Affordable Housing and Tax Credit Developments NationallySenate Appropriations Committee Approved Spending Bill FY 2013

On April 19, the Senate Appropriations Committee approved its version of the FY 2013 spending bill (S. 2322) for the Department of Housing and Urban Development (HUD) and on April 26th approved the FY 2013 spending bill (S.2375) for the Department of Agriculture (USDA), which includes funding for Rural Development (RD).

Tenant Based RA – HOME funds are available in the form of rental assistance serving persons at or below 50% of area median income. Applications are awarded through a non-competitive process and are accepted on an on-going basis. The total increase is about $344 million.
Project Based RA – The Section 8 Program was authorized by Congress in 1974 and developed by HUD to provide rental subsidies for eligible tenant families (including single persons) residing in newly constructed, rehabilitated and existing rental and cooperative apartment projects. An increase of $1.17 billion.
Section 202 housing for the elderly – The Section 202 Supportive Housing for the Elderly program is the only HUD program that currently provides housing exclusively for elderly households. The Senate decreased Section 202 by $100 million.

Self–Help Homeowners (SHOP) – SHOP awards grant funds to eligible national and regional non-profit organizations and consortia to purchase home sites and develop or improve the infrastructure needed to set the stage for sweat equity and volunteer-based homeownership programs for low-income persons and families. The Senate funds SHOP with $13.5 million.

Section 538 Guaranteed Rural Rental Housing Program – Encourages commercial financing of rural rental housing, providing affordable housing for low & moderate income people. The Senate provides $150 million in funds

Section 502 – loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. An increase of $247.2 million

Section 515 – The Rural Housing Service (RHS) is a part of Rural Development (RD) in the U.S. Department of Agriculture (USDA). It operates a broad range of programs that were formerly administered by the Farmers Home Administration to support affordable housing and community development in rural areas. RHS both provides direct loans (made and serviced by USDA staff) and also guarantees loans for mortgages extended and serviced by others. There was no increase in Section 515, but the fund is at $28.4 million.

Section 521RA – Rural Rental Assistance (RA) is available in some properties financed by the Section 515 Rural Rental or Section 514/516 Farm Labor Housing programs of the U.S. Department of Agriculture’s Rural Development Housing and Community Facilities Programs office (RD). It covers the difference between 30 percent of tenant’s income and the monthly rental rate. An increase of $2.4 million.

MPR Program – Multi-Family Housing Programs offer Rural Rental Housing Loans to provide affordable multi-family rental housing for very low-, low-, and moderate-income families; the elderly; and persons with disabilities. An increase of $27.8 million.

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