HUD Focus Stays On Homeownership.(Department of Housing and Urban Development)(Brief Article)(Statistical Data Included)

President Bush's budget proposals for next year call for modest growth in some discretionary spending programs overall, but the Department of Housing and Urban Development will see some budget austerity. Nonetheless, a summary of the administration's budget proposal shows that promoting affordable mortgage finance for minorities and other under-served communities remains a government priority. This viewpoint is an excerpt of the administration's budget proposal. For a related story, see page 19.

Point of View

The Down Payment Assistance Initiative will provide $200 million within the HOME Investment Partnerships Program to match down payment assistance provided by third parties, up to $1,500 per family. Funds will be administered by state housing finance agencies and each year help over 130,000 first-time low-income homebuyers.

The Community Technology Centers Initiative will enhance the Department of Housing and Urban Development's (HUD's) Neighborhood Networks program by providing $80 million in competitive grants to help communities create or expand technology centers in high poverty urban communities.

HUD will increase housing opportunities for low-income households by funding 34,000 incremental Section 8 housing vouchers and renewing all expiring rental subsidy contracts. HUD will also expand funding for the Housing Opportunities for People with AIDS program. This expansion will support an increase in the number of eligible jurisdictions based on projections of AIDS cases by the Centers for Disease Control without reducing funding for other jurisdictions. Additional funding will be provided within the Lead Hazard Reduction program, with increased private sector leveraging, to reduce exposure of low-income children to lead-based paint.

The Rural Housing and Economic Development program, which began in 1999, is terminated because it duplicates several programs, including CDBG and those of the Department of Agriculture.

A new Federal Housing Administration hybrid adjustable-rate mortgage will work with proposed tax incentives for savings and proposed tax credits for rehabilitation and construction of homes to expand homeownership, increase housing affordability, and strengthen established neighborhoods.