House Passes FY2022 Omnibus Spending Bill; Next Up the Senate

On March 9, 2022, the U.S. House of Representatives passed an omnibus spending package that contains all 12 fiscal year 2022 appropriations bills. Also included was supplemental funding to support Ukraine and reauthorization of the Violence Against Women Act (VAWA).

The omnibus package provides $1.5 trillion in discretionary spending with increases of $42 billion in defense spending and $46 billion in non-defense spending over fiscal year 2021 levels.

Of particular interest to the affordable housing and community development community are two bills. The first, the Transportation, Housing and Urban Development (THUD) bill, includes the funding for HUD’s affordable housing programs. The second, the Financial Services and General Government bill, includes U.S. Treasury funding.

THUD provides $53.7 billion for the Department of Housing and Urban Development which is an increase of $4 billion over fiscal year 2021. Section 8 tenant-based vouchers are funded at $27.4 billion and $13.9 billion for Project Based Rental Assistance. The HOME Investment Partnership program received a $150 million increase to $1.5 billion while the Community Development Block Grant program decreased of $175 million to $3.3 billion. HUD’s Native American program funding increased by $175 million to $1 billion.

THUD included funding and policy direction on expanding and new programs. Up to 25,000 new housing vouchers will be provided for veterans and individuals and families experiencing homelessness or domestic violence. The Rental Demonstration Program (RAD) will be expanded to make Section 811 housing for people with disabilities eligible for conversion and $1.5 billion will be provided for Congressional-directed spending (commonly called earmarks) to be spent on local community projects across the country.

David E. Price, the Chairman of the Transportation, Housing and Urban Development, and Related Agencies Subcommittee of the House Appropriations Committee stated in the Committee news release on passage of the package that, “[t]he Transportation-Housing funding bill included in the bipartisan omnibus unlocks the full potential of the President’s Bipartisan Infrastructure Law, prioritizes safety, assists vulnerable populations, jumpstarts new transportation grant programs, and expands opportunity through the addition of new housing vouchers for low-income families.”

The Financial Services and General Government bill that funds the U.S. Treasury provides $295 million for Community Development Financial Institutions (CDFI) fund programs, an increase of $25 million over fiscal year 2021 levels.

The next step for the omnibus spending package is for the U.S. Senate to consider it and pass it before the expiration of the current funding continuing resolution that expires at the end of the day Friday, March 11, 2022. Congressional leadership is confident that the package will pass the Senate in a timely manner. Once the Senate passes the package, it will go to the President for his signature.

Highlights of fiscal year 2022 spending levels for HUD and Treasury programs with increases or decreases compared to fiscal year 2021 spending:

• Public Housing Capital Fund: $3.2 billion, $435 million increase
• Public Housing Operating Fund: $5.039 billion, $200 million increase
• Choice Neighborhoods: $350 million, $150 million increase
• Section 8 Housing Assistance Payment Renewals: $24.095 billion, $1.015 billion increase
• Ongoing Total HCV Administrative Fees: $2.411 billion, $252 million increase
• Family Self-Sufficiency: $109 million, $4 million increase
• Section 8 Project-Based Rental Assistance: $13.54 billion, $75 million increase
• Community Development Block Grant: $3.3 billion, $175 million decrease
• HOME Investment Partnerships: $1.5 billion, $150 million increase
• Housing Opportunity for Persons with AIDS: $450 million, $20 million increase
• Homeless Assistance Grants: $3.213 billion, $213 million increase
• Fair Housing and Equal Opportunity: $85 million, $12 million increase
• Section 202 Housing for the Elderly: $1 billion, $145 million increase
• Section 811 Housing for People with Disabilities: $352, $125 million increase
• Native American Programs: $1 billion, $175 million increase

Ballard Spahr will continue to track these important and critical program funding resources.

Ballard Spahr is a national leader working at the forefront of the legal and business elements of affordable housing and community development. Our attorneys ensure that clients get the most benefit from transactions and help navigate shifts in the market, regulatory obligations, and government incentive programs. Please reach out if you have questions or visit us at the Affordable Housing and Community Development web page.

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