The
United States Department of Housing and Urban Development, also known by as
HUD, is a
CabinetThe United States Cabinet is composed of the most senior appointed officers of the executive branch of the federal government of the United States...
department in the Executive branch of the
United StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
federal government. Although its beginnings were in the House and Home Financing Agency, it was founded as a Cabinet department in 1965, as part of the "
Great SocietyThe Great Society was a set of domestic programs proposed or enacted in the United States on the initiative of President Lyndon B. Johnson. Two main goals of the Great Society social reforms were the elimination of poverty and racial injustice. New major spending programs that addressed education,...
" program of President Lyndon Johnson, to develop and execute policy on housing and cities.
The department was established on September 9, 1965, when President Lyndon Johnson signed the Department of Housing and Urban Development Act into law.
The
United States Department of Housing and Urban Development, also known by as
HUD, is a
CabinetThe United States Cabinet is composed of the most senior appointed officers of the executive branch of the federal government of the United States...
department in the Executive branch of the
United StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
federal government. Although its beginnings were in the House and Home Financing Agency, it was founded as a Cabinet department in 1965, as part of the "
Great SocietyThe Great Society was a set of domestic programs proposed or enacted in the United States on the initiative of President Lyndon B. Johnson. Two main goals of the Great Society social reforms were the elimination of poverty and racial injustice. New major spending programs that addressed education,...
" program of President Lyndon Johnson, to develop and execute policy on housing and cities.
History
The department was established on September 9, 1965, when President Lyndon Johnson signed the Department of Housing and Urban Development Act into law. It stipulated that the department was to be created no later than November 8, sixty days following the date of enactment. The actual implementation was postponed until January 13, 1966, following the completion of a special study group report on the federal role in solving urban problems.
HUD is administered by the
United States Secretary of Housing and Urban DevelopmentThe United States Secretary of Housing and Urban Development is the head of the United States Department of Housing and Urban Development, concerned with urban housing matters. The Secretary is a member of the President's Cabinet....
.
Shaun DonovanShaun L.S. Donovan serves as United States Secretary of Housing and Urban Development in the cabinet of President Barack Obama. Prior to this he headed the New York City Department of Housing Preservation and Development. On December 13, 2008, in his weekly national radio address, President Barack...
, a former New York City housing commissioner and former Deputy Assistant Secretary of the United States Department of Housing and Urban Development, is the current Secretary, having been confirmed by the United States Senate unanimously on January 22, 2009.
- July 1947 - The Housing and Home Finance Agency established
- July 1949 - The Housing Act of 1949
The American Housing Act of 1949 was a landmark, sweeping expansion of the federal role in mortgage insurance and issuance and the construction of public housing...
is enacted to help eradicate slums and promote redevelopment
- September 1959 - The Housing Act of 1959 allows funds for elderly housing
- September 1965 - HUD is created as a cabinet level agency by the Department of Housing and Urban Development Act
- April 1968 - The Fair Housing Act is made to ban discrimination in housing
- August 1969 - The Brooke Amendment establishes that low income families only pay no more than 25 percent of their income for rent
- August 1974 - Housing and Community Development Act of 1974
The Housing and Community Development Act of 1974 is a United States federal law that, among other provisions, authorizes "Entitlement Communities Grants" to be awarded by the United States Department of Housing and Urban Development.-External links:*...
allows community development block grants and help for urban homesteading
- October 1977 - The Housing and Community Act of 1977 sets up Urban Development Grants and continues elderly and handicapped assistance
- July 1987 - The Stewart B. McKinney Homeless Assistance Act
The McKinney-Vento Homeless Assistance Act of 1986 is a United States federal law that provides federal money for shelter programs. It was the first significant federal legislative response to homelessness, and was passed and signed into law by President Ronald Reagan on July 22, 1987...
gives help to communities to deal with homelessness
- February 1988 - The Housing and Community Development Act provides for the sale of public housing to resident management corporations
- October 1992 - The HOPE VI
HOPE VI is a major HUD plan meant to revitalize the worst public housing projects into mixed-income developments. Its philosophy is largely based on New Urbanism and the concept of Defensible space....
program starts to revitalise public housing and how it works
- October 1992 - The Housing and Community Development Act of 1992 codifies within its language the Federal Housing Enterprises Financial Safety and Soundness Act of 1992
The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 or FHEFSSA is Title XIII to the Housing and Community Development Act of 1992. It establishes the Office of Federal Housing Enterprise Oversight within the United States Department of Housing and Urban Development...
that creates the Office of Federal Housing Enterprise OversightThe Office of Federal Housing Enterprise Oversight was an agency within the Department of Housing and Urban Development. It was charged with ensuring the capital adequacy and financial safety and soundness of two government sponsored enterprises -- the Federal National Mortgage Association and...
