Impact of the Trump/Carson HUD Budget Cuts in Michigan

On May 23, 2017, the White House released its FY 18 budget. Based on HUD data, we estimate that Michigan will lose  $222,223,538 annually as a result of the proposed HUD budget cuts. In addition, the cuts could impact up to 28,607 households per year.

ProgramFunding LostHousehold Impact
Community Development Block Grant (CDBG)$111,367,382-
HOME Investment Partnerships Program$29,039,933-
Public Housing Operating Fund$8,719,22021,546
Public Housing Capital Fund$21,336,565-
Housing Choice Vouchers$51,344,3137,061
Section 811 Housing For Persons with Disabilities$416,125-
TOTAL$222,223,53828,607
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Public Housing Capital Fund

 $21,336,565
22,727 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 Michigan qualified for $31,537,829 in capital repairs. A 68.4% reduction in the Public Housing Capital Fund would reduce repair funding by $21,336,565 and would slow down or halt repairs for about 22,727 families in Michigan.

Public Housing Operating Fund

 $8,719,220
24,944 Units

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 Michigan qualified for $76,729,111 in operating subsidy. A 13.3% reduction in the Public Housing Operating Fund would reduce subsidies received in Michigan by $8,719,220 and would cut services to the 24,944 families living in Public Housing in Michigan 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 Michigan, the average public housing tenant who now pays $263 toward rent would pay $307 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 $88. 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 Michigan could pay as much as an additional $132 toward their housing costs. With an average monthly income of $997, that means the average family will be left with $603 per month to cover all non-housing living expenses.

Housing Choice Voucher

 $51,344,313
7,061 Families

Impact of Funding Cuts

Funded at $20.292 billion in FY17 the Housing Choice Voucher program would be cut by $.974 billion in FY 18 to $19.3179 billion.

However, FY 18 funding to renew vouchers that are already in use is only funded at $17.584 billion. Based on recently released HUD inflationary factors and an estimate of the number of new vouchers to be issued through 2017, FY 18 funding would need to be $19.88 billion to renew all existing vouchers. The FY 18 budget effectively cuts Housing Choice Voucher funding by $2.296 billion or 11.55%.

Based on the 2016 average monthly voucher cost of $606, Michigan Housing Authorities could lose approximately 7,061 out of 61,134 vouchers with a total annual rent value of $51,347,592 without significant changes to housing policy.

Impact of Policy Changes

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 Michigan, the average voucher holder who now pays $316 toward rent would pay $369 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 $133. 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 Michigan could pay as much as an additional $186 toward their housing costs. With an average monthly income of $1,014, that means the average voucher family will be left with $512 per month to cover all non-housing living expenses.

Community Development Block Grant (CDBG)

 $111,367,382

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 $6,878,981,058 (inflation adjusted) in community development projects in Michigan.

In 2018, Michigan stands to lose $111,367,382 per year in funding.

HOME Investment Partnerships Program

 $29,039,933

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. Michigan would lose an estimated $29,039,933 per year in affordable housing funding.

Section 811 Housing for Persons with Disabilities

Funded at $146.2 million in FY17, the Section 811 program could be cut by $24.9 million (17.03%) according to the White House budget. The program is used to subsidize the rent of affordable housing for Persons with Disabilities across America.

According to the 2016 Picture of Subsidized Households, there are 533 Section 811 funded apartments for persons with disabilities in Michigan. The proposed budget cut would reduce the rental subsidy received by these properties by $416,125 forcing housing providers to cut services or increase rent contributions made by their low-income, disabled residents.

Be an Advocate for Affordable Housing

The Trump Administration proposes an $8.8 billion cut to HUD's FY 19 Budget, which would greatly reduce, or outright eliminate funding for programs that assist renters nationwide. Use the Contact Congress button below to tell your Congresspersons to fully fund America’s affordable housing, and use the Facebook and Twitter share buttons to help spread the word to your friends and family.

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.