Department of Housing and Urban Development (HUD): FY2022 Budget Request Fact Sheet

Department of Housing and Urban Development (HUD): FY2022 Budget Request Fact Sheet

Department of Housing and Urban
Development (HUD): FY2022 Budget Request
Fact Sheet
July 22, 2021
Congressional Research Service
https://crsreports.congress.gov
R46849

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Introduction
This report provides a brief overview of the FY2022 budget request for the Department of
Housing and Urban Development (HUD), with links to relevant Administration budget
documents and CRS reports. This report wil not be updated to track legislative action during the
appropriations process.
HUD
Most of the funding for HUD’s programs and activities comes from discretionary appropriations
provided each year in the annual appropriations acts. HUD’s annual appropriations are general y
considered along with those for the Department of Transportation and several related agencies
(including the Neighborhood Reinvestment Corporation, also known as NeighborWorks America)
by the Transportation, HUD, and Related Agencies subcommittees of the House and the Senate
appropriations committees.
 For more information about HUD’s programs and activities, see CRS Report
RL34591, Overview of Federal Housing Assistance Programs and Policy, by
Maggie McCarty, Libby Perl, and Katie Jones.
President’s FY2022 Budget Request
On April 9, 2021, President Joe Biden submitted to Congress an outline of his discretionary
funding priorities for FY2022. The Administration submitted its full FY2022 budget request to
Congress on May 28, 2021.
 For more information about HUD’s budget request, see FY2022 Budget
Appendix-HUD.
 For additional detail about funding levels for specific programs and activities,
see HUD’s FY2022 Congressional Budget Justifications.
 For a table of FY2022 requested funding levels compared to FY2021 enacted
funding levels for selected HUD accounts, see Table 1.
Totals
Gross Budget Authority
The President’s FY2022 request proposes $68.69 bil ion in gross discretionary appropriations for
HUD, which is the amount of new budget authority available for HUD programs and activities,
not accounting for budgetary savings from offsets and other sources. This amount is about $8.34
bil ion (14%) more than the amount of gross discretionary appropriations provided in the FY2021
enacted appropriations law (see Figure 1).
The President’s budget proposes funding increases for most HUD programs and activities and
includes some new programs, which are explored later in this report (see “Funding Increases” and
“Climate Initiatives”). The largest relative increase is for the Native Hawai an Housing Block
Grant program (+250%; +$5 mil ion relative to FY2021), and the largest overal increase is for
the tenant-based rental assistance account (+$4.66 bil ion; +18% relative to FY2021).
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Net Budget Authority
When looking at net discretionary budget authority—accounting for the effect of budgetary
savings from offsetting collections and receipts, rescissions, and other sources—the President’s
budget appears to provide a larger increase relative to FY2021 than the increase in gross budget
authority. As shown in Figure 1, accounting for these savings, the President’s FY2022 budget
requests $58.2 bil ion in net discretionary funding for HUD, an increase of about $12.91 bil ion
(29%) compared to the net budget authority provided in FY2021. In other words, the overal
increase in funding for HUD’s programs and activities from FY2021 to FY2022 (as represented
by gross budget authority) is smal er than it appears when accounting for budgetary savings (as
represented by net budget authority). The gross budget authority general y best reflects the
amount of new funding available for HUD’s programs and activities in a year, whereas net budget
authority is important for budgetary scorekeeping and compliance with statutory spending
limitations.
The reason that the net increase from FY2021 enacted to FY2022 requested amounts is larger
than the gross increase is because there is less estimated to be available in offsets in FY2022
relative to FY2021. Specifical y, there is an estimated $4.57 bil ion (30%) decrease in budget
savings, from $15.09 bil ion in FY2021 to $10.53 bil ion in FY2022, available from offsetting
collections and receipts. This is attributable to projected declines in the volume of Federal
Housing Administration (FHA) insured mortgages, as wel as lower anticipated returns on those
loans, in FY2022 relative to FY2021. However, these estimates of offsetting collections and
receipts for FY2022 wil likely change when the Congressional Budget Office (CBO) re-
estimates the President’s budget for the purposes of the congressional appropriations process.
 For more information about offsetting collections and receipts and other
components of the HUD budget, see CRS Report R42542, Department of
Housing and Urban Development (HUD): Funding Trends Since FY2002, by
Maggie McCarty.
 For more information about FHA and how it is accounted for in the budget, see
CRS Report R42875, FHA Single-Family Mortgage Insurance: Financial Status
of the Mutual Mortgage Insurance Fund (MMI Fund), by Katie Jones.

