Would Katrina relief mean Sec. 811 cuts?
Over at OMB, they've posted two big PDF files with Friday's date: "Estimate #13 -- FY 2006 Reallocation Package for Hurricane Katrina Relief and Recovery (Various Agencies) -- 10/28-05," which contains the requests for $17.1 billion in recovery funds, and "Estimate #14 -- FY 2006 Rescission Package to Help Offset the Costs of Hurricane Katrina (Various Agencies) -- 10/28/05," which contains the parallel request to take $2.2 billion back out of "lower-priority federal programs and excess funds."
Among the things requested for HUD in Estimate #13 are $1.5 billion in Community Development Block Grant funds, apparently along the lines of the big CDBG appropriations for the Lower Manhattan recovery; $390 million to pay for "rental assistance and housing placement services" in the specially created KDHAP program; $250 million for a "homesteading" proposal to offer home purchase assistance to "low-income families" affected by Hurricane Katrina, and $70 million extra for the HOME Investment Partnerships Program. The USDA Rural Housing Service would get $10 million for rural housing repairs, $17 million for rental assistance, and up to $68.3 million for the Rural Housing Insurance Fund Program. Considerable appropriations are requested for military housing, including for military families.
Estimate #14, the rescissions document, proposes taking $130 million back from HUD and $641 million from USDA, among other actions. HUD would lose $24 million from brownfields redevelopment; $6 million from community development loan guarantees; and most of all, $100 million from "Housing for Persons with Disabilities," which LIHTC specifically identifies as meaning Sec. 811. At USDA, some heating and utility subsidies would be cut but not the actual housing programs.
So, a mixed bag of news and an interesting one. Be interesting how this all plays out in Congress.


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