22 Feb 2018

How the new budget costs may mean housing

In my previous blog, I had mentioned how in the times of soaring prices of Frisco homes for sale it has become much harder to find affordable housing nowadays in most parts of the country. It can get even worse for low-income Americans if the proposed new budget becomes reality say most of the critics of the new plan. The budget that was released last week will be slashing about $8 billion from the U.S. Department of Housing and Urban Development’s budget bringing own to $39 billion and there has been seen an 18% decrease from last year. It is also calling on for the states, localities and the private sector to fill out on many of the gaps.


Now coming back to what may be the chopping block is that the budget plans to cut down about 11% of the total budget for the rental assistance programs. This will be leading to fewer housing vouchers and will have a larger share in the rent contribution that is got from tenants who are receiving public assistance. This portion of the plan has no shortage of critics among the advocates of government assistance programs. The depth, as well as the breadth of the cruelty, is reflected in the budget proposal and the President is making clear that in no uncertain terms, his willingness to increase the number of evictions and homelessness is more.


The problem with regard to the need for rental assistance has also not gone down much as in fact, the opposite of it is getting true. Only a fraction of all the households are eligible for government and for housing assistance get it and the long waiting list will mean that it can take many years to finally get all the benefits. The availability of good and affordable housing is not that great like it used to be and if it is anything larger budgets are getting used to all the HUD programs will be moving in a better direction than what is being recommended. It will take a beating in most cities like for example Frisco tx real estate scene may see a huge difference.


The community development block grant program will be cut off entirely and it provides for grants that will be cut entirely. It also provides for grants for poor and lower-middle-class neighborhoods for things such as home rehabilitation, infrastructure projects such as new roads and local economic development projects. It has also become the vehicle for disaster assistance for state and local governments and it going to slow up by getting money to the states and localities.


The budget is also planning to cut on the public housing capital fund which is at $2 billion a year which can be used up for paying new and re-habbed public housing developments. Having one of the most efficient ways to provide good housing assistance to poor people is the housing vouchers program. They can spend the money quicker than they get a new housing project.



What is new in Trump’s 2019 budget? You might all be wondering as the budget proposal is encouraging all the able-bodied individuals to get government and housing assistance for work and out more income towards their rent contributions. The reforms also want able-bodied individuals to shoulder more responsibility for the housing costs and give an incentive to increase the earnings while mitigating the rent increases to the elderly and the people who have disabilities.



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