FY18 Budget & Appropriations

The budget proposal provided the U.S. Department of Housing and Urban Development (HUD) with $40.68 billion in gross discretionary funding for FY18—$7.3 billion, equal to 15 percent, less than the amount enacted in FY17. This devastating decrease is realized primarily through elimination of certain programs and reductions in the rental assistance programs, including $2 billion in cuts to public housing and related programs. These proposed dramatic HUD reductions come at a time when the federal government should be investing in public housing as part of the nation’s infrastructure, as such investment generates economic growth, creates jobs, bolsters productivity, and generates tax revenue for cash-strapped localities. It also comes at a time of increasing research evidence showing a link between stable housing and social determinants of health, education and employment outcomes.

In a direct repudiation of the President’s budget, both the House and Senate released FY18 Transportation, Housing and Urban Development (THUD) budget bills that provided $6.9 billion and $8.84 billion more funding than the Administration budget, respectively.  See our Comparative Funding Chart for a more detailed look at the FY18 program funding numbers, including CLPHA’s request.

President Trump signed HR 1625, the “Consolidated Appropriations Act, 2018” on March 23, 2018. This “omnibus” funding measure included the twelve regular appropriations bills for FY18.

As with previous omnibus bills, HR 1625 is divided into alphabetical sections according to the funding categories of the various appropriations subcommittees. Division L comprises the Transportation, Housing and Urban Development, and Related Agencies (THUD) appropriations bill, and Title II in Division L contains the section for the Department of Housing and Urban Development (HUD). Each division is equivalent to a conference agreement between the House and Senate appropriations subcommittees. In the case of THUD, the Senate Appropriations Committee passed their version of the FY18 appropriations bill in July 2017, while the full House passed their version in September 2017, along with their respective committee reports.

The FY18 THUD bill is a strong repudiation of the Trump budget proposal and is indicative of the solid support for public housing and other affordable housing programs in Congress. The increased funding levels, particularly, the Capital Fund, and the lifting of the RAD cap are stunning examples of the effective advocacy by CLPHA and its members, and the RAD Collaborative.

The omnibus also provided a huge win for CLPHA and other low-income housing advocates who mounted a robust and successful effort to include provisions to strengthen the Low-Income Housing Tax Credit (LIHTC) program. The provisions adopted in the omnibus would provide a 12.5 percent increase in housing credit allocation for four years and would authorize income averaging in housing credit properties on a permanent basis.

Below is a more substantive review of the funding levels and congressional intent for some of the programs of interest to CLPHA members.