Last week the Trump Administration issued its FY2018 federal budget, which begins October 1. The plan would reduce HUD funding by $6.2 billion, changing the agency's total funding from $46.9 billion in 2017 to $40.7 billion. This reduction in funding represents a fraction of the cuts needed to offset a proposed $54 billion increase in defense spending, increased spending for immigration enforcement and border security, and $200 billion in infrastructure spending over the next decade. A copy of the budget can be found here.
The budget would eliminate the HOME Investment Partnership (HOME), Community Development Block Grant (CDBG) and Choice Neighborhood programs. The Housing Trust Fund and Capital Magnet Fund would also be eliminated. Many affordable housing developers use these programs to fund affordable housing projects in conjunction with low-income housing tax credits. The CDBG program supports a wide range of urban renewal projects and had initially received $3 billion in funding for 2017. The HOME program is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households and received $948 million in funding for 2017. The recent funding cuts will also reduce rental subsidies, including Section 8 vouchers and project-based rental assistance.
Experts and housing advocates have said the reduction in HUD's budget will put tremendous strain on the nation's already struggling housing authorities: housing authorities rely heavily on federal funding to manage public housing and currently face extensive backlogs of maintenance and repair work needed to ensure the nation's public housing stock is safe. Without the funding necessary to ensure these units remain habitable, they could be taken offline completely.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. It remains to be seen whether the budget cuts will impact HUD's ability to achieve its mission.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
