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WHITE HOUSE PROPOSES HUD BUDGET FOR FY 2008

Monday, February 5, 2007 - 7:30AM

President George W. Bush’s proposed budget for fiscal year (FY) 2008 seeks $35.2 billion for the U.S. Department of Housing and Urban Development (HUD), a $1.6 billion, or 4.5 percent, increase over the proposal for FY 2007. The proposal again places a strong emphasis on promoting homeownership, but also includes increases in funding for rental housing. The request includes $16 billion for tenant-based rental assistance including HUD's Housing Choice Voucher Program, a nearly $582 million increase over FY 2006 levels. HUD says this request will allow it to renew all existing rental housing assistance contracts. The FY 2008 budget proposes to fund the Community Development Block Grant (CDBG) Program at $3 billion.

In the budget proposal summary, HUD says it is proposing leveraged financing demonstration projects in both Section 202 and Section 811; $25 million is requested for Section 202 and $15 million is requested for Section 811. The main goal is to increase the production of units serving these special needs populations by removing the barriers that discourage low-income housing tax credit (LIHTC) applicants from utilizing Sections 202 and 811. In developing the program, HUD will consider mixed-finance arrangements, including low-income housing tax credits and “other creative financing options for development and, or rental operating assistance.”

 

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