DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Funds

For continuing activities under the heading "Rental Assistance Demonstration" in the Department of Housing and Urban Development Appropriations Act, 2012 (Public Law 112–55), and in accordance with priorities established by the Secretary, $50,000,000, to remain available through September 30, 2020: Provided, That such funds shall only be available to properties converting from assistance under section 9 of the United States Housing Act of 1937 (42 U.S.C 1437g) or under section 202(c)(2) of the Housing Act of 1959 (12 U.S.C. 1701q(c)(2)).

Program and Financing (in millions of dollars)

The 2017 Budget provides $50 million for the Rental Assistance Demonstration (RAD) program and expands its authority to convert additional properties to long-term, project-based Section 8 contracts that can leverage private financing for capital improvements. Under existing authorities, Public Housing Authorities (PHAs) and other owners of rental properties assisted under the Public Housing, Moderate Rehabilitation (Mod Rehab), Moderate Rehabilitation Single-Room Occupancy (Mod Rehab SRO), Rent Supplement (Rent Supp) and Rental Assistance Payment (RAP) programs are offered the option to convert their properties to Section 8 contracts. The Budget expands this authority to enable Section 202 Housing for the Elderly Project Rental Assistance Contracts (PRACs) the option to also convert to Section 8 contracts.

In addition to no-cost conversions, the requested $50 million would be awarded to both PHAs and Section 202 PRAC owners to cover the incremental subsidy necessary for properties to feasibly convert. HUD would prioritize properties that are located in high poverty neighborhoods, including designated Promise Zones, where the Administration is supporting comprehensive revitalization efforts or other efforts to significantly increase opportunities for the residents. HUD also intends to prioritize conversions of Section 202 PRAC properties that have significant recapitalization needs in high need areas, as well as other criteria, including those properties with service coordinators for frail and elderly residents.

The Budget also includes the following proposals to facilitate additional conversions of HUD-assisted properties: 1) eliminates the 185,000 unit cap on Public Housing conversions; 2) eliminates the deadline of September 30, 2018, for submission of RAD applications; 3) standardizes ownership and control requirements for converted Public Housing properties in situations where low-income housing tax credits are used or where foreclosure, bankruptcy, or default occurs; and 4) protects tenants' right to continue occupancy under second component conversions.

For activities and assistance for the provision of tenant-based rental assistance authorized under the United States Housing Act of 1937, as amended (42 U.S.C. 1437 et seq.) ("the Act" herein), not otherwise provided for, [$15,628,525,000] $16,854,000,000, to remain available until [expended] September 30, 2019, shall be available on October 1, [2015] 2016 (in addition to the $4,000,000,000 previously appropriated under this heading that shall be available on October 1, [2015] 2016), and $4,000,000,000, to remain available until [expended] September 30, 2020, shall be available on October 1, [2016] 2017: Provided, That the amounts made available under this heading are provided as follows:

(1) [$17,681,451,000] $18,447,000,000 shall be available for renewals of expiring section 8 tenant-based annual contributions contracts (including renewals of enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the Act) and including renewal of other special purpose incremental vouchers: Provided, That notwithstanding any other provision of law, from amounts provided under this paragraph and any carryover, the Secretary for the calendar year [2016] 2017 funding cycle shall provide renewal funding for each public housing agency based on validated voucher management system (VMS) leasing and cost data for the prior calendar year and by applying an inflation factor as established by the Secretary, by notice published in the Federal Register, and by making any necessary adjustments for the costs associated with the first-time renewal of vouchers under this paragraph including tenant protection, [HOPE VI,] and Choice Neighborhoods vouchers: Provided further, That in determining calendar year [2016] 2017 funding allocations under this heading for public housing agencies, including agencies participating in the Moving To Work (MTW) demonstration, the Secretary may take into account the anticipated impact of changes in [targeting and utility allowances] the medical expense threshold, on public housing agencies' contract renewal needs[: Provided further, That none of the funds provided under this paragraph may be used to fund a total number of unit months under lease which exceeds a public housing agency's authorized level of units under contract, except for public housing agencies participating in the MTW demonstration, which are instead governed by the terms and conditions of their MTW agreements]: Provided further, That the Secretary shall, to the extent necessary to stay within the amount specified under this paragraph (except as otherwise modified under this paragraph), prorate each public housing agency's allocation otherwise established pursuant to this paragraph: Provided further, That except as provided in the following provisos, the entire amount specified under this paragraph (except as otherwise modified under this paragraph) shall be obligated to the public housing agencies based on the allocation and pro rata method described above, and the Secretary shall notify public housing agencies of their annual budget by the latter of 60 days after enactment of this Act or March 1, [2016] 2017: Provided further, That the Secretary may extend the notification period with [the prior written approval of] notification to the House and Senate Committees on Appropriations: Provided further, That public housing agencies participating in the MTW demonstration shall be funded pursuant to their MTW agreements, and in accordance with the requirements of the MTW program, and shall be subject to the same pro rata adjustments under the previous provisos: Provided further, That the Secretary may offset public housing agencies' calendar year [2016] 2017 allocations based on the excess amounts of public housing agencies' net restricted assets accounts, including HUD held programmatic reserves (in accordance with VMS data in calendar year [2015] 2016 that is verifiable and complete), as determined by the Secretary: Provided further, That public housing agencies participating in the MTW demonstration shall also be subject to the offset, as determined by the Secretary, [excluding amounts subject to the single fund budget authority provisions of their MTW agreements,] from the agencies' calendar year [2016] 2017 MTW funding allocation: Provided further, That the Secretary shall use any offset referred to in the previous two provisos throughout the calendar year to prevent the termination of rental assistance for families as the result of insufficient funding, as determined by the Secretary, and to avoid or reduce the proration of renewal funding allocations: Provided further, That up to $75,000,000 shall be available only: (1) for adjustments in the allocations for public housing agencies, after application for an adjustment by a public housing agency that experienced a significant increase, as determined by the Secretary, in renewal costs of vouchers resulting from unforeseen circumstances or from portability under section 8(r) of the Act; (2) for vouchers that were not in use during the previous 12-month period in order to be available to meet a commitment pursuant to section 8(o)(13) of the Act; (3) for adjustments for costs associated with HUD-Veterans Affairs Supportive Housing (HUD-VASH) vouchers; [and] (4) for public housing agencies that despite taking reasonable cost savings measures, as determined by the Secretary, would otherwise be required to terminate rental assistance for families as a result of insufficient funding; and (5) for adjustments for voucher costs associated with a housing mobility program: Provided further, That the Secretary shall allocate amounts under the previous proviso based on need, as determined by the Secretary;

(2) [$130,000,000] $110,000,000 shall be for section 8 rental assistance for relocation and replacement of housing units that are demolished or disposed of pursuant to section 18 of the Act, conversion of section 23 projects to assistance under section 8, the family unification program under section 8(x) of the Act, relocation of witnesses in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency, enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the Act, HOPE VI and Choice Neighborhood vouchers, mandatory and voluntary conversions, and tenant protection assistance including replacement and relocation assistance or for project-based assistance to prevent the displacement of unassisted elderly tenants currently residing in section 202 properties financed between 1959 and 1974 that are refinanced pursuant to Public Law 106–569, as amended, or under the authority as provided under this Act: Provided, That when a public housing development is submitted for demolition or disposition under section 18 of the Act, the Secretary may provide section 8 rental assistance when the units pose an imminent health and safety risk to residents: Provided further, That the Secretary may only provide replacement vouchers for units that were occupied within the previous 24 months that cease to be available as assisted housing, subject only to the availability of funds: [Provided further, That of the amounts made available under this paragraph, $5,000,000 may be available to provide tenant protection assistance, not otherwise provided under this paragraph, to residents residing in low vacancy areas and who may have to pay rents greater than 30 percent of household income, as the result of: (A) the maturity of a HUD-insured, HUD-held or section 202 loan that requires the permission of the Secretary prior to loan prepayment; (B) the expiration of a rental assistance contract for which the tenants are not eligible for enhanced voucher or tenant protection assistance under existing law; or (C) the expiration of affordability restrictions accompanying a mortgage or preservation program administered by the Secretary: Provided further, That such tenant protection assistance made available under the previous proviso may be provided under the authority of section 8(t) or section 8(o)(13) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)):] Provided further, That any tenant protection voucher made available from amounts under this paragraph shall not be reissued by any public housing agency, except the replacement vouchers as defined by the Secretary by notice, when the initial family that received any such voucher no longer receives such voucher, and the authority for any public housing agency to issue any such voucher shall cease to exist[: Provided further, That the Secretary, for the purpose under this paragraph, may use unobligated balances, including recaptures and carryovers, remaining from amounts appropriated in prior fiscal years under this heading for voucher assistance for nonelderly disabled families and for disaster assistance made available under Public Law 110–329];

