DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
The President’s 2009 Budget will:
• Ensure housing assistance for those most in need;
• Preserve and promote homeownership by addressing subprime mortgages;
• Strengthen communities by sustaining homeownership gains;
• Make further progress towards ending chronic homelessness; and
• Continue the trend of improving the Department’s management and performance.
Ensuring Housing Assistance for Those Most in Need
• Increases primary housing programs. As a first principle, sets on firm footing the Department’s
major programs that provide housing assistance to 11 million needy individuals.
• Increases Project-Based Housing. $7 billion to renew all project-based rental contracts, and a
$400 million advance appropriation to bridge renewal funding into 2010, to provide housing
assistance for nearly 1.3 million low-income tenants.
• Maintains Housing Choice Vouchers. Funds Housing Choice Vouchers for over two million
extremely low- to low-income families, while removing the cap on the number of housing units
Public Housing Authorities can assist.
• Supports Public Housing Operating Fund. At $4.3 billion (the highest proposed funding level
in history), the Fund provides the necessary operating expenses for 1.2 million public housing
units.
Preserving and Promoting Homeownership by Addressing Subprime Mortgages
• Helps homeowners avoid foreclosure. $65 million for the Department of Housing and Urban
Development’s (HUD’s) Housing Counseling program, a 30-percent increase over the 2008
Budget, and $150 million to the Neighborhood Reinvestment Corporation (NRC), a 25-percent
increase over the 2008 Budget, to help educate consumers, combat foreclosures, and promote
a healthier housing market. In 2006, 93 percent of all Federal Housing Administration
(FHA) borrowers in default who completed Housing Counseling services successfully avoided
foreclosure.
75
76 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Strengthening Communities by Sustaining Homeownership Gains
• Expands affordable housing and minority FHA Helps More Families with
homeownership. $2 billion for the HOME Home Mortgage Refinancing
Investment Partnerships program, In thousands
including $50 million for the American
Dream Downpayment Initiative, which 120
provides flexible housing assistance 100 104,475
and increases affordable housing and
minority homeownership. Since the 80
inception of the HOME program 16 years 60
ago, almost 812,000 units of affordable 58,230
housing have been created. 40
31,958
• Increases mortgage financing options for 20
homebuyers and homeowners. Enables
FHA, through reforms such as risk-based 0
2005 2006 2007
pricing, to offer a wider variety of Source: HUD
mortgage products and create more Number of families with conventional mortgages that have refinanced
homeownership opportunities. FHA will their single-family homes with FHA.
be able to design mortgage products that
can help at-risk borrowers, reward borrowers with good credit histories, and protect taxpayers
with actuarially sound financing. As a consequence of difficulties in the subprime mortgage
market, more Americans are turning to FHA as they refinance their homes.
• Promotes healthy community development. Funding for NRC will also help existing homeowners
rehabilitate homes, assist communities, sustain homeownership gains, and expand economic
development and training for community-based revitalization efforts.
Making Further Progress Toward Ending Chronic Homelessness
• Expands Homeless Assistance Grants. Over $1.6 billion for funding at least 160,000 beds
for homeless individuals. Aided by this Administration initiative, HUD has documented an
unprecedented 11.5 percent decline in chronic homelessness from 2005 to 2006.
Continuing HUD’s Improved Management and Performance
• Eliminates “High Risk” Designation. For the first time since 1994, the Government Account-
ability Office removed HUD’s single-family housing mortgage insurance and rental housing
assistance programs from the list of High-Risk Federal programs in 2007.
• Maintains sound financial management. HUD achieved a clean opinion on its 2007 financial
statements, continuing a multi-year trend.
Major Savings and Reforms
• Six programs representing $1.6 billion have been identified for termination or reduction,
including:
¡ Community Development Block Grant (CDBG) program, which needs reform because it is not
well-targeted to the neediest communities and its results have not been adequately demon-
strated. The Budget funds CDBG at $3 billion, $0.9 billion less than 2008.
THE BUDGET FOR FISCAL YEAR 2009 77
Since 2001, the Department of Housing and Urban Development has:
• Made housing affordable for many of those most in need, assisting with housing payments for
over four percent of the U.S. population.
• Expanded efforts to end chronic homelessness, providing additional permanent housing units
for over 57,000 individuals, ending their cycle of homelessness.
• Improved financial management by eliminating nearly $2 billion in annual improper payments.
• Increased proposed funding for Housing Counseling by over 170 percent—from $24 million in
2001 to $65 million in 2009. The 2009 Budget will help educate approximately 950,000 families
to make better housing decisions.
Department of Housing and Urban Development
(Dollar amounts in millions)
2007 Estimate
Actual 2008 2009
Spending
Discretionary Budget Authority:
Community Development Fund ....................................................................... 3,770 3,866 3,000
CDBG cancellation............................................................................................... — — 206
HOME Investment Partnerships Program ................................................... 1,756 1,704 1,967
American Dream Downpayment Initiative (non-add) ......................... 25 10 50
Homeless Assistance Grants ........................................................................... 1,434 1,586 1,636
Housing Opportunities for Persons with AIDS ........................................... 286 300 300
Tenant-based Rental Assistance .................................................................... 15,881 15,703 16,039
Project-based Rental Assistance.................................................................... 5,975 6,382 7,000
Housing Certificate Fund ................................................................................... 616 1,250 —
Public Housing ....................................................................................................... 6,284 6,639 6,324
Native American Housing Block Grant ......................................................... 624 630 627
Revitalization of Severely Distressed Public Housing (HOPE VI) ...... 96 100 —
Housing for the Elderly ....................................................................................... 735 735 540
Housing for Persons with Disabilities ............................................................ 237 237 160
Federal Housing Administration (FHA) ......................................................... 1,105 921 763
Lead Hazard Reduction ..................................................................................... 150 145 116
All other programs ................................................................................................ 1,530 1,557 1,742
Total, Discretionary budget authority ................................................................. 37,037 37,413 38,482
Memorandum: Budget authority from enacted supplementals ............... 7 3,000 —
Total, Discretionary outlays ................................................................................... 48,990 50,715 47,834
Total, Mandatory outlays ........................................................................................ 3,429 1,556 2,202
Total, Outlays .............................................................................................................. 45,561 52,271 45,632
78 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Department of Housing and Urban Development—Continued
(Dollar amounts in millions)
2007 Estimate
Actual 2008 2009
Credit activity
Direct Loan Disbursements:
FHA............................................................................................................................ 3 50 50
Government National Mortgage Association.............................................. 3 30 25
Total, Direct loan disbursements ......................................................................... 6 80 75
Guaranteed Loan Disbursements:
FHA............................................................................................................................ 89,579 97,768 157,718
All other programs ................................................................................................ 384 523 551
Total, Guaranteed loan disbursements ............................................................. 89,963 98,291 158,269
Number of 2009
Programs Savings
Major Savings, Discretionary
Terminations .................................................................................................................... 4 132
Reductions ....................................................................................................................... 2 1,487
