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U.S. Department of Housing and Urban Development

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Department of Housing and Urban Development

The U.S. Department of Housing and Urban Development (HUD) was created in 1965 with the mission to “increase homeownership, support community development, and increase access to affordable housing free from discrimination.” Since then, HUD”s role in housing policy and programs has undergone a significant transformation. Today state and local governments often take the lead in developing new housing policies and resources designed to resolve our nation’s problems with housing costs and affordability. The total operational budget for HUD was $38 billion for fiscal year 2008, and for the first time since 2001, HUD received a decrease in budgetary outlays from the previous year.

Devolution of housing policy and resources is not likely to change in the near term. A tsunami of federal entitlements will swamp the U.S. budget beginning in 2010,1 so it is highly unlikely that the next administration can dramatically increase HUD’s budget. Because of this, HUD must work smarter with its available resources.
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The following issues will define HUD’s future relevance to housing policy:

  • This nation is facing the biggest housing slump since the Great Depression. The most obvious problem is the increasing numbers of home foreclosures.
  • One in three American households have housing problems, meaning that they pay too much for their housing and/or live in inadequate housing.
  • HUD’s budget is dramatically affected by rising energy costs; HUD spends more than $5 billion annually on energy.

This is an excerpt from The NEXT American Opportunity. The full text can be downloaded as an Adobe PDF Document.