The 2014 Department of Housing and Urban Development budget proposed by President Obama includes a number of housing programs that will focus on providing assistance to low income families, distressed communities, and the homeless. The proposed budget is also expected to assist borrowers at risk of foreclosure. The Federal Housing Administration is expected to insure $178 billion in mortgage loans in 2014 supporting new home purchases and refinanced mortgages.
Many are wondering if the housing market will continue to recover through 2013 into 2014 with the new programs and assistance proposed by the Federal Government. The question is whether the new proposed 2014 HUD budget will assist in moving the U.S. housing industry forward or back into another recession.
Summary of Department of Housing and Urban Development 2014 Budget Proposals:
Affordable Rental Housing: Serving approximately 4.5 million families, $20 billion has been allocated to support the Housing choice Voucher Program, $10.3 billion will target the Project-Based Rental Assistance Program, $6.6 billion is intended to preserve public housing, and $10 billion will target public housing in highly concentrated poverty level neighborhoods.
Homeless Assistance: $2.4 billion will be provided to fund homeless assistance grants, which will help put an end to homelessness.
Improvements to Distressed Communities: $400 million will be designated to provide assistance to the Choice Neighborhoods Program. Funding is designed to assist with the revitalization of housing, the creation of jobs, and crime prevention.
Neighborhood Stabilization: $3 billion in funding is intended to provide innovative resources for communities that have been greatly affected by the foreclosure crisis.
At Risk Mortgages: $178 billion in FHA insurance will provide assistance to potential home buyers and those persons who are at risk of foreclosure. A portion of these funds will also be directed towards providing homeowner counseling services.
Moving to Work Program: The 2014 proposed budget intends to revitalize the Moving to Work program to ensure that it is being properly utilized. Increases in requirements and thorough evaluations are proposed.
Persons with AIDS: The Housing Opportunities for Persons with AIDS Program will be reformed to more effectively meet the criteria needed to support housing needs for individuals who are suffering from AIDS.
Housing for the Elderly and Disabled: $526 Million will be provided to assist with the Housing for the Elderly program and the Housing for Persons with Disabilities program. A portion of these funds are intended to be used to research the connection between health care costs and supportive housing.
Highlights of 2014 Department of Housing and Urban Development Proposals from Whitehouse.gov 2014 Budget:
• Provides $47.6 billion for Department of Housing and Urban Development (HUD) programs, an increase of $4.2 billion, or 9.7 percent, above the 2012 enacted level. Over 90 percent of this funding increase is used to maintain current levels of rental and homelessness assistance for vulnerable families. The Budget also makes investments to revitalize high-poverty neighborhoods, reduce blight in communities hardest hit by the foreclosure crisis, and support sustainable economic development. Savings are achieved through reduced funding for new affordable housing construction and reforms to the Department’s rental assistance programs that do not reduce the number of families served.
• Includes $37.4 billion to provide rental housing assistance to 4.7 million low-income families and $2.4 billion to continue progress toward the Administration’s goal to end chronic homelessness and homelessness among veterans and families.
• Provides $400 million to transform neighborhoods with distressed HUD-assisted housing and concentrated poverty into opportunity-rich, mixed-income neighborhoods. This investment reflects the President’s commitment to creating ladders of opportunity in high-poverty Promise Zones across the United States.
• Maintains support for housing counseling services, including assistance for families in danger of foreclosure, and continues to offer loss mitigation solutions for Federal Housing Administration-insured borrowers. The Budget also includes actions to reduce the Federal Housing Administration’s exposure to risk and proposes reforms to strengthen its programs, which continue to play a critical role in the national mortgage market.
• Provides $3 billion for the Community Development Block Grant program and neighborhood stabilization activities, including $200 million in new competitive funding to further reduce and repurpose vacant and blighted properties and create jobs in communities hardest hit by the foreclosure crisis. The Budget also continues to support an investment of $15 billion for the Project Rebuild program to bring neighborhood stabilization to national scale.
• Includes $75 million to help communities develop comprehensive housing and transportation plans that increase transit-accessible housing, reduce energy consumption and greenhouse gas emissions, and expand economic opportunities. Expands the Moving to Work Program to test innovative, locally-driven rental assistance Policies to achieve positive outcomes for families, streamline program administration, and reduce Federal costs. To build evidence of what works, this expansion is accompanied by rigorous reporting and evaluation requirements.
• Provides $726 million to address the housing needs of Native American Tribes and $332 Million for a modernized Housing Opportunities for Persons with AIDS program that will target funds to areas with the highest need.
• Reduces funding for the HOME Investment Partnerships program. The Budget mitigates this reduction by providing $1 billion to capitalize the Housing Trust Fund to expand the supply of housing targeted to very-low income families.
• Reduces costs in HUD’s core Rental Assistance programs by simplifying administration of the medical expense deduction, better targeting rental assistance to the working poor, and setting more equitable Public Housing rents.
For more information on the 2014 Department of Housing and Urban Development Budget, please contact one of our agents. DFW Urban Realty Agents specialize in real estate in Dallas and Fort Worth. Our agents have local knowledge and expertise in the DFW area. Whether you're needing to purchase a home in Fort Worth, buy an investment property in Dallas, or sell a property in the DFW area, we've got you covered!