HUD unveils proposed 2010 budget

WASHINGTON, DC – May 8, 2009 – U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan yesterday unveiled the Department’s proposed budget for fiscal year 2010. If approved, Donovan says it would eliminate 27 programs and activities, and invest more in initiatives designed to increase transparency and accountability.

“We are cutting or consolidating programs that don’t work and, instead, investing in programs that do work,” says Donovan. “The HUD budget will put in place systemic reform and policy innovation, and harness private sector capital and talent … and change the way HUD does business.”

According to Donovan, HUD will not ask taxpayers to support FHA’s single family program in the 2010 budget. Highlights from HUD’s proposed budget for fiscal year 2010 budget include:

• FHA’s single-family program should generate sufficient revenue from new insurance premiums and not require any taxpayer assistance. Meanwhile investments in FHA will help cut fraud and abuse. A growing FHA program will also include:
– Enhanced investment in technology, staffing and training to ensure the safety and soundness of FHA, detect fraud, and monitor lenders and appraisers.
– More funding to support fair housing by curbing mortgage abuse and lending discrimination, and by providing more pre- and post-purchase counseling.

• Reinvigorating housing construction for low- and moderate-income families through the Affordable Housing Trust using $1 billion in capital.

• A new $250 million Choice Neighborhoods Initiative to revitalize high poverty neighborhoods through investments in public and assisted housing, along with money for school reform and early childhood intervention.

• Increased funding for Section 8 tenant based rental vouchers.

• $550 million increase in the Community Development Block Grant program.

• Investments in energy innovation, including:
– $25 million Rural Innovation Fund to test and disseminate innovative efforts to revitalize rural communities, and a $25 million University Community Fund, which would consolidate current programs at higher educational institutions.
– $100 million Energy Innovation Fund to spur private sector investment in the energy efficiency of housing.
– $150 million new Sustainable Communities Initiative to help communities integrate transportation, housing and land use planning.

• A new Transformation Initiative to update programs.

For more information about HUD’s fiscal year 2010 budget proposal, visit www.hud.gov.

© 2009 FLORIDA ASSOCIATION OF REALTORS®

Questions, comments or suggestions on this article? Have a news tip? Send a letter to the editor to: Newseditor@floridarealtors.org.