money was intended to be carried over into FY18 and supplement the current appropriation. These funds are needed to ensure there are no shortfalls in the program, which would cause significant harm to rural affordable housing providers and residents.
The proposal also rescinds $141 million from the Capital Magnet Fund, which awards competitive grants to finance affordable housing and community revitalization efforts. The program’s FY17 funding round allowed it to award $120 million to 40 grantees serving 41 states and the District of Columbia. Those 40 organizations are projected to create approximately 17,000 additional jobs, produce 21,000 affordable homes, and attract more than $3.2 billion in additional investment in both rural and urban areas. Of that investment, 78% - or $2.5 billion - is expected to come from the private sector.
Learn more about the rescission bill at: https://bit.ly/2JAfpWN