HUD FY 2005 budget released

The FY 2005 HUD budget proposal was released today and may be found online at the Office of Management and Budget's website. Information relating to the Department of Housing and Urban Development is downloadable as a PDF file with several bookmarks. Most important to housing authorities will be the first bookmark, "Public and Indian Housing." The public housing operating fund is budgeted at $3.573 billion, while the public housing capital fund is budgeted at $2.674 billion. PHADA believes funding levels should be at $3.8 billion and $3.5 billion for the operating and capital funds, respectively.

The Department has proposed changing the funding mechanism for the Section 8 Voucher Program from a unit-based appropriation to a dollar-based system. Unlike in 2004, when the proposal was to block grant the monies to the states, the 2005 budget directs the funding to housing authorities and other program sponsors. A description of the program changes can be found on page 563 (Section 223) of the PDF document. In addition, HUD is proposing a demonstration for 50 housing authorities to participate in a public housing reform initiative (page 566).

A budget summary prepared by the Department may be downloaded from the HUD website by clicking here.

PHADA will be analyzing the proposed FY 2005 budget in upcoming editions of the Advocate and on its website. On the front page of the association's website is a link -- "HUD FY '05 BUDGET" -- that will contain updated information regarding the budget proposal.

PHADA FRONT