- The bill includes language allowing Section 202 Project Rental Assistance Contract (PRAC) properties to convert under RAD, a provision that CHPC has been working on for several years with national allies. The bill also lifts the cap on RAD conversions from 285,000 units to 455,000 units.
- The bill would increase funding for the HOME program by $412 million (43%) from $950 million to $1.362 billion, which is a huge victory (symbolically, at least) for a program that many of us thought would be eliminated years ago.
- CDBG would receive $3.365 billion with formula grants receiving a 10% increase from $3 billion to $3.3 billion.
- The bill extends the suspension of the 24-month funding commitment deadline under the HOME program. Because of the additional requirements on project selection, underwriting standards, and developer capacity under the HOME program, many communities have struggled to meet the two-year commitment deadline, which led to funding being lost. This language removes this barrier while keeping in place other, more meaningful deadlines.
- Funding for the Housing Opportunities for People with AIDS (HOPWA) program was increased to $375 million.
- Choice Neighborhoods Initiative (CNI) funding increases when compared to last year’s allocation, from $138 million to $150 million.
- Voucher renewals should be sufficient to renew all vouchers and perhaps restore a few that PHAs are authorized to use but recently lost over many years of HUD starvation budgets. PHA admin fees are increased modestly.
- Public housing did very well relative to recent past budgets with an $800 million (42%) increase in capital funds and a more modest increase (3.4%) in operating funds.
- Rural housing programs were surprisingly mostly flat funded and on average did not fare as well as HUD programs
Low Income Housing Tax Credit Improvements Included:
The bad news: Creating a floor of 4% for the 4% credit, which was part of the deal on the table earlier this week, is not included in the final deal. This provision would have been worth $500 million per year to California had it been enacted. The 12.5% temporary increase to the 9% credit allocations is worth about $125 million annually for the four-year term of the increase, or $500 million total over four years. Compare this to the $500 million annual loss in LIHTC market value to CA made permanent by the GOP Tax Bill. My statement to the LA Times about this: “While California affordable housing advocates should applaud Congress for the temporary increase in the per capita Housing Credit, it is not at all sufficient to undo the damage done by the GOP Tax Bill.” More needs to be done after the mid-term elections, which will be the next time any significant tax legislation is considered.