Major Cuts – Some Increases in Administration’s 2012 Budget Proposal for HUD

The fiscal year 2012 HUD budget proposal released by the Obama Administration increases funding for Section 8 and homeless assistance, but cuts funding for CDBG, HOME, Section 202, and Section 811 housing.

HUD is also proposing some key operational changes that would affect the voucher program, project-based rental assistance, and public housing. Among these changes would be a more expansive definition of extremely low-income households and a change to the medical expense deductions.

The operational changes will broaden the targeting requirement for extremely low- income (ELI) households by applying it to families up to the higher of 30 percent of area median income (AMI) or the federal poverty level. This will increase the number of households that will qualify under the ELI targeting requirements.

In determining adjusted income, the standard deduction for elderly and disabled households would be increased from $400 to $675, but the threshold for deducting medical expenses would be increased from 3 percent to 10 percent of gross income.

In another proposed change, fixed-income families receiving at least 90 percent of income from Social Security, SSI, or similar sources would be recertified every three years instead of annually.

Keep in mind – these are proposed changes – you should not change how you are currently operating in these areas.