Opportunities now made For low-income homebuyers
The Down Payment Assistance Initiative will provide $200 million within the HOME Investment Partnerships Program to match down payment assistance provided by third parties, up to $1,500 per family. Funds will be administered by State housing finance agencies and each year help over 130,000 first-time low-income homebuyers.
HUD will increase housing opportunities for low-income households by funding 34,000 incremental Section 8 housing vouchers and renewing all expiring rental subsidy contracts. HUD will also expand funding for the Housing Opportunities for People with AIDS program. This expansion will support an increase in the number of eligible jurisdictions based on projections of AIDS cases by the Centers for Disease Control without reducing funding for other jurisdictions. Additional funding will be provided within the Lead Hazard Reduction program, with increased private sector leveraging, to reduce exposure of low-income children to lead-based paint.
The Public Housing Capital program will decline by $700 million relative to 2001 funding. Full funding will be provided for the accrual of new capital needs and local Public Housing Authorities will be encouraged to use more than $6 billion in unspent funds to reduce the backlog of needs. In addition, regulatory tools will be used to address distressed public housing units that represent a disproportionate share of the backlog of capital needs. The Public Housing Operating program is increased by $150 million, in part to cover utility rate increases and other cost increases to operate public housing. The Public Housing Drug Elimination program is terminated because the program was found to have limited impact, the same activities are eligible under the Public Housing Operating and Capital programs, and regulatory tools such as eviction are more effective at reducing drug activity in public housing. Program funds will be redirected to other drug prevention efforts.
A new Federal Housing Administration hybrid adjustable-rate mortgage will work with proposed tax incentives for savings and proposed tax credits for rehabilitation and construction of homes to expand homeownership, increase housing affordability, and strengthen established neighborhoods. The premiums for some specialized FHA programs (e.g., condominium, rehabilitation, and multifamily loans) are to be increased so that all single-family FHA borrowers pay the same premiums and so that these programs operate without the need for subsidy.
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