House Passes FY22 Minibus Spending Bill – Funding for HUD Included in the Bill; CDBG and HOME Funding Increased
Yesterday, the House of Representatives passed a minibus spending bill (H.R. 4502) that provides FY22 funding for the Department of Housing and Urban Development, Department of Transportation, Department of Agriculture, and several smaller federal agencies. The measure passed along partisan lines with all Democrats voting for the measure and all Republicans voting against it.
The bill provides substantial increases to many HUD programs including CDBG and HOME, which NCDA has advocated for over the past several months. The measure provides $4.688 billion for the Community Development Fund. Of this amount $3.75 billion is provided to CDBG formula grants, an increase of $295 million from last year. Of the $4.688 billion, $935 million will fund community projects funded through the Economic Development Initiative. The House Appropriations Committee report directs HUD’s Office of Policy Development and Research to update the 2005 CDBG formula report, “CDBG Formula Targeting to Community Development Need” within one year. This could possibly be an attempt by some in Congress to revise the current CDBG formula which was unsuccessful in 2006.
The measure provides $1.850 billion for the HOME program, an increase of $500 million from last year. Of this amount, $50 million will be targeted to assisting first-generation, first-time homebuyers with down payment and closing cost assistance. The House Appropriations Committee report includes language requiring HUD to develop regulations to update the property standards for the HOME program to reduce carbon pollution, increase energy efficiency, and increase resilience to natural disasters.
The measure funds HUD’s Homeless Assistance Grants at $3.42 billion for FY22, an increase of $420 million from last year. This includes $290 million for the Emergency Solutions Grants program, $225 million for new Continuum of Care grants, $52 million for rapid re-housing and services for victims of domestic violence, sexual assault, dating violence, and stalking, and up to $92 million for grants to serve youth experiencing homelessness.
The House Appropriations Committee report further directs the General Accountability Office (GAO) to conduct a comprehensive evaluation of HUD staff capacity across the entire Department including headquarters and the field offices and provide recommendations on ways to improve staff capacity. The report will examine staff hiring, training, and retention and the capacity of staff to meet current workloads.
The minibus spending bill provides the following funding for other HUD programs:
- $29.2 billion for Tenant-Based Rental Assistance, an increase of $3.4 billion from last year with $1 billion provided for new vouchers to assist nearly 125,000 low-income families
- $14 billion for Project-Based Rental Assistance, an increase of $535 million from last year
- $300 million for the Section 108 Loan Guarantee program, level funding from last year
- $400 million (including $10 million for planning grants) for the Choice Neighborhoods Initiative, an increase of $200 million
- $600 million for HOPWA, an increase of $170 million
- $1 billion for Housing for the Elderly (Section 202 Program), an increase of $145 million
- $352 million for Housing for Persons with Disabilities (Section 811 Program), an increase of $105 million
- $100 million for Housing Counseling, an increase of $42.5 million from last year
- $460 million for the Office of Lead Hazard Control and Healthy Homes, an increase of $100 million from last year
The Senate has not released or marked-up any of its twelve spending bills, prompting concern that Congress that will need to enact a Continuing Resolution by October 1, the beginning of the FY22 federal year, in order to have adequate time to finish the bills.
Rep. Waters Introduces Massive Housing Legislation Package
Rep. Maxine Waters, Chairwoman of the House Financial Services Committee, introduced three bills this month: the Housing is Infrastructure Act, the Ending Homelessness Act, and the Downpayment Toward Equity Act. The Housing is Infrastructure Act would provide massive funding for affordable housing development through the following programs, including CDBG and HOME.
- $45 billion for the National Housing Trust Fund
- $35 billion for the HOME program
- $150 billion for new housing choice vouchers
- $10 billion for downpayment assistance for first generation homebuyers
- $5 billion to preserve properties receiving project based rental assistance
- $15 billion for the CDBG program
Of the $15 billion provided to CDBG, $2 billion would be allocated to colonias (poverty-stricken areas along the Mexico/US border), $250 million would be used for manufactured housing infrastructure improvements, and the remaining $12.75 billion would be allocated to States, territories, and local governments through a competitive process for the development and preservation of affordable rental housing and the elimination of zoning requirements that limit affordable housing development.
The bill would also fund a $10 competitive grant program, like the Choice Neighborhoods Initiative, to support local partnerships to fund neighborhood revitalization in distressed areas.
The Ending Homelessness Act would make the Housing Choice Voucher program a federal entitlement program (like Social Security). The Downpayment Toward Equity Act would create a $100 million state-administered grant program for first-generation homebuyers.
