Bush administration proposes $33.6 billion HUD budgetMortgagePress.comHUD
Expanding programs to increase homeownership, provide rental
assistance and assist the homeless are among the highlights of
President Bush's proposed fiscal year 2007 budget, unveiled on Feb.
6 by U.S. Department of Housing and Urban Development (HUD)
Secretary Alphonso Jackson. Jackson said the $33.6 billion spending
blueprint will support the department's core priorities, while
expanding the administration's efforts toward establishing an
ownership society and caring for those who might otherwise be
living on the streets.
"The president's proposed budget is a real investment in
building a society based on ownership and reaching out to those
people and places in need, to make sure every American has a place
to call home," said Jackson. "This budget places a premium on
demonstrating results and allows HUD to sustain our core programs
that are built on compassion, while we continue to improve the way
we serve communities around this country."
Promoting economic opportunity and
ownership
More Americans, including more minority families, own their own
homes than ever before. In June 2002, President Bush challenged the
nation to increase the number of minority homeowners to 5.5 million
by the end of this decade. Since the president issued his
challenge, 2.4 million minority families have joined the ranks of
homeowners. The 2007 budget includes increases to several programs
that advance the president's goal of creating an ownership
society.
HOME Investment Partnerships Program
(HOME)
HOME is the largest federal block grant program dedicated to
creating affordable housing for low-income families. The
administration proposed $1.9 billion for the HOME program in 2007,
an increase of $123 million from this year. Each HOME dollar
allocated to a local jurisdiction has traditionally stimulated more
than three dollars from other public and private sources.
American Dream Downpayment Initiative
(ADDI)
The 2007 budget provides $100 million to help first-time homebuyers
overcome the biggest obstacles to homeownership: down payments and
closing costs. Since President Bush signed this initiative into
law, ADDI has helped nearly 14,000 families purchase their first
homes, almost half of who are minority families.
Self-Help Homeownership Opportunity Program
(SHOP) The proposed budget provides $40 million for HUD's
SHOP, which allows low-income families to purchase their first
homes through their own sweat equity. Any individual who benefits
from SHOP funds must contribute at least 100 hours of his own labor
to help make a house his home.
The Community Development Block Grant Program
(CDBG)
CDBG will be funded at a proposed $3 billion. In addition, the 2007
budget proposes to reform the CDBG program in order to more
effectively contribute to local community and economic progress.
Formula changes will be proposed to direct more of the program's
base funding to communities that cannot meet their own needs. Bonus
funds will be available to communities that demonstrate the
greatest progress in expanding homeownership and opportunity for
their residents.
Housing counseling
The proposed budget requests $45 million (a $3 million increase),
to support hundreds of housing counseling programs across the
country. These counseling programs prepare families for buying
their first homes, help them steer clear of predatory lending
practices and help prevent current homeowners from defaulting.
Housing counseling is the most cost-effective way to educate
renters and homeowners so that they make informed financial choices
and avoid high-risk, high-cost loans that place them at greater
risk of foreclosure.
Continuum of Care
The president is proposing a record level of funding to house and
serve homeless persons and families. The 2007 budget provides $1.5
billion through HUD's Continuum of Care homeless assistance grants,
$209 million more than in 2006. This funding will provide
emergency, transitional and permanent supportive housing to more
than 160,000 persons.
Housing Opportunities for Persons with AIDS
(HOPWA)
The budget seeks $300 million to support stable housing, improved
access to health care and more supportive services for low-income
persons living with HIV/AIDS, an increase of $14 million over
fiscal year 2006. Through formula grants to states and local
communities and competitively awarded grants, these resources will
provide critically needed housing assistance to more than 75,000
families.
Rental assistance for low-income housing
The 2007 HUD budget proposes a $502 million increase in funding for
the Housing Choice Voucher Program. This significant increase to
the voucher program, in addition to a $639 million increase to
Section 8 Project-based rental assistance, will allow HUD to renew
all existing rental housing assistance contracts with an
opportunity to help even more low-income families to afford decent
rental housing. HUD estimates that when combined, these two
programs will help 3.4 million American families afford a decent
home.
Fair housing
In order to meet President Bush's goal of increasing minority
homeownership, it is critical that every American has access to
housing of his choice, free from discrimination. For fiscal year
2007, the budget includes $45 million to support enforcement,
education and outreach efforts, to combat illegal discrimination
across the country. This requested amount also supports HUD's
ongoing efforts to ensure displaced families from the Gulf Coast
hurricanes are not further victimized by those who would deny them
housing based on their races, religions, sexes, family statuses and
disabilities.
For more information, visit www.hud.gov.