(3) [$1,650,000,000] $2,077,000,000 shall be for administrative and other expenses of public housing agencies in administering the section 8 tenant-based rental assistance program, of which up to $10,000,000 shall be available to the Secretary to allocate to public housing agencies that need additional funds to administer their section 8 programs, including fees associated with section 8 tenant protection rental assistance, the administration of disaster related vouchers, Veterans Affairs Supportive Housing vouchers, and other special purpose incremental vouchers: Provided, That no less than [$1,640,000,000] $2,067,000,000 of the amount provided in this paragraph shall be allocated to public housing agencies for the calendar year [2016] 2017 funding cycle based on section 8(q) of the Act [(and related Appropriation Act provisions) as in effect immediately before the enactment of the Quality Housing and Work Responsibility Act of 1998 (Public Law 105–276)]: Provided further, That if the amounts made available under this paragraph are insufficient to pay the amounts determined under the previous proviso, the Secretary may decrease the amounts allocated to agencies by a uniform percentage applicable to all agencies receiving funding under this paragraph or may, to the extent necessary to provide full payment of amounts determined under the previous proviso, utilize unobligated balances, including recaptures and carryovers, remaining from funds appropriated to the Department of Housing and Urban Development under this heading from prior fiscal years, excluding special purpose vouchers, notwithstanding the purposes for which such amounts were appropriated: Provided further, That [all] public housing agencies participating in the MTW demonstration shall be funded pursuant to their MTW agreements, and in accordance with the requirements of the MTW program, and shall be subject to the same uniform percentage decrease as under the previous proviso: Provided further, That amounts provided under this paragraph shall be only for activities related to the provision of tenant-based rental assistance authorized under section 8, including related development activities;

(4) [$107,074,000] $110,000,000 for the renewal of tenant-based assistance contracts under section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), including necessary administrative expenses: Provided, That administrative and other expenses of public housing agencies in administering the special purpose vouchers in this paragraph shall be funded under the same terms and be subject to the same pro rata reduction as the percent decrease for administrative and other expenses to public housing agencies under paragraph (3) of this heading;

(5) [$60,000,000 for incremental rental voucher assistance for use through a supported housing program administered in conjunction with the Department of Veterans Affairs as authorized under section 8(o)(19) of the United States Housing Act of 1937: Provided, That the Secretary of Housing and Urban Development shall make such funding available, notwithstanding section 204 (competition provision) of this title, to public housing agencies that partner with eligible VA Medical Centers or other entities as designated by the Secretary of the Department of Veterans Affairs, based on geographical need for such assistance as identified by the Secretary of the Department of Veterans Affairs, public housing agency administrative performance, and other factors as specified by the Secretary of Housing and Urban Development in consultation with the Secretary of the Department of Veterans Affairs: Provided further, That the Secretary of Housing and Urban Development may waive, or specify alternative requirements for (in consultation with the Secretary of the Department of Veterans Affairs), any provision of any statute or regulation that the Secretary of Housing and Urban Development administers in connection with the use of funds made available under this paragraph (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment), upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective delivery and administration of such voucher assistance: Provided further, That assistance made available under this paragraph shall continue to remain available for homeless veterans upon turn-over] $7,000,000 shall be for rental assistance and associated administrative fees for Tribal HUD-VA Supportive Housing to serve Native American veterans that are homeless or at-risk of homelessness living on or near a reservation or other Indian areas: Provided, That such amount shall be made available for renewal grants to the recipients that received assistance under the rental assistance and supportive housing demonstration program for Native American veterans authorized under the heading "TENANT-BASED RENTAL ASSISTANCE" in title II of division K of the Consolidated and Further Continuing Appropriations Act, 2015 (Public Law 113–235, 128 Stat. 2733): Provided further, That the Secretary shall be authorized to specify criteria for renewal grants, including data on the utilization of assistance reported by grant recipients under the demonstration program: Provided further, That any amounts remaining after such renewal assistance is awarded may be available for new grants to recipients eligible to receive block grants under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. section 4101 et seq.) for rental assistance and associated administrative fees for Tribal HUD-VA Supportive Housing to serve Native American veterans that are homeless or at-risk of homelessness living on or near a reservation or other Indian areas: Provided further, That funds shall be awarded based on need, administrative capacity, and any other funding criteria established by the Secretary in a Notice published in the Federal Register after coordination with the Secretary of the Department of Veterans Affairs: Provided further, That renewal grants and new grants under this paragraph shall be administered by block grant recipients in accordance with program requirements under the Native American Housing Assistance and Self-Determination Act of 1996: Provided further, That assistance under this paragraph shall be modeled after, with necessary and appropriate adjustments for Native American grant recipients and veterans, the rental assistance and supportive housing program known as HUD-VASH program, including administration in conjunction with the Department of Veterans Affairs and overall implementation of section 8(o)(19) of the United States Housing Act of 1937: Provided further, That the Secretary of Housing and Urban Development may waive, or specify alternative requirements for any provision of any statute or regulation that the Secretary of Housing and Urban Development administers in connection with the use of funds made available under this paragraph (except for requirements related to fair housing, nondiscrimination, labor stands, and the environment), upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective delivery and administration of such assistance: Provided further, That grant recipients shall report to the Secretary on utilization of such rental assistance and other program data, as prescribed by the Secretary; [and]

(6) $88,000,000 shall be used for incremental rental voucher assistance under section 8(o) of the United States Housing Act of 1937 for use by families with children who are experiencing homelessness, as determined by the Secretary: Provided, That the Secretary shall make such funding available, notwithstanding section 204 (competition provision) of this title to public housing agencies that partner with eligible Continuums of Care or other entities as designated by the Secretary, based on geographical need of such assistance, public housing agency administrative performance, and other factors as specified by the Secretary: Provided further, That the Secretary may waive, or specify alternative requirements for any provision or statute or regulation that the Secretary administers in connection with the use of funds made available under this paragraph (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment) upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective delivery and administration of such voucher assistance: Provided further, That the Secretary shall issue guidance to implement the previous proviso;

(7) $15,000,000 shall be made available for the Housing Choice Voucher Mobility Demonstration authorized under section 270 of this title: Provided, That no more than $3,000,000 may be available for evaluating the demonstration; and

([6]8) the Secretary shall separately track all special purpose vouchers funded under this heading. (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

The 2017 Budget provides $20.9 billion for the Tenant-Based Rental Assistance program (also known as the Housing Choice Voucher program), which is the Federal government's largest and most income-targeted rental assistance program. With this funding, the Housing Choice Voucher program will provide housing assistance to over 2.2 million extremely low- to very low-income families to rent decent, safe, and sanitary housing in the private market. About 2,300 state and local Public Housing Authorities (PHAs) administer the Housing Choice Voucher program.

The Budget provides $18.5 billion in contract renewals to continue assistance for families anticipated to be under lease at the end of 2016, including renewing 14,000 housing vouchers for persons with disabilities.

Based on studies that show that moving to higher opportunity areas can have significant and positive long-term earnings and college attainment outcomes for children, the Budget includes investments in the Housing Choice Voucher program to improve the mobility of low-income families. The Budget requests $2.1 billion in PHA administrative fees to not only support fundamental functions, such as housing quality inspections and tenant income certifications, but to ensure that PHAs have sufficient resources to promote mobility and give low-income families greater access to areas with lower crime, more job opportunities, and better schools. In addition, the Budget requests $15 million and statutory authority to implement a Mobility Counseling Demonstration program to help families with housing vouchers move and stay in areas of opportunities. The funds would be used to pay for counseling, outreach to landlords, portability coordination, security deposits, and other administrative functions.

The Budget provides targeted discretionary funding increases to address homelessness, including $88 million for 10,000 housing vouchers for homeless families with children. These housing vouchers will be awarded to PHAs in geographic areas with demonstrated need, in coordination with local Continuum of Care programs, and will complement the $11 billion mandatory proposal to end family homelessness, as discussed in the "Homeless Assistance for Families" account.

The Budget requests $110 million for tenant protection vouchers, which are provided to families who must relocate due to actions beyond their control, such as public housing demolition or redevelopment, and when private owners of multi-family developments choose to leave the project-based program or convert to long-term Section 8 contracts, as a part of the Rental Assistance Demonstration program.

