Biden Seeks to Boost HUD Budget by 15%
President Biden announced his fiscal year 2022 budget today and it calls for a total of $68.7 billion for the Department of Housing and Urban Development, an increase of $9 billion, or 15%, over the 2021 enacted level.
This is just the first step in the budget process and Congress will ultimately decide on final spending levels for HUD and other federal agencies.
Of note to the housing community, Biden’s HUD budget would:
- Expand Housing Choice Vouchers to 200,000 Additional Families. The Housing Choice Voucher program currently provides 2.3 million low-income families with rental assistance to obtain housing in the private market. The discretionary funding request proposes $30.4 billion, a substantial increase of $5.4 billion over the 2021 enacted level, to maintain services for all currently assisted families and expand assistance to an additional 200,000 households, particularly for those who are homeless or fleeing domestic violence.
- Increase the Supply of Affordable Housing. To address the critical shortage of affordable housing in communities throughout the nation, the discretionary request provides a $500 million increase to the HOME Investment Partnerships Program, for a total of $1.9 billion, to construct and rehabilitate affordable rental housing, and to support other housing-related needs.
- Spur Infrastructure Modernization and Rehabilitation in Marginalized Communities. The discretionary request provides $3.8 billion for the Community Development Block Grant program, which includes a targeted increase of $295 million to incentivize communities to direct formula funds toward the modernization and rehabilitation of public infrastructure and facilities in historically underfunded and marginalized communities facing persistent poverty.
- Support Access to Homeownership and Pandemic Relief. The discretionary request supports access to homeownership for underserved borrowers through the Federal Housing Administration’s (FHA) mortgage insurance programs. FHA is a crucial source of mortgage financing for first-time and minority home buyers, who accounted for 83% and 37%, respectively, of FHA home purchase loans in 2020.
- Promote Efforts to Prevent and Redress Housing Discrimination. The discretionary request provides $85 million in grants to support state and local fair housing enforcement organizations and to further education, outreach, and training on rights and responsibilities under federal fair housing laws.