President Joe Biden is seeking a hefty $9 billion increase for the Department of Housing and Urban Development (HUD).
His fiscal 2022 discretionary spending request proposes a major expansion of key HUD programs, including 200,000 additional housing vouchers.
The plan provides $68.7 billion for HUD, a $9 billion, or 15%, increase over the 2021 enacted level. The proposal calls for:
· $30.4 billion for the Housing Choice Voucher program, an increase of $5.4 billion over the 2020 level to maintain services for all currently assisted families and expand assistance to an additional 200,000 households, particularly those who are homeless or fleeing domestic violence;
· $3.5 billion for homeless assistance grants, an increase of $500 million over 2021. These resources would complement the $5 billion in emergency housing vouchers provided in the American Rescue Plan;
· $1.9 billion for the HOME Investment Partnerships program, a $500 million increase over the current budget, to construct and rehabilitate affordable rental housing and to support other housing-related needs. According to the administration, this would be the highest level of HOME funding since 2009. The proposal provides $180 million to support 2,000 units of new permanently affordable housing for the elderly and persons with disabilities;
· $3.8 billion for the Community Development Block Grant program, which includes a targeted increase of $295 million to incentivize communities to direct formula funds toward the modernization and rehabilitation of public infrastructure and facilities in historically underfunded and marginalized communities facing persistent poverty;
· $3.2 billion for the public housing capital fund, a $435 million increase;
· $900 million to fund tribal efforts to expand or improve affordable housing conditions and infrastructure; and
· $85 million in grants to support state and local fair housing enforcement organizations and to further education, outreach, and training on rights and responsibilities under federal fair housing laws.
The funding request is a stark contrast from those of the prior administration, which repeatedly sought to reduce or eliminate many of the HUD’s key programs. Those cuts were largely rejected by Congress.
Representatives of several housing organizations applauded the latest funding request.
“This budget is a big deal and reflects years of NAHRO members making the case for investments in affordable housing and community development,” said Sunny Shaw, president of the National Association of Housing and Redevelopment Officials. “A 15% increase in HUD funding is a strong statement by the Biden administration.”
The National Low Income Housing Coalition noted that the fiscal 2022 budget 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.
“When combined with the $40 billion dedicated to recapitalizing the public housing infrastructure in the American Jobs Plan, it is clear the Biden administration is not tinkering around the edges, but rather is investing at a scale not seen before, but absolutely necessary, to solve America’s housing crisis,” said officials at the Council of Large Public Housing Authorities.