The Budget provides $7 million for the Tribal HUD-VA Supportive Housing (HUD-VASH) program, to serve homeless or at risk of homeless Native American veterans living in and around designated tribal areas.

The Budget also proposes the following statutory improvements to the Housing Choice Voucher program: 1) increasing the threshold used to determine deductions for unreimbursed medical expenses from 3 to 10 percent of family income; 2) improving the process for establishing Fair Market Rents; 3) simplifying the calculation of the 20 percent project-based voucher cap by basing the maximum on units rather than funding level; 4) implementing a new formula to allocate administrative fees; and 5) extending the maximum term of Family Unification Program vouchers issued to youths aging out of foster care from 18 to 60 months.

Unobligated balances, including recaptures and carryover, remaining from funds appropriated to the Department of Housing and Urban Development under this heading, the heading "Annual Contributions for Assisted Housing" and the heading "Project-Based Rental Assistance", for fiscal year [2016] 2017 and prior years may be used for renewal of or amendments to section 8 project-based contracts and for performance-based contract administrators, notwithstanding the purposes for which such funds were appropriated: Provided, That any obligated balances of contract authority from fiscal year 1974 and prior that have been terminated [shall be rescinded] are hereby permanently cancelled: Provided further, That amounts heretofore recaptured, or recaptured during the current fiscal year, from section 8 project-based contracts from source years fiscal year 1975 through fiscal year 1987 are hereby [rescinded] permanently cancelled, and an amount of additional new budget authority, equivalent to the amount [rescinded] permanently cancelled is hereby appropriated, to remain available until expended, for the purposes set forth under this heading, in addition to amounts otherwise available. (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

Until 2005, the Housing Certificate Fund provided funding to both the project-based and tenant-based components of the Section 8 program. Project-Based Rental Assistance and Tenant-Based Rental Assistance are now funded in separate accounts. The Housing Certificate Fund retains and recovers balances from previous years' appropriations, and uses those balances to support contract renewals, amendments, and performance-based contract administrators.

For the Public Housing Capital Fund Program to carry out capital and management activities for public housing agencies, as authorized under section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g) (the "Act") [$1,900,000,000] $1,865,000,000, to remain available until September 30, [2019] 2020: Provided, That notwithstanding any other provision of law or regulation, during fiscal year [2016] 2017, the Secretary of Housing and Urban Development may not delegate to any Department official other than the Deputy Secretary and the Assistant Secretary for Public and Indian Housing any authority under paragraph (2) of section 9(j) regarding the extension of the time periods under such section: Provided further, That for purposes of such section 9(j), the term "obligate" means, with respect to amounts, that the amounts are subject to a binding agreement that will result in outlays, immediately or in the future: Provided further, That up to [$3,000,000] $10,000,000 shall be to support ongoing Public Housing Financial and Physical Assessment activities: Provided further, That up to $1,000,000 shall be to support the costs of administrative and judicial receiverships: Provided further, That of the total amount provided under this heading, not to exceed [$21,500,000] $20,000,000 shall be available for the Secretary to make grants, notwithstanding section 204 of this Act, to public housing agencies for emergency capital needs [including safety and security measures necessary to address crime and drug-related activity as well as needs] resulting from unforeseen or unpreventable emergencies and natural disasters excluding Presidentially declared emergencies and natural disasters under the Robert T. Stafford Disaster Relief and Emergency Act (42 U.S.C. 5121 et seq.) occurring in fiscal year [2016: Provided further, That of the amount made available under the previous proviso, not less than $5,000,000 shall be for safety and security measures: Provided further, That of the total amount provided under this heading $35,000,000 shall be for supportive services, service coordinator and congregate services as authorized by section 34 of the Act (42 U.S.C. 1437z-6) and the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.)] 2017: Provided further, That of the total amount made available under this heading, [$15,000,000] $35,000,000 shall be for a Jobs-Plus initiative modeled after the Jobs-Plus demonstration: Provided further, That the funding provided under the previous proviso shall provide competitive grants to partnerships between public housing authorities, local workforce investment boards established under section 117 of the Workforce Investment Act of 1998, and other agencies and organizations that provide support to help public housing residents obtain employment and increase earnings: Provided further, That applicants must demonstrate the ability to provide services to residents, partner with workforce investment boards, and leverage service dollars: Provided further, That the Secretary may allow public housing agencies to request exemptions from rent and income limitation requirements under sections 3 and 6 of the United States Housing Act of 1937 as necessary to implement the Jobs-Plus program, on such terms and conditions as the Secretary may approve upon a finding by the Secretary that any such waivers or alternative requirements are necessary for the effective implementation of the Jobs-Plus initiative as a voluntary program for residents: Provided further, That the Secretary shall publish by notice in the Federal Register any waivers or alternative requirements pursuant to the preceding proviso no later than 10 days before the effective date of such notice: [Provided further, That for funds provided under this heading, the limitation in section 9(g)(1) of the Act shall be 25 percent: Provided further, That the Secretary may waive the limitation in the previous proviso to allow public housing agencies to fund activities authorized under section 9(e)(1)(C) of the Act: Provided further, That the Secretary shall notify public housing agencies requesting waivers under the previous proviso if the request is approved or denied within 14 days of submitting the request:] Provided further, That of the amount provided for the Jobs-Plus initiative, the Secretary may set aside up to $5,000,000 for competitive grants to Indian tribes and tribally designated housing entities, as defined in section 4(13) of the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA), to provide support to help residents of housing assisted under NAHASDA obtain employment and increase earnings: Provided further, That such assistance shall be modeled after the Jobs-Plus initiative, with necessary and appropriate adjustments made by the Secretary for NAHASDA grant recipients and families living on or near a reservation or other Indian areas: Provided further, That the Secretary may waive, or specify alternative requirements for, any provision of any statute that the Secretary administers in connection with the use of funds made available under this heading, upon a finding by the Secretary that any such waivers or alternate requirements are necessary for the effective use of grants under the previous proviso and after publication in the Federal Register not later than 10 days before the effective date of such waiver or alternative requirement: Provided further, That of the total amount made available under this heading, $5,000,000 shall be for the ConnectHome broadband initiative: Provided further, That the funding provided under the previous proviso shall be for competitive grants that increase broadband access and adoption, such as grants to public housing agencies to hire coordinators to link residents with broadband and training services: Provided further, That from the funds made available under this heading, the Secretary shall provide bonus awards in fiscal year [2016] 2017 to public housing agencies that are designated high performers[: Provided further, That the Department shall notify public housing agencies of their formula allocation within 60 days of enactment of this Act]. (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

The Budget proposes $1.865 billion for the Public Housing Capital Fund, a formula program designed to address the capital and management improvement needs of Public Housing properties. This program preserves and enhances a valuable affordable housing resource that serves approximately 1.1 million low-income families. Of the amount requested, approximately $1.8 billion will fund capital grants to Public Housing Authorities (PHAs). The balance includes $35 million for Jobs-Plus, an evidence-based program for increasing the employment and earnings of Public Housing residents, of which up to $5 million may be used to implement a demonstration of the Jobs-Plus model in Indian country; $5 million for ConnectHome, a project aimed at narrowing the digital divide for students and families in public housing; up to $20 million for emergency capital needs resulting from non-Presidentially declared emergencies and natural disasters; up to $10 million for financial and physical assessments of Public Housing and other HUD-assisted properties; and up to $1 million for administrative and judicial receiverships.

The Budget also includes a legislative proposal to allow limited capital funds to be used for operating purposes, and operating funds for capital improvements.

For [2016] 2017 payments to public housing agencies for the operation and management of public housing, as authorized by section 9(e) of the United States Housing Act of 1937 (42 U.S.C. 1437g(e)), [$4,500,000,000] $4,569,000,000, to remain available until September 30, [2017] 2018. (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

The Budget requests $4.569 billion for the Public Housing Operating Fund, which provides subsidies to Public Housing Authorities (PHAs) to assist in funding the operating expenses of Public Housing units in accordance with Section 9(e) of the United States Housing Act of 1937. The Budget proposes cross-cutting legislative reforms to HUD's core rental assistance programs, namely increasing the threshold used to determine deductions for unreimbursed medical expenses from 3 to 10 percent of tenant income. In addition, the Budget includes two proposals specific to Public Housing: 1) additional flexibility for PHAs to use their operating funds for Capital Fund activities, and vice versa; and 2) a utilities conservation pilot to encourage PHAs to undertake energy and water conservation measures and reduce Federal costs.

