Trump Administration Proposes 2019 HUD Budget

The Trump administration recently announced the proposed Fiscal Year 2019 Budget for HUD. The budget proposes an 18.3 percent cut from FY 2017 enacted levels. The goal is to reduce the federal involvement in housing assistance and “recognizing” that states and local governments should shoulder that responsibility.             

Tenant rent contributions would increase to 35 percent of income. Also, the Community Development Financial Institutions (CDFI) Fund, CDBG, HOME, the Housing Trust Fund, and the Capital Magnet Fund would be eliminated. There would be no funding for the Public Housing Capital Fund. Choice Neighborhoods would also be eliminated. The budget proposes work requirements for housing and would create EnVision Centers to encourage self-sufficiency. Project Based Rental Assistance would be funded at $10.9 billion, approximately $200 million below FY 2017 levels. The budget proposes $19.3 billion for Housing Choice Vouchers, approximately $1 billion less than FY 2017 actuals.     

In an addendum to the FY 2019 proposed budget, the administration suggests providing an additional $2 billion, of which $1 billion would be used to protect elderly and disabled residents from rent increases (spread among Public Housing, Housing Choice Vouchers, and Project Based Rental Assistance). The addendum also provides $700 million to restore 200,000 Housing Choice Vouchers, and $300 million for public housing operating funds.

The proposed budget also gives the HUD secretary the authority not to provide rent adjustments for properties under Section 202 and 811. This could make it more financially difficult to operate these properties.

One program that would not be eliminated is the Rental Assistance Demonstration (RAD) program. RAD would be funded at $100 million. The budget would allow Section 202 Project Rental Assistance Contract (PRAC) properties to convert under RAD. However, the ability to successfully convert public housing to more stable footing through RAD requires fully funding Section 8, which the budget proposal would significantly cut. The budget also proposes removing the cap on public housing RAD units.