Department of Housing and Urban Development
HUD budget would drop to $41.7 billion under Obama proposal
The president's proposed budget includes $41.7 billion for the Department of Housing and Urban Development, about $1.1 billion less than what Congress approved for fiscal 2010.
Programs designed to help the homeless and those in need of rental assistance would get the biggest boost from this budget. The administration proposed about $2.3 billion for Homeless Assistance Grants, up from $1.9 billion. An additional $9.4 billion was requested for project-based rental assistance, up from $8.6 billion.
Funding would be cut by $300 million for the community development block grant program, designed to help rehabilitate housing and invest in primarily low-income neighborhoods. The budget proposes about $172 million less for new housing construction for seniors and people with disabilities.
Housing and Urban Development Secretary Shaun Donovan said the reductions would not be proposed if economic conditions were stronger.
The budget calls for raising the annual premiums paid by borrowers through the Federal Housing Administration, which insures its lenders against losses when mortgages default. The premiums would increase from 0.9 percent to 1.15 percent.
- Dina ElBoghdady