Program and Financing (in millions of dollars)

No new appropriations have been provided for the Public Housing Drug Elimination Grants program since 2001, and all remaining funds were rescinded in 2015.

For competitive grants [under the Choice Neighborhoods Initiative (subject to section 24 of the United States Housing Act of 1937 (42 U.S.C. 1437v), unless otherwise specified under this heading),] for transformation, rehabilitation, and replacement housing needs of both public and HUD-assisted housing and to transform neighborhoods of poverty into functioning, sustainable mixed income neighborhoods with appropriate services, schools, public assets, transportation and access to jobs, [$125,000,000] $200,000,000, to remain available until September 30, [2018] 2019: Provided, That grant funds may be used for resident and community services, community development, and affordable housing needs in the community, and for conversion of vacant or foreclosed properties to affordable housing: [Provided further, That the use of funds made available under this heading shall not be deemed to be public housing notwithstanding section 3(b)(1) of such Act:] Provided further, That grantees shall commit to an additional period of affordability determined by the Secretary of not fewer than 20 years, except that a grantee may request a shorter affordability period for homeownership units that are constructed, rehabilitated, or acquired using grant funds, under such terms and conditions prescribed by the Secretary: Provided further, That the Secretary may approve such shorter affordability periods for Choice Neighborhoods Initiative grants funded with amounts made available in prior fiscal years: Provided further, That grantees shall undertake comprehensive local planning with input from residents and the community, and that grantees shall provide a match in State, local, other Federal or private funds: Provided further, That grantees may include local governments, tribal entities, public housing authorities, and nonprofits: Provided further, That for-profit developers may apply jointly with a public entity: Provided further, That for purposes of environmental review, a grantee shall be treated as a public housing agency under section 26 of the United States Housing Act of 1937 (42 U.S.C. 1437x), and grants under this heading shall be subject to the regulations issued by the Secretary to implement such section: [Provided further, That of the amount provided, not less than $75,000,000 shall be awarded to public housing agencies:] Provided further, That such grantees shall create partnerships with other local organizations including assisted housing owners, service agencies, and resident organizations: Provided further, That the Secretary shall consult with the Secretaries of Education, Labor, Transportation, Health and Human Services, Agriculture, and Commerce, the Attorney General, and the Administrator of the Environmental Protection Agency to coordinate and leverage other appropriate Federal resources: [Provided further, That no more than $5,000,000 of funds made available under this heading may be provided to assist communities in developing comprehensive strategies for implementing this program or implementing other revitalization efforts in conjunction with community notice and input: Provided further, That the Secretary shall develop and publish guidelines for the use of such competitive funds, including but not limited to eligible activities, program requirements, and performance metrics:] Provided further, That unobligated balances, including recaptures, remaining from funds appropriated under the heading "Revitalization of Severely Distressed Public Housing (HOPE VI)" in fiscal year 2011 and prior fiscal years may be used for purposes under this heading, notwithstanding the purposes for which such amounts were appropriated: Provided further, That section 24(m)(3) of the United States Housing Act of 1937 (42 U.S.C. 1437v(m)(3)) is amended by striking "shall" and inserting "may". (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

The Budget provides $200 million for Choice Neighborhoods to continue the transformation of neighborhoods of concentrated poverty into sustainable, mixed-income neighborhoods with well-functioning services, schools, public assets, transportation, and access to jobs. The goal of the program is to transform distressed neighborhoods and improve the quality of life of current and future residents by coordinating and concentrating neighborhood investments from multiple sources. The Budget will fund approximately six implementation grants and five to ten planning grants.

Choice Neighborhoods also supports the Administration's Promise Zones initiative, which is creating partnerships between the Federal government, local communities and businesses to create jobs, increase economic security, expand educational opportunities, increase access to quality, affordable housing, and improve public safety. The Budget includes companion investments of $128 million in the Department of Education's Promise Neighborhoods program and $24 million in the Department of Justice's Byrne Criminal Justice Innovation Grants program, as well as tax incentives to promote investment and economic growth in the Zones.

The Budget includes proposals to 1) make the allocation of Choice Neighborhoods funding for the HOPE VI Main Street Housing Grants program an option instead of a requirement, and 2) allow flexibility to reduce the term of the 20-year affordability requirement for homeownership units. HUD will consider homeownership affordability requirements across other HUD programs in determining minimum affordability periods for Choice grantees.

Program and Financing (in millions of dollars)

The HOPE VI program, in coordination with funding from the Public Housing Capital Fund, has accomplished its goal of contributing to the demolition of approximately 100,000 severely distressed Public Housing units. The Budget proposes no additional funds for this program. Instead, the Budget builds on the success of HOPE VI with the Choice Neighborhoods program, which makes a broad range of transformative investments in high-poverty neighborhoods where Public Housing and other HUD-assisted housing is located.

For the Family Self-Sufficiency program to support family self-sufficiency coordinators under section 23 of the United States Housing Act of 1937, to promote the development of local strategies to coordinate the use of assistance under sections 8(o) and 9 of such Act with public and private resources, and enable eligible families to achieve economic independence and self-sufficiency, $75,000,000, to remain available until September 30, [2017] 2018: Provided, That the Secretary may, by Federal Register notice, waive or specify alternative requirements under sections b(3), b(4), b(5), or c(1) of section 23 of such Act in order to facilitate the operation of a unified self-sufficiency program for individuals receiving assistance under different provisions of the Act, as determined by the Secretary: Provided further, That owners of a privately owned multifamily property with a section 8 contract may voluntarily make a Family Self-Sufficiency program available to the assisted tenants of such property in accordance with procedures established by the Secretary: Provided further, That such procedures established pursuant to the previous proviso shall permit participating tenants to accrue escrow funds in accordance with section 23(d)(2) and shall allow owners to use funding from residual receipt accounts to hire coordinators for their own Family Self-Sufficiency program. (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

The Budget requests $75 million for the Family Self-Sufficiency (FSS) Program to help Housing Choice Voucher, Public Housing, and Project-Based Rental Assistance (PBRA) residents achieve self-sufficiency and economic independence. FSS provides service coordination through community partnerships that link assisted residents with employment assistance, job training, child care, transportation, financial literacy, and other supportive services. Residents participating in FSS are provided an interest bearing escrow account; any rent increase resulting from increased earned income during their participation in the program is credited to the escrow account.

The Budget supports FSS through competitive funding for public housing agencies and authority for PBRA owners to use funds from their residual receipt accounts or other sources to hire service coordinators.

For the Native American Housing Block Grants program, as authorized under title I of the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA) (25 U.S.C. 4111 et seq.), [$650,000,000] $700,000,000, to remain available until September 30, [2020] 2021: Provided, That, notwithstanding the Native American Housing Assistance and Self-Determination Act of 1996, to determine the amount of the allocation under title I of such Act for each Indian tribe, the Secretary shall apply the formula under section 302 of such Act with the need component based on single-race census data and with the need component based on multi-race census data, and the amount of the allocation for each Indian tribe shall be the greater of the two resulting allocation amounts: [Provided further, That of the amounts made available under this heading, $3,500,000 shall be contracted for assistance for national or regional organizations representing Native American housing interests for providing training and technical assistance to Indian housing authorities and tribally designated housing entities as authorized under NAHASDA: Provided further, That of the funds made available under the previous proviso, not less than $2,000,000 shall be made available for a national organization as authorized under section 703 of NAHASDA (25 U.S.C. 4212): Provided further, That of the amounts made available under this heading, $2,000,000 shall be to support the inspection of Indian housing units, contract expertise, training, and technical assistance in the training, oversight, and management of such Indian housing and tenant-based assistance:] Provided further, That of the amount provided under this heading, $2,000,000 shall be made available for the cost of guaranteed notes and other obligations, as authorized by title VI of NAHASDA: Provided further, That such costs, including the costs of modifying such notes and other obligations, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize the total principal amount of any notes and other obligations, any part of which is to be guaranteed, not to exceed [$17,452,007: Provided further, That the Department will notify grantees of their formula allocation within 60 days of the date of enactment of this Act: Provided further, notwithstanding section 302(d) of NAHASDA, if on January 1, 2016, a recipient's total amount of undisbursed block grants in the Department's line of credit control system is greater than three times the formula allocation it would otherwise receive under this heading, the Secretary shall adjust that recipient's formula allocation down by the difference between its total amount of undisbursed block grants in the Department's line of credit control system on January 1, 2016, and three times the formula allocation it would otherwise receive: Provided further, That grant amounts not allocated to a recipient pursuant to the previous proviso shall be allocated under the need component of the formula proportionately among all other Indian tribes not subject to an adjustment: Provided further, That the two previous provisos shall not apply to any Indian tribe that would otherwise receive a formula allocation of less than $8,000,000: Provided further, That to take effect, the three previous provisos do not require issuance or amendment of any regulation, and shall not be construed to confer hearing rights under any section of NAHASDA or its implementing regulations] $17,857,142. (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)

The Budget proposes $700 million for the Native American Housing Block Grant (NAHBG) program. This program allocates funds on a formula basis to approximately 360 recipients representing more than 550 Indian tribes to help them address housing and other needs within their communities.

