FACT SHEET: Sequestration Would Harm Affordable Housing Programs and Low Income Residents
On September 13, the Obama Administration released the “OMB Report Pursuant to the Sequestration Transparency Act of 2012 (P. L. 112–155).” The report provides detailed estimates of the Budget Control Act’s required sequestration (i.e. mandatory across-the-board spending cuts) to defense and non-defense funding. NAHMA was very concerned to learn that federal affordable housing programs could be cut by 8.2 percent across-the-board (if they are funded at FY 2012 levels) in 2013 due to sequestration.
The Office of Management and Budget (OMB) listed the following federal multifamily housing programs as eligible for sequestration:
- The Department of Housing and Urban Development’s (HUD):
- Project-based Section 8—An estimated cut of $772 million;
- Tenant-based Section 8 housing choice vouchers—An estimated cut of $1.5 billion;
- Section 202 elderly housing—An estimated cut of $31 million;
- Section 811 disabled housing—An estimated cut of $14 million;
- Community Development Fund—An estimated cut of $279 million;
- HOME—An estimated cut of $82 million; and
- Choice Neighborhoods—An estimated cut of $10 million;
- The Department of Agriculture (USDA)-Rural Development’s (RD):
- Section 521 Rural Rental Assistance—An estimated cut of $74 million;
- The Rural Housing Insurance Fund Program Account (which includes Section 538 and Section 515 loans)—An estimated cut of $42 million; and
- The Multifamily Revitalization Program—An estimated cut of $1 million.
- These programs are vital to helping low-income families afford safe, quality rental housing across the nation. Sequestration would be disastrous to the project-based Section 8 and other affordable multifamily housing programs.
- It puts jobs, housing for low-income families, and the integrity of federal programs at risk.
- At an industry presentation in September, HUD Secretary Shaun Donovan announced that sequestering HUD’s budget could result in a loss of:
- 53,000 jobs; Housing assistance for at least 250,000 households—many of which are elderly, disabled, and/or veterans; and homelessness assistance for 100,000 households.