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Biden’s FY2023 Budget Seeks $70B+ for HUD

The Biden-Harris Administration has submitted its Budget for fiscal year 2023 to Congress, and within it, requests $71.9 billion for the U.S. Department of Housing & Urban Development (HUD), approximately $11.6 billion more than 2022.

In addition, the Fiscal Year 2023 Budget requests $35 billion for the Housing Supply Fund, a new mandatory program providing grants to State and local housing finance agencies and their partners to invest in strategies to increase the supply of affordable housing.

“HUD's mission is critical to achieving the President's vision to build a better America—one where we are ensuring that every person has a shot to get ahead and addressing longstanding systemic challenges, including racial injustice, rising inequality, and the climate crisis,” said HUD Secretary Marcia L. Fudge.

Priorities for the Biden Administration related to HUD in the FY 2023 Budget include:

  • $32.1 billion for the Housing Choice Voucher (HCV) Program, which will accommodate 200,000 new vouchers, prioritizing those fleeing from domestic violence, and households experiencing homelessness.
  • $3.6 billion to provide housing and services to individuals and families experiencing homelessness, including a focus on survivors of domestic violence and youth experiencing homelessness.
  • $1.1 billion in targeted climate resilience and energy-efficiency improvements in public housing, tribal housing, and other assisted housing programs.
  • $400 million to remove dangerous health hazards from homes, including mitigating threats from fire, lead, carbon monoxide, and radon.
  • $86 million for fair housing programs, and increased HUD staff capacity to redress discriminatory housing practices.
  • $2.2 billion earmarked for HUD management and administration expenses, investing in critical staffing and information technology needs to strengthen HUD’s capacity to deliver on its mission.

The President’s FY 2023 Budget supports authorizing the Community Development Block Grant—Disaster Recovery (CDBG-DR) program. For more than 20 years, Congress has appropriated emergency supplemental funds to HUD in response to major disasters to address the unmet long-term disaster recovery needs nationwide. Authorization would improve the transparency and predictability of CDBG-DR funds for impacted communities.

HUD notes that some housing-related challenges can trigger significant mental health distress, and HUD will provide training and technical assistance resources to support its efforts to reduce the impact of housing-related challenges on mental and emotional well-being and improve the experience of the Department’s customers.

The 2023 Budget requests $1.8 billion toward salaries and expenses (S&E), $306 million more than the annualized CR level for 2022, which, in combination with carryover of 2022 funding, will support 8,326 full-time equivalent (FTE) employees. The 2023 Budget will support the gains made in 2021 and projected for 2022 and provide for continued increases in staffing, which will enable the Department to more effectively and efficiently serve households and communities across the country. The Budget also proposes $382 million for the IT Fund, to continue to invest in much needed modernization of HUD’s IT systems, infrastructure, and cybersecurity.

“This Budget tells the American people that the President, and our agency, view housing as a foundational platform to help address the most urgent challenges facing our nation,” added HUD Secretary Fudge. “This Budget will help us meet our mission to provide security and stability for those who live on the outskirts of hope, advance opportunity and equity on behalf of marginalized communities, and meet the existential threats posed by natural disasters and climate change.”

 

About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.
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