In real terms, funding for NAHBG has declined approximately 25 percent since the program's first year of funding in 1998. At the same time, American Indian and Alaska Natives (AIANs) continue to face severe housing challenges both in absolute terms and relative to the general population. For example, 8.1 percent of AIAN households are overcrowded compared to 3.3 percent of all households (based on 2010–2014 Census data). The requested increase for this program would partially restore the eroding real value of grant funds and accelerate tribal efforts to alleviate overcrowding and substandard housing conditions in Indian Country.

The Budget also proposes three changes to the Native American Housing and Self-Determination Act (NAHASDA) to support program management and oversight: 1) clarifying that carryover authority does not preclude HUD from recapturing funds when grantees fail to carry out eligible activities in a timely manner; 2) strengthening HUD authority to temporarily suspend recipients' access to grant funds when funds are being spent on ineligible activities; and 3) clarifying HUD authority to recapture funds distributed based on inaccurate formula data.

Within the total amount requested, $2 million is for the Title VI loan guarantee program. The Title VI program provides a Federal guarantee of notes or other obligations issued by Indian tribes or tribally-designated housing entities for the purpose of financing affordable housing activities. The amount requested is sufficient to guarantee $17.86 million in loans.

Program and Financing (in millions of dollars)

Status of Guaranteed Loans (in millions of dollars)

Balance Sheet (in millions of dollars)

For the Native Hawaiian Housing Block Grant program, as authorized under title VIII of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4111 et seq.), $500,000, to remain available until September 30, 2021.

Program and Financing (in millions of dollars)

The Budget provides $500 thousand for the Native Hawaiian Housing Block Grant. This program provides funds to the Department of Hawaiian Home Lands to develop, maintain and operate affordable housing for eligible low-income Native Hawaiian families.

For the cost of guaranteed loans, as authorized by section 184 of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a), [$7,500,000] $5,500,000, to remain available until expended: Provided, That such costs, including the costs of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, up to [$1,190,476,190] $1,341,463,415, to remain available until expended: Provided further, That up to $750,000 of this amount may be for administrative contract expenses including management processes and systems to carry out the loan guarantee program. (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)

The Indian Housing Loan Guarantee program (also known as the Section 184 program) provides access to private mortgage financing for Indian families, Indian tribes, and their tribally-designated housing entities who otherwise could not acquire such financing because of the unique legal status of Indian trust land. The Budget provides $5.5 million to support $1.3 billion in loan guarantees. Of the requested amount, up to $750 thousand may be used for administrative contract expenses.

The 2013 Appropriations Act gave HUD authority to collect an annual fee of up to 1 percent (100 basis points), and this fee is currently set at 15 basis points. To ensure that budgetary resources are sufficient to meet program demand, HUD will raise the annual fee to 25 basis points in 2017—a modest increase of 10 basis points from the current level. For the typical homebuyer, this change will translate into an $11 increase in their monthly mortgage payment. HUD will consult with tribes prior to implementation of this policy.

The Budget also proposes statutory changes to reduce program losses and protect the Section 184 Fund, including HUD authority to: 1) seek indemnification for any loss on a mortgage that was not originated in accordance with HUD requirements; and 2) terminate lenders from the direct guarantee process if mortgages originated by a lender present an unacceptable risk to the Section 184 Fund based on comparisons with other lenders or evidence of fraud. In addition, the Budget updates several statutory program definitions to align them with the Native American Housing Assistance and Self-Determination Act.

Program and Financing (in millions of dollars)

Status of Guaranteed Loans (in millions of dollars)

Balance Sheet (in millions of dollars)

Program and Financing (in millions of dollars)

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)

The Native Hawaiian Housing Loan Guarantee program (also known as the Section 184A program), provides access to private mortgage financing to Native Hawaiian families who are eligible to reside on the Hawaiian home lands and who otherwise could not acquire such financing because of the unique legal status of the Hawaiian home lands. The Budget does not request any new credit subsidy budget authority for this program.

Program and Financing (in millions of dollars)

Status of Guaranteed Loans (in millions of dollars)

Balance Sheet (in millions of dollars)

Federal Funds

For carrying out the Housing Opportunities for Persons with AIDS program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C. 12901 et seq.), $335,000,000, to remain available until September 30, [2017] 2018, except that amounts allocated pursuant to section 854(c)(3) of such Act shall remain available until September 30, [2018] 2019: Provided, That the Secretary shall renew all expiring contracts for permanent supportive housing that initially were funded under section 854(c)(3) of such Act from funds made available under this heading in fiscal year 2010 and prior fiscal years that meet all program requirements before awarding funds for new contracts under such section[: Provided further, That the Department shall notify grantees of their formula allocation within 60 days of enactment of this Act]. (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

The 2017 Budget provides $335 million for the Housing Opportunities for Persons with AIDS (HOPWA) program, the only Federal program dedicated to address the housing needs of low-income Americans living with HIV and AIDS. HOPWA funding provides States and localities with resources to devise long-term comprehensive strategies for planning and providing housing and supportive services to meet the housing needs of persons living with HIV and AIDS and their families. HOPWA funds have been demonstrated to help reduce the risk of homelessness, increase housing stability, and improve access to HIV care and health outcomes for program participants.

Ninety percent of HOPWA funds are distributed to States and eligible metropolitan areas according to a formula, which is based on cumulative AIDS cases. The remaining ten percent are awarded competitively to States, local governments, and private nonprofit entities for projects of national significance and long-term comprehensive strategies for projects in non-formula areas. The statutory HOPWA formula does not reflect the current nature and distribution of the epidemic. To modernize the program, the Budget is proposing an updated formula based on cases of persons living with HIV and adjusted for an area's fair market rent and poverty rates, focusing HOPWA funds on areas that have the most need. The proposal also includes several changes that will allow better targeting of HOPWA resources and more flexibility for grantees to provide the most cost-effective, timely interventions.

HUD is working in partnership with Federal agencies through the HIV Care Continuum to improve outcomes that promote greater achievements in viral suppression through the coordination and alignment of housing support with medical care for people living with HIV. Furthermore, HUD is placing greater emphasis on coordinating local planning and service delivery of HOPWA housing resources with local homeless Continuums of Care. This effort is expected to increase local collaborations in the delivery of housing and services, and reduce duplication of local systems of support.

For assistance to units of State and local government, and to other entities, for economic and community development activities, and for other purposes, [$3,060,000,000] $2,880,000,000, to remain available until September 30, [2018] 2019, unless otherwise specified: Provided, That of the total amount provided, [$3,000,000,000] $2,800,000,000 is for carrying out the community development block grant program under title I of the Housing and Community Development Act of 1974, as amended ("the Act" herein) (42 U.S.C. 5301 et seq.): Provided further, That unless explicitly provided for under this heading, not to exceed 20 percent of any grant made with funds appropriated under this heading shall be expended for planning and management development and administration: Provided further, That a metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives funds under this heading may not sell, trade, or otherwise transfer all or any portion of such funds to another such entity in exchange for any other funds, credits or non-Federal considerations, but must use such funds for activities eligible under title I of the Act: Provided further, That notwithstanding section 105(e)(1) of the Act, no funds provided under this heading may be provided to a for-profit entity for an economic development project under section 105(a)(17) unless such project has been evaluated and selected in accordance with guidelines required under subparagraph (e)(2): [Provided further, That none of the funds made available under this heading may be used for grants for the Economic Development Initiative ("EDI") or Neighborhood Initiatives activities, Rural Innovation Fund, or for grants pursuant to section 107 of the Housing and Community Development Act of 1974 (42 U.S.C. 5307): Provided further, That the Department shall notify grantees of their formula allocation within 60 days of enactment of this Act:] Provided further, That of the total amount provided under this heading [$60,000,000] $80,000,000 shall be for grants to Indian tribes notwithstanding section 106(a)(1) of such Act, of which, notwithstanding any other provision of law (including section 204 of this Act), up to $4,000,000 may be used for emergencies that constitute imminent threats to health and safety: Provided further, that of the total amounts made available under the previous proviso, up to $20,000,000 shall be for grants to Indian tribes, tribal organizations, and tribally-designated housing entities for projects that support Native American youth, including the rehabilitation, acquisition, or new construction of community facilities, pre-school centers, health clinics, transitional housing, and housing for primary and secondary school teachers living on or near a reservation or other Indian areas regardless of teacher income or tribal membership: Provided further, That any amounts made available under the previous proviso may be used for new housing construction notwithstanding any provision in the Housing and Community Development Act of 1974. (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

The Budget includes $2.8 billion for the Community Development Block Grant (CDBG) program, an additional $80 million for the Indian CDBG program, and legislative changes related to the CDBG and CDBG Disaster Recovery (CDBG-DR) programs.

