Real estate

Trump’s budget request is looking for $ 33 billion in HUD cuts

The Budget proposal Released on Friday, but it can be an indication of the direction that President Donald Trump and his allies are in it Congress Will strive to take the debate in the coming months. The current Deadline of Public Financing is September 30, after which the congress must pass a financing package to keep the government open.

Proposed hud -cuts

The largest proposed reduction of HUD would by far aim the Rental Assistance Block Grant program of the State. It would crop $ 26.7 billion for various programs, including tenant -based rental assistance, social housing, project -based rental assistance, housing for the elderly and housing for people with disabilities.

“The budget enables states by transforming the current federal dysfunctional rental tools into a state -based formula fair that would enable States to design their own rental aid programs based on their unique needs and preferences,” said Vought in the document.

“The budget would also set new in a two -year limit for rental aid for skilled adults, and would ensure that a majority of financing rental assistance via states to the elderly and the disabled would go.”

A state -based formula program would “also lead to important termination of the federal regulations,” he said, adding that the effort is related to broader movements to include federal land in the development of new homes.

The document also calls for the elimination of the Community Development Block Grant (CDBG) program, which cuts a total of $ 3.3 billion. Vought mentions the CDBG program ‘poorly oriented’, and says it is used for ‘different projects that the federal government should not finance’.

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The document also calls for the elimination of the Home Investment Partnership program ($ 1.25 billion); Indian and indigenous Hawaiian Housing Assistance Programs ($ 479 million); Cutbacks of $ 532 million in consolidations of the “Homeless Help Program”; and $ 296 million in Surplus leading hazard reduction and healthy housing financing.

Moreover, the $ 196 million requires cuts of self -provision programs; $ 100 million to eliminate the paths to removing obstacles (Pro) Housing Initiative; and $ 60 million in fair housing fairs, including the elimination of the Fair Housing Initiatives Program (FHIP).

HUD, Organizational reactions

HUD secretary Scott Turner praised the budget proposal as a budget that “rightly offers states and places offers greater flexibility, while carefully consolidating, streamlining and simplifying existing programs to serve the American people on the highest standard,” he said in a statement.

The official portrait of Scott Turner, secretary of the US Department of Housing and Urban Development (HUD) during the second Trump administration.
Scott Turner

He added that “creating the possibility for a larger partnership and cooperation between the levels of the government by demanding states and places that they have skin in the game and carefully consider how their policy hinders or promotes the goals of self -supply and economic prosperity.”

However, reactions from proponents of homes were much more mixed. Some organizations, such as the Community Home Lenders of America (Chla), wants to see more details before taking a wider determination.

“The most important budget focus in Chla is to guarantee sufficient financing and staff for Fha And Ginnie Mae“Said Scott Olson, the executive director of Chla.” Since the ‘lean budget’ only offers broad policy proposals, we will have to wait for a more specified budget and action per property to determine how those programs will do it. “

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The National Housing Law Project (NHLP) destroyed the budget proposal shortly after it was released on Friday. The plan “cuts life -saving programs that houses poor and working people, nourished and healthy,” said Shamus Roller, executive director of NHLP.

NHC: Plan is probably ‘Death on arrival’

David Dworkin, the president and CEO of the National Housing Conference (NHC) The budget proposal called ‘Draconian’, but added that it comes with a silver lining.

“The good news is that the housing budget is probably dead on arrival,” Dworkin said in an interview on Friday. “The depth of the cutbacks would create both a huge homelessness crisis and a real estate crisis where owners of apartment buildings that depend on vouchers in housing would go bankrupt at a breathtaking pace.”

Photo © Tony Powell. David Dworkin. October 16, 2019
David Dworkin

He said that the budget as proposed would not “offer better way to put more companies bankrupt than by cutting vouchers into housing.” He added that there would be “no better way to undermine the entire agenda of the president of the president than this HUD budget.”

The proposals give him the feeling that members of the congress, including Republicans, could not support such cutbacks.

“That would be consistent with earlier budgets that go back to President Reagan, where Omb has recommended cutbacks, but the process ultimately led to negotiations that kept many important programs,” he said.

This is unlikely that this is a year that brings new affordable housing money that flows from the government greenhouse – and the financing will in fact be cut, Dworkin said. But Republican legislators are increasingly representing voters “who struggle with the affordability of housing for this budget.”

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Dworkin called Vought a “dedicated Libertarian” who believes that the government should not have a place in the programs he has focused on cuts.

“I respect that – but he will not be the one who is responsible for what happens,” he said. “In practice, those who vote for the budget will be held responsible.

“Ultimately, the HUD secretary will lag behind what is left. That is the dynamics that we go from the ideological to practical, and the practical thing is where legislation is actually made.”

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