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FY17 Spending Bill Compromise

Samuel Gunter, Director of Policy and Advocacy

Late last night, Republican and Democratic leadership announced a deal on a final FY 17 spending package that would fund the federal government through the end of September. The compromise is expected to be voted on by Friday and would avoid a government shutdown.

The bill funds the vast majority of Housing and Urban Development programs at or above FY 16 levels. Included in this are level funding for crucial programs like the HOME Investment Partnership Program, Community Development Block Grant, and the Fair Housing and Equal Opportunity. It also included increases in Housing Counseling funding and the Office of Lead Hazard Control and Healthy Homes’ grants. The only programs to see funding cuts were the Public Housing Operating Fund and Section 811 Housing for People with Disabilities.

A compromise amendment is included that would prohibit HUD from directing local governments to change their zoning laws under the agency’s Affirmatively Furthering Fair Housing rule. The compromise is not as catastrophic as a proposal to block HUD’s ability to implement the rule or collect data on housing and race.

The bill also included an increase in spending for rural development programs through the Department of Agriculture, including a modest increase in both the Section 515 Rural Rental Housing Loan program and the Multifamily Preservation and Revitalization demonstration.

To read more about the specific impacts of this spending bill on affordable housing, click here.

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