CDBG.—The CDBG program provides over 1,250 annual formula grants to States, local governments, and Insular Areas to benefit mainly low- to moderate-income persons, and support a wide range of community and economic development activities, such as public infrastructure improvements (which account for approximately 33 percent of all CDBG funds), housing rehabilitation and construction (approximately 25 percent of funds), job creation and retention, and public services (e.g., child care). Seventy percent of CDBG formula grants are distributed to mainly urban areas (entitlement communities), and 30 percent are distributed to States (non-entitlement communities).

HUD has developed a set of legislative proposals to ensure the program delivers value and results to the nation's communities, and more specifically to low- and moderate-income populations. These legislative changes will reduce the number of small grantees to better align program operations with the current funding level; help grantees target funding resources to areas of greatest need; enhance program accountability; synchronize critical program cycles with the consolidated plan cycle; and provide more options for regional coordination, administration, and planning. Regional coordination will allow grantees to achieve administrative savings and pool resources to make strategic investment decisions. The Department will also evaluate a series of potential regulatory updates to the CDBG program, as significant portions of the CDBG regulations have not been updated in more than 20 years.

The Budget proposes to increase the set-aside for colonias to allow more funding to be directed to these rural border communities, many of which lack adequate water and sewer systems and/or decent housing. This change would increase the maximum set-aside for the colonias from 10 percent to 15 percent, and would affect the state CDBG programs of Texas, New Mexico, Arizona, and California.

The Budget proposes to make the CDBG program part of the Upward Mobility Project, a new initiative to allow states, localities or consortia of the two to blend funding across four block grants, including the Department of Health and Human Services' (HHS) Social Services Block Grant and Community Services Block Grant, as well as HUD's HOME Investment Partnerships Program and CDBG, that share a common goal of promoting opportunity and reducing poverty. In exchange for more accountability for results, state and localities would be able to use the funds beyond the current allowable purposes of these programs to implement evidence-based or promising strategies for helping individuals succeed in the labor market and improving economic mobility, children's outcomes, and the ability of communities to expand opportunity. Participating communities would also be eligible to receive a total of $1.5 billion over five years in new funding through HHS in addition to flexibility with currently provided resources.

In 2016 and 2017, the Department will work with grantees to promote the use of CDBG funds to address a range of Administration policy priorities. Consistent with the Administration's Build America Initiative launched in 2014, HUD will continue efforts to promote the use of CDBG funds to support infrastructure pre-development and resilient infrastructure. HUD will also work with select grantees to promote: 1) a more integrated approach to the consolidated plan process, 2) innovative strategies to help address the lack of affordable housing units, and 3) implementation of place-based strategies.

Indian Community Development Block Grant (ICDBG).—The Budget includes $80 million for the ICDBG program. This program provides grants to help develop viable American Indian and Alaska Native Communities with decent housing, a suitable living environment, and economic opportunities, primarily for low- and moderate-income persons. Within this program, up to $20 million will be used for projects that directly support Native youth, such as community facilities, pre-school centers, and transitional housing, and to attract and retain high-quality teachers in Indian Country by improving the availability and physical condition of teacher housing. This set-aside is one of several investments supporting Generation Indigenous, an Administration initiative focused on removing barriers to success for Native youth.

CDBG Disaster Recovery.—Since 2000, over $45 billion in CDBG Disaster Recovery (CDBG-DR) funding has been provided to communities impacted by major disasters, and CDBG-DR has played an increasingly significant role in long-term recovery. To ensure a more orderly and efficient recovery process, in 2016, the Administration will work with agencies across the Federal Government, as well as public stakeholders to develop a standing authorization proposal for the provision of CDBG-DR funds. This proposed authorization would incorporate lessons learned from previous disasters, provide clarity and predictability over CDBG-DR funding and program guidelines, and improve the alignment of CDBG-DR funds with other Federal disaster programs.

The Budget also proposes to consolidate administrative funds that are associated with specific CDBG-DR supplemental appropriations to support the Department's oversight of the full and growing CDBG-DR portfolio.

This account contains previously appropriated CDBG-DR funding. The majority of these balances are from the $15.2 billion in CDBG-DR funding (post-sequestration) provided by Public Law 113–2 to support communities affected by Hurricane Sandy and other Presidentially-declared disasters that occurred in calendar years 2011, 2012, and 2013. This includes $1 billion that was recently awarded through the National Disaster Resilience Competition (NDRC) to rebuild disaster-impacted areas, while also supporting innovative resilience projects, policy changes and activities that better prepare communities for for the future impacts of extreme weather and climate change. This account also contains $300 million in CDBG-DR funding appropriated in 2016 (Public Law 114–113) for relief from the consequences of Hurricane Joaquin, Hurricane Patricia, and other flood events in 2015.

Program and Financing (in millions of dollars)

The 2017 Budget requests no funding for the Brownfields Economic Development Initiative (BEDI), which was a competitive grant program designed to assist cities with the redevelopment of brownfield sites for the purposes of economic development and job creation. Local governments have access to other public and private funds, including Community Development Block Grant (CDBG) funds, for similar purposes. The Consolidated and Further Continuing Appropriations Act, 2015 (Public Law 113–235) permanently rescinded all unobligated balances of BEDI funds, including carryover and recaptures.

For the HOME Investment Partnerships program, as authorized under title II of the Cranston-Gonzalez National Affordable Housing Act, as amended, $950,000,000, to remain available until September 30, [2019] 2020: Provided, [That notwithstanding the amount made available under this heading, the threshold reduction requirements in sections 216(10) and 217(b)(4) of such Act shall not apply to allocations of such amount: Provided further,] That the requirements under provisos 2 through 6 under this heading for fiscal year 2012 and such requirements applicable pursuant to the "Full-Year Continuing Appropriations Act, 2013", shall not apply to any project to which funds were committed on or after August 23, 2013, but such projects shall instead be governed by the Final Rule titled "Home Investment Partnerships Program; Improving Performance and Accountability; Updating Property Standards" which became effective on such date: Provided further, That [with respect to funds made available under this heading pursuant to such Act and funds provided in prior and subsequent appropriations acts that were or are used by community land trusts for the development of affordable homeownership housing pursuant to section 215(b) of such Act, such community land trusts, notwithstanding section 215(b)(3)(A) of such Act, may hold and exercise purchase options, rights of first refusal or other preemptive rights to purchase the housing to preserve affordability, including but not limited to the right to purchase the housing in lieu of foreclosure: Provided further, That the Department shall notify grantees of their formula allocation within 60 days of enactment of this Act] funds provided in prior appropriations Acts for technical assistance, that were made available for Community Housing Development Organizations technical assistance, and that still remain available, may be used for HOME technical assistance notwithstanding the purposes for which such amounts were appropriated: Provided further, That of the total amount provided under this heading, $10,000,000 shall be made available to the Self-help Homeownership and Assisted Homeownership Opportunity Program as authorized under section 11 of the Housing Opportunity Program Extension Act of 1996, as amended. (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

The Budget requests $950 million for the HOME Investment Partnerships Program (HOME), of which $10 million is set aside for the Self-help Homeownership Opportunity Program (SHOP). The HOME program provides flexible annual formula grant assistance to States and units of local government to increase the supply of affordable housing and expand homeownership for low- to very-low income persons through a wide range of activities that build, buy, and/or rehabilitate affordable housing. Sixty percent of the formula grant funds is awarded to participating local governments and 40 percent is awarded to states. Projects funded by HOME often leverage private dollars and are used in conjunction with other funds such as the Low-Income Housing Tax Credit (LIHTC), Community Development Block Grant, and local funds. Over time, the requested HOME funding is estimated to result in the production of approximately 34,000 units of affordable housing through new construction, rehabilitation, and/or acquisition. It is also estimated that communities will use a portion of their funding to support tenant-based rental assistance for approximately 7,800 units.

