February 16, 2012

HUD’s Proposed Budget: Doing More with Less

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Have you had a chance to check out HUD’s fiscal year 2013 budget proposal? If so, you will find a plan that seeks to strengthen, yet streamline, HUD programs so that they help the economy. Titled Housing and Communities Built to Last, the budget reflects the vision of an America that can draw strength from its vibrant communities, and momentum from a robust housing market.

“What’s at stake is the survival of the basic American promise – the idea that if you work hard, you can do well enough to raise a family, own a home in a strong, affordable neighborhood, and put a little away for retirement,” said HUD Secretary Shaun Donovan. “This budget request reflects the President’s vision, but also reflects the reality that robust growth requires tough choices – doing more with less and holding ourselves accountable for results.”

While HUD’s FY2013 budget reflects the need to ensure that America’s future isn’t built on a mountain of debt, it achieves substantial results for vulnerable people and distressed communities in the new fiscal environment.

Specifically, the proposed budget:

  • Maintains housing assistance for all families currently receiving rental subsidies;
  • Serves almost 2.5 million families living in public housing and project-based Section 8 developments (over 60% elderly and disabled);
  • Supports tenant-based vouchers for more than 2.2 million families (over 45% elderly and disabled);
  • Provides 10,000 new vouchers to homeless and funds 5,300 more supportive housing units for the elderly and disabled;
  • Enables FHA and Ginnie Mae to continue crucial, temporary countercyclical role, with 1.2 million single family mortgages expected in 2013 and $239 billion in new GNMA guarantees;
  • Brings private capital back to the market through FHA premium increases and other measures;
  • Assists nearly 5.3 million households, over 82,000 more than at the end of fiscal year 2011; and
  • Creates or retains 423,000 jobs directly and 360,000 more jobs indirectly.

 

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