By Eugene T. Lowe
September 27, 2004

With the House having virtually cut all housing and community development programs for FY05, the Senate came along and did just the opposite, increasing many of the funds over last year's spending levels when the full appropriations committee met on September 21. Community Development Block Grant (CDBG) was increased as well as the HOME Investment Partnerships program over last year's funding levels. CDBG is funded at $4.95 billion, an increase of $29 million, and HOME is funded at $2.05 billion, an increase of $44 million. Included in HOME is $50 million for the American Dream Downpayment program, the downpayment assistance program for first-time homebuyers. The final outcome of fiscal year 2005 HUD appropriations now awaits a house'senate conference or an omnibus bill or a continuing resolution, whatever the congress can do before its planned adjournment by October 15.

The much beleaguered Section 8 program was fully funded by the Senate at $20.707 billon. The public housing capital fund was increased by $4 million over last year's level to $2.7 billion, while the public housing operating fund was cut by $969 million to $2.61 billion. According to the Committee Report the reduction is a result of a requirement that "all public housing agencies (PHAs) ... convert to a calendar year budget for all costs associated with PHA operating funding. This transition will result in a savings of $1 million for fiscal year 2005 since PHAs will only receive the funding necessary to meet the costs of operations through calendar year 2005. This is a one-year savings for fiscal year 2005 only."

Other FY05 funding levels approved by the appropriations committee include: homeless assistance grants at $1.26 billion (a $44 million increase); level funding for Housing Opportunities for Persons with AIDS (HOPWA) at $295 million; level funding for Section 202 elderly housing and Section 811 disabled housing at $774 million and $250 million, respectively; level funding for HOPE VI, the distressed public housing program, at $150 million; and $50 million for the Bond-Mikulski Lead Hazard Elimination program.

The committee approved a total budget for HUD at $36.4 billion, which is $1 billion more than the FY04 level, and $700 million more than requested by the administration.