The 2017 Budget proposes statutory changes that would eliminate the 24-month commitment requirement; eliminate the 15 percent Community Housing Development Organization (CHDO) set-aside; establish a single qualification threshold of $500,000 irrespective of the appropriation amount; revise the current "grandfathering" provision so that participating jurisdictions that fall below the threshold three years out of a five-year period are ineligible for direct formula funds; and allow recaptured HOME CHDO technical assistance funds be reallocated as HOME technical assistance funds. When implemented, these changes will improve the targeting focus and effectiveness of the overall administration of the program.

In addition, the HOME program is part of the proposed Upward Mobility Project, a new initiative to allow states, localities or consortia of the two to blend funding across four block grants, including the Department of Health and Human Services' (HHS) Social Services Block Grant and Community Services Block Grant, as well as HUD's Community Development Block Grant and HOME, that share a common goal of promoting opportunity and reducing poverty. In exchange for more accountability for results, state and localities would be able to use the funds beyond the current allowable purposes of these programs to implement evidence-based or promising strategies for helping individuals succeed in the labor market and improving economic mobility, children's outcomes, and the ability of communities to expand opportunity. Participating communities would also be eligible to receive a total of $1.5 billion in new funding over five years through HHS, in addition to flexibility with currently provided resources.

SHOP is a competitive grant program that provides funds to increase the ability of non-profit organizations to assist low-income homebuyers willing to contribute "sweat equity" toward the construction of their homes. Communities can further leverage SHOP grants by using other sources of funding, including HOME funds, which can also be used for sweat equity projects. The Budget also proposes statutory changes that would improve the administration of the SHOP program. These include allowing HUD to develop program regulations, extending the standard grant term to 36 months, establishing a deadline for completion of SHOP units, and explicitly including planning, administrative, and management costs as eligible activities, to be capped at 20 percent.

Program and Financing (in millions of dollars)

The 2017 Budget proposes a $300 million mandatory appropriation for a new Local Housing Policy Grants program. This program would provide grants to localities and regional coalitions of localities to support new policies, programs, or regulatory initiatives that create a more elastic and diverse housing supply. The goal of this initiative is to demonstrate that concentrated and coordinated efforts across a number of housing markets can significantly expand the supply and affordability of housing, increase access to jobs, and fuel economic growth. This program would support a range of activities that reduce barriers to housing development, such as design options, process changes, and land use regulations, and funds would be used to support related investments, including infrastructure expansion and/or improvement, market evaluation, code writing assistance, and stakeholder education and outreach. The funds would also establish a learning network that would provide ongoing capacity building, facilitate shared learning opportunities, and disseminate best practices.

[For the Self-Help and Assisted Homeownership Opportunity Program, as authorized under section 11 of the Housing Opportunity Program Extension Act of 1996, as amended, $50,000,000, to remain available until September 30, 2018: Provided, That of the total amount provided under this heading, $10,000,000 shall be made available to the Self-Help and Assisted Homeownership Opportunity Program as authorized under section 11 of the Housing Opportunity Program Extension Act of 1996, as amended: Provided further, That of the total amount provided under this heading, $35,000,000 shall be made available for the second, third, and fourth capacity building activities authorized under section 4(a) of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 note), of which not less than $5,000,000 shall be made available for rural capacity building activities: Provided further, That of the total amount provided under this heading, $5,000,000 shall be made available for capacity building by national rural housing organizations with experience assessing national rural conditions and providing financing, training, technical assistance, information, and research to local nonprofits, local governments and Indian Tribes serving high need rural communities: Provided further, That an additional $5,700,000, to remain available until expended, shall be for a program to rehabilitate and modify homes of disabled or low-income veterans as authorized under section 1079 of Public Law 113–291.] (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

The 2017 Budget requests no separate funding for the Self-Help and Assisted Homeownership Opportunity Program (SHOP) account. Instead, funding for the SHOP program is included as part of the request for the HOME Investment Partnerships Program. Funding for capacity building activities is included as part of the request for the Research and Technology (R&T) account. Within the R&T account, HUD will continue its integrated approach to technical assistance and capacity building, including activities to develop, enhance, and strengthen the technical and administrative capabilities of community development corporations to carry out community development and affordable housing activities for low- and moderate-income persons that support and address local needs and priorities.

Program and Financing (in millions of dollars)

The Neighborhood Stabilization Program (NSP) was first authorized by the Housing and Economic Recovery Act of 2008 (HERA) and funded at $3.92 billion. In response to the foreclosure crisis, HERA directed HUD to develop a formula to distribute the funds to State and local governments with the greatest need. Grantees were allowed to use NSP funds for a number of eligible activities, including establishing financing mechanisms; purchasing and rehabilitating abandoned or foreclosed properties; establishing land banks; demolishing blighted structures; and redeveloping vacant or demolished property.

The American Recovery and Reinvestment Act of 2009 (ARRA) made several changes to the NSP program as enacted by HERA and appropriated an additional $2 billion in funding for the NSP program. The ARRA funding for the second round of NSP funding (NSP2) is reflected within the Community Development Fund account.

The Dodd-Frank Financial Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) appropriated an additional $1 billion for a third iteration of NSP (NSP3) in July 2010.

As of December 2015, NSP grantees had expended (including program income) an amount equivalent to 116 percent of the total program funds allocated for all iterations of NSP. Grantees have approximately $185 million in NSP-generated program income that must be expended prior to drawing down the remaining grant funds that are reflected in this account. HUD is closely monitoring efforts to expend these funds consistent with NSP requirements and the Department's timeline for closing out all grants.

For the Emergency Solutions Grants program as authorized under subtitle B of title IV of the McKinney-Vento Homeless Assistance Act, as amended; the Continuum of Care program as authorized under subtitle C of title IV of such Act; and the Rural Housing Stability Assistance program as authorized under subtitle D of title IV of such Act, [$2,250,000,000] $2,664,000,000, to remain available until September 30, [2018] 2019: Provided, That any rental assistance amounts that are recaptured under such Continuum of Care program shall remain available until expended: Provided further, That not less than [$250,000,000] $270,000,000 of the funds appropriated under this heading shall be available for such Emergency Solutions Grants program: Provided further, That not less than [$1,918,000,000] $2,362,000,000 of the funds appropriated under this heading shall be available for such Continuum of Care and Rural Housing Stability Assistance programs: Provided further, That up to $7,000,000 of the funds appropriated under this heading shall be available for the national homeless data analysis project: [Provided further, That all funds awarded for supportive services under the Continuum of Care program and the Rural Housing Stability Assistance program shall be matched by not less than 25 percent in cash or in kind by each grantee:] Provided further, That for all match requirements applicable to funds made available under this heading for this fiscal year and prior years, a grantee may use (or could have used) as a source of match funds other funds administered by the Secretary and other Federal agencies unless there is (or was) a specific statutory prohibition on any such use of any such funds: [Provided further, That the Secretary shall establish system performance measures for which each continuum of care shall report baseline outcomes, and that relative to fiscal year 2015, under the Continuum of Care competition with respect to funds made available under this heading, the Secretary shall base an increasing share of the score on performance criteria:] Provided further, That none of the funds provided under this heading shall be available to provide funding for new projects, except for projects created through reallocation, unless the Secretary determines that the continuum of care has demonstrated that projects are evaluated and ranked based on the degree to which they improve the continuum of care's system performance: Provided further, That the Secretary shall prioritize funding under the Continuum of Care program to continuums of care that have demonstrated a capacity to reallocate funding from lower performing projects to higher performing projects: [Provided further, That all awards of assistance under this heading shall be required to coordinate and integrate homeless programs with other mainstream health, social services, and employment programs for which homeless populations may be eligible: Provided further, That with respect to funds provided under this heading for the Continuum of Care program for fiscal years 2013, 2014, 2015, and 2016 provision of permanent housing rental assistance may be administered by private nonprofit organizations:] Provided further, That any unobligated amounts remaining from funds appropriated under this heading in fiscal year 2012 and prior years for project-based rental assistance for rehabilitation projects with 10-year grant terms may be used for purposes under this heading, notwithstanding the purposes for which such funds were appropriated: Provided further, That all balances for Shelter Plus Care renewals previously funded from the Shelter Plus Care Renewal account and transferred to this account shall be available, if recaptured, for Continuum of Care renewals in fiscal year [2016: Provided further, That the Department shall notify grantees of their formula allocation from amounts allocated (which may represent initial or final amounts allocated) for the Emergency Solutions Grant program within 60 days of enactment of this Act] 2017: Provided further, That up to [$33,000,000] $25,000,000 of the funds appropriated under this heading shall be to implement projects to demonstrate how a comprehensive approach to serving homeless youth, age 24 and under, [in up to 10 communities, including at least four rural communities,] can dramatically reduce youth homelessness: Provided further, That such projects shall be eligible for renewal under the Continuum of Care program subject to the same terms and conditions as other renewal applicants: [Provided further, That up to $5,000,000 of the funds appropriated under this heading shall be available to provide technical assistance on youth homelessness, and collection, analysis, and reporting of data and performance measures under the comprehensive approaches to serve homeless youth, in addition to and in coordination with other technical assistance funds provided under this title: Provided further, That youth aged 24 and under seeking assistance under this heading shall not be required to provide third party documentation to establish their eligibility under 42 U.S.C. 11302(a) or (b) to receive services: Provided further, That unaccompanied youth aged 24 and under or families headed by youth aged 24 and under who are living in unsafe situations may be served by youth-serving providers funded under this heading:] Provided further, That the Secretary may use amounts made available under this heading for the Continuum of Care program to renew a grant originally awarded pursuant to the matter under the heading "Department of Housing and Urban Development—Permanent Supportive Housing" in chapter 6 of title III of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 122 Stat. 2351) for assistance under subtitle F of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11403 et seq.): Provided further, That such renewal grant shall be awarded to the same grantee and be subject to the provisions of such Continuum of Care program except that the funds may be used outside the geographic area of the continuum of care. (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