Office of Management and Budget Will Not Change MSA Definition
At the behest of NCDA and other national organizations, the Office of Management and Budget (OMB) will not go forward with changing the definition of “metropolitan statistical area.” In January, OMB proposed increasing the minimum MSA threshold from 50,000 to 100,000 people. This change would have prevented smaller communities from becoming CDBG entitlement communities and would have affected other federal programs.
Consumer Financial Protection Bureau Releases Rental Assistance Tool
The Consumer Financial Protection Bureau (CFPB) this week released its online tool to assist renters and landlords impacted by COVID-19 locate state and local Emergency Rental Assistance programs.
OCC to Rescind 2020 CRA Rule
On July 20, the Office of the Comptroller of the Currency (OCC) announced it will propose to rescind its May 2020 final rule overhauling the Community Reinvestment Act, signaling its intention to partner with the FDIC and the Federal Reserve Board on a separate joint rulemaking. The May 2020 final rule would have weakened the CRA, particularly enforcement of banks.
Upcoming NCDA Online Training
Consolidated Planning Primer
August 3, 10, 12, 2021
2:00 pm – 4:30 pm EDT each day
Click here to register
The course provides an overview of Consolidated Planning for CDBG grantees and HOME participating jurisdictions. It covers the Citizen Participation Plan, the public input consultation requirements, and the preparation of the plan. The course is appropriate for anyone who works on preparing the Consolidated/Annual Plans, or who works with CDBG or HOME funding. This course is eligible for 6 AICP Currency Maintenance (CM) credits. The cost is $200 for members and $300 for nonmembers. As an added bonus, register yourself and at least four of your colleagues together for a 15% discount.
CDBG Basics Training and Certification Course
August 16 – September 9, 2021
Mondays & Wednesdays (First 3 weeks)
Tuesday & Thursday (Labor Day week)
2:00 pm – 4:30 pm EDT each day
Click to here to register
The course features expanded coverage of the fundamentals of the CDBG program including national objectives and eligible activities, eligible costs and regulations, limitations on expenditures, program administration, financial management, monitoring, crosscutting Federal requirements overview, and conflict of interest. This course is eligible for 16 AICP Currency Maintenance (CM) credits. Attendees who pass the optional exam will receive a Certificate of Completion. New staff with one year or less experience must take the prerequisite on-demand CDBG Primer course (free of charge) in preparation for the class. Please see the registration page for more details. The cost for registration is $350 for members ($400 after August 9th) and $450 for nonmembers ($500 after August 9th). As an added bonus, register yourself and at least four of your colleagues together for a 15% discount.
HOME Basics Training and Certification Course
November 8 – December 10, 2021 (No sessions held Thanksgiving week)
Mondays & Wednesdays
2:00 pm – 4:30 pm EDT each day
Click here to register
The course will provide a basic, but comprehensive overview of the HOME program. The course will include information on the fundamentals of the program, eligible and ineligible activities, eligible costs, CHDOs, general program requirements, project requirements, match requirements, program administration, complying with other federal program requirements, and achieving quality administration. The course is eligible for 16 AICP Currency Maintenance (CM) credits. Attendees who pass the optional exam will receive a Certificate of Completion. New staff with one year or less experience must take the prerequisite on-demand HOME Primer course (free of charge) in preparation for the class. Please see the registration page for more details. The course registration fee is $350 for members (through November 1) and $450 for nonmembers (through November 1). As an added bonus, register yourself and at least four of your colleagues together for a 15% discount.
IDIS Basics Course
October 11 – November 5, 2021
Mondays/Wednesdays
2:00 pm – 4:30 pm EDT each day
Registration coming soon!
Please contact Heather Johnson at hjohnson@ncdaonline.org with questions regarding any of the training courses.
HUD NEWS
HOME-ARP Webinar Series
HUD’s Office of Affordable Housing Programs has developed a series of webinars to help HOME grantees plan for the $5 billion HOME-ARP program. HUD is expected to release official program guidelines and regulations in early Fall.
HOME-ARP Planning Process: Getting Started
August 5, 2021 – 2:00 pm to 3:30 pm EDT
Register here
HOME-ARP Planning Process: Developing a Plan
August 26, 2021 – 2:00 pm to 3:30 pm EDT
Register here
Project Case Studies
September 16, 2021 – 2:00 pm to 3:30 pm EDT
Register here
HUD Launches New Section 3 Landing Page
Visit the new Section 3 page to explore Section 3 FAQs and to stay current on Section 3 news. HUD is working on a Section 3 guide to post to the web page.
Section 3 Final Rule Training
HUD will hold virtual Section 3 training by HUD region to discuss the key changes of the Section 3 rule. Please go here to see the training delivery dates for your region and to register for the training.
CDBG-CV Materials Posted
HUD’s Office of Block Grant Assistance has posted all past CDBG-CV webinar deliveries to HUD Exchange for quick reference and referral for CDBG-CV grantees.
