HUD seeks proposed $31.3 billion budget for 2004

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President Bush's proposed fiscal year 2004 budget includes $31.3 billion for the Department of Housing and Urban Development to increase homeownership, promote affordable housing and create stronger communities.|ret||ret||tab|

In releasing details of the president's spending blueprint, HUD Secretary Mel Martinez said the budget request builds upon the administration's commitment to address the minority homeownership gap, the availability and affordability of housing and the needs of the homeless.|ret||ret||tab|

"This budget reflects the realities of national defense and homeland security while continuing to offer greater opportunities for families seeking the American Dream," said Martinez. "This funding allows HUD to continue building stronger communities and increasing homeownership while also reaching out a compassionate hand to America's most vulnerable."|ret||ret||tab|

While nearly 70 percent of all Americans own their own homes, less than half of African-American and Hispanic families are homeowners. Intent on closing this "homeownership gap," Bush is committed to adding 5.5 million minority homeowners by the end of the decade with the following initiatives:|ret||ret||tab|

Home Investment Partnerships Program. HUD's proposed budget provides a five percent or $113 million increase in the department's program. An estimated $2.2 billion will be provided to state and local governments to encourage building affordable housing in hundreds of communities nationwide.|ret||ret||tab|

American Dream Downpayment Initiative. For the second consecutive year, the president's proposal includes $200 million to help an estimated 40,000 low-income families a year to become first-time homeowners. |ret||ret||tab|

Housing Counseling. The president's spending plan also includes an additional $10 million to provide counseling services to lower-income Americans who wish to become homeowners or who seek affordable rental housing. The additional funding would bring HUD's Housing Counseling Grant Program to $45 million, and will help 250,000 additional individuals and families to find and maintain homes.|ret||ret||tab|

Single-Family Affordable Housing Tax Credit. The administration is proposing a tax credit of up to 50 percent of the cost of new construction or rehabilitation. This tax credit targets low-income households earning less than 80 percent of an area's median income. |ret||ret||tab|

Self-Help Homeownership Opportu-nity Program. President Bush is proposing $65 million to fund "sweat equity" homeownership programs. This proposal would provide grants to support nonprofit organizations like Habitat for Humanity, which requires low-income families to help construct the homes they will eventually own.|ret||ret||tab|

Housing Choice Voucher Homeown-ership. HUD allows local housing agencies to use rental assistance vouchers toward moving low-income families into homeownership. The housing agencies may provide mortgage assistance in lieu of a rental subsidy or offer families a one-time down payment grant equaling up to one-year's worth of their rental assistance.|ret||ret||tab|

Housing Assistance for Needy Families. The fiscal year 2004 budget proposes a new initiative where rental assistance vouchers previously allocated to thousands of public housing authorities would be allocated to states. States, in turn, would contract with local housing agencies to administer the program. Allocation of rental assistance vouchers to states would reduce or eliminate problems associated with the underutilization, and ultimately the recapture, of billions of dollars in rental assistance to local housing agencies. Moreover, the HANF Program should run more effectively with HUD managing fewer than 60 grantees compared to approximately 2,600 today.|ret||ret||tab|

Public Housing Operating and Capital Funds. The administration's budget provides for an increase of $44 million to assist local public housing authorities in their daily operation. The administration also seeks an additional $215 million in the Public Housing Capital Fund to help local PHAs fund major repairs and modernization in their housing units. |ret||ret||tab|

The proposed budget also includes funding for programs that would help the homeless and individuals who have HIV and/or AIDS. |ret||ret||tab|

The Samaritan Initiative. For fiscal year 2004, HUD would provide $50 million in housing assistance to those experiencing chronic or long-term homelessness while the Department of Health and Human Services and Veterans Affairs would each contribute $10 million for services such as substance abuse treatment and primary health care.|ret||ret||tab|

Housing Opportunities for Persons with AIDS. For fiscal year 2004, HUD seeks $297 million to provide housing and supportive services to low-income persons with HIV/AIDS and their families. |ret||ret||tab|

Community Development Block Grant Program. HUD's CDBG Program provides flexible funding to more than 1,000 state and local governments to stimulate community development and job growth. For 2004, HUD is seeking $4.436 billion in formula grants to be allocated to states, cities and larger urban counties as well as $72.5 million to be distributed to Indian tribes.|ret||ret||tab|

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