The Homeless Assistance Grants account provides funds for the Emergency Solutions Grant (ESG) and Continuum of Care (CoC) programs. These programs, which award funds through formula and competitive processes, enable localities to shape and implement comprehensive, flexible, coordinated approaches to address the multiple issues of homelessness.

The 2017 Budget provides $2.664 billion for a wide range of activities to assist homeless persons and prevent future occurrences of homelessness. The Budget supports $2.387 billion for the CoC program, including funding for competitive renewals, new permanent supportive housing for persons experiencing chronic homelessness, new rapid rehousing for families with children experiencing homelessness, and projects targeted to youth experiencing homelessness; $270 million for ESG formula funding for communities to address emergency needs such as emergency shelter, street outreach, essential services, homelessness prevention, and rapid rehousing; and $7 million for the National Homeless Data Analysis Project.

The 2017 Budget sustains funding to support programs dedicated to ending veteran homelessness, and makes further progress toward the Administration's goals of ending chronic homelessness and ending homelessness for families, youth and children. In addition to targeted increases in HUD's Homeless Assistance Grants, the Budget provides 10,000 new Housing Choice Vouchers targeted to homeless families with children. Complementing these investments, the Budget also includes an $11 billion mandatory proposal over ten years to reach and maintain the goal of ending homelessness among families with children by 2020, as described under the "Homeless Assistance for Families" account.

The 2017 Budget also proposes a series of legislative changes to address emerging program needs. These changes would: 1) allow for more timely and effective property reviews under Title V of the McKinney-Vento Act, which enables eligible organizations to use unutilized, underutilized, excess, or surplus Federal properties as facilities that assist homeless persons; 2) allow CoC grantees to receive one-year transition grants, which will better allow projects to maintain service to program participants as those projects transition from one CoC program component to another (e.g., from transitional housing to permanent supportive housing); and 3) allow public housing agencies (PHAs) to be eligible subrecipients of ESG program funds, since PHAs are highly qualified homeless services providers in many communities.

Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)

The Budget proposes $11 billion over ten years to reach and maintain the goal of ending homelessness among all of America's families in 2020. This significant investment builds on the success of ending veteran homelessness in communities across the country, and is informed by recent research that found that families who utilized vouchers — compared to alternative forms of homeless assistance — had fewer incidents of homelessness, child separations, intimate partner violence and school moves, less food insecurity, and generally less economic stress. This investment will enable communities to properly scale their response to family homelessness and significantly expand the availability of rapid rehousing and Housing Choice Vouchers, serving an estimated 550,000 vulnerable families with children experiencing homelessness over the next ten years. These two interventions offer the most flexible, targeted, and cost effective interventions for communities seeking to move families out of emergency shelter quickly and into their own permanent housing units. Rapid rehousing offers time-limited rental assistance and case management services designed to help families stabilize in housing and connect to other needed services in the community. The Housing Choice Voucher program offers a permanent housing subsidy that can be coordinated with supportive services funded through other resources, including mainstream systems.

Complementing this mandatory proposal, the Budget provides targeted discretionary increases to address homelessness, including 10,000 new vouchers targeted to homeless families with children (in the Housing Choice Voucher account), 25,500 new units of permanent, supportive housing to end chronic homelessness, $25 million to test innovative projects that support homeless youth, and 8,000 new units of rapid rehousing (in the Homeless Assistance Grants account).

Program and Financing (in millions of dollars)

The Supplemental Appropriations Act, 2008 (Public Law 110–252) provided $73 million for permanent supportive housing assistance as referenced in the Road Home Program of the Louisiana Recovery Authority (LRA). Of the total amount appropriated, $50 million was for permanent supportive housing, serving approximately 1,000 homeless individuals and families living with disabilities. The LRA is eligible to apply for Homeless Assistance Grants to renew this assistance. Additionally, this account provided $23 million in project-based rental assistance vouchers to LRA to support an estimated 2,000 elderly and disabled disaster victims, as authorized. Beginning in 2010, these vouchers have been renewed within the Tenant-Based Rental Assistance account upon the termination of the original subsidy.

Program and Financing (in millions of dollars)

The Budget does not provide funding for the Rural Housing and Economic Development (RHED) program. RHED was created to support housing and economic development activities in rural communities. The Consolidated Appropriations Act, 2016 (Public Law 114–113) permanently rescinded all unobligated balances of RHED funds, including carryover and recaptures.

Program and Financing (in millions of dollars)

Status of Direct Loans (in millions of dollars)

The Revolving Fund (liquidating programs) was established by the Independent Offices Appropriations Act of 1955 for the efficient liquidation of assets acquired under a number of housing and urban development programs, all of which are no longer active. For example, the Section 312 loan program portfolio, which provided first and junior lien financing at below market interest rates for the rehabilitation of homes in low-income neighborhoods, constituted a large portion of the account activities but has not originated new loans for over 20 years. The operational expenses are financed from a permanent, indefinite appropriation to administer the remaining repayments of loans, recaptures, and lien releases in the portfolio. Any remaining unobligated balances in the account are returned to the Treasury annually.

Balance Sheet (in millions of dollars)

Subject to section 502 of the Congressional Budget Act of 1974, during fiscal year [2016] 2017, commitments to guarantee loans under section 108 of the Housing and Community Development Act of 1974 (42 U.S.C. 5308), any part of which is guaranteed, shall not exceed a total principal amount of $300,000,000 [, notwithstanding any aggregate limitation on outstanding obligations guaranteed in subsection (k) of such section 108]: Provided, That the Secretary shall collect fees from borrowers[, notwithstanding subsection (m) of such section 108,] to result in a credit subsidy cost of zero for guaranteeing such loans, and any such fees shall be collected in accordance with section 502(7) of the Congressional Budget Act of 1974[: Provided further, That all unobligated balances, including recaptures and carryover, remaining from funds appropriated to the Department of Housing and Urban Development under this heading are hereby permanently rescinded]. (Department of Housing and Urban Development Appropriations Act, 2016.)

Program and Financing (in millions of dollars)

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in millions of dollars)

The Community Development Loan Guarantee program (Section 108) supports economic development projects, housing rehabilitation, and the rehabilitation, construction or installation of public facilities for the benefit of low- to moderate-income persons or to aid in the prevention of slums.

On November 3, 2015, the Department issued a final rule in the Federal Register to allow HUD to collect fees to offset credit subsidy costs such that the program operates at a zero credit subsidy cost. The Budget proposes a guaranteed loan limit of $300 million, with a fee of 2.59 percent of the principal amount of the loan for fiscal year 2017. The Budget also proposes legislative changes to the Housing and Community Development Act of 1974 to permanently allow for the new fee structure.

Program and Financing (in millions of dollars)