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Department of Housing and Urban Development
The Administration's FY 2008 budget request for the Department of Housing and Urban Development (HUD) is $36.15 billion (31 percent decrease from the FY06 appropriation level – mostly due to a FY06 supplemental one-time funding for disaster relief). The department’s major priority for FY08 will be increasing home ownership.
The office of Policy Development and Research (PD&R) would receive $65 million this year. It would be split between $40 million for the Research and Technology studies and testing and $25 million for University Programs, which provide funds to minority-specialized colleges and universities to form partnerships for revitalization activities with their surrounding communities.
Community Development Block Grants
The Community Development Block Grant (CDBG) Fund would experience a $1.14 billion cut between the FY06 appropriation and the FY08 request. The formula grants component would shoulder the largest share of the decrease. Due to the department’s belief that the current funding mechanism has both inefficient and inequitable components, Congress will be asked to authorize a new formula for dispersing CDBG funds this year.
The goal of the recalculation is to adapt the program to current demographic trends in order to better assist the needs of the country’s urban cities and counties. Additionally, $200 million in Competitive Challenge Grants will be awarded as “bonus grants” to communities with a plan to target and leverage funds to the most distressed areas within the community.
Program Terminations
Within the CDBG account, the $50 million Youthbuild programs would be eliminated and $356 million for the Economic Development Special projects and Neighborhood Initiative Demonstration would be rescinded.
Also, in keeping with FY07 proposals, several other HUD economic development programs would receive no funding in FY08, including the Brownfields Redevelopment Initiative, Rural Housing and Economic Development, Section 108 Loan Guarantees, Community Development Loan Guarantees, and Renewal Communities, Urban Empowerment Zones and Enterprise Communities.