HUD FY2010 budget shifts focus to responsibility, effectiveness and transparencyMortgagePress.comU.S. Department of Housing and Urban Development, FY2010 budget, Shaun Donovan
U.S. Department Housing and Urban Development Secretary Shaun
Donovan has unveiled the Department's fiscal year 2010 budget,
which focuses on responsibility, effectiveness and transparency.
The proposed 2010 budget exercises strong fiscal discipline,
consolidating or eliminating 27 programs and activities, and
investing in initiatives to increase transparency and
accountability.
"We are cutting or consolidating programs that don't work and
instead, investing in programs that do work," said Secretary
Donovan. "The HUD budget will put in place systemic reform and
policy innovation, and harness private sector capital and talent as
well as new kinds of partnership and collaboration to respond to
the nation's housing crisis, address new national priorities, and
change the way HUD does business."
The budget will allow HUD to effectively respond to the housing
crisis through new efforts to strengthen FHA, curb mortgage abuse
and predatory practices, and increase counseling for homeowners at
risk of foreclosure. Importantly, HUD will not be asking taxpayers
to support FHA's single family program in the 2010 budget. The
budget will also help HUD shape new markets and methods in the
production and preservation of affordable housing, the "greening"
of residential housing, the regeneration of high poverty
neighborhoods and the promotion of sustainable growth.
Highlights from HUD's FY2010 Budget include:
• FHA's single family program will generate sufficient
revenues from new insurance premiums without requiring any taxpayer
assistance. Meanwhile investments in FHA will help cut fraud and
abuse.
• Enhanced investments in technology, staffing and
training will ensure the safety and soundness of FHA, enabling it
to cope with the rising volume of mortgage business, detect fraud,
and monitor the practices of lenders and appraisers.
• Expanded funding in fair housing and FHA will also
enhance the Department's ability to curb mortgage abuse and lending
discrimination and provide pre- and post-purchase counseling to
vulnerable homeowners.
• The budget will make targeted investments to help
rebuild the economy through reinvigorating housing construction for
low- and moderate-income families by infusing the Affordable
Housing Trust with $1 billion in capital.
• A new $250 million Choice Neighborhoods Initiative will
build on the lessons of HOPE VI and revitalize high poverty
neighborhoods through transformative investments in distressed
public and assisted housing and closer linkages with school reform
and early childhood interventions.
• To address those families struggling during the economic
crisis, the budget will provide targeted increased funding for
Section 8 tenant based rental vouchers, enabling HUD to assist more
families than ever before.
The budget couples a $550 million increase in funding for the
Community Development Block Grant program, reflecting President
Obama's pledge to fully fund the program, with a call for updating
a formula that is more than thirty years old and new performance
accountability. The budget also makes targeted investments in
energy innovation to contribute to our nation's long term economic
growth and recovery, including:
• A $25 million Rural Innovation Fund to test and rapidly
disseminate innovative efforts to revitalize rural communities and
a $25 million University Community Fund, which consolidates current
programs to leverage the critical role of higher educational
institutions in urban and rural communities.
• A $100 million Energy Innovation Fund to spur private
sector investment in the energy efficiency of the Nation's housing
stock.
• A $150 million new Sustainable Communities Initiative to
spur a new generation of metropolitan and rural efforts to
integrate transportation, housing and land use planning and
decisions in a way that maximize choices for residents and
businesses, lowers transportation costs, saves energy and improves
quality of life.
• A new Transformation Initiative will generate
programmatic savings through rigorous evaluation and technology
investments.
"We went line by line, to see where we could cut spending in
order to invest in effective programs that contribute to our
nation's long term economic growth and recovery," said Secretary
Donovan. "This budget addresses the nation's current housing crisis
by finding savings and making targeted investments to help grow the
economy and keep people in their homes. I look forward to the
consideration and approval of this budget in Congress."
For more information, visit www.hud.gov.
