Administration 2018 Budget Would Cut HUD Programs
The Trump Administration on Tuesday submitted a $4.094 trillion budget for fiscal year 2018 that proposes substantial cuts to a number of government programs, including some longtime HUD initiatives.
The HUD budget, $40.68 billion, represents a 13.2 percent cut from fiscal 2017. The budget would eliminate the Community Development Block Grant Program, as well as HUD’s Choice Neighborhoods Initiative, HOME Investment Partnerships Program and the Self-Help Homeownership Opportunity Program.
The Administration defended the cuts, saying state and local governments are better-positioned to serve their communities’ needs. “Since 1980, and most recently in 2013, HUD studies found that CDBG is increasingly not well targeted to the poorest communities and has not demonstrated a measurable impact on communities,” HUD said in a statement.
The budget would also cut funding to the Consumer Financial Protection Bureau and give Congress more authority to limit its budget, which currently comes from the Federal Reserve (which in turn is funded by the Treasury Department).
“This Budget reflects this Administration’s commitment to fiscal responsibility while continuing HUD’s core support of our most vulnerable households,” said HUD Secretary Ben Carson. “We will work very closely with Congress to support the critical work of our agency as we vigorously pursue new approaches to help work-eligible households achieve self-sufficiency.”
Mortgage Bankers Association President and CEO David Stevens, CMB, issued a brief statement. “MBA is reviewing the President’s budget in its entirety and as the process moves forward, we will be working to ensure our priorities are addressed, including appropriate funding levels for FHA, Ginnie Mae as well as specific housing programs,” he said. “We look forward to working with the Administration, Congress and other stakeholders towards supporting vibrant real estate markets that grow and strengthen America’s communities.”
The budget continues to provide rental assistance for 4.5 million households while recognizing a greater role for State and local governments and the private sector, to address community and economic development needs and seeks $2.25 billion to help local communities house and serve persons and families who are experiencing homelessness.
Other HUD budget noted:
–Provides up to $400 billion in new loan guarantee authority and making changes to strengthen FHA’s Home Equity Conversion Mortgage or ‘reverse mortgage’ program.
–Includes a $30 million administrative fee to support the modernization of FHA’s aging systems, some that are based upon the outdated COBOL programming language.
–Seeks $500 billion in new guarantee authority for Ginnie Mae.
–Seeks $65.3 million to support HUD’s fair housing mission, the same funding level provided in the prior three years.
–Requests $130 million to promote healthy and lead-safe housing.
–Provides $1.32 billion for HUD’s internal operations, including $250 million for the Department’s Information Technology Fund, including $10 million for cybersecurity and modernization investments to help local public housing authorities and managing risks in FHA mortgage insurance programs.
The HUD budget proposal can be accessed at https://portal.hud.gov/hudportal/HUD?src=/budget.
