HUD Unveils FY 2013 Budget Proposal

In a briefing with stakeholders and interested parties on February 13, HUD Secretary Shaun Donovan unveiled HUD’s proposed budget for fiscal year 2013.  A departure from previous HUD budget’s of the Obama Administration, it is a proposal short on new, grand, bold changes, transformations and initiatives.  In spite of these tough, cost-cutting, fiscal belt-tightening times, Secretary Donovan proudly stated the proposal came out well given the priorities we have as a nation and reflects a “three percent increase in budget authority for HUD over fiscal year 2012.”  He proclaimed he will be “fighting to make the case” with policymakers in Congress that this budget proposal is a “starting point to go up, not down.”  Putting the budget proposal in context, Secretary Donovan reminded the audience that despite recent cuts to rental assistance programs, “we are serving 200,000 more families today than in 2009” when the Obama Administration took office.  According to the Secretary, in FY13, 83 percent of HUD’s budget request will be used to: 1) renew existing rental assistance and operating subsidies; 2) fund accrued capital needs of public housing; and, 3) renew existing homeless assistance grants.

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House Subcommittee Marks Up Revised Section 8 Reform Bill

On February 7, the House Insurance, Housing and Community Opportunity Subcommittee of the House Financial Services Committee, marked up for amendment the “Affordable Housing and Self-Sufficiency Improvement Act of 2012” Discussion Draft (AHSSIA).  As previously reported, AHSSIA is a successor to previous Section 8 reform bills, and includes an MTW expansion along with a Rental Assistance Demonstration component.

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2012 Housing Choice Voucher Funding Provisions

On February 8, HUD released PIH Notice 2012-9, which implements the 2012 Housing Choice Voucher funding provisions from the Consolidated and Further Continuing Appropriations Act, 2012 (PL 112-55). The notice outlines the procedures with which funding allocations will be determined, but does not contain details such as the estimated proration for either HCV renewal or HCV administrative fee funding.

As directed by the 2012 Act, HCV renewal funding will be based upon a 2011 calendar year baseline, instead of the fiscal year baseline that has been used previously, but still determined via leasing and cost data from the Voucher Management System (VMS). Adjustments will be made for first-time renewal of tenant protection and special purpose vouchers. A HUD-determined local inflation factor, which has not yet been published, will be applied to the baseline to determine each agency’s 2012 eligibility, after which HUD will determine a proration factor, given the total eligibility and the total available funding.

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John B. Rhea, Charles Woodyard, Join CLPHA Board of Directors

New York City Housing Authority (NYCHA) Chairman John B. Rhea and Chicago Housing Authority (CHA) CEO Charles Woodyard have joined the CLPHA board of directors.

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