Stimulus bill has funds for ending homelessness
and affordable housing
On February 11, House and Senate negotiators reached agreement on a compromise version of HR 1, the American Recovery and Reinvestment Act of 2009. Details have become available from the House version of the legislation. Click here for that summary.
The final version includes a number of provisions related to housing and poverty, including:
$1.5 billion for homeless prevention activities, which will be allocated to states, cities and local governments through the emergency shelter grant formula;
$4 billion to the public housing capital fund to enable local public housing agencies to address a $32 billion backlog in capital needs — especially those improving energy efficiency in aging buildings;
$1 billion for the Community Development Block Grant program for community and economic development projects including housing and services for those hit hard by tough economic times;
$250 million is included for energy retrofitting and green investments in HUD-assisted housing projects;
$2.25 billion through HOME and with $2 billion of this of this for the Low Income Housing Tax Credit program to fill financing gaps caused by the credit freeze and get stalled housing development projects moving;
$2 billion for full-year payments to owners receiving Section 8 project-based rental assistance;
$2 billion in Neighborhood Stabilization Program for the redevelopment of abandoned and foreclosed homes;
$19.9 billion for additional Supplemental Nutrition Assistance Program (SNAP), formerly Food Stamps, to increase benefit levels by 13.6 percent;
Continuation of the extended unemployment benefits program (which provides up to 33 weeks of extended benefits) through December 2009;
One-time payments of $250 to Social Security beneficiaries, SSI recipients, and veterans receiving disability compensation and pension benefits from the VA; and
Extension of the moratorium on all 7 Medicaid regulations.
Low Income Housing Tax Credits (LIHTC):
Details of the tax provisions have not been released but it is our understanding that, in addition to the $2 billion for LIHTC gap financing mentioned above, the conference agreement will include the House’s proposal to allow housing credit allocating agencies to receive up to 40% of their 2009 credits as cash and use this to fill financing gaps from approved but stalled projects.
What is Not in The Conference Agreement
The final compromise does not include revenue for the National Housing Trust Fund, nor does it allocate funding for 400,000 new Housing Choice Vouchers.
Over the coming days, the Advocacy Network in cooperation with our national partners will release more detailed information about this funding and its ramifications.
The bill is expected to pass the House of Representatives tomorrow and the Senate shortly after that.
President Obama is expected to sign the legislation by Monday.
