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U.S. Federal government department From Wikipedia, the free encyclopedia
The United States Department of Housing and Urban Development (HUD) is one of the executive departments of the U.S. federal government. It administers federal housing and urban development laws. It is headed by the secretary of housing and urban development, who reports directly to the president of the United States and is a member of the president's Cabinet.
Seal of the U.S. Department of Housing and Urban Development | |
 Flag of the United States Department of Housing and Urban Development | |
_(53840390494).jpg) Robert C. Weaver Federal Building, Department Headquarters | |
| Agency overview | |
|---|---|
| Formed | September 9, 1965 |
| 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 |
| Employees | 7,240 (FY2021 FTE)[1] |
| Annual budget | $60.3 billion (FY2021)[note 1][2] |
| Agency executives |
|
| Website | hud.gov |
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 B. Johnson, to develop and execute policies on housing and metropolises.
The idea of a department of Urban Affairs was proposed in a 1957 report to President Dwight D. Eisenhower, led by New York governor Nelson A. Rockefeller.[3] The idea of a department of Housing and Urban Affairs was taken up by President John F. Kennedy, with Pennsylvania Senator and Kennedy ally Joseph S. Clark Jr. listing it as one of the top seven legislative priorities for the administration in internal documents.[4]
The department was established on September 9, 1965, when President Lyndon B. Johnson signed the Department of Housing and Urban Development Act[5] 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 14, 1966, following the completion of a special study group report on the federal role in solving urban problems.
HUD is administered by the U.S. Secretary of Housing and Urban Development. Its headquarters is located in the Robert C. Weaver Federal Building. Some important milestones for HUD's development include:[6]
The major program offices are:
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. He or she 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:[26]
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. The Honorable Rae Oliver Davis, who was appointed on January 23, 2019, is the current Inspector General.[27]
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 outlined in the following chart.[28]
| 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 | |
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.[29] The scandal devastated the Brooklyn and Harlem housing market, with $70 million in HUD loans going into default.[30] Critics said that the department's lax oversight of their program allowed the fraud to occur.[31] 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."[32] In June 1993, HUD Secretary Henry Cisneros admitted that "HUD has in many cases exacerbated the declining quality of life in America."[33] 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".[34]
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".[35]
In 2006, The Village Voice named 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.[32]
In September 2010, HUD started auctioning off delinquent home mortgage loans, defined as at least 90 days past due, to the highest bidder. It sold 2,000 loans in six national auctions. In 2012, this sale was massively increased under a "Distressed Asset Stabilization Program" (DASP), and the 100,000 loans sold as of 2014 have netted $8.8 billion for the FHA, rebuilding cash reserves that had been depleted by 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.[36] An audit published August 2014 found "only about 11 percent of the loans sold through DASP [were] considered 're-performing'".[36] "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..."[36]
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