Budget 2012: Housing and Urban Development
President Obama's proposed budget includes $41.74 billion for the Department of Housing and Urban Development, about $1.1 billion less than what was enacted by Congress for fiscal 2010.
Programs designed to help the homeless and those in need of rental assistance got the biggest boost in this budget. The administration proposed roughly $2.3 billion for Homeless Assistance Grants, up from the $1.9 billion enacted in fiscal 2010. Another $9.4 billion was requested for project-based rental assistance, up from $8.6 billion in fiscal 2010.
"In this constrained fiscal environment, increases were made only for the neediest Americans," the proposal states.
Funding was slashed by $300 million for the community development block grant program, which was funded at $3.98 billion in 2010. The grants are designed to help rehabilitate housing and invest in the economic development of primarily low-income neighborhoods. The budget also proposes about $172 million less for new housing construction for seniors and people with disabilities. The administration is requesting $953 million for that program.
Housing and Urban Development Secretary Shaun Donovan said the cuts would not have been made if economic conditions were stronger.
The Federal Housing Administration, which is part of HUD, insures its lenders against losses when mortgages default. To beef up the cash cushion that FHA uses to pay for unexpected losses, the administration proposes raising the annual premiums that FHA borrowers pay from 0.9 percent to 1.15 percent starting April 18. The premium is used to compensate lenders for loans gone bad. The annual premiums and other fees that FHA collects from borrowers are expected to generate $5 billion in fiscal 2012, up from $2.6 billion in 2010 but less than the $9.8 billion projected for 2011.
In a call with reporters, Donovan said the increase in annual premiums should generate $2 billion of additional revenue next year. The higher premiums will also help reduce the volume of FHA-insured loans, which should drop to $218 billion from this year's projected $300 billion. That reduction is in line with the administration's push to scale back the government's involvement in housing finance.
Posted by: BNSHOMES | February 21, 2011 11:18 AM | Report abuse
Posted by: priveye | February 19, 2011 5:57 AM | Report abuse
Posted by: drowningpuppies | February 14, 2011 7:53 PM | Report abuse
Posted by: seaduck2001 | February 14, 2011 5:31 PM | Report abuse
Posted by: emjayay | February 14, 2011 4:15 PM | Report abuse
Posted by: emjayay | February 14, 2011 3:51 PM | Report abuse
Posted by: seaduck2001 | February 14, 2011 3:49 PM | Report abuse
Posted by: dana843 | February 14, 2011 3:02 PM | Report abuse