Bill provides most HUD programs with funding increases from 2021
The Senate has passed a $1.5 trillion spending bill that provides funding for all federal agencies, including the Treasury and the Department of Housing and Urban Development (HUD).
The FY2022 omnibus bill, which is now cleared to be signed into law by President Joe Biden, also provides $13.6 billion to address the crisis in Ukraine, according to the House Appropriations Committee.
For HUD funding, the omnibus provides $65.7 billion, a sequential $5.34 billion increase from a year ago. However, it is $3 billion less than the FY2022 request, $2.74 billion less than the FY2022 House THUD bill, and $304 million more than the Senate draft FY 2021 THUD bill, according to accounting services organization Novogradac.
“In general, the bill’s funding levels represent a compromise between the higher amounts of the administration request and House bill and the lower amounts of the Senate bill, providing most HUD programs with increases from last year,” Peter Lawrence, director of public policy and government relations at Novogradac, wrote in a blog post.
However, Lawrence noted that this year’s bill does not include certain provisions, unlike last year’s omnibus.
“The FY2022 bill does not include a tax title, so there are no provisions to extend the 12.5% increase in low-income housing tax credit (LIHTC) allocations, nor to extend the renewable energy production tax credit (PTC), nor the Internal Revenue Code Section 45L new energy-efficient home tax credit, which were among the roughly three dozen tax provisions that expired at the end of 2021,” he said.
Mortgage Bankers Association head Bob Broeksmit applauded the passage of the bill, commenting: “MBA was especially pleased to see the requirement of HUD to report on efforts to resolve delays in the FHA multifamily pipeline funding, language supporting FHA IT modernization, the inclusion of the Adjustable Interest Rate (LIBOR) Act, and the extension of the National Flood Insurance Program (NFIP).”
“These provisions will help consumers, including low-to-moderate-income tenants and borrowers, participate in both the rental and homeownership experience,” Broeksmit said.