2009-05-13, 09:55

HUDs 2010 Budget Includes More Funds for Affordable Housing

By: Chris Iavarone
HUD Secretary Shaun Donovan has announced the FY 2010 budget for the Department of Housing and Urban Development. The budget will include an increase in support for affordable housing. These additional funds will support an increase in the Section 8 Housing Choice Voucher program, full funding of the Community Development Block Grant (CDBG) Program, and a $1 billion contribution to the National Housing Trust Fund Program (NHTF) (replacing the now non-existent contributions that were to be made from the profits of Fannie Mae and Freddie Mac).

Of the initiatives outlined in the budget, the program that will have the greatest immediate impact on the multifamily housing industry will be the increase in Section 8 funding. Assuming that the budgeted funds are appropriated, Section 8 funds can flow to tenants and then to owners of rental properties relatively rapidly.

The other programs that will see an increase in funding, including CDBG, NHTF, and the new Choice Neighborhood Initiative (which HUD proposes as a replacement for the HOPE VI Program) may benefit the multifamily housing industry but their impact will take longer to materialize. These programs are geared toward neighborhood stabilization and revitalization, and most of the funds likely will be used for replacement or renovation of existing properties. It will take longer to get the dollars that are funded under these programs out of HUD and into the development pipeline.

For more information read this article from Multifamily Housing News or visit the HUD website. (This blog entry was published by Erica Harvey, a member of the real estate development practice group.)

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