Quick Look: President Bush's FY 2009 Budget:  Department of Housing and Urban Development -- Feb. 4 2008

The California Institute prepares a quick analysis of the President's budget request on the day it is released.  For the FY 2009 Budget, the budget was released the morning of February 4, 2008.  The following represents an examination of this portion of the budget from a California perspective.  For analysis of other components visit our 2009 Budget page.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

The President’s Budget proposes discretionary Budget authority of $38.5 billion for the Department of Housing and Urban Development, an increase of about $1.07 billion in discretionary spending over the FY08 estimated funding. According to the Department, the 2009 budget seeks to 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.

Community Development Block Grant programs (CDBG)

The Community Development Block Grant (CDBG) program provides flexible annual formula grants to State and local governments to benefit mainly low- to moderate-income persons. Under the proposed Budget, the Community Development Fund will receive $2.9 billion in funding, compared to the FY08 Budget of $3.6 billion.

A few of the small Community Development Programs– the Self-Help Ownership Opportunity program (SHOP), Indian Community Development Block Grant program, and Native Hawaiian Block Grant program– will remain in HUD.

Public and Indian Housing

Continuing the new funding structure that replaces the Housing Certificate Fund, the President’s Budget funds the majority of housing assistance programs through two main accounts: Tenant- Based Rental Assistance and Project- Based Rental Assistance. The President’s Budget funds the Tenant-Based Rental Assistance account at $11.8 billion, in addition to the $4,158 billion previously appropriated under this heading that will become available on October 1, 2008. The Tenant-Based Rental Assistance helps low-income individuals afford housing by subsidizing their rental payments. The Project-Based Rental Assistance account is funded under the President’s Budget at $7 billion, $0.7 billion more than FY08 funding. Project-Based Rental Assistance helps make housing more affordable by subsidizing the landlords who make a certain portion of their residences available to low-income individuals.

Public Housing funding

The budget proposes $6.3 billion for public housing, compared to FY08 funding for public housing at $6.6 billion.

Revitalization of Severely Distressed Public Housing (HOPE VI)

The President proposes to eliminate the HOPE VI program because the Administration believes it has proven to be excessively costly when compared to other programs proposed for funding that produce new affordable housing. $99 million of HOPE VI funding is cancelled in the 2009 budget.

HOME Investment Partnership

The President’s Budget proposes $1.9 billion in funding for the HOME Investment Partnership program, which is $262 million more than FY08 funding.

Homeless Assistance Grants

President Bush’s Budget proposes a $49 million increase for Homeless Assistance Grants, increasing the total funding for the program to $1.6 billion.

Housing Opportunities for People with AIDS (HOPWA)

The Budget proposal fund for HOPWA amounts to $300.1 million, which is consistent with FY08 funding levels.

Housing for the Elderly

The Budget proposal decreases total funding for Housing of the Elderly by $195 million. FY09 amounts are estimated to be at $540 million, compared to FY08 funding level of $735 million.

 

 

 

The California Institute prepares a quick analysis of the President's budget request on the day it is released.  The FY 2009 Budget was released the morning of February 4, 2008.  The following represents an examination of this portion of the budget from a California perspective.  For analysis of other components visit our 2009 Budget page.

Official Source Material for FY 2009 Budget -- For your reference, the following are links to mirrored copies of OMB 2009 Budget materials (which are also available from the U.S. Office of Management and Budget via direct download)

 

To contact the California Institute, visit our contact page. To subscribe to the weekly California Capitol Hill Bulletin or announcements of upcoming events, visit our subscribe page. The California Capitol Hill Bulletin is an email and fax publication devoted to the nexus between California and Washington DC -- summarizing key Congressional or Administration activity from a uniquely or significantly California-oriented perspective. It is published free of charge on a weekly basis by the California Institute for Federal Policy Research and distributed to subscribed readers. To be removed from our lists or to change your memberships, visit our list management page.