DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
The President’s 2009 Budget will:
-
Ensure housing assistance for those most in need;
-
Preserve and promote homeownership by addressing subprime
mortgages;
-
Strengthen communities by sustaining homeownership
gains;
-
Make further progress towards ending chronic homelessness;
and
-
Continue the trend of improving the Department’s
management and performance.
Ensuring Housing Assistance for Those Most in Need
-
Increases primary housing
programs. As a first principle, sets on firm footing the
Department's major programs that provide housing assistance to 11
million needy individuals.
-
Increases Project-Based Housing.
$7 billion to renew all project-based rental contracts,
and a $400 million advance appropriation to bridge renewal funding
into 2010, to provide housing assistance for nearly 1.3 million low-income
tenants.
-
Maintains Housing Choice Vouchers.
Funds Housing Choice Vouchers for over two million extremely
low- to low-income families, while removing the cap on the number
of housing units Public Housing Authorities can assist.
-
Supports Public Housing Operating
Fund. At $4.3 billion (the highest proposed funding level
in history), the Fund provides the necessary operating expenses for
1.2 million public housing units.
Preserving and Promoting Homeownership by Addressing Subprime
Mortgages
-
Helps homeowners avoid foreclosure.
$65 million for the Department of Housing and Urban Development’s
(HUD’s) Housing Counseling program, a 30-percent increase over
the 2008 Budget, and $150 million to the Neighborhood Reinvestment
Corporation (NRC), a 25-percent increase over the 2008 Budget, to
help educate consumers, combat foreclosures, and promote a healthier
housing market. In 2006, 93 percent of all Federal Housing Administration
(FHA) borrowers in default who completed Housing Counseling services
successfully avoided foreclosure.
Strengthening Communities by Sustaining Homeownership Gains
|
Number of families with conventional mortgages that have refinanced their single-family homes with FHA.
|
|
-
Expands affordable housing
and minority homeownership. $2 billion for the HOME Investment
Partnerships program, including $50 million for the American Dream
Downpayment Initiative, which provides flexible housing assistance
and increases affordable housing and minority homeownership. Since
the inception of the HOME program 16 years ago, almost 812,000 units
of affordable housing have been created.
-
Increases mortgage financing
options for homebuyers and homeowners. Enables FHA, through
reforms such as risk-based pricing, to offer a wider variety of mortgage
products and create more homeownership opportunities. FHA will be
able to design mortgage products that can help at-risk borrowers,
reward borrowers with good credit histories, and protect taxpayers
with actuarially sound financing. As a consequence of difficulties
in the subprime mortgage market, more Americans are turning to FHA
as they refinance their homes.
-
Promotes healthy community
development. Funding for NRC will also help existing homeowners
rehabilitate homes, assist communities, sustain homeownership gains,
and expand economic development and training for community-based revitalization
efforts.
Making Further Progress Toward Ending Chronic Homelessness
-
Expands Homeless Assistance
Grants. Over $1.6 billion for funding at least 160,000
beds for homeless individuals. Aided by this Administration initiative,
HUD has documented an unprecedented 11.5 percent decline in chronic
homelessness from 2005 to 2006.
Continuing HUD’s Improved Management and Performance
-
Eliminates “High Risk”
Designation. For the first time since 1994, the Government
Accountability Office removed HUD's single-family housing mortgage
insurance and rental housing assistance programs from the list of
High-Risk Federal programs in 2007.
-
Maintains sound financial
management. HUD achieved a clean opinion on its 2007 financial
statements, continuing a multi-year trend.
Major Savings and Reforms
Since 2001, the Department of Housing and Urban Development
has:
-
Made housing affordable for many of those most in
need, assisting with housing payments for over four percent of the
U.S. population.
-
Expanded efforts to end chronic homelessness, providing
additional permanent housing units for over 57,000 individuals, ending
their cycle of homelessness.
-
Improved financial management by eliminating nearly
$2 billion in annual improper payments.
-
Increased proposed funding for Housing Counseling
by over 170 percent—from $24 million in 2001 to $65 million
in 2009. The 2009 Budget will help educate approximately 950,000
families to make better housing decisions.
Department of Housing and Urban Development
(Dollar amounts in millions)
|
2007 Actual |
Estimate |
2008 |
2009 |
Spending |
|
|
|
Discretionary
Budget Authority: |
|
|
|
Community Development
Fund |
3,770 |
3,866 |
3,000 |
CDBG cancellation |
— |
— |
−206 |
HOME Investment
Partnerships Program |
1,756 |
1,704 |
1,967 |
American Dream Downpayment Initiative (non-add) |
25 |
10 |
50 |
Homeless Assistance
Grants |
1,434 |
1,586 |
1,636 |
Housing Opportunities
for Persons with AIDS |
286 |
300 |
300 |
Tenant-based Rental
Assistance |
15,881 |
15,703 |
16,039 |
Project-based
Rental Assistance |
5,975 |
6,382 |
7,000 |
Housing Certificate
Fund |
−616 |
−1,250 |
— |
Public Housing |
6,284 |
6,639 |
6,324 |
Native American
Housing Block Grant |
624 |
630 |
627 |
Revitalization
of Severely Distressed Public Housing (HOPE VI) |
96 |
100 |
— |
Housing for the
Elderly |
735 |
735 |
540 |
Housing for Persons
with Disabilities |
237 |
237 |
160 |
Federal Housing
Administration (FHA) |
−1,105 |
−921 |
−763 |
Lead Hazard Reduction |
150 |
145 |
116 |
All other programs |
1,530 |
1,557 |
1,742 |
Total, Discretionary
budget authority |
37,037 |
37,413 |
38,482 |
|
|
|
|
Memorandum: Budget authority from enacted supplementals |
7 |
3,000 |
— |
|
|
|
|
Total, Discretionary
outlays |
48,990 |
50,715 |
47,834 |
|
|
|
|
Total, Mandatory
outlays |
−3,429 |
1,556 |
−2,202 |
|
|
|
|
Total, Outlays |
45,561 |
52,271 |
45,632 |
|
|
|
|
Credit activity |
|
|
|
Direct Loan Disbursements: |
|
|
|
FHA |
3 |
50 |
50 |
Government National
Mortgage Association |
3 |
30 |
25 |
Total, Direct
loan disbursements |
6 |
80 |
75 |
|
|
|
|
Guaranteed Loan
Disbursements: |
|
|
|
FHA |
89,579 |
97,768 |
157,718 |
All other programs |
384 |
523 |
551 |
Total, Guaranteed
loan disbursements |
89,963 |
98,291 |
158,269 |
|
|
|
|
|
Number of Programs |
|
2009 Savings |
Major Savings, Discretionary |
|
|
|
Terminations |
4 |
|
−132 |
Reductions |
2 |
|
−1,487 |
|
|
|
|
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