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Proposed HUD budget for 2019 boosts funding a bit

Posted by urbanequity on February 16, 2018
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The Trump administration released its proposal for the fiscal year 2019 budget, and it allocates a slight year-to-year increase in funding for the U.S. Department of Housing and Urban Development (HUD), though total funding remains lower than it did under the previous administration.

The budget requests $41.24 billion for 2019, an increase of 1 percent from the $40.7 billion in 2017 when the HUD budget was cut by 13.2 percent ($6.2 billion).

The administration originally released a smaller 2019 budget of $39.2 billion, which would have brought the total HUD cuts over the past two years to $8.8 billion, or 18.3 percent. However, the massive budget deal signed on Feb. 9 by Pres. Trump to avoid a government shutdown revised the 2019 funding request to the version released Monday.

Under the new proposal, the administration focuses on several key initiatives, including ending homelessness. The budget requests a record $2.4 billion to support thousands of local housing and service programs assisting those living in the nation’s sheltering system and on the streets, an increase of $133 million from Trump’s 2018 budget request.

The budget supports homeownership through the Federal Housing Authority (FHA) mortgage insurance programs by providing up to $400 billion in new loan guarantee authority, including funding to support improvements to FHA’s aging information technology systems.

Overview of HUD changes under president’s budget

Reduces the rental assistance program budget by more than 11 percent compared with 2017
Eliminates funding for the Public Housing Capital Fund that supports public housing complexes
Eliminates Community Development Block Grants, which go to cities, counties and communities for development projects
It asks Congress to approve legislation that requires able-bodied tenants receiving federal housing assistance to work
The budget agreement passed last week included an additional $2 billion earmarked for HUD: $1 billion to “avoid rent increases on elderly and disabled families receiving rental increases”; $700 million for low-income housing vouchers; and $300 million to help public housing authorities.

An overview of the budget request is posted on HUD’s website.

Source: HousingWire (02/12/18) Ramirez, Kelsey

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