Department of Housing and Urban Development

The Administration's FY 2007 budget request for the Department of Housing and Urban Development (HUD) is $33.528 billion, a 29.9 percent decrease from the FY 2006 appropriation of $47.826 billion.



The Office of Community Planning and Development would receive $6.5 billion under the Administration's FY07 budget request, down from $19.129 billion in FY06. Policy Development and Research would receive $68 million, a $13 million increase over the FY06 appropriation. Research and Technology would receive $40 million ($10 million increase), and University Programs would receive $28 million ($8 million increase).



The FY07 budget proposes to reduce funding for the Community Development Block Grant (CDBG) program to $3.032 billion, a 27.4 percent cut from the FY06 appropriation of $4.178 billion. In addition, formula changes will be proposed to direct more of the program's base funding to communities that cannot meet their own needs, and bonus funds will be available to communities that demonstrate the greatest progress in expanding home ownership and opportunity for their residents.



The CDBG budget request is in keeping with the Administration's Strengthening America's Communities Initiative (SACI), which was first proposed in FY06. SACI calls for the termination of more than a dozen programs in several agencies and reduces overall federal support for local and regional community and economic development. CDBG and the Economic Development Administration (EDA), the two largest programs affected by the SACI proposal, eventually would be merged into a single, smaller competitive grant program tailored more toward technology-based economic development activities. SACI is to be administered by the Department of Commerce. In FY07, EDA will work with CDBG to explore the implementation of complementary program performance goals and metrics.



Also, in keeping with FY06 proposals, several HUD programs dedicated to economic development are slated for elimination in FY07, including Brownfields Redevelopment, Rural Housing and Economic Development, Section 108 Loan Guarantees, Community Development Loan Guarantees, Economic Development Initiatives and Special Purpose Projects, Neighborhood Network Initiative and Neighborhood Initiative Demonstration, Renewal Communities, Urban Empowerment Zones and Enterprise Communities, and Partnership for Advancing Technology in Housing.