202 Funding Increased in House Action

Legislation | September 15, 2017 | by Linda Couch

The House approved an amendment from Representative Darren Soto (D-FL) to increase Section 202 Housing for the Elderly funding by $2.5 million before passing the entire funding bill on September 14.  

The omnibus appropriations bill, HR 3354, now includes $575.5 for the Section 202 program, a significant increase from both the $502 million appropriated for fiscal year 2017 (FY17) and the $510 million sought by the Trump Administration for fiscal year 2018 (FY18).

In addition to providing full funding for Section 202 Project Rental Assistance Contract (PRAC) renewals for FY18, the House-passed bill also include authority to expand HUD’s Rental Assistance Demonstration to include 202 communities with PRACs.

In the House, the inclusion of RAD for PRAC authority was championed by Representative Mike Quigley (D-IL). RAD for PRAC language is also in the Senate’s FY18 HUD appropriations bill, which was voted out of committee in July. Securing RAD for PRAC expansion, a priority for LeadingAge, now seems highly likely once a final FY18 bill is passed, likely sometime this winter.

The House and Senate bills would also increase Service Coordinator funding for FY18 by $10 million compared to FY17 funding.

Both the House and Senate bills rejected the Trump Administration’s requests to make deep cuts to the Section 202 program for FY18, to freeze contract rents to owners, and to raise rents for all residents.

An amendment from Representative Glenn Grothman (R-WI) to cut funding needed for Section 8 Project Based Rental Assistance contract renewals was rejected during House consideration of the bill. As it stands, the House bill provides less than the Senate bill does for PBRA renewals. LeadingAge supports the Senate bill’s PBRA renewal funding level. Section 8 PBRA contracts provide the rental assistance for about two-thirds of all Section 202 communities.

In other appropriations news, Congress passed and the President signed into law a continuing resolution (CR)  to keep federal programs funded at FY17 levels through December 8. The CR provides Congress the opportunity to enact final FY18 funding bills by December 8, more than two months after the October 1 start of FY18. HUD's rental assistance programs are not expected to be adversely funded by a two-month CR.