President-elect Donald Trump nominated Scott Turner to lead the Department of Housing and Urban Development. Turner is a former professional football player who served two terms in the Texas House of Representatives. He also led the White House Opportunity and Revitalization Council during Trump’s first term.
Turner will face significant challenges in the role, if confirmed by the Senate.
Trump’s 2024 campaign ran on the promise of drastic government budget cuts, and it’s possible that budget cuts will be forthcoming at HUD. America’s largest housing industry groups have said they were hopeful that Turner would work with them to improve home affordability in America.
If confirmed, Turner would take over at a time when home rentals and purchases are becoming unaffordable for many Americans. That means more people could depend on HUD’s affordable housing services, deepening America’s housing crisis.
During Trump’s first term, his office often tried to make steep cuts to HUD’s budget, efforts that were rejected by Congress.
Industry experts also fear that housing choice vouchers could be a Trump budget casualty. Section 8 funding has increased under President Joe Biden. If the Trump administration reduces HCV funding, it’s likely that there will be longer waiting lists for housing vouchers.
Some hope that Turner will focus on easing regulations and make it easier for home builders to construct desperately needed new housing – both single family and multifamily.
Others are not optimistic about Turner and Trump’s ability to or interest in addressing the housing crisis via HUD.
In a statement, the National Fair Housing Alliance said:
“During his previous administration, President-elect Trump gutted HUD’s staff and budget, including cuts to the Community Development Block Grant program, Fair Housing Initiatives Program, and HOME grant program, which jeopardized HUD’s ability to address the nation’s fair and affordable housing crisis or effectively handle thousands of housing discrimination complaints. Ensuring critical support for HUD’s Office of Fair Housing and Equal Opportunity and local fair lending enforcement agencies is crucial to HUD’s important mission.”
The incoming Trump administration has also shown an interest in eliminating The Housing Trust Fund (HTF). HTF provides grants to states to produce and preserve affordable housing for extremely low- and very low-income households.
Eliminating this program would be a drastic move.
States and state-designated entities are eligible grantees for HTF and HUD allocates HTF funds by formula annually. A State must use at least 80 percent of each annual grant for rental housing; up to 10 percent for homeownership; and up to 10 percent for the grantee’s reasonable administrative and planning costs.
HTF funds may be used for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing with suitable amenities. All HTF-assisted units will be required to have a minimum affordability period of 30 years.
Without HTF, America’s lack of affordable housing would be further negatively impacted.
The ongoing housing crisis makes the position of HUD Secretary challenging for anyone, with rising interest rates and property values, reduced availability of housing for purchase and rent, and often labyrinthine regulations for housing developers.
With strong oversight regarding the preservation of existing housing stock and subsidies, and a keen eye towards intelligent growth of housing programs – we’re hopeful that Turner, if confirmed, will continue HUD’s mission – which is to create strong, sustainable, inclusive communities and quality affordable homes for all.