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HUD: FY2022 Budget Request Fact Sheet

Figure 1. Total HUD Discretionary Funding With and Without Savings from Offsets
and Other Sources: FY2021 Enacted and FY2022 Request

Source: Chart prepared by the Congressional Research Service (CRS). FY2021 and FY2022 figures taken from
FY2022 President’s budget documents and HUD Congressional Budget Justifications.
Notes: Figures exclude emergency funding.
Funding Increases
There are a number of HUD programs slated for funding increases in the FY2022 request relative
to FY2021 enacted appropriations. Those with the largest proposed dollar increases include the
following:
 Tenant-Based Rental Assistance (Section 8 Housing Choice Vouchers),
proposed for a $4.66 bil ion (18%) increase, provides funds to private landlords
on behalf of low-income households. Of this amount, $1.6 bil ion is to fund
vouchers for 200,000 additional households experiencing homelessness or at risk
of homelessness.
 Public Housing Fund, proposed for a $769 mil ion (10%) increase, provides
grants to public housing agencies (PHAs) to fund public housing costs. Of this
amount, $300 mil ion is for Climate Initiatives.
 HOME Investment Partnerships Program, proposed for a $500 mil ion (37%)
increase, provides formula grants to states and eligible localities for various
affordable housing activities targeted to low-income households.
 Homeless Assistance Grants, proposed for a $500 mil ion (17%) increase,
provides funds to local communities for a variety of housing and related services
for individuals and families experiencing or at risk of homelessness.
 Community Development Fund (including the Community Development Block
Grant [CDBG]), proposed for a $295 mil ion (8%) increase, provides formula
grants to states and localities for a variety of community and economic
development activities.
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HUD: FY2022 Budget Request Fact Sheet

Climate Initiatives
The budget includes a request for $800 mil ion to improve the climate resilience and energy
efficiency of HUD housing. This Climate Initiative targets the following programs and accounts:
 Public Housing Fund includes $300 mil ion ($245 mil ion for capital grants and
$55 mil ion to support energy and water conservation innovations) to reduce
utility consumption and improve energy performance of public housing.
 Native American Programs includes $100 mil ion for competitive grants to
improve energy and water efficiency in housing units.
 Choice Neighborhoods includes $50 mil ion to support the design and
construction of energy-efficient housing.
 Green and Resilient Retrofit Program includes $250 mil ion for a new
demonstration program to rehabilitate HUD-assisted multifamily homes to
improve their energy efficiency and ability to withstand extreme weather and
natural disasters.
 Rental Assistance Demonstration includes $100 mil ion ($50 mil ion for
tenant-based rental assistance and $50 mil ion for project-based rental assistance)
to address energy efficiency and other critical needs of properties.
Separate from the President’s budget request, the Biden Administration’s American Jobs Plan
“proposes to invest $147.3 bil ion in an array of HUD programs to bolster the nation’s housing
infrastructure and create jobs.” This plan includes a focus on energy efficient housing units and
community climate resilience.
Table 1. FY2021 Enacted Funding and FY2022 Request for Selected HUD Accounts
(in bil ions of dol ars)
%
Change,
FY2021-
FY2021
FY2022
FY2022
Accounts
Enacted
Request
Request
Salaries and Expenses (Mgmt. & Adm.)
1.936
2.151
11%
Tenant-Based Rental Assistance (Section 8 Housing Choice Vouchers)
25.778
30.442
18%
Public Housing Fund
7.806
8.575
10%
Choice Neighborhoods
0.200
0.250
25%
Family Self-Sufficiency Program Coordinators
0.105
0.120
14%
Native American Programs
0.825
1.000
21%
Native Hawai an block grant
0.002
0.007
250%
Housing, persons with AIDS (HOPWA)
0.430
0.450
5%
Community Development Fund (including CDBG)
3.475
3.770
8%
HOME Investment Partnerships
1.350
1.850
37%
Self-Help Homeownership Opportunity (SHOP)
0.060
0.060
0%
Homeless Assistance Grants
3.000
3.500
17%
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HUD: FY2022 Budget Request Fact Sheet

Project-Based Rental Assistance (Project-Based Section 8)
13.465
14.060
4%
Housing for the Elderly
0.855
0.928
9%
Housing for Persons with Disabilities
0.227
0.272
20%
Housing Counseling Assistance
0.078
0.086
10%
Green and Resilient Retrofit Program (new in FY2022 Budget)
N/A
0.250
N/A
Research and technology
0.105
0.145
38%
Fair housing activities
0.073
0.085
16%
Office, lead hazard control
0.360
0.400
11%
Source: Table prepared by the Congressional Research Service (CRS). FY2021 and FY2022 figures taken from
FY2022 President’s budget documents and HUD Congressional Budget Justifications.

Author Information

Alyse N. Minter

Research Librarian

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