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The Daily Focus |
Tuesday, February 5, 2002
President Bush's proposed Fiscal Year
2003 budget includes $31.5 billion for the Department of Housing and
Urban Development to help more Americans become homeowners, provide
additional rental assistance, protect vulnerable people, and
stimulate economic development and job growth across the nation.
This budget request represents an increase of $2.1 billion over
HUD's initial FY 2002 budget.
"This budget will open the door of homeownership to
more and more Americans and offer rental assistance to millions of
other families struggling to find an affordable place to live," said
Secretary Martinez. "We want to give every American the opportunity
to become stakeholders in their community. The President's budget
allows us to accomplish this while stimulating economic development
and job growth at the local level and providing a continuum of care
to the homeless and others with special needs."
The President's budget proposal includes $200
million for the American Dream Downpayment Fund to continue
to help more Americans reach the dream of homeownership.
Administered under HUD's HOME program, this fund will help an
estimated 40,000 low-income families a year to become first-time
homeowners. The Administration recognizes homeownership is not an
option for everyone therefore the budget also provides 34,000 new
incremental housing choice vouchers to provide rental assistance to
assist millions of families struggling to find an affordable place
to live.
The spending plan, announced on Monday, February 04,
2002, also includes resources to combat the practice of predatory
lending, prevent housing discrimination and continue reforming the
homebuying process to eliminate hidden fees paid by consumers. Other
parts of the Department's budget proposal highlighted by the
Secretary included:
Expanding Homeownership
During the President's first year in office, the
national homeownership rate rose to an all-time high of 67.8
percent. Homeownership among minorities, while also rising to
historic levels, continues to lag far behind the national average.
In response, this budget will seek to expand homeownership among all
Americans in the following ways:
- Home Investment Partnership Program
(HOME). The budget plan includes $2.1 billion for the HOME
program, an increase of $238 million over current year funding.
HOME grants to States and localities fund a wide range of
activities that build, buy, and/or rehabilitate affordable housing
for rent or homeownership or provide direct rental assistance to
low-income people.
- Renewing the Dream Tax Credit. To further
promote homeownership opportunities, the Administration is
proposing a $1.7 billion tax credit to support the rehabilitation
or new construction of an estimated 100,000 homes for purchase by
low-income households over a five-year period.
- Self-Help Homeownership Opportunity Program
(SHOP). Fulfilling a commitment to triple funding for HUD's
"sweat equity" programs, President Bush is proposing to increase
funding of the SHOP program to $65 million. SHOP grants support
nonprofit organizations, like Habitat for Humanity International,
which requires low-income families to help construct the homes
they will eventually own.
- Housing Counseling Assistance Program. The
Administration is requesting a record $35 million, a $15 million
increase, for a separate Housing Counseling Assistance Program to
low-income families in the coming year. Once a set-aside within
the HOME Program, these competitively awarded grants will provide
comprehensive counseling services including pre-purchase, default
and renter counseling to potential and current homeowners and
tenants.
- Section 8 Homeownership Program. HUD
permits local housing agencies the flexibility to use HUD's rental
assistance toward moving low-income families into homeownership.
The housing agencies may either provide mortgage assistance in
lieu of a rental subsidy or offer families a one-time downpayment
grant equaling up to one-year's worth of their rental
assistance.
Providing Affordable Rental
Housing
- Section 8 Incremental Vouchers. The FY
2003 budget includes funding for approximately 34,000 additional
incremental housing choice vouchers. Although HUD currently
assists nearly 2 million families under the Section 8 tenant-based
program, the number of those in need of assistance remains far
greater. To help reduce the backlog of families on the waiting
list, HUD is requesting that Congress provide an additional $204
million to increase the number of tenant-based vouchers by 34,000.
This increase is nearly double the 18,000 incremental vouchers
provided in FY 2002.
- Section 8 Contracts. As long-term Section
8 contracts expire, the number of contracts that need to be
renewed each year (and the funding required to do so) increases.
The cost of renewing the 2.9 million expiring Section 8 contracts
in FY 2003 exceeds FY 2002 renewal costs by $1.1 billion.
- Public Housing Operating Fund. The FY 2003
budget proposes to increase the Public Housing Operating Fund by
$35 million to $3.530 billion, which will provide Public Housing
Authorities with support for utility, administration, maintenance
and repair costs in public housing facilities.
Stimulating Economic Development and Job
Growth
- Community Development Block Grant (CDBG)
Program. CDBG provides funding to meet locally identified
community and economic development needs. For FY 2003, HUD will
increase CDBG formula grants by $95 million to $4.436
billion.
- Faith-Based and Community Organizations.
In FY 2003, HUD will examine its programs and policies to identify
ways to strengthen the capacity of these nonprofit groups and to
reduce any barriers that may impede their access to HUD
funding.
- Colonias Gateway Initiative. The 2003
budget proposes $16 million for a new Colonias Gateway Initiative
(CGI). The CGI is a regional initiative, focusing on the
1,500-mile stretch of the U.S.-Mexican border where more than 12
million individuals live, often in severely substandard
conditions.
- Section 108 Loan Guarantee Program. In
2003, the Department will provide $6.3 million in credit subsidy
to guarantee a total of $275 million in private sector
loans.
- National Community Development Initiative
(NCDI). HUD participates in the privately organized and
initiated NCDI. The 2003 budget will provide $30 million for the
NCDI, in which HUD has funded three phases of work since 1994. A
fourth phase will emphasize helping community-based development
organizations build capacity in the economic arena and related
community revitalization activities through the work of
intermediaries, the Local Initiative Support Corporation (LISC)
and the Enterprise Foundation.
- The Brownfields Economic Development
Initiative (BEDI). The BEDI program makes competitive economic
development grants for the economic development, redevelopment and
remediation of qualified Brownfields projects. Brownfields grants
are required to be leveraged with private sector funds. In 2003,
the Department will award $25 million in grants, the same level
that has been made available since 1999.
Protecting Vulnerable
Populations
HUD programs provide housing and other essential
support to a wide range of people with special needs including
homeless individuals, the elderly, persons with disabilities and
people living with HIV/AIDS. Protecting children from the dangers of
lead-based paint hazards in low-income housing is also a focus of
the President's budget request. The following are highlights of
HUD's FY 2003 budget in these areas:
- Homeless Assistance Programs. President
Bush is proposing to increase funding to HUD's homeless assistance
programs to $1.13 billion in the coming fiscal year. In addition,
President Bush is proposing to transfer the $153 million
Emergency Food and Shelter Program (EFSP) that is currently
administered by the Federal Emergency Management Agency (FEMA) to
HUD.
- Elderly Housing and Services. For FY 2003,
HUD plans to continue support for the elderly by providing $783
million for the Department's Section 202 Program that
supports elderly housing programs.
- Persons with Disabilities. The FY 2003
budget provides $251 million under HUD's Section 811
Program that improves access to affordable housing for
low-income persons with disabilities.
- Persons with HIV/AIDS. In FY 2003, HUD
will increase funding for the Housing Opportunities for Persons
with AIDS (HOPWA) program by $15 million to $292 million. This
will support an increase in the number of jurisdictions eligible
for funding based on projections from the Centers for Disease
Control and Prevention.
- Lead Hazard Control and Healthy Homes
Initiative. Protecting young children from the potential
lifelong effects of lead poisoning is an important focus of this
budget request. Funding for lead-based and other home health
hazards will increase significantly in the President's budget,
from $110 million this year to $126 million in FY 2003.
Get more
comprehensive detail about HUD's proposed 2003 Budget
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