
Spotlight On...
Congress Proposes Funding for Economic Recovery, Housing, and Homelessness

Leaders of the U.S. House of Representatives
released a draft of their proposed economic recovery
legislation. The proposal includes $1.5 billion for
homelessness prevention and re-housing, $15 billion
for other housing programs, and billions more for
poverty, infrastructure, and other needs as part of an
$825 billion economic recovery package. The
prevention and re-housing funding would be
distributed through HUD's Emergency Shelter Grants
program, but would be used for short-term rental
assistance, housing location, and housing
stabilization services.
Housing and homelessness advocates are also
seeking funding for additional housing vouchers and
for housing production through the National Housing
Trust Fund, but those are not included in the proposal.
A list of some of the housing and poverty-related
provisions is below. The Senate will introduce a
proposal in the coming days, and Congress will try to
complete legislation by mid-February.
Homeless Assistance Grants: $1.5 billion for
the Emergency Shelter Grant program to provide short-
term rental assistance, housing relocation, and
stabilization services for families during the economic
crisis. Funds are distributed by formula.
Emergency Food and Shelter: $200
million to help local community organizations provide
food, shelter, and support services to the nation's
hungry, homeless, and people in economic crisis,
including one-month utility payments to prevent
service cut-offs and one-month rent or mortgage
assistance to
prevent evictions or help people leave shelters. Funds
are distributed by formula based on unemployment
and poverty rates.
Education for Homeless Children and Youth:
$66
million for formula grants to states to provide services
to homeless children, including meals and
transportation. High unemployment and home
foreclosures have created an influx of homeless kids.
Energy Efficiency Housing Retrofits: $2.5
billion for a new program to upgrade HUD-sponsored
low-income
housing to increase energy efficiency, including new
insulation, windows, and furnaces. Funds will be
competitively awarded.
Public Housing Capital Fund: $5 billion for
building
repair and modernization, including critical safety
repairs. Every dollar of Capital Fund expenditures
produces $2.12 in economic return. $4 billion of the
funds will be distributed to public housing authorities
through the existing formula and $1 billion will be
awarded through a competitive process for projects
that improve energy efficiency.
HOME Investment Partnerships: $1.5 billion to
help
local communities build and rehabilitate low-income
housing using green technologies. Thousands of
ready-to-go housing projects have been stalled by the
credit crunch. Funds are distributed by formula.
Native American Housing Block Grants: $500
million
to rehabilitate and improve energy efficiency at some
of the over 42,000 housing units maintained by Native
American housing programs. Half of the funding will
be distributed by formula and half will be competitively
awarded to projects that can be started quickly.
Neighborhood Stabilization: $4.2 billion to
help
communities purchase and rehabilitate foreclosed,
vacant properties in order to create more affordable
housing and reduce neighborhood blight.
Rural Housing Insurance Fund: $500 million
to
support $22 billion in direct loans and loan
guarantees to help rural families and individuals buy
homes during the credit crunch. Last year, these
programs received $13.4 billion more in applications
than they could fund.
Self-Help and Assisted Homeownership
Program:
$10 million for rural, high-need areas to undertake
projects using sustainable and energy-efficient
building and rehabilitation practices. Funds will be
awarded by competition to projects that can begin
quickly.
Lead Paint: $100 million for competitive
grants to local
governments and nonprofit organizations to remove
lead-based paint hazards in low-income housing.
Rural Community Facilities: $200 million to
support
$1.2 billion in grants and loans to rural areas for
critical community facilities, such as for healthcare,
education, fire and rescue, day care, community
centers, and libraries. There are over $1.2 billion in
applications pending.
Community Services Block Grant: $1
billion
for grants to local communities to support
employment, food, housing, and healthcare efforts
serving those hardest hit by the recession.
Community action agencies have seen dramatic
increases in requests for their assistance due to
rising unemployment, housing foreclosures, and high
food and fuel prices.
Community Development Block Grants: $1
billion for community and economic development
projects, including housing and services for those hit
hard by tough economic times.
Temporary Assistance for Needy
Families:
$2.5 billion for block grants to help States deal with
the surge in families needing help during the
recession and to prevent them from cutting work
programs and services for abused and neglected
children.
Low-Income Home Energy Assistance: $1
billion to help low-income families pay for home
heating and cooling.
Troop Housing: $1.2 billion for new
construction and $154 million for renovations to
improve housing for our troops.
Full Summary

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