How does the new Trump Adminstration budget impact Real Estate and HUD ?

The new Trump administration just released a budget outline for the 2018 fiscal year, proposing $6.2 billion in cuts to the Department of Housing and Urban Development (HUD), or a 13.2 percent reduction. Funding for the agency would total $40.7 billion, with $35 billion allocated to rental assistance programs, $130 million to lead-based paint mitigation in low-income housing, and $4.5 million to low-income housing assistance.

The new Trump Admisitartiomn budget proposal has deep cuts to many important agencies, including a more than $6 billion decrease in funding to the U.S Department of Housing and Urban Development (HUD). More than 75 percent of the agency’s budget goes to helping families pay their rent. Thus, “These budget cuts would have a major impact on Hundreds of thousands of working class of the lowest-income people across the country,

The proposed budget will eliminate funding for Community Development Block Grants, a long-running program providing resources to communities in need of aid in areas such as affordable housing, disaster recovery and foreclosure rehabilitation. The elimination of the program would save $3 billion however it would have a major impact on rental assistance, which stands to lose $3 billion. According to data given in the budget.

Many years ago, Congress enshrined the “goal of a decent home and a suitable living environment for every American family” within its Declaration of National Housing Policy. This goal was not just justified by the basic needs of those with inadequate housing, but also because “the general welfare and security of the nation” required it. As our nation’s leading cities grapple with rapidly growing homeless populations, this additional justification takes on added weight today.

The budget also eliminates funding for the Choice Neighborhoods program, which replaces distressed public housing with mixed-income housing, among other initiatives; the HOME Investment Partnerships Program, which assists communities with affordable housing development; and the Self-Help Homeownership Opportunity Program (SHOP), which awards grants to nonprofits for low-income housing development. The elimination of the programs would save $1.1 billion.

The 2018 budget proposal calls for a $190 million cut in funding for updating U.S. maps of the flood-prone area. In place of the maps, the proposed budget wants to “explore other more effective and fair means of funding flood mapping efforts.”

The outline briefly addresses insurance premiums for Federal Housing Administration-backed mortgages, stating it “supports homeownership through provision of Federal Housing Administration mortgage insurance programs.” The New Administration suspended a reduction to premiums issued in January.
HUD elaborated on that provision, stating “The spending plan supports the longstanding homeownership mission of the Federal Housing Administration (FHA) to provide mortgage insurance credit to qualified households. A more detailed program-by-program budget proposal will be announced in May.”

The proposed budget, if approved, would take effect October 1.