Public housing authorities – US: Increased federal funding to bolster capital fund bond programs

Source: Dmitriy Plit, Florence Zeman, Kendra M. Smith, Moody’s, Sector Comment, February 27, 2019
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Legislation signed by President Donald Trump this month includes a spending increase for the Public Housing Capital Fund, which provides public housing authorities (PHAs) with funds topay debt used to finance new developments and improvements. The capital fund program, run by the Department of Housing and Urban Development (HUD), will receive $2.78 billion, approximately a 1% increase compared to $2.75 billion in fiscal year 2018. The funding bump is credit positive for the PHA sector, coming on top of an approximately 42% increase last year after mostly flat funding from fiscal 2013-17.