United States Department of Housing and Urban Development

"Housing and Urban Development" redirects here. For the area of study, see Urban planning.
United States
Department of Housing and Urban Development

Seal of the U.S. Department of Housing and Urban Development

Flag of the United States Department of Housing and Urban Development

Robert C. Weaver Federal Building, Department Headquarters
Agency overview
Formed September 9, 1965 (1965-09-09)
Preceding agency
Jurisdiction Federal government of the United States
Headquarters Robert C. Weaver Federal Building, 451 7th Street SW, Washington, D.C.
38°53′2.17″N 77°1′21.03″W / 38.8839361°N 77.0225083°W / 38.8839361; -77.0225083Coordinates: 38°53′2.17″N 77°1′21.03″W / 38.8839361°N 77.0225083°W / 38.8839361; -77.0225083
Employees 8,416 (2014)
Annual budget $32.6 Billion (2014)
Agency executives
Child agency
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Website hud.gov

The United States Department of Housing and Urban Development (HUD) is a Cabinet department in the Executive branch of the United States 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 Society" program of President Lyndon Johnson, to develop and execute policies on housing and metropolises.

History

The department was established on September 9, 1965, when Lyndon B. Johnson signed the Department of Housing and Urban Development Act[1] 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 Development. Julian Castro, a former Mayor of San Antonio, Texas, is the current and 16th United States Secretary of Housing and Urban Development since July 28, 2014. Its headquarters is located in the Robert C. Weaver Federal Building. Some important milestones for HUD's development include:[2]

Mission

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business.[7]

Agencies

Agencies

Offices

Corporation

Organizational structure

Major Programs

The major program offices are:

Office of Inspector General

The United States Congress enacted the Inspector General Act of 1978 to ensure integrity and efficiency in government. The Inspector General is appointed by the President and subject to Senate confirmation. The Inspector General is responsible for conducting and supervising audits, investigations, and inspections relating to the programs and operations of HUD. The OIG is to examine, evaluate and, where necessary, critique these operations and activities, recommending ways for the Department to carry out its responsibilities in the most effective, efficient, and economical manner possible.

The mission of the Office of Inspector General (OIG) is to:[10]

The OIG accomplishes its mission by conducting investigations pertinent to its activities; by keeping Congress, the Secretary, and the public fully informed of its activities, and by working with staff (in this case of HUD) in achieving success of its objectives and goals. David A. Montoya, who was sworn in on December 1, 2011, is the current Inspector General.[11][12]

Budget and staffing

The Department of Housing and Urban Development was authorized a budget for Fiscal Year 2015 of $48.3 billion. The budget authorization is broken down as follows:[13]

Program Funding (in billions)
Discretionary Spending
Management and Administration $1.9
Public and Indian Housing $28.7
Community Planning and Development $6.8
Housing Programs $11.7
Offsetting Receipts ($8.3)
Mandatory Spending
Mandatory Programs $7.3
TOTAL $48.3

Operations

The 203(k) program offers low down payment loans to primary resident owner occupants or nonprofit groups to buy and renovate a house.

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.

HUD has experimented with Enterprise Zones granting economic incentives to economically depressed urban areas, but this function has largely been taken over by states.

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 auction process. Buyers of HUD homes as their primary residences who make a full-price offer to HUD using FHA-insured mortgage financing receive seller concessions from HUD enabling them to use only a $100 down payment.

Criticisms

A scandal arose in the 1990s when at least 700 houses were sold for profit by real estate speculators taking the loans; at least 19 were arrested.[14] The scandal devastated the Brooklyn and Harlem housing market and with $70 million in HUD loans going into default.[15] Critics said that HUD's lax oversight of their program allowed the fraud to occur.[16] and in 1997, the HUD Inspector General issued a report saying: "The program design encourages risky property deals, land sale and refinance schemes, overstated property appraisals, and phony or excessive fees."[17] In June 1993, HUD Secretary Henry Cisneros admitted that "HUD has in many cases exacerbated the declining quality of life in America."[18] In 1996, Vice President Al Gore, referring to public housing projects, declared that, "These crime-infested monuments to a failed policy are killing the neighborhoods around them."