, and mandates HUD to set goals for lower income and underserved housing areas for the GSEs Fannie Mae and Freddie Mac
- March 1996 - The Housing Opportunity Program Extension Act give public housing authorities the tools to screen out and evict residents who might endanger other existing residents due to substance abuse and criminal behavior
- October 1998 - Government laws are proposed which would allow local housing authorities to open up more public housing to the middle class
- November 2007 HUD initiates program providing seller concessions to buyers of HUD homes, allowing them to use down payment of $100
Operating units
HUD has experimented with Enterprise Zones granting economic incentives to economically depressed urban areas, but this function has largely been taken over by states.
The major program offices are:
- Community Planning and Development: Many major affordable housing and homelessness programs are administered under Community Planning and Development. These include the Community Development Block Grant
The Community Development Block Grant , one of the longest-running programs of the U.S. Department of Housing and Urban Development, funds local community development activities such as affordable housing, anti-poverty programs, and infrastructure development...
s (CDBG), the HOME program, Shelter Plus Care, Emergency Shelter Grants (ESG), Section 8The Housing Choice Voucher Program is a type of Federal assistance provided by the United States Department of Housing and Urban Development dedicated to sponsoring subsidized housing for low-income families and individuals. It is more commonly known as Section 8, in reference to the portion of...
Moderate Rehabilitation Single Room Occupancy program (Mod Rehab SRO), and Housing Opportunities for Persons with AIDS (HOPWA).
- Housing: This office is responsible for the Federal Housing Administration
The Federal Housing Administration is a United States government agency created as part of the National Housing Act of 1934. The goals of this organization are: to improve housing standards and conditions; to provide an adequate home financing system through insurance of mortgage loans; and to...
; mission regulation of Fannie Mae and Freddie Mac; regulation of Manufactured housingManufactured housing is a type of housing unit that is largely assembled in factories and then transported to sites of use....
; administration of Multifamily housing programs, including Supportive Housing for the Elderly (Section 202) and Supportive Housing for Persons with Disabilities (Section 811); and Healthcare facility loan insurance.
- Public and Indian Housing: This office administers the public housing program HOPE VI
HOPE VI is a major HUD plan meant to revitalize the worst public housing projects into mixed-income developments. Its philosophy is largely based on New Urbanism and the concept of Defensible space....
, the Housing Choice Voucher Program (formerly yet more popularly known as Section 8The Housing Choice Voucher Program is a type of Federal assistance provided by the United States Department of Housing and Urban Development dedicated to sponsoring subsidized housing for low-income families and individuals. It is more commonly known as Section 8, in reference to the portion of...
), and housing block grants for Indian tribes, Native Hawaiians and Alaskans.
- Fair Housing and Equal Opportunity: This office enforces Federal laws against discrimination against minority households, families with children, and persons with disability.
- Policy Development and Research
In 1978, the U.S. Department of Housing and Urban Development's Office of Policy Development and Research established HUD USER, an information source for housing and community development researchers, academics, policymakers, and the American public....
(PD&R): This office is responsible for maintaining current information on housing needs, market conditions, and existing programs, as well as conducting research on priority housing and community development issues through the HUD USERIn 1978, the U.S. Department of Housing and Urban Development's Office of Policy Development and Research established HUD USER, an information source for housing and community development researchers, academics, policymakers, and the American public....
Clearinghouse.
- Government National Mortgage Association
The Government National Mortgage Association is a U.S. government-owned corporation within the Department of Housing and Urban Development , and is headquartered in Washington, D.C.....
(Ginnie Mae)
- Healthy Homes and Lead Hazard Control.
- Partnership for Advancing Technology in Housing
Partnership for Advancing Technology in Housing is a "public/private sector initiative." The United States Department of Housing and Urban Development is responsible for its management. Its activities are coordinated by HUD's Office of Policy Development and Research...
(developed in 1998)
Programs
The 203(k) program offers low-cost loans to allow low-income participants or nonprofit groups to buy and renovate a house. A scandal with the program arose in the 1990s in which at least 700 houses were sold for profit by real estate speculators taking the loans; at least 19 were arrested, and the situation devastated the housing market in
BrooklynBrooklyn is one of the five boroughs of New York City, located southwest of Queens on the western tip of Long Island. An independent city until its consolidation with New York in 1898, Brooklyn is New York City's most populous borough, with 2.5 million residents, and second largest in area...
and
HarlemHarlem is a neighborhood in the New York City borough of Manhattan, long known as a major African-American residential, cultural, and business center. Originally a Dutch village, formally organized in 1658, it is named after the city of Haarlem in the Netherlands.Harlem has been defined by a series...
and resulted in $70 million in HUD loans going into
defaultIn finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant of the debt contract. A default is the failure to pay back a loan. Default may occur if the debtor is either...
. Critics said that HUD's lax oversight of their program allowed the fraud to occur. In 1997, the HUD Inspector General had issued a report saying: "The program design encourages risky property deals, land sale and refinance schemes, overstated property appraisals, and phony or excessive fees."
