Ag Appropriations
The Ag Appropriations conference report includes that Administration
big initiative on rural housing: an increase of almost 40% in section
502 loans. This is the highest program level for low-income homeownership
loans since 1983 and the first increase in several years. Most other
programs including -- self help housing --$34 million; 504 loans
and grants ($35/$32 million, respectively); rural housing preservation
grants -- $10 million - are all at or close to FY 03 levels.
The conference report funding for RCDI at $6 million and provides
for $2 million for section 525.
The conference agreement restores sec. 515 to $116.5 million, well
above the $71 million proposed by the Administration. The conference
agreement also does not include House language limiting the use
of funds.
On farm labor housing, the final spending level is $61.7 million.
This is about $4 million above the FY 03 rate and reflects the continuing
steady, slow growth in the account.
The bill also rejected a reduction in water sewer grants proposed
in the budget. The conference agreement includes $577 million for
grants. This is $280 above the request but $70 million below the
FY 03 rate.
In all but a few cases, the conference agreement adopted the higher
of the House or Senate level. The one case is rental assistance.
The final level is $584 million that is less than FY 03: $726 million;
the FY 04 budget: $740 million; FY 04 House and Senate $731/721
million, respectively. The conference agreement shortens the term
of contract renewals to 4 years and indicates that any excess funds
could be use for rehabilitation, preservation or rental assistance
activities.
Over the last year, both the General Accounting Office and USDA
have testified that there is as much as $700 million in unexpended
balances in existing rental assistance accounts. However, a firm
number and a way to get at the money have proved elusive. The strategy
of the conference committee is to force USDA to come up with better
estimates of actual costs of rental assistance. We'll see…
Giving RHS explicit authority to use any left over rental assistance
money isn't a bad idea, but shortening the term of contracts may
shove the problem out a few years, but doesn't solve anything. It's
hard to see how this sets the stage for a reinvigorated rural rental
housing program.
National Rural Housing Coalition
1250 Eye Street, NW, Suite 902
Washington, DC 20005
Email Us
|
