The State of Federal Funding for Affordable Housing

Posted on November 14, 2013

allen_felizThe current short-term continuing resolution (CR) funds the federal government at current, fiscal year 2013 post-sequestration levels until January 15, 2014. An appointed conference committee will work on a fiscal year 2014 budget agreement by December 13 that could lead to the passing of spending bills for the remainder of the fiscal year and the replacement of sequestration.


If the budget conference committee fails to reach an agreement, the current short-term CR could be extended for the rest of the fiscal year and housing authorities would have to work with FY13 post-sequestration funding for all of FY14. The inability to fund the federal government for a full fiscal year and remove sequestration would not only result in low proration levels for the Public Housing Operating Fund, Section 8 voucher renewals and Section 8 administrative fees, but also, the lack of funding will cause housing authorities to continue lowering the amount of Section 8 vouchers available to its communities. 

For Example:

Cited on the Council of Large Public Housing Authorities (CLPHA) website, the state of funding for federal housing programs is unsustainable: “By the end of 2013, the Boston Housing Authority will have drained its reserve account completely, spending $14 million from reserves to make up for the 5 percent federal sequester cut. This will leave BHA “unable to absorb any more federal cuts without putting people on the streets. ‘Unless there is some relief on the federal level, this housing authority and housing authorities throughout the country could be faced with a very significant crisis,’ BHA administrator Bill McGonagle said. ‘I am not at all optimistic about our ability to replenish that reserve.’” (October 14)” (Source:


TCAM continues to monitor ongoing events such as how subsidies are handled by housing authorities and other administrators and the potential impact on available funds in the event of prolonged sequestration-level funding. For the latest updates on the federal budget and its impact on housing programs, contact Steve Spall ( or Allen Feliz ( or (617) 542-1200.


Topics: Asset Management,  Federal Housing Programs,  LIHTC