By Eugene T. Lowe
July 19, 2010

Cut by the Administration in its FY11 Budget, the HOME Partnerships program was restored by the House Appropriations Subcommittee on Transportation, Housing and Urban Development (HUD), and Related Agencies (T-HUD) to its FY10 funding level of $1.825 billion. The Administration had recommended a cut in the program to $1.65 billion. The restoration of HOME by the subcommittee, Chaired by Representative John Olver (MA), was only one of many community development and housing programs funded in the FY11 appropriations bill approved on July 1.

The Community Development Block Grant Fund (CDBG), which includes the CDBG formula program, was cut from its FY10 funding level of $4.45 billion to $4.35 billion. More detail is needed to determine if the CDBG formula grants were cut. But it is generally felt based on the information currently available that the formula grants program is funded at last year’s level of $3.990 billion. The Administration’s budget did not recommend a cut in CDBG formula funding, nor in the overall CDBG fund.

Notably, several new HUD initiatives did not receive any funding for FY11. The department’s new proposal called the Preservation, Enhancement and Transformation of Rental Assistance (PETRA) was not funded. The proposed Catalytic Investment Competition Grants was also not funded. The Administration’s budget recommended $350 million for PETRA, and $150 million for Catalytic Grants. Proposed last year and funded at $65 million in FY10 without program authorization, the Choice Neighborhoods Initiative (CNI) did not receive any funding from the subcommittee for FY11. Instead, the subcommittee funded HOPE VI at $200 million. HOPE VI is the severely distressed public housing program that HUD wants to replace with CNI. The Administration had recommended $250 million for CNI and no funding for HOPE VI.

Substantial cuts were also proposed by the Administration in the Housing for Persons with Disabilities (Section 811) and the Housing for the Elderly (Section 202) programs. But the subcommittee rejected the administration’s request and funded both programs at last year’s funding levels. Section 811 would be funded at $300 million, while Section 202 would receive $825 million. The Administration had recommended $90 million for Section 811 and $274 million for Section 202.

Other program funding includes:

• Tenant-based assistance program renewals funded at $17.2 billion.

• Homeless Assistance Grants funded at $2.06 billion.

• Public housing operating funded at $4.8 billion.

• Public housing capital funded at $2.5 billion.

• Housing Opportunity for Persons with AIDS (HOPWA) funded at $350 million.

• Sustainable Communities Initiative funded at $150 million.

• Brownsfields Redevelopment funded at $17.5 million.

• Housing Counseling Assistance funded at $88 million.

• Fair Housing and Equal Opportunity funded at $72 million.

• Healthy Homes and Lead Hazard Control funded at $140 million.