February 15, 2011
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On February 14, the Administration sent Congress its FY 2012 Budget, proposing funding for all federal programs, including HUD and the Department of Agriculture’s Rural Housing Programs.  It also contains the Administration’s tax proposals, including changes to the Housing Credit program to provide incentives for creating mixed-income housing and allow a 30 percent basis boost for some 4 percent Credit, tax-exempt bond-financed preservation deals.  The Budget also proposes repealing the Mortgage Revenue Bond (MRB) program purchase price limit and re­financing restriction.  It also says the Administration will increase the Federal Housing Administration (FHA) annual single-family mortgage insurance premium by 25 basis points, effective this April.

The Administration proposes $41.7 billion in HUD budget authority, a $1.2 billion, or 3 percent, decrease from the $42.9 billion HUD appropriation provided under the FY 2010 omnibus spending bill the President signed December 16, 2010.  After accounting for offsetting receipts, mostly from the FHA mortgage insurance program, the Budget proposes to spend $47.8 billion on HUD programs, a $750 million increase over its FY 2010 funding.

The Budget increases Housing Choice Voucher funding by 6 percent, the project-based Section 8 program by 10 percent, and homeless assistance by 27 percent.  It cuts funding for HOME, the Community Development Block Grant (CDBG) program, Section 202 Housing for the Elderly, and Section 811 Housing for Persons with Disabilities. The Budget also proposes $1 billion in new funding to launch the Housing Trust Fund.

The Budget again proposes to eliminate the Rural Housing and Economic Development program, the Brownfields Economic Development Initiative, and the Self-Help and Assisted Homeownership Opportunity program (SHOP).  The Budget also proposes to replace the HOPE VI program with the Choice Neighborhoods Initiative.

NCSHA's analysis of the Budget and budget chart contain more information about its proposals.