The FY13 HUD Budget Proposal: CLPHA Analysis and Views

The Administration released its fiscal year 2013 budget proposal on February 13.  In addition to funding requests, the Administration’s budget for the Department of Housing and Urban Development (HUD) includes a number of suggested policy changes. Some of these changes involve new flexibilities with use of funds, while others entail administrative streamlining that has been sought for years in the various forms of Section 8 reform legislation.  CLPHA’s review of the Administration’s budget proposal for HUD in FY13 reveals the following:

Operating Fund

According to HUD’s congressional justifications, the Administration’s proposal of $4.524 billion for the public housing operating fund will fund 90 percent of PHA’s estimated eligibility, making HUD’s estimate of total eligibility approximately $5.027 billion.  The proposed amount of $4.524 billion represents 89.4 percent of CLPHA’s request and calculation of eligibility (at $5.056 billion), and represents a decrease from FY12 eligibility (calculated at $4.962 billion) of $438 million.  Congress appropriated $3.962 billion for the operating fund in FY12, with a $750 million offset of PHAs’ “excess” operating reserves.  Secretary Donovan emphasized that HUD is not proposing to offset funding using operating fund reserves in FY13.  As he explained, “we made a commitment that the offset was a one year thing, and we are keeping our promise to not draw down on reserves.”

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Convening on Housing Authorities and Homelessness

On Wednesday, February 8, HUD and the US Interagency Council on Homelessness (USICH) brought together housing authorities (HAs) and Continuums of Care (COCs) from the western half of the country for a convening in Los Angeles, entitled “OPENING DOORS: Expanding PHA Opportunities to House Homeless Persons through Coordination of HUD and Other Programs.” The program aimed to highlight communities that have been successful in working across HUD programs and spark conversations that would help create more opportunities to provide housing and services targeted to homeless persons. (Another convening for the eastern half of the country will occur in April.)

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HUD Provides Guidance on Executive Compensation Restrictions

HUD has released a notice providing guidance to housing authorities (HAs) on implementation of the provision of the 2012 Appropriations Act (PL 112-55) that limits the use of FFY 2012 Section 8 Tenant-Based Rental Assistance (TBRA) and Section 9 appropriations to pay salaries of HA employees. The notice applies to all housing authorities that receive appropriations for public housing and/or Housing Choice Vouchers (HCV) and pay salary exceeding $155,500 to an employee for the HA fiscal year 2012.

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CLPHA Member News

News from D.C., Jersey City, Milwaukee and San Antonio

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