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Trump proposes deep cuts to HUD


Housing advocates for the poor slammed President Donald Trump’s first budget that proposes deep cuts to the budget of the U.S. Department of Housing and Urban Development (HUD) and the total elimination of several longstanding programs that support neighborhood stabilization and housing assistance.

Reaction from the mortgage industry, however, was subdued after the White House released a blueprint of its budget priorities on Thursday.

TrumpsThe budget did not address the funding level for several agencies that directly impact the mortgage industry, such as the Consumer Financial Protection Bureau (CFPB) and the Federal Housing Finance Agency (FHFA).

“It’s vital to understand that today’s Budget Blueprint is as much a political statement of priorities as it is a governing document, and that Congress is unlikely to go along with many of its more stringent spending reductions,” said Mortgage Bankers Association President David Stevens. Most other major trade groups did not react to the budget. 

Stevens noted that the cuts to the federal agencies were significant and create "a difficult road ahead for many federal programs,” but that the process will be drawn out. 

“Already, Republicans and Democrats in Congress have expressed reservations or outright opposition to many of its recommendations,” Stevens said.

Housing advocacy groups, however, expressed outrage at the proposed cuts to HUD, which oversees the FHA and its loan-guarantee program.

The budget proposes slashing $6.2 billion from agency's budget, a decrease of 13.2 percent over the fiscal 2017 level. Among the casualties would be HUD’s longest continuously running program, the Community Development Block Grant program that has provided funding to states since 1974 to develop programs to stabilize neighborhoods. Trump proposes to eliminate the program entirely at a savings of $3 billion annually.

Other programs to be axed include the HOME Investment Partnerships Program, Choice Neighborhoods and the Self-Help Homeownership Opportunity Program.

“At a time when the housing crisis has reached historic heights and the lowest-income people suffer the most severe impacts, proposals to slash HUD funding are unconscionable and unacceptable,” said Diane Yentel, president of the National Low Income Housing Coalition.

“These cuts could put more than 200,000 families and seniors at immediate risk of eviction and homelessness and will starve local communities of the funding they need to build and repair affordable homes and revitalize distressed communities,” she said. 


 

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  1. Posted: Mar 24, 2017  12:51 ET
    By: James Summers | Paramount Equity Mortgage
    1. 0


" eliminate the program entirely at a savings of $3 billion annually." Sounds logical and makes sense.

"“These cuts could put more than 200,000 families and seniors at immediate risk of eviction and homelessness" Sounds emotional, irrational, unfounded and fits the rhetoric of the fascist left.

Is this program an assistance to develop and for down payment or is it subsidizing the mortgage payments of many.


 

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