FY2017 Omnibus Spending Bill Agreement

On Monday, May 1st, an agreed to fiscal year 2017 omnibus appropriations bill was released. The spending deal would fund the Federal government through September 30, 2017. This omnibus must still be voted on in the House and Senate and then be signed by the President but there is optimism and agreement among the parties involved.

The omnibus provides the Department of Housing and Urban Development (HUD) with $38.8 billion for fiscal year 2017, which is a 1 percent increase over fiscal year 2016 levels. Below is a brief breakdown of a few of the HUD program areas. The NAHRO Policy Team will continue to analyze the omnibus and will provide a deep dive analysis once the omnibus becomes law.

Public Housing (PH)

The omnibus funds the PH Operating Fund at $4.4 billion, which is $100 million less than fiscal year 2016.

The PH Capital Fund is funded at $1.9415 billion, an increase of $41.5 million from fiscal year 2016. This capital funding includes set-asides of $35 million for Resident Opportunities and Self-Sufficiency (ROSS), $25 million for new Competitive Lead-Based Paint Hazard Grants, $21.5 million for Emergency Capital Needs, $15 million for Jobs Plus Pilot, and $10 million for PH Financial and Physical Assessment Activities.

Section 8

Tenant-Based Rental Assistance is funded in the omnibus at $20.292 billion, which is an increase of $663 million more than fiscal year 2016. This amount includes set-asides for Section 8 Housing Assistance Payment Renewals funded at $18.355 billion, Ongoing Administrative Fees at $1.640 billion, Special and Ongoing Administrative Fees at $10 million, Tenant Protection Vouchers at $110 million, and new Incremental Vouchers at $57 million. The Mobility Demonstration program is not funded in the FY2017 omnibus appropriation bill.

Community Development

The Community Development Block Grant (CDBG) and the HOME Investments Partnerships Program (HOME) have flat funding at $3 billion and $950 million respectively.

The Housing Opportunities for Persons with AIDS (HOPWA) is funded at $356 million, an increase of $21 million from FY2016 and the Homeless Assistance Grants are funded at $2.383 billion, an increase of $133 million over FY2016 levels.

Other Rental and Service Programs

The Family Self-Sufficiency (FSS) program is funded at the same level as FY2016, $75 million.

Section 8 Project-Based Rental Assistance increased $196 million from FY 2016 levels to $10.816 billion.

The Rental Assistance Demonstration (RAD) program did not receive any additional funding but the cap on the number of units eligible for the program was increased from 185,000 to 225,000 and the RAD program was extended from 2018 to 2020.

The Neighborhood Reinvestment Corporation (NeighborWorks) was funded at $140 million with $5 million to be used for a multi-family rental housing program.

The United States Interagency Council on Homelessness is funded at $3.6 million and is extended to October 1, 2018.

Senators Reed and Collins Introduce Bill to Strengthen the U.S. Interagency Council on Homelessness

On March 28, Senators Jack Reed (D-RI) and Susan Collins (R-ME) introduced bipartisan legislation (S.743)  to strengthen the United States Interagency Council on Homelessness (the Council). Created by Congress in 1987, the Council is the only federal level agency specifically tasked with coordinating the federal response to homelessness. Since its creation, the body has grown to include 19 Cabinet secretaries and agency heads.

Unfortunately, the Council was last authorized by Public Law 113-325 and sunsets at the end of Fiscal Year (FY) 2017. The Council would have to close its doors on October 1, 2017 and the Reed-Collins bill would eliminate the sunset date so that this agency can continue to build on its success in helping to prevent and end homelessness across the nation.

“The Council works with government, public housing agencies, homeless service providers, and local partners to better align their resources, efforts, goals, and measures of success. The progress we are making is encouraging, but it is not irreversible and now is not the time to end this effective, evidenced-based program that has helped leverage federal investments and measurably reduced homelessness in America,” said Senator Reed. “In our current budgetary environment…[t]he Council is proof that the government can work and save money in the process”

“As the Chairman of the THUD Appropriations Subcommittee, I will continue working to ensure that homeless programs have the data and the resources to reduce and prevent homelessness,” said Senator Collins.

In 2010 the Council unveiled Opening Doors, a federal strategic plan to prevent and end homelessness, through set goals, best practices, and policy priorities. Since then, HUD has reported a 14 percent decrease in overall homelessness in the nation, including a 47 percent decline in veterans’ homelessness.

NAHRO believes that the Council has been instrumental in bringing down homelessness rates and joins a strong and diverse coalition of non-profit and housing organizations in support of the Reed-Collins bill.