President Obama on February 26 issued his proposed federal budget for Fiscal Year 2010, which begins October 1, 2009. The budget request proposes $47.5 billion for the U.S. Department of Housing and Urban Development (HUD), an increase from the approved $47.1 billion appropriation for FY 2008 and the stopgap spending level of $40.1 billion for FY 2009. Highlights of the FY 2010 HUD budget request include:
- $1 billion for the new national Affordable Housing Trust Fund. The Trust Fund was established by the Housing and Economic Recovery Act of 2008, and was to be funded by future contributions by Fannie Mae and Freddie Mac — now doubtful because of the GSEs’ financial problems. The fund will provide dollars for the development, rehab, and preservation of housing for very low-income households.
- Full funding of the Community Development Block Grant program, at $4.5 billion
- Increased funding for HUD project-based based rental assistance, to preserve about 1.3 million affordable rental units
- Increased funding for HUD’s Housing Choice Voucher program.
- Establishment of a new Energy Innovation Fund, to spur energy efficiency in housing including through retrofitting of older housing, and the leveraging of private-sector funds for these activities.
- Creation of a New Choice Neighborhoods Initiative, to provide support for identification of transformative activities that upgrade high poverty neighborhoods
