Why Is The HUD 302(b) Process So Important For Seniors?

In short, it's nothing less than the funding allocations for Housing & Community Development programs in fiscal year 2013.  Read on for background information you can use when speaking to your congressional representatives THIS WEEK.

(Call the Capitol switchboard (202-224-3121) and ask for the offices of your Senator and Representative.)

What is the 302(b) allocation?

After Congress passes a budget resolution that sets the overall cap for spending for the fiscal year, the House and Senate Committees on Appropriations allocate that funding to their appropriations subcommittees; this divvying up to the subcommittees is called a 302(b) allocation. The subcommittees then divide their funding allocation between the different programs over which they have jurisdiction. The subcommittee that funds the Department of Housing and Urban Development (HUD) and some of the Department of Transportation is the Transportation, Housing and Urban Development, and Related Agencies (THUD) subcommittee.

Why should local groups care about the THUD 302(b)?

The THUD 302(b) allocation is a critical figure because, if it is high, there can be plenty of funding shared between HUD and Transportation, and if it’s low, the appropriations subcommittees decide where to prioritize those funds and some or many programs will be cut.

Why is the THUD 302(b) allocation more important this year?

Last summer Congress agreed to reduce spending in coming fiscal years. Congress agreed to a spending cap for this year at a level that could result in cuts to the THUD 302(b) allocation.   In FY12, the THUD subcommittee allocation was cut deeply. It is likely that Congress will not be inclined to increase this funding level without significant advocacy. Additionally, in FY12, there were one time cost savings included in the THUD appropriations bill- these savings are no longer available so to even maintain the FY12 level of funds, the allocation would need to be increased.

 How will the THUD 302(b) allocation affect my community?

While the impacts won’t be known until after the appropriations process is complete, a lower or even level THUD 302(b) allocation will likely result in cuts to HUD programs. These cuts will result in fewer households receiving affordable housing, fewer funds for community development projects, and fewer investments in transportation related projects (that are funded through this subcommittee). This would mean jobs lost, opportunities to create jobs lost, halted development projects, and low income households continue to wait for affordable housing.