HUD Funds and Programs

HUD FUNDS AND PROGRAMS

By Karen Paup and Bianca Pizarro, an intern and graduate student in the Community and Regional Planning Graduate Program at University of Texas at Austin.

Lesson Objectives

• Learners will understand the purpose and scope of the Department of Housing and Urban Development (HUD)
• Learners will understand the key programs that are overseen by HUD
• Learners will know how to incorporate these programs into their community organizing

What is the Department of Housing and Urban Development (HUD)?

• Created in 1965 under the Department of Housing and Urban Development Act
• Responsible for policies and programs that address the nation’s housing needs, improves communities and enforcing fair housing laws

MAIN PROGRAMS UNDER H.U.D.

• Mortgage and Loan Insurance
• Community Development Block Grant (CDBG)
• Home Investment Partnership Program
• Public Housing
• Section 8/Housing Choice Voucher Program
• Homeless Prevention and Alleviation

• Created in 1974, authorized by Title I of the Housing and Community Development Act
• Consolidated prior programs
• Funds distributed to states and cities
• Orgs and individuals can apply through local government agencies

• Target beneficiaries: Low to moderate income people
• i.e. Households with income less than 80% of the area median income (AMI)
• There are now less funds distributed to more cities

How Can These Funds Be Used?

• Use must meet 1 of 3 objectives:
• Benefit low and moderate incomes (mostly below 80% AMI)
• Aid in preventing or eliminating slums or blight
• Urgent need
• Examples include:
• Home rehab, energy efficiency
• Create or retain jobs
• Build public facilities
• CBDG includes robust opportunities for citizens to recommend how funds should be used

Residential improvement and rehabilitation

Construction of public facilities and improvements

energy conservation and renewable energy resources

Economic development Activities

Community participation opportunities

Required participation opportunities

• Submit written comments and/or testify at a hearing on:
• What the needs are
• What the solutions are
• For the:
• 5-year plan
• Annual action plan
• The housing authority (HA) has a similar 5 year and 1 year planning process, including whether the HA plans to close any public housing that it owns

PROBLEMS WITH CDGB

• Funds should be used for CDBG activities, NOT to plug budget holes in a state government
• H.U.D lacks enforcement mechanisms
• Not very much accountability means money may not go where it was intended

TOWARDS ACCOUNTABILITY

• Organize to build a local constituency
• Investigate how CDBG is being used in your region
• Create accountability measures that fit your local politics

Home Investment Partnership Program (HOME)

• Created in 1990, authorized by Title II of the Cranston-Gonzalez National Affordable Housing Act
• Eligible use of funds
• Tenant-based rental assistance
• Housing rehabilitation
• Assistance to homebuyers
• New construction of housing

Home Investment Partnership Program (HOME)

• Funds distributed to:
• States
• Localities
• Often spent or used in conjunction with community organizations
• Target beneficiaries:
• Low-income people

Story About HOME

Play video above to listen

A Conversation with John Henneberger, Texas Housers Co-Director

Housing Choice Vouchers/Section 8

• Created in 1974, under the Nixon administration
• Distributed to people with the lowest incomes, the elderly and people who are disabled

• 75% for residents with less than 30% of the area median income, or federal poverty line
• 25% for residents with incomes up to 80% of AMI

Image to the right is from NPR’s article “Section 8 Vouchers Help The Poor — But Only If Housing Is Available.” It features Farryn Giles and her son Isaiah, who are looking for an apartment that accepts housing choice vouchers in Dallas.

From the NPR article: Farryn Giles and her son Isaiah, 6, walk in their east Dallas neighborhood. While she received a Section 8 voucher to help them move to a neighborhood with more opportunities, finding an apartment that would take the voucher was challenging.

A SECTION 8 STORY:

From NPR’s “Section 8 Vouchers Help The Poor — But Only If Housing Is Available.”

Call to action

Organizing in order to build a community accountably.

RESOURCES

• HUD’s Programs and Related Topics

• HUD’s Handbook

• The National Low-Income Housing Coalition’s Advocate’s Guide

• A Little Louder Podcast, Episode 8: CDBG 101

• NPR’s Section 8 Vouchers Help The Poor — But Only If Housing Is Available

• Texas Tribune’s Section 8 vouchers are supposed to help the poor reach better neighborhoods. Texas law gets in the way.