Affordable Housing, Announcements, Community Development, Federal News, Homelessness

Obama's FY13 Budget Increases Resources to Combat Homelessness, Cuts Other Housing Programs


President Obama released his proposed FY13 budget on February 13, with increased funding for homelessness programs and a mix of funding reductions and increases for other affordable housing, community development and social service programs.  Some highlights of the President’s budget proposal:

Rental Assistance

  • For Tenant Based Rental Assistance, the President proposes $19.1 billion, a 0.8% increase from FY12.  In this category, the President’s budget increases the amount budgeted for Administrative Fees to $1.575 billion, up 16.7% from the FY12 Enacted amount of $1.35 billion. However, funding for Sect 811 Mainstream vouchers would be slightly reduced to $111 million from $112 million in FY12.
  • The Administration’s proposed 6.9% reduction in Project-Based rental Assistance funding to $8.7 billion has alarmed the National Low Income Housing Coalition. 

Public Housing

  • The Administration proposes increases to both the Public Housing Capital Fund – $2.07 billion, a 10.4% increase from FY12 - and the Public Housing Operating Fund - $4.5 billion, a 14.2% increase from FY12.

Housing & Community Development

  • The proposed budget includes an increase of $30 million in funding for the Choice Neighborhoods Initiative, up to $150 million in FY13.
  • Housing Opportunities for Persons with AIDS (HOPWA) funds would receive a marginal cut of 0.6%, going down to $330 million.
  • The overall funding for the Community Development Fund would be cut again in FY13, by 5.0% to $3.143 billion. Community Development Block Grant Formula funding would remain the same as was enacted in FY12 at $2.95 billion, a 11.6% reduction from FY11.  However, the Administration proposes funding for the Sustainable Communities Initiative at $100 million, after no funding for the program in FY12.
  • Like CDBG, the HOME Investment Partnership Program would be flat funded, remaining at $1 billion in FY13, a 37% reduction in funding from FY11 levels.
  • While the Section 202 Housing for the Elderly program would receive an increase of 26.7% to $475 million in FY13, the Section 811 Housing for Persons with Disabilities program would be cut to $150 million, a 50% reduction in the funding the program was receiving in FY10 and a 9.1% reduction from FY12.   

Fair Housing & Housing Counseling

  • The Administration proposes increasing the funding for Housing Counseling Assistance to $55 million, a 22.2% increase from the $45 million in funding enacted in FY12.
  • However, Fair Housing and Equal Opportunity would face a 4.2 % reduction, going from $71 million in FY12 to $68 million in FY13.


  • Under the Administration’s proposal, HUD's Homelessness Assistance Grants funding would increase by 17.4% to $2.231 billion.
  • HHS’ Health Care for the Homeless program would increase to $258 million, up 11.2 % from FY12.


  • HUD Veterans Supportive Housing Vouchers (HUD-VASH) would be flat funded at $75 million.
  • VA funding for Veterans Homelessness Programs would increase by 32.7% to $1.35 billion. Case management for HUD-VASH would increase by 21.3% to $245 million.
  • Supportive Services for Homeless Veterans would increase by 200%, going from $100 million in FY12 to $300 million in FY13.
  • DOL’s Homeless Veterans Reintegration Program would remain flat funded at $38 million.

Many of the programs on the service side are flat funded under the Administration’s FY13 proposed budget, including:

  • HHS - Community Health Centers - $1.47 billion (discretionary, mandatory funding under the Affordable Car Act would increase by 25% to $1.5 billion)
  • HHS - Runaway and Homeless Youth Act - $115 million
  • HHS - Mental Health Block Grant - $439 million
  • HHS- Substance Abuse Block Grant - $1.38 billion
  • HHS - SAMHSA - $75 million
  • DOE – Education for Homeless Children and Youth - $65 million

Other programs of note:

  • Funding for HHS’ Community Services Block Grant program would receive a significant cut of 48.3%, dropping to $350 million.
  • LIHEAP would be cut by 13.2%, down to $3.02 billion.

The entire FY13 Budget Proposal is available here. A more detailed version of the HUD budget is available here.

Click here for a comparison chart compiled by the National Low Income Housing Coalition and here for one by the National Alliance to End Homelessness.


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