Secretary Jackson Met with Both Criticism and Support Over H.U.D. Oversight and Funding

Housing and Urban Development (HUD) Secretary Alphonso Jackson testified before the Senate Banking, Housing, and Urban Affairs Committee today regarding oversight of HUD program and its fiscal year 2009 budget. Jackson’s comments about the HUD program were met with both criticism and support from Senators of both parties.

Jackson’s program was particularly called into question by democrats skeptical that the funding requested by the Bush Administration for HUD was insufficient in helping to slow the increasingly high rate of housing foreclosures dooming homeowners across the nation.

Chaired by Christopher Dodd (D-CT), Senators Casey (D-PA) and Menendez (D-NJ) engaged in often heated discussion with Jackson over not only their frustration with his lack of success as Secretary, but also over allegations that members of his staff had acted in a controversial manner. Jackson, citing the fact that the case was still not being made public, refused to discuss the case in front of Congress. The verbal jabs of Casey and Menendez were met with support for Jackson and his efforts by other Senators, particularly Senator Wayne Allard (R-CO).

House Financial Services Committee hearing on HUD

At the House Financial Services Committee Full committee hearing on the Housing and Urban Development Department's (HUD) FY2009 Budget, Chairman Barney Frank (D-MA) said the proposed Budget is seriously inadequate, and the cutbacks are "distressing." At the city level, there is the sub-prime crisis and foreclosures. Frank said the funding of the war in Iraq has caused substantial deductions and cuts in other areas, which results in a under funding of Urban initiatives. He said he expresses "deep unhappiness: in the cutting of money to the cities. He said it is an uncompassionate example of public policy.

Congressman Spencer Bachus (R-AL) said in recent years the house market has fueled the economy, and that nearly 70% of adults own their own homes. A sharp rise in foreclosures have made lenders reevaluate the lending process, Bachus said, and many Americans struggle to make payments. It doesn't seem fair, Bachus said, to shift the responsibility from home owners to everyday taxpayers, just because the house values are going down.

HUD Secretary Alphonso Jackson said Congress should allow the FHA some flexibility in setting premiums, so they can offer "safe" refinance options. He said he believes that FHA Secure has proven already that it is extremely valuable, and setting FHA home loan limits would provide availability to help more people. Last year, 96% who completed HUD's program avoided foreclosure.

A large part of the Budget, Jackson said, is for low-income rental housing. They have been making strives to help the chronic homeless, and the proposed Budget seeks to increase the homeless program. Also, nine hundred and eighty vouchers would be able to be used with the Veteran's Administration to help homeless vets.