By Eugene T. Lowe
August 10, 2009

The Senate Appropriations Committee passed the Transportation, Housing and Urban Development, and Related Agencies (T-HUD) FY 10 appropriations bill July 30 with a funding level of $3.99 billion for the Community Development Block Grant (CDBG) program. While the Senate bill increases CDBG over last year’s funding level by $350 million, it is less than the President’s request and less than the House passed bill, which funded the program at $4.6 billion. The HOME Investment Partnerships program, funded at $1.825 billion meets the President’s request and last year’s appropriation level, but is less than the House bill that would give the program $1.995 billion. Similar to CDBG and HOME, many of the housing programs would receive less funding in the Senate bill than they would in the House passed bill.

Tenant Based Rental Assistance would receive $18.1 billion in the Senate, which is more than a billion over last year’s level and $301 million above the budget request, but is below the House bill that provides $18.2 billion. Project Based Section 8 is funded at $8.1 billion in the Senate bill, but would receive $8.7 billion in the House bill. As for public housing, the Senate bill provides $4.75 billion for the operating fund, while the House would fund the program at $4.8 billion. Both the senate and house would fund the public housing capital fund at $2.5 billion.

The Senate provides $250 million for the new HUD program – the Choice Neighborhood Initiative – and did not fund the HOPE VI program. The House did just the opposite, funding HOPE VI at $250 million and not funding the new HUD program that has not been authorized. With no details having been sent to Congress, HUD said in its budget request that the Choice Neighborhoods Initiative would expand HOPE VI by concentrating on the revitalization of entire neighborhoods. HOPE VI focused on individual properties.

The Senate bill will be taken up on the floor following the August recess. After passage, the next step will be a conference between the senate and house. Fiscal Year 2010 begins on October 1.