Impact of the Trump/Carson HUD Budget Cuts in Los Angeles, California

On May 23, 2017, the White House released its FY 18 budget. Based on HUD data, we estimate that Los Angeles, California will lose  $81,761,125 annually as a result of the proposed HUD budget cuts. In addition, the cuts could impact up to 7,019 households per year.

Program Funding Lost Household Impact
Community Development Block Grant (CDBG) $49,744,488 -
HOME Investment Partnerships Program $19,877,376 -
Public Housing Operating Fund $2,823,514 7,019
Public Housing Capital Fund $9,315,748 -
TOTAL $81,761,125 7,019
View Budget Impact For:

Public Housing Capital Fund

 $9,315,748
6,654 Units

Funded at $1.9415 billion in FY17 and used to fund repairs at Public Housing properties, the Capital Fund could be cut by $1.3135 billion (67.65%), reducing funds available for repairs at all 1.2 million rental units.

Public Housing properties operated in Los Angeles, California qualified for $13,769,717 in capital repairs. A 68.4% reduction in the Public Housing Capital Fund would reduce repair funding by $9,315,748 and would slow down or halt repairs for about 6,654 families in Los Angeles, California.

Public Housing Operating Fund

 $2,823,514

Impact of Funding Cuts

Funded at $4.4 billion in FY17 and used to subsidize the rent of all 1.2 million families living in Public Housing, the Operating Fund could be cut by $500 million (11.3%).

In 2016, Public Housing properties located in Los Angeles, California qualified for $24,846,911 in operating subsidy. A 13.3% reduction in the Public Housing Operating Fund would reduce subsidies received in Los Angeles, California by $2,823,514 and would cut services to families living in Public Housing in Los Angeles, California and could take some units off line for lack of operational funding.

Impact of Policy Changes

The White House budget proposes sweeping changes to the financial structure of housing subsidies. It proposes tenant contributions be increased from 30% of income to 35%, a minimum rent of $50 (up from $25) and eliminating utility reimbursements.

If these reforms were put into place, it is possible that no current housing assistance recipient would lose their home, but all households benefiting from the program would pay substantially more for housing.

In Los Angeles, the average public housing tenant who now pays $492 toward rent would pay $574 under the Trump/Carson HUD budget. In addition, tenants would not receive reimbursement for tenant-paid utilities which could be as much or more than $64. This utility reimbursement prohibition alone would impact the poorest of the poor and have a catastrophic impact on their housing expenses.

As a result of the housing subsidy reforms proposed in the 2018 White House budget, the average public housing tenant recipient in Los Angeles could pay as much as an additional $146 toward their housing costs. With an average monthly income of $1,635, that means the average family will be left with $997 per month to cover all non-housing living expenses.

Community Development Block Grant (CDBG)

 $49,744,488

Funded at $3.060 billion in FY17 and used for a variety of community development projects ranging from streetscape projects to Meals on Wheels programs, the CDBG program would be eliminated completely by the Trump/Carson Administration. From 1977 through 2014, the CDBG program has funded an estimated $0 (inflation adjusted) in community development projects in Los Angeles, California.

In 2018, Los Angeles, California stands to lose $49,744,488 per year in funding.

For examples on how the CDBG program impacts Los Angeles, California, view the table of CDBG activity.

HOME Investment Partnerships Program

 $19,877,376

Funded at $950 million in FY17 and used to fund many affordable housing related activities like homeownership and rental housing development, the HOME program would be eliminated completely by the Administration. Los Angeles, California would lose an estimated $19,877,376 per year in affordable housing funding.

For examples on how the HOME program impacts Los Angeles, California, view the table of HOME activity.

Estimates on this page are based on the FY 18 White House Budget and HUD data sets.

Direct sources and source changes are available on the FY 18 HUD Budget Cut Estimator Change Log, Sources, and Methodology page.

Email Signup
Don't Miss A Waiting List Opening