Industry groups across the country are analyzing an OMB report issued by the Obama Administration late last week in order to assess the impact that potential budget cuts could have on affordable housing if they take effect on January 2, 2013. The budget cuts, known as sequestration, could be triggered if Congress does not enact a plan to reduce the deficit by $1.2 trillion. The deficit reduction was required by the Budget Control Act of 2011, the legislation passed last year which allowed a temporary increase in the debt ceiling to allow Congress time to enact a more permanent solution. As the National Low Income Housing Coalition points out, the following cuts are estimated in the report: 1) Public housing operating fund cut by $325 million; 2) Project-based rental assistance cut by $772 million; 3) Public housing capital fund cut by $154 million; 4) HOME Investment Partnership program cut by $82 million; and 5) Housing counseling assistance cut by $4 million.
- Nixon Peabody Affordable Housing Blog / NLIHC