The House Appropriations Committee released on July 11 its fiscal year (FY) 2022 draft spending bill, which would provide a $6.8 billion increase to HUD’s budget from FY21. If enacted, the House proposal would provide substantial federal investments in affordable homes and increase the availability of housing assistance to families with the greatest needs. Overall, the House spending bill would fund HUD at $56.5 billion, an increase of $6.8 billion above FY21 and $314 million below the president’s 2022 budget request. For details, see NLIHC’s updated budget chart.
If enacted, the bill would provide significant increases to nearly all HUD programs compared to FY21. The House bill calls for expanding rental assistance through the Tenant Based Rental Assistance program to 125,000 additional households and proposes to increase funding for Homeless Assistance Grants by more than $400 million to $3.4 billion, to expand tribal housing resources from $747 million to $950 million, to expand the HOME Investment Partnerships program by $500 million to $1.85 billion, to support 4,000 new homes for seniors and people with disabilities, to increase fair housing activities by $12 million to $85 million, and to provide $3.7 billion for public housing capital repairs and climate-resilient upgrades to the public housing stock. The proposal would also increase Community Development Block Grants by $1.2 billion to $4.69 billion.
The FY22 spending legislation is the first annual spending bill in a decade that is not limited by the low spending caps required by the Budget Control Act that have prevented Congress from investing in affordable housing at the scale necessary.
The Subcommittee on Transportation, Housing and Urban Development will vote on the draft spending bill on Monday, July 12, followed by a vote in the full Appropriations Committee next week. The Senate is not expected to begin drafting its spending bills until later this year.
The FY22 spending bill is one of several proposals to invest in the nation’s affordable housing infrastructure. The president’s “American Jobs Plan” calls for a $318 billion investment in affordable housing, including $45 billion for the national Housing Trust Fund (HTF) and robust funding for public housing. House Financial Services Committee Chairwoman Maxine Waters (D-CA) is expected to formally introduce her “Housing is Infrastructure Act,” which would also provide $45 billion for the national HTF and the full $70 billion needed to preserve public housing. She is also expected to introduce the “Ending Homelessness Act” to create a universal rental assistance program for all eligible households.
Advocates should continue to contact their senators and representatives to urge them to expand investments in deeply affordable, accessible homes through both the FY22 spending bill and an infrastructure package, including the HoUSed campaign’s top priorities: expanding rental assistance to all eligible households, $70 billion to preserve public housing, and at least $45 billion for the national Housing Trust Fund.
- Sign your organization to a letter supporting increased funding in FY22 for affordable housing, homelessness, and community development resources.
- Contact your senators and representatives and urge them to support the HoUSed campaign’s top priorities for any infrastructure package.
- Sign the HoUSed campaign’s national letter calling on Congress to enact long-term solutions to the housing crisis.
Detailed Analysis
Tenant-Based Rental Assistance
The House proposed increasing funding for tenant-based rental assistance by $3.4 billion above FY21 levels to a total of $29.2 billion, which is sufficient to not only ensure all contracts are fully renewed but to extend the availability of tenant-based rental assistance to 125,000 additional households in need of voucher assistance. The amount provided in the House bill is $1.2 billion less than the $30.4 billion proposed by President Biden, which would have provided for an additional 200,000 vouchers.
A total of $150 million is provided for housing mobility services targeted to families with young children.
Of the amount provided, $1 billion will be set aside for new vouchers. HUD would be directed to create an allocating formula that may be based on several factors, such as severe housing cost-burdens, over-crowding, substandard housing, homelessness, and administrative capacity.
A total of $150 million is provided to the mobility demonstration program, which combines rental assistance with mobility counseling to help families with young children secure housing in areas with strong schools, economic opportunities, and other resources.
Project-Based Rental Assistance
The House spending proposal would provide just over $14 billion to renew project-based rental assistance (PBRA) contracts, an increase of $595 million from FY21 funding levels and equal to the president’s request. This amount would be sufficient to renew all existing PBRA contracts.
Homelessness Assistance
The House calls for $3.42 billion for Homeless Assistance Grants, an increase of more than $400 million over the 2021 enacted level and slightly less than the $3.5 billion called for in the president’s budget request. This funding will complement the $5 billion for emergency housing vouchers enacted in the American Rescue Plan Act. Of this funding, up to $92 million can be set-aside for additional Youth Homelessness Demonstration Programs (YHDPs).
