The House of Representatives Appropriations Transportation – Housing & Urban Development Subcommittee has released a draft funding bill for FY-2012. The measure calls for $55.15 billion in discretionary spending across the two agencies, $19.8 billion less than President Obama’s request and $217 million below current spending. The bill would provide $16.7 billion to the Transportation Department, a $3 billion increase over current spending, and $38.1 billion for the Housing and Urban Development Department, a $3 billion cut.


Included in the bill is $24.5 billion for Public and Indian housing. This is a decrease of $1.3 billion below last year and $2.3 billion below the President’s request. The Subcommittee’s press release notes that proposed PIH spending cuts are largely targeted to administrative changes and public housing capital reductions. Full funding is provided project-based and portable section 8 vouchers. The bill includes provisions to: allow HUD to prioritize new funding on Public Housing Agencies (PHA) that need it the most; cap PHA director salaries; and defund public housing units that were included in the failed “stimulus” bill.


Within the total funding, several critical housing programs are increased, including: $75 million ($25 million more than last year) for new vouchers for homeless veterans; $600 million ($200 million more than last year) for Housing for the Elderly; and $196 million ($46 million more than last year) for Housing for Persons with Disabilities. The bill also contains almost $7 billion for Community Planning and Development programs – a decrease of $438.4 million below last year’s level and $1.2 billion below the President’s request. The Community Development Block Grant account is funded at $3.5 billion – the same as last year’s funding level and $280.4 million below the President’s request.


The bill also includes several provisions targeted to enforcement or efficiency related issues. For example, in response to recent articles I the Washington Post, in addition to funding cuts the legislation requires oversight reports on eliminating waste, fraud and abuse for the HOME Investment Partnerships Program. It also caps the portion of Community Development Block Grant funds that may be used for administrative expenses at 10% (down from 20%). In addition, the bill does not contain funding for any new “sustainable,” “livable,” or “green” community development programs or the HOPE VI/Choice Neighborhoods Initiative.


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