Public Housing: Stimulus Bill Information

The stimulus bill is welcomed news for the public housing sector. The funds will be allocated between several different housing initiatives including $4 billion to be used for capital and management activities for public housing agencies, $2 billion for neighborhood stabilization programs, and $1.5 billion for homeless prevention efforts.

Public Housing Capital Fund: $4 billion of funding set aside by Congress to be used for capital and management activities for public housing agencies. Specifically it is meant to address the $32 billion shortfall by public housing agencies.

Community Development Fund: $1 billion in funding is earmarked to improve energy efficiency in aging developments.

Section 8 Rental Assistance: $2.25 billion to be used for investments in low-income housing tax credit projects.

Neighborhood Stabilization Program: $2 billion in appropriations to assist with the redevelopment of abandoned and foreclosed homes as authorized under the Housing and Economic Recovery Act of 2008.

Homeless Prevention: $1.5 billion in funding will be sent to state and local governments and private non-profit organizations for rapid re-housing activities for the homeless.

Housing Stability and Green Retrofits: $2.25 billion in funding - $2 billion is to be used for assisting owners of properties receiving project-based assistance pursuant to the Housing Act of 1959, the Cranston-Gonzalez National Affordable Housing Act or the United States Housing Act of 1937. $250 million is for grants or loans for energy retrofit and green investments in assisted housing.

Development of Affordable Rental Housing:
• Credit exchange allows state allocating agencies to return a portion of their LIHTC volume in exchange for funding to provide gap financing for "ready to go" developments.
• $2.5 billion additional funds to the state allocating agencies under the HOME Investment Partnerships Program.
• $2 billion increase in funding under the Neighborhood Stabilization Program.
• $4 billion increase in public housing capital funds.
• $2 billion increase in Section 8 project-based rental assistance.
• $1 billion additional funding under the Community Development Block Grant Program