On May 23, 2017, the White House released its FY18 budget. The budget includes steep cuts in funding for affordable housing programs, totaling $6.8225 billion in cuts to HUD programs from actual FY17 funding levels. Here's how these budget cuts impact your community.
We estimate, based on HUD data, that Auburn, Alabama will lose $679,258 annually as a result of the proposed HUD budget cuts.
|Community Development Block Grant||$488,410|
|Housing Choice Voucher||$190,848|
View the FY18 HUD Budget Cut Estimator Change Log, Sources, and Methodology page.
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 $456,750 (inflation adjusted) in community development projects in Auburn, Alabama.
In 2018, Auburn, Alabama stands to lose $488,410 per year in funding.
For examples on how the CDBG program impacts Auburn, Alabama, view the table of CDBG activity.
Funded at $20.292 billion in FY17, the Housing Choice Voucher program will be cut by $974.1 million according to the White House budget.
FY18 Housing Choice Voucher renewals are funded at $17.58 billion in the White House budget. With projected renewal needs1 of $19.92 billion, the HCV program is effectively being cut by $2.34 billion. Nationally, this cut puts an estimated 290,600 - or 11.74% - of the 2,474,000 voucher recipients at risk of losing their vouchers.
Based on the 2016 average monthly voucher cost of $568, Auburn Housing Authorities could lose approximately 28 out of 234 vouchers with a total annual rent value of $190,848 without significant changes to housing policy.
The White House budget proposes sweeping changes to the financial structure of housing subsidies. Notably, for all rental assistance programs, which includes the housing choice voucher program, 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 voucher, but all households benefiting from the program would pay substantially more for housing.
In Auburn, the average voucher holder who now pays $291 toward rent would pay $340 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 $157. 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 voucher recipient in Auburn could pay as much as an additional $206 toward their housing costs. With an average monthly income of $1,055, that means the average voucher family will be left with $559 per month to cover all non-housing living expenses.
Estimates on this page are based on the FY18 White House Budget and HUD data sets.
Direct sources and source changes are available on the FY18 HUD Budget Cut Estimator Change Log, Sources, and Methodology page.
1. We are estimating 2017 rent inflation at 3.5% across the country. HUD has not published the 2017 regional voucher inflation factors that estimate rent inflation in individual rental markets. The agency has 60 days from the signing of the 2017 Omnibus Appropriations (signed on May 5, 2017) to publish these adjustment factors. Once published, we will make further local adjustments based on local inflation factors.