One of the most successful HUD programs over the years has been the
Multifamily Housing Service Coordinator Program. Each year since 1992, HUD has included in its Notice of Fund Availability (NOFA), a specific allocation of dollars to allow sponsors and owners of HUD multifamily housing for the elderly the opportunity to hire a Service Coordinator. The Service Coordinator provides case management and coordinative services to elderly residents, particularly to those who are "frail" and "at-risk" allowing them to remain in their current residence. As a result, thousands of senior citizens throughout the United States have been given the opportunity to continue to live independently instead of in an institutional facility such as a nursing home. Professional organizations such as the
American Association of Service Coordinators provide support to HUD Service Coordinator through education, training, networking and advocacy.
Due to HUD's lending practices, it occasionally takes possession of a home when a lender it insures forecloses. Such properties are then generally sold off to the highest bidder through the
HUD auctionA HUD auction is a form of foreclosure auction except the original lender was a federal agency instead of a private lender. The United States Department of Housing and Urban Development , is the insurer of loans made through a variety of government programs, particularly FHA loans...
process. Buyers of HUD homes as their primary residences who make a full-price offer to HUD using
FHAThe Federal Housing Administration is a United States government agency created as part of the National Housing Act of 1934. The goals of this organization are: to improve housing standards and conditions; to provide an adequate home financing system through insurance of mortgage loans; and to...
-insured mortgage financing receive seller concessions from HUD enabling them to use only $100 down payment.
Criticisms
In 2006,
The Village VoiceThe Village Voice is a free weekly newspaper in New York City, United States featuring investigative articles, analysis of current affairs and culture, arts reviews and events listings for New York City...
called HUD "New York City's worst landlord" and "the #1 worst in the United States."
Related legislation
- 1944 - Servicemen's Readjustment Act,
- 1949 - Housing Act,
- 1950 - Housing Act,
- 1951 - Defense Housing Act,
- 1952 - 550 Veterans Readjustment Assistance Act,
- 1954 - Housing Act,
- 1959 - Housing Act,
- 1962 - Senior Citizens Housing Act,
- 1965 - Housing and Urban Development Act,
- 1965 - Department of Housing and Urban Development Act,
- 1968 - Housing and Urban Development Act,
- 1974 - Housing and Urban Development Act,
- 1976 - Housing and Urban Development Act,
- 1986 - Tax Reform Act of 1986
The U.S. Congress passed the Tax Reform Act of 1986, to simplify the income tax code, broaden the tax base and eliminate many tax shelters and other preferences...
,
- Low-Income Housing Tax Credit
The Low Income Housing Tax Credit is a tax credit in the United States created under the Tax Reform Act of 1986 that gives incentives for the utilization of private equity in the development of affordable housing aimed at low-income Americans...
- 1987 - Housing and Community Development Act of 1987,
- 1987 - Stewart B. McKinney Homeless Assistance Act
The McKinney-Vento Homeless Assistance Act of 1986 is a United States federal law that provides federal money for shelter programs. It was the first significant federal legislative response to homelessness, and was passed and signed into law by President Ronald Reagan on July 22, 1987...
,
- 1989 - Department of Housing and Urban Development Reform Act of 1989,
- 1990 - Cranston-Gonzalez National Affordable Housing Act,
- 1992 - Housing and Community Development Act of 1992,
- Federal Housing Enterprises Financial Safety and Soundness Act of 1992
The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 or FHEFSSA is Title XIII to the Housing and Community Development Act of 1992. It establishes the Office of Federal Housing Enterprise Oversight within the United States Department of Housing and Urban Development...
,
- 2009 - American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009, abbreviated ARRA , is an economic stimulus package enacted by the 111th United States Congress in February 2009. The Act of Congress was based largely on proposals made by President Barack Obama and was intended to provide a stimulus to the U.S....
, abbreviated ARRA,
- Repairing and modernizing public housing, including increasing the energy efficiency of units, $4 billion to the Department of Housing and Urban Development (HUD)
See also
- Federal Housing Finance Board
The Federal Housing Finance Board is an independent agency of the United States government, created by the Financial Institutions Reform, Recovery and Enforcement Act of 1989 or FIRREA...
- HUD USER
In 1978, the U.S. Department of Housing and Urban Development's Office of Policy Development and Research established HUD USER, an information source for housing and community development researchers, academics, policymakers, and the American public....
- Regulatory Barriers Clearinghouse
The Regulatory Barriers Clearinghouse collects, processes, assembles, and disseminates information on existing barriers that inhibit the production and conservation of affordable housing. RBC is part of the U.S...
- Mortgage Discrimination
Mortgage discrimination or mortgage lending discrimination is the practice of banks, governments or other lending institutions denying loans to one or more groups of people primarily on the basis of race, ethnic origin, sex or religion...
External links