Rehabilitation and Energy-Efficient Upgrades
The House spending bill does not include the president’s request for $800 million in new investments across HUD programs, including public housing and other HUD housing, for modernization and rehabilitation aimed at energy efficiency and resilience to climate-change impacts, such as increasingly frequent and severe floods.
Public Housing
The spending bill calls for $3.7 billion for the public housing capital needs, a modest increase above the president’s request and more than $770 million above the FY21 enacted level. Capital support includes formula funding and $65 million for emergency capital needs, $65 million to address lead-based hazards, $100 million for capital improvements that address climate resiliency, and $50 million to address water and energy efficiency.
The request would also fully cover public housing operating costs by providing approximately $4.92 billion, more than $50 million over FY21 enacted levels. Operating support includes formula funding and an additional $25 million, based on needs.
HOME Investment Partnerships
The House proposes to fund the HOME Investment Partnerships Program at $1.85 billion, the same amount that was included in the president’s budget request. This funding level is $500 million above the FY21 enacted amount. If enacted, this would be the highest funding level for HOME since 2009. Of the amount provided, $50 million is set aside for a new down-payment assistance program to help first-time, first-generation home buyers purchase a home.
Community Development Block Grants
The House bill provides $4.69 billion for the Community Development Block Grant program – nearly $1.2 billion more than the program received in FY21 and $900 million more than the president requested in his FY22 budget request. The House proposal does not include the president’s call for some funds to be used to incentivize communities to “fund geographically targeted revitalization activities in communities that have been historically underserved by the Federal Government.”
Fair Housing
The House bill would increase funding by $12.5 million for HUD’s Office of Fair Housing and Equal Opportunity, for a total of $85 million – matching the amount requested by President Biden.
Housing for the Elderly (Section 202)
The House bill includes $1.033 billion for the Section 202 Housing for the Elderly program, more than $100 million above the level proposed by President Biden and more than $170 above FY21 levels. This funding would renew all contracts and build approximately 2,200 new affordable housing units for low-income seniors.
Housing for People with Disabilities (Section 811)
The House spending bill would provide $352 million to support affordable, accessible housing for people with disabilities. This amount is $80 million above the president’s request and $125 million above FY21 levels. This funding would renew all contracts and construct approximately 1,800 new affordable housing units for persons with disabilities.
Tribal Housing
The House bill helps address housing conditions in tribal areas by providing $950 million – compared to $747 million in FY21 and $1 billion in the president’s FY22 budget request – to fund tribal housing programs. This amount includes $722 million for formula NAHASDA programs, or $75 million more than FY21 levels, and $150 million for competitive NAHASDA programs, up from $100 million in FY21. In addition to considering projects based on need and capacity, the HUD secretary would be directed to give priority within the competitive program to projects that would improve water and energy efficiency or increase resilience to natural disasters.
Healthy Housing
The House bill calls for $460 million to reduce lead-based paint and other health hazards. This amount is $100 million above FY21 levels and $60 million above the president’s budget request. Funding includes $60 million to conduct lead inspections in Section 8 voucher units to improve the health of residents.
Other HUD Programs
The budget proposes $100 million for housing counseling, or $14 million above the president’s request and more than $20 million above the FY21 enacted levels.
The House bill includes the president’s proposal for a $20 million set-aside for an eviction prevention legal services program. This funding is housed within the Office of Policy Development and Research.
The Housing bill would provide $400 million for the Choice Neighborhoods grant program, twice the amount the program was provided in FY21. The bill doubles the number of distressed neighborhoods that could be revitalized through the Choice Neighborhoods Initiative program.
The Self-Help Homeownership Opportunity Program would also receive $15 million, up from $10 million in FY21.
The House also proposes increased funding for the Family Self-Sufficiency (FSS) program to $150 million ($30 million above the president’s request). The Jobs-Plus program would receive level funding at $15 million.
Funding for the Housing Opportunities for People with AIDS (HOPWA) program would increase to $600 million, up from $450 million in the president’s budget request and $430 million in FY21.
Other Programs
The bill provides $185 million for NeighborWorks America.
To strengthen the federal coordination of assistance to people experiencing or at risk of homelessness, the bill includes $4 million for the U.S. Interagency Council on Homelessness.
Take Action
Take action today to support robust increases to affordable housing funding!
- Sign your organization to a letter supporting increased funding in FY22 for affordable housing, homelessness, and community development resources.
- Contact your senators and representatives and urge them to support the HoUSed campaign’s top priorities for any infrastructure package.
- Sign the HoUSed campaign’s national letter calling on Congress to enact long-term solutions to the housing crisis.