On February 3rd the House of Representatives launched its long anticipated assault on housing and community development programs. The House Budget Committee proposed setting FY11 spending caps for domestic discretionary programs at FY08 levels, dramatically lower than current funding levels.To meet these caps and impose additional cuts, the House Appropriations Committee announced its plan to cut the Transportation, HUD, and Related Agencies (THUD) Subcommittee’s funding allocation by 18%. This is below the President’s FY11 budget request and 17% below FY10 levels, the level at which programs are now being funded under the continuing resolution. These cuts would reduce HUD’s share of the THUD budget, causing hundreds of thousands of households currently housed through HUD programs to lose their housing. Cuts at these levels would devastate HUD programs serving the lowest income, most economically vulnerable households. HUD announced this week that the number of households experiencing worst case housing needs, defined as very low income renter households paying more than half of their income for housing or having other significant housing problems, increased by 20% between 2007 and 2009.
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