Trump Budget Proposes $6 Billion Cut to HUD

Filed in Capitol Hill by on March 16, 2017 15 Comments

President Trump unveiled his fiscal 2018 budget plan today that proposes sharp increases to defense spending along with corresponding cuts to scores of non-defense discretionary programs.

Notably, the administration puts HUD’s funding at $40.7 billion, down $6.2 billion or 13.2% from the $46.9 billion in 2017.

It is important to note that this is the first step in the budget process. The president’s budget is meant to serve as a marker, but it is up to the Congress to write and submit a federal budget. Lawmakers are expected to take several months to go through the appropriations process, and the final budget approved by Congress is likely to be significantly different than the White House draft.

Nevertheless, the administration’s budget will be debated by lawmakers. The White House budget would eliminate the Community Development Block Grant (CDBG) program, which provides communities with resources to address a wide range of urban renewal projects. The CDBG program received $3 billion in funding for 2017.

The budget would also eliminate the HOME Investment Partnership and Choice Neighborhoods programs.

HOME received $950 million in funding for 2017. The program is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. Many multifamily builders often use the HOME program to fund developments in conjunction with the Low Income Housing Tax Credit.

The proposed budget would provide $130 million, an increase of $20 million, for the mitigation of lead-based paint and other hazards.

The HUD budget lacked specific figures regarding Project Based Section 8 housing.

The budget also includes significant cuts to the Environmental Protection Agency, U.S. Army Corps of Engineers and the departments of Labor and Agriculture.

Again, this is the first salvo in what will be a long, drawn-out process. As lawmakers focus on budget deliberations in the coming weeks and months, NAHB will work aggressively to remove any provisions that will harm housing and push for elements that will help small businesses and the housing community.

For more information, contact Jessica Hall at 800-368-5242 x8253.

Tags: ,

Comments (15)

Trackback URL | Comments RSS Feed

  1. Mike Erickson says:

    I’d like to see HUD terminated to $0.

  2. CDBG & HOME Funds are critical tools for Developers and Home Builders serving low-income home buyers. I am a Florida Home Builder building about 70 single family homes and town-homes this year for income restricted buyers. These HUD funds play and integral part in making home-ownership affordable for low wealth buyers. We generate around $10,000,000 a year worth of economic activity which funds many small vendors, trade partners and suppliers.

    Loss of these funds will be tragic for our market sector and all the businesses that thrive on the impacts of new home construction. I have found that this federal “seed” money pays dividends by assisting first-time buyers obtain home-ownership. As they stabilize in their new homes, their incomes typically increase which makes them excellent candidates for move-up housing.

  3. Martin Knezovich says:

    So much for the idea that this administration cares much about housing, or the home builders.

  4. Tim says:

    I’d like to see a dollar for dollar tax increase on the highest income earners and corporations for every new dollar of defense spending.

  5. Steve says:

    You get what you vote for.

  6. Lee says:

    I agree with Steve. We all get hurt in business and personally too. Right in the pocket book, profit margins perhaps, and without a doubt small businesses especially.
    Individually or as a group or as groups.
    Is there any way for NAHB to fight this as it affects all of us?

    • NAHB Now says:

      It’s still early on in the process, Lee. As Congress begins to assemble the budget, you can be sure we will offer our input and our members’ ideas are always welcome.

  7. Randy Davis says:

    That is what’s wrong with this country. Try to cut waste and reduce spending and people believe the sky is falling. HUD still has a 40 billion budget. Fiscal responsibility will help all builders.

  8. James says:

    Sounds like communication is necessary. He negotiates, might even raise.

  9. Joe Tarascio says:

    What is NAHB’s position on cuts to HUD ? We are not HUD builders and so we are not familiar with the program. Is there a cut that’s sensible or is the program to be considered “untouchable”. Other than the obvious reduction in homes for lower income people and the hit that builders who are in this market will take
    what policy position makes sense for our industry to support. Just asking .

    • NAHB Now says:

      Thanks for writing. NAHB is supportive of changes to streamline many of HUD’s programs to make better use of funds, but systemic cuts to the funding of programs such as HOME and Project Based Section 8 would have wide, sweeping effects on access to affordable housing across the country. Not only would these cuts hurt businesses with contractual obligations they must meet, but directly further disadvantage some of our countries most vulnerable populations.

  10. Steve White says:

    I agree with Steve, “you get what you vote for”. He must have some stock in the Defense Industry.
    Steve

  11. I worked for HUD in the 80’s when Regan cut HUD’s housing production budget by 80%. That was the first time we started talking about the “working homeless.” The McKinney Homeless Assistance Act is still with us. Looks like history is about to repeat itself.

  12. Frank Baldasare says:

    With rising construction costs, lower loan proceeds due to rising interest rates and lower tax credit equity due to tax reform, the loss of the HOME Loan Program will be the kiss of death for most ground up new construction of 9% and 4% LIHTC Multifamily developments.

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement