Impact of the Trump/Carson HUD Budget Cuts in Nevada

On May 23, 2017, the White House released its FY 18 budget. Based on HUD data, we estimate that Nevada will lose  $51,452,155 annually as a result of the proposed HUD budget cuts. In addition, the cuts could impact up to 5,171 households per year.

Program Funding Lost Household Impact
Community Development Block Grant (CDBG) $19,987,856 -
Public Housing Capital Fund $3,293,393 -
Housing Choice Vouchers $18,057,249 1,787
HOME Investment Partnerships Program $7,746,004 -
Public Housing Operating Fund $2,082,506 3,384
Section 811 Housing For Persons with Disabilities $285,148 -
TOTAL $51,452,155 5,171
View Budget Impact For:

Public Housing Capital Fund

 $3,293,393
3,633 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 Nevada qualified for $4,868,003 in capital repairs. A 68.4% reduction in the Public Housing Capital Fund would reduce repair funding by $3,293,393 and would slow down or halt repairs for about 3,633 families in Nevada.

Public Housing Operating Fund

 $2,082,506
3,647 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 Nevada qualified for $18,326,043 in operating subsidy. A 13.3% reduction in the Public Housing Operating Fund would reduce subsidies received in Nevada by $2,082,506 and would cut services to the 3,647 families living in Public Housing in Nevada 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 Nevada, the average public housing tenant who now pays $276 toward rent would pay $322 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 $85. 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 Nevada could pay as much as an additional $131 toward their housing costs. With an average monthly income of $1,001, that means the average family will be left with $594 per month to cover all non-housing living expenses.

Housing Choice Voucher

 $18,057,249
1,787 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 $842, Nevada Housing Authorities could lose approximately 1,787 out of 15,474 vouchers with a total annual rent value of $18,055,848 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 Nevada, the average voucher holder who now pays $353 toward rent would pay $412 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 $151. 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 Nevada could pay as much as an additional $210 toward their housing costs. With an average monthly income of $1,098, that means the average voucher family will be left with $535 per month to cover all non-housing living expenses.

Community Development Block Grant (CDBG)

 $19,987,856

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 $415,470,603 (inflation adjusted) in community development projects in Nevada.

In 2018, Nevada stands to lose $19,987,856 per year in funding.

HOME Investment Partnerships Program

 $7,746,004

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. Nevada would lose an estimated $7,746,004 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 320 Section 811 funded apartments for persons with disabilities in Nevada. The proposed budget cut would reduce the rental subsidy received by these properties by $285,148 forcing housing providers to cut services or increase rent contributions made by their low-income, disabled residents.

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.