This year the Federal government almost shutdown for the first time in fifteen years. At the last moment, a deal was struck to keep the government going. In the initial days following the budget deal, it was not readily available what exactly was cut, but we knew over $38 Billion was cut from the Federal budget.
Previously, the blog reported on potential cuts to important affordable housing programs in this post where we reported, among other proposed cuts, a potential $300 Million decrease in the Community Development Block Grant (CDBG) program and a replacement of the Hope VI program with the Choice Neighborhoods Program.
Now, the current cuts approved by Congress and signed by President Obama are as follows:
- $3.5 billion for the Community Development Fund (CDF), which includes the Community Development Block Grant (CDBG) program. Compared to FY2010 levels, this represents a 21% cut in the CDF and a 16% cut in the CDBG program. These funds reach cities and counties around the country to, among other goals, help improve blighted properties that are crippling neighborhoods.
- $1.6 billion for the HOME Investment Partnerships Program, a 12% reduction from FY2010 levels. This program funds affordable housing projects that assist low-income Americans.
- $2 billion for the Public Housing Capital Fund, a 18% reduction from FY2010 levels. The Capital Fund provides funds for capital and management activities of Public Housing Agencies (PHAs).
- $4.6 billion for the Public Housing Operating Fund, a 3% reduction from FY2010 levels. This fund provides assistance to public housing agencies (PHAs) for the operation and management of public housing.
- $99.8 million for HOPE VI and Choice Neighborhoods Initiative account, a 50% reduction from FY2010. These programs provide funding to transform severely distressed public housing with the goal of creating mixed-income neighborhoods.
- Housing Counseling Assistance is totally eliminated, which provides counseling for homebuyers including mortgage delinquency and foreclosure counseling.