HUD 2012 Budget: Increased Outlays Offset by Incoming FHA Receipts

U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan has released HUD's 2012 Fiscal Year budget request.

The latest HUD budget proposal outlines a $48 billion spending program for fiscal year 2012, an increase of more than $900 million from 2010.  When including receipts,  HUD's net budget authority will total $43 billion, this is a 1.1 percent reduction from FY 2010.   The $48 billion gross budget appropriation proposal is expected to  be offset by a projected $5 billion in receipts from FHA and Ginnie Mae.

Donovan said that the budget meets the Presidents directive to freeze domestic spending for the next five years and because the President's State of the Union charge to "Win the Future" requires reforming government to be leaner and more transparent, HUD is proposing reforming the administrative infrastructure that oversees its programs.

Major cuts made to trim the budget include what Donovan calls "the difficult choice" to reduce funding for new units and projects. Community Development Block Grant funds were cut by $746 million to $3.8 billion and HOME Investment Partnerships funds will drop to $1.65 billion from $1.83 billion, largely through cuts to new construction components of the Supportive Housing Programs for the Elderly (202) and Disabled (811). 

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Source: http://www.mortgagenewsdaily.com/02142011_hud_budget.asp

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