The New York Housing Conference has provided the below state impact analysis regarding President Trump’s Budget Request:
President Trump’s FY 2019 Budget cuts HUD funding by $8.8 billion or 18.3% compared to enacted FY 2017 funding. This proposal represents a major shift in the federal government’s role in subsidized housing. Public Housing Capital, CDBG and HOME funding would be eliminated. Section 8 and Public Housing Operating would see significant reductions.
NEW YORK STATE LOSES $1+ BILLION IN ANNUAL HOUSING FUNDING [1]
- -$630,485,078 Public Housing Operating & Capital Funds
- -$285,649,007 Community Development Block Grant
- -$91,239,293 HOME Investment Partnership
TRUMP ABDICATES FEDERAL ROLE IN PUBLIC HOUSING
By eliminating the fund for public housing capital, the President abandons public housing leaving state and local governments on the hook for outstanding capital repairs. This dramatic policy shift leaves NYCHA residents in the cold with $25 billion in needed upgrades for safe and decent living conditions.
- DEFUNDED Public Housing Capital
- 35% CUT Public Housing Operating
TRUMP RENT HIKE & FUNDING SHORTFALL WILL INCREASE HOMELESSNESS
Rents will rise for HUD-assisted tenants from 30% of adjusted income to 35% of gross income. The President also sets new minimum rent standards and establishes work requirements for families. The budget also short-funds Section 8, putting families receiving rental assistance at risk of homelessness.
- 511,200 HUD-Assisted Households Rent Increases by 17% or $890/Year on Average [2]
- 20,897 Section 8 Voucher Households at Risk of Homelessness
AFFORDABLE HOUSING NEED
- 90,000 Homeless New Yorkers, including more than 30,000 children.
- 1 Million Severely Rent-Burdened Families, pay more than half their income in rent each month.
- $25 Billion NYCHA Capital Backlog, representing needed infrastructure investment.
JOBS & ECONOMIC BENEFIT AT RISK
In New York State, the annual affordable housing development & preservation impact [3]:
25,655 Apartments | 65,800 Jobs | $10.9 Billion Local Income
Download NYHC State Impact Fact Sheet here and find references below.
[1] Center on Budget & Policy Priorities. 2018. https://www.cbpp.org/blog/trump-2019-budget-slashes-aid-for-families-struggling-to-pay-rent
[2] CBPP. 2018. https://www.cbpp.org/blog/trump-rent-plan-would-squeeze-low-wage-workers-others-struggling-to-afford-housing
[3] HR&A Advisors, Inc. 2017. Economic Impacts of Affordable Housing on New York State’s Economy. Prepared for NYSAFAH. http://www.nysafah.org/cmsBuilder/uploads/nysafah-economic-impact-of-affordable-housing-2017-update-(2011-2015)-final-(003).pdf