July 27, 2021

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Nine Housing Takeaways From Biden Budget Proposal

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President Joe Biden has issued his Application for discretionary funding for the 2022 financial year ahead of its full budget proposal to Congress, due later this spring.

Biden’s American Rescue Plan Act of 2021 was a step in the direction of the nation’s recovery as it provided much-needed resources to build a bridge to economic repair. For the housing market and its macroeconomic impact, President Biden outlined a number of discretionary finance-related questions related to housing to address growing housing opportunities and the narrowing of the racial wealth gap. The president’s discretionary motion is $ 68.7 billion for the Department of Housing and Urban Development (HUD), up $ 9 billion, or 15%, from 2021.

  • Extension of the vouchers for the selection of apartments to 200,000 additional families: The Housing Choice voucher program Currently 2.3 million low-income families are receiving rent support to get housing in the private market. The discretionary motion calls for $ 30.4 billion, an increase of $ 5.4 billion from the level enacted in 2021.
  • Investments to End Homelessness: The 2022 discretionary motion calls for $ 3.5 billion, an increase of $ 500 million from the amount waived in 2021, to allow homeless assistance grants to support more than 100,000 additional households, including domestic violence survivors and homeless youth .
  • Modernization and improvement of energy efficiency, resilience and security in HUD-supported apartments: HUD-supported rental properties combine to provide low-income families with 2.3 million affordable homes. In addition to fully funding the operating costs in this portfolio, the discretionary motion provides for $ 800 million in new investment in HUD modernization and refurbishment programs aimed at energy efficiency and climate change. The application includes $ 3.2 billion in public housing modernization grants, an increase of $ 435 million over the levels enacted in 2021.
  • Increasing the supply of affordable housing: To address the shortage of affordable housing, the discretionary motion provides for an increase of $ 500 million HOME investment partnership programfor a total of $ 1.9 billion to build and renovate affordable rental housing and to support other housing-related needs.
  • Investing in affordable housing in tribal communities: The discretionary requirement helps address poor housing conditions in tribal areas by allocating $ 900 million to fund tribal efforts to expand affordable housing, improve housing conditions and infrastructure, and economic opportunities for low-income families to improve.
  • Promotion of the modernization and rehabilitation of the infrastructure in marginalized communities: The discretionary motion sees $ 3.8 billion for that Community Development Block Grant ProgramThis includes a targeted increase of $ 295 million to encourage communities to allocate funds to modernize and refurbish public infrastructure and facilities affected by persistent poverty.
  • Reducing Lead and Other Home Hazards: The discretionary motion provides $ 400 million, up by $ 40 million, for state, local governments and nonprofits to help reduce lead paint and other health risks in the homes of low-income families and young children.
  • Supporting home ownership and pandemic aid: The discretionary motion will support underserved borrowers’ access to home ownership through the Federal Housing Administration (FHA) mortgage insurance programs. FHA funding accounted for 83% of first-time buyers and 37% of minority FHA home loan buyers in 2020.
  • Promote efforts to prevent housing discrimination: The discretionary motion provides grants of US $ 85 million to support state and local organizations that enforce fair housing, as well as education, public relations, and training in rights and obligations under federal fair living laws.

“Addressing our country’s pressing housing problems and building a more affordable, equitable and resilient housing system requires strong federal leadership backed by solid federal funding,” said HUD Secretary Marcia L. Fudge. “President Biden’s fiscal 22 fiscal discretionary funding filing takes a look at years of inadequate and detrimental spending claims and instead empowers HUD to meet the housing needs of families and communities across the country. I’m particularly pleased that the motion proposes more than $ 30 billion to extend home vouchers to an additional 200,000 low-income families. I look forward to working with the President to advance HUD’s critical priorities. “