House, Senate Appropriations Subcommittees Discuss HUD’s FY24 Budget Proposal with Secretary Fudge
As the Fiscal Year 2024 (FY24) funding cycle gets underway, the House and Senate Transportation, Housing, and Urban Development (THUD) appropriations subcommittees held hearings on April 18 and April 20, respectively, featuring Secretary Marcia L. Fudge to evaluate the President’s FY24 Budget Request for the Department of Housing and Urban Development (HUD).
In her opening and written statements in both chambers, Secretary Fudge noted the President’s FY24 Budget requests $73.3 billion for HUD, approximately $1.1 billion more than the FY23 enacted level. Secretary Fudge highlighted specific requests for $32.7 billion for the Housing Choice Voucher (HCV) program, which would allow HUD to expand assistance to an additional 50,000 families, as well as $1.8 billion for the HOME Investment Partnerships program to help increase production of affordable housing. Secretary Fudge also mentioned that the budget proposes giving Ginnie Mae authority to securitize affordable multifamily housing loans made by HFAs which are insured under the Federal Housing Administration’s Section 542(c) Risk-Sharing program. Finally, Secretary Fudge cautioned that proposals to reduce HUD funding to FY22 enacted levels would result in the loss of thousands of vouchers under the HCV program, as well as the cancellation or short-funding of existing contracts with owners under the Project-Based Rental Assistance (PBRA) program.
In the House, Subcommittee Chairman Tom Cole (R-OK) asked Secretary Fudge what the consequences would be if Congress fails to pass FY24 appropriations bills and simply passes a continuing resolution (CR). Secretary Fudge responded that a CR would result in the loss of housing for approximately 125,000 households that currently receive support; the elimination of services for approximately 32,000 people experiencing homelessness; and a shortfall of approximately $500 million in the renewal of PBRA contracts.
In the Senate, Subcommittee Chairman Brian Schatz (D-HI) emphasized the importance of HOME to spur production of critically needed affordable housing and encouraged HUD to take steps to consolidate and streamline regulatory requirements, especially related to physical inspections, across its various programs and with the Housing Credit. Ranking Member Cindy Hyde-Smith (R-MS) noted authorization has lapsed for a number of HUD programs, including HOME, and encouraged Secretary Fudge to work with Congress to reauthorize these programs. Senator Chris Coons (D-DE), who is leading the Senate Dear Colleague letter in support of HOME program funding, committed to fighting for program resources in the FY24 budget.
Questioned by both Chairman Schatz and Ranking Member Hyde-Smith, Secretary Fudge defended FHA’s decision earlier this year to reduce the Mortgage Insurance Premium by 0.3 percent, despite the fact it has resulted in somewhat reduced receipts at FHA and potentially reduced THUD Subcommittee allocations for FY24. Secretary Fudge noted the Mutual Mortgage Insurance Fund currently has reserves of $142 billion, and she felt it was unfair for FHA not to distribute some of those excess reserves to low-income and first-time home buyers in the form of lower monthly mortgage insurance payments.