HUD Assistant Secretary for Fair Housing Roberta Achtenberg has been quoted as saying "...HUD walks a tightrope between free speech and fair housing. We are ever mindful of the need to maintain the proper balance between these rights." Libertarian critic James Bovard commented that, "The more aggressive HUD becomes, the fewer free speech rights Americans have. Many words and phrases are now effectively forbidden in real estate ads. ... Apparently, there are two separate versions of the Bill of Rights -- one for private citizens and the other for federal bureaucrats and politicians"[19]

In 2006, The Village Voice called HUD "New York City's worst landlord" and "the #1 worst in the United States" based upon decrepit conditions of buildings and questionable eviction practices.[17]

In September 2010, HUD started auctioning off delinquent home mortgage loans, defined as at least 90 days past due, to the highest bidder and sold 2,000 loans in six national auctions. In 2012, this sale was massively increased under the then established "Distressed Asset Stabilization Program" (DASP), and the 100,000 loans sold as of 2014 have netted 8.8 billion for the FHA, rebuilding its cash reserves, depleted by the loan defaults. The second stated and eponymous objective is to stabilize communities, by requiring purchasers to service the loans in a manner that stabilizes the surrounding communities by getting the loans to re-perform, renting the home to the borrower, gifting the property to a land bank or paying off the loans in full. .[20] An audit published August 2014 found "only about 11 percent of the loans sold through DASP [were] considered “re-performing” ".[20] "Rather than defaulting— [FHA] keeps many of the properties they’re tied to from going through the typical foreclosure process. As a result, the FHA might actually be diverting housing stock from first-time homebuyers, the very group it was formed to serve...".[20]

Related legislation

See also

Notes and references

  1. ↑ Pub.L. 89–174
  2. ↑ Basic Congressional and Presidential Actions Establishing Major HUD-related Programs. U.S. Department of Housing and Urban Development
  3. ↑ The Federal Housing Administration (FHA). U.S. Department of Housing and Urban Development
  4. ↑ "§ 1701a. — Short title of amendment of 1938. - US § 1701a. — Short title of amendment of 1938. - US Code :: Justia". law.justia.com. Retrieved 2011-03-25.
  5. ↑ Huduser.org
  6. ↑ Reckard, Scott (2013-05-17). "HUD to shut down offices as a result of sequester". Los Angeles Times. Retrieved 2013-05-19.
  7. ↑ Mission/U.S. Department of Housing and Urban Development (HUD). Portal.hud.gov. Retrieved on 2013-08-12.
  8. ↑ Portal.hud.gov
  9. ↑ Portal.hud.gov
  10. ↑ "OIG Mission Statement" HUD Office of the Inspector General
  11. ↑ "OIG Key Principal Staff" HUD Office of the Inspector General
  12. ↑ "OIG Senior Staff Bios - David A. Montoya Inspector General" HUD Office of the Inspector General
  13. ↑ 2016 Department of Housing and Urban Development Congressional Justification, pg 1-2, United States Department of Housing and Urban Development, Accessed 2015-06-19
  14. ↑ Pristin, Terry (2001-05-11). "HUD Scraps Cuomo Remedy for Harlem Housing Scandal". New York Times. Retrieved May 26, 2010.
  15. ↑ "HUD: The Horror Movie". The Village Voice. 2006-07-05.
  16. ↑ Pristin, Terry (2001-04-02). "Housing Pledge by Cuomo Faces an Uncertain Future". New York Times.
  17. 1 2 "NYC's 10 Worst Landlords". The Village Voice. 2006-07-05. Archived from the original on 2006-10-17.
  18. ↑ ENGELBERG, STEPHEN (1993-06-23). "Leader of H.U.D. Assesses It Harshly". New York Times.
  19. ↑ James Bovard (2000). Feeling Your Pain: The Explosion and Abuse Of Government Power in the Clinton-Gore Years. New York: St. Martin's Press. pp. 167, 175, 176. 0-312-23082-6.
  20. 1 2 3 Mark Kurlyandchik (9 September 2014). "Feds accused of selling out neighborhoods to Wall St. firms". Mark Kurlyandchik. Retrieved 3 October 2014.

External links

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