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HUD Issues $3.16 in Grants to Public Housing Authorities

The U.S. Department of Housing & Urban Development (HUD) has awarded $3.16 billion in funding [1] to nearly 2,770 public housing authorities (PHAs) in all 50 states, as well as the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands to make capital investments to their public housing stock.

This funding is for dedicated housing to public housing residents to make sure they have adequate housing that is secure.

“As I have traveled the country, I’ve heard time and again from families and seniors in public housing that a decent home in a safe community shouldn’t be too much to ask for,” said HUD Secretary Marcia L. Fudge [2]. “With this investment today, we are committing to work with our public housing authority partners to guarantee homes in public housing are worthy of the families and individuals who live there.”

The grants are provided through HUD's Capital Fund Program [3], which offers annual funding to all public housing authorities to build, renovate, and/or modernize the public housing in their communities. Housing authorities can use the funding to complete large-scale improvements such as replacing roofs or making energy-efficient upgrades to heating systems and installing water conservation measures.

On other HUD news, the Department—through the Federal Housing Administration (FHA)–has announced a 30-basis-point reduction to the annual mortgage insurance premiums (annual MIP) charged to homebuyers who obtain an FHA-insured mortgage. The MIP will be reduced from 0.85% to 0.55% for most homebuyers seeking an FHA-insured mortgage, which could mean an estimated savings of $678 million for American families in aggregate by the end of 2023 alone. The reduction will benefit an estimated 850,000 borrowers over the coming year, saving these families an average of $800 annually.

“At a time when budgets are tight and homeownership is out of reach for too many, FHA’s premium reduction will allow more households to access the stability and wealth creation of homeownership, particularly the first-time homebuyers and families of color who rely heavily on affordable FHA-insured mortgages,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon [4]. “For many families, the savings will make the difference in their ability to purchase the home of their choice.”