HUD FY 2000 Budget proposal: $2.5 billion increase to $28 billion

Tom Boland (wgcp@earthlink.net)
Tue, 16 Feb 1999 07:14:10 -0800 (PST)


FWD  February 11, 1999 - HUD Press Release

SOURCE: [United States] Department of Housing and Urban Development

        CUOMO SAYS NEW HUD BUDGET
        WOULD BRING MORE FUNDS
        TO COMMUNITIES ACROSS AMERICA

WASHINGTON, Feb. 11 /PRNewswire/ -- Communities across the nation will get
more funds from the Department of Housing and Urban Development if a $2.5
billion increase proposed for HUD's budget by President Clinton wins
Congressional approval, Secretary Andrew Cuomo said today.

The $28 billion HUD budget for the 2000 fiscal year funds initiatives to
revitalize economically distressed communities with new jobs and business
growth, to help welfare recipients and others get jobs and become self-
supporting, and to increase the supply of affordable housing with 100,000
new rental assistance vouchers and other actions.

``This budget will open doors for more Americans,'' Cuomo said. ``It
increases funding for virtually all HUD programs and will enable HUD to
help lead communities into the new century.''

Cuomo discussed the local impact of the budget in a conference call with
reporters.

HUD combined historical data with data on the new budget from its major
assistance programs to forecast the approximate amount of aid that
individual communities would receive under these programs if the
President's budget is approved by Congress without change.

Aid from other HUD programs could boost assistance to individual
communities even higher. The exact amount of HUD funds going to an
individual community under the President's budget cannot be determined,
since some funding is awarded on a competitive basis.

HUD's comparison looked at the impact of eight major HUD programs on
communities.

Seven of the programs provide grants to communities. Here are figures
showing how funding for the programs would go up nationally in 2000 under
President Clinton's HUD budget:

$4.775 billion for Community Development Block Grants, a $25 million
increase. The grants help state and local governments carry out a wide
range of programs to revitalize neighborhoods by renovating housing and
providing public facilities. Because of fewer set-asides in the program,
the increase will effectively bring communities an additional $130 million.

$3 billion in Public Housing Operating Subsidies, a $185 million increase.
The subsidies help housing authorities operate and maintain apartments for
low-income people.

$1.61 billion for the HOME program, a $10 million increase. The grants
would expand the national supply of affordable housing by about 84,400
units. HOME provides funds to state and local governments for activities
such as building and rehabilitating affordable housing, assisting
first-time homebuyers, providing supportive services, and offering
short-term rental assistance.

$1.12 billion for the Continuum of Care Homeless Assistance program, a $150
million increase. The grants help homeless people get housing, jobs and
needed treatment to become self-sufficient. The funding includes 18,000 new
rental assistance vouchers HUD is seeking.

$240 million for the Housing Opportunities for Persons With AIDS program, a
$15 million increase. The program provides rental assistance and supportive
services for low-income people with HIV/AIDS and their families.

$580 million in new funding to create 100,000 new rental assistance
vouchers to enable low-income individuals and families to afford apartments.

$50 million in new Regional Connections grants to help communities develop
smarter growth strategies across jurisdictional lines. Also included in the
Regional Connections listing in the charts of HUD assistance is: 1) $50
million in new grants for the Abandoned Buildings Initiative for the
demolition of blighted and abandoned buildings as part of a comprehensive
plan to redevelop properties for commercial or residential use. 2) $50
million a year for the Brownfields Initiative, an increase of $25 million a
year, to accelerate efforts to clean up moderately contaminated business
and industrial sites so they can be used again

In addition to these grant programs, HUD's proposed budget calls for an
increase in the amount of mortgage loans that the Federal Housing
Administration can insure each year. The budget raises the annual loan
volume cap to $120 billion, a $10 billion increase over the current limit.
The increase would allow FHA to insure an extra 550,000 mortgages over the
next five years.

Based on past FHA loan volume, HUD has calculated approximately how many of
the new insured mortgages would go to individual communities. FHA mortgage
insurance enables many families to qualify for mortgages they could not
otherwise obtain.

Cuomo said the new HUD budget is about opening doors: to new markets, to
affordable housing, to One America, to a better quality of life, and to
life- long security. He said the budget ``addresses five of the major
challenges our nation's communities will face in the 21st century'' by:

Ensuring communities are economically competitive by creating jobs, helping
businesses grow and prosper, and helping people move from welfare to work.

Making housing affordable by increasing HUD's commitment to its core
mission of providing ``a decent, safe, and sanitary home and suitable
living environment for every American.''

Moving closer to One America by expanding programs to fight housing
discrimination.

Finding regional solutions and creating sustainable communities at a time
when cities, suburbs, small towns and rural areas are more interdependent
than ever.

Responding to the ``aging of America'' with a commitment not just to saving
Social Security but to providing housing security for older Americans.

SOURCE: [United States] Department of Housing and Urban Development

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