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What Obama's 2014 Budget Means for Housing

by Published On: Apr 23, 2013
2014 President Obama Budget Proposal

President Obama unveiled a 2014 budget proposal on April 10 that would achieve $1.8 trillion in deficit reduction over the next decade with a balanced approach to funding critical federal programs so that seniors and people with disabilities can remain independent and receive the services they need in their communities. 

It also assumes the reversal of sequestration, which is unfolding now with furloughs and cuts that will potentially mean the loss of rental assistance for the nation's most vulnerable.

The budget recommends $400 million for the Section 202 program including: 

  • $310 m for PRAC renewals.
  • $70 million for service coordinator renewals.
  • $20 million for a demonstration program for new housing and supportive services models.  

The budget also includes $10.27 billion for the renewal of project based Section 8 contracts.

Section 202 Program

For the Section 202 program, the Obama administration proposes a new demonstration to develop housing plus supportive services models.  

The $20 million demonstration, if approved and funded, may provide operating assistance only and may be administered by a state partnership between housing and health care agencies.  

The precise form of the demonstration is yet to be determined. However, HUD has estimated that the $20 million will assist as many as 3,400 new units.  

There has been no new funding for section 202 development for the last 2 years. We look forward to working with the Obama administration on designing a Section 202 demonstration that will provide models that can be replicated and that will save dollars throughout the health care system.

Assisted Living Conversion Program / Service Enriched Housing Grants

The Obama budget also includes $22 million in carry-over funding for assisted living conversion program (ALCP) and Service Enriched Housing grants although there is no new money in the budget. 

Senior Preservation Rental Assistance Contracts

President Obama's budget includes a carryover of $32 million for the Senior Preservation Rental Assistance Contracts (SPRAC).  

HUD issued an advance notice of a process to award SPRAC for seniors without rental assistance to the pre-1974 Section 202 properties that refinance and preserve the properties.  

LeadingAge commented on the SRPAC process in March, and HUD is expected to digest the comments and announce the availability of funding by September. So, the funding that had been available prior to the proposed regulation will, in effect, become available during FY 2014 and no new funding was requested.

Section 8 Housing

For the renewal of Project Based Section 8 contracts, the administration has requested $10.27 billion an amount that could renew all contracts for a full 12 months if and only if sequestration is reversed.  

In testimony before the U.S. House of Representatives appropriations subcommittee, HUD Secretary Shaun Donovan said that if sequestration is not reversed, $11.5 billion is needed to renewal all contracts for the full 12 months. 

In FY 2014, 15,900 contracts will need to be renewed representing 1.1 million housing units.  

HUD anticipates that without the $11.5 billion, only 6200 contracts can be renewed for the full 12 months. The remaining 9700 contracts, representing 670,000 units, will be renewed for only 9 months.  

LeadingAge has joined other provider groups in Washington, including NLHA, NAHMA, NAHB, NMHC, and NAR, in sending letters to appropriators requesting $11.5 billion so that shortfunding of Section 8 contracts, which are devastating to the Section 8 program, can be avoided:

You can review a summary of all HUD and USDA program funding requests from the National Low Income Housing Coalition.


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