Fudge announces retirement, Todman to be HUD Acting Secretary  

HUD Secretary Marcia Fudge announced that she will resign from the position and retire on March 22. Fudge will return to her home state of Ohio after decades of public service throughout the government, including as mayor of Warrensville Heights, Ohio, and later as a member of the U.S. House of the Representatives.  

“For the last three years, I have fully embraced HUD’s mission to create strong, sustainable, inclusive communities and quality affordable homes for all,” Fudge said. “The people HUD serves are those who are often left out and left behind. These are my people. They serve as my motivation for everything we have been able to accomplish.” 

Deputy Secretary Adrianne Todman will serve as Acting Secretary when Fudge steps down. Todman will stay in that role until President Joe Biden nominates a Secretary and the Senate votes on that person’s confirmation.  

Fudge spoke with reporters, listing HUD's accomplishments during her tenure that she’s most proud of, including helping 1.5 million first-time home buyers achieve their dream of homeownership, allowing rental history to play a larger role in credit scoring, and changing student debt evaluation to open federally backed mortgage options to borrowers with student loans. 

Biden issued a statement that read, “When I took office, we inherited a broken housing system, with fair housing and civil rights protections badly dismantled under the prior Administration. On Day One, Marcia got to work rebuilding the Department of Housing and Urban Development, and over the past three years she has been a strong voice for expanding efforts to build generational wealth through homeownership and lowering costs and promoting fairness for America’s renters. Under Marcia’s transformational leadership, we have worked hard to lower housing costs and increase supply.”  

NHC also released a statement, noting that Fudge “surpassed all expectations, including her own, earning her recognition as a highly consequential HUD Secretary. Throughout her leadership, Secretary Fudge has been a steadfast advocate for equitable housing policies, championing initiatives aimed at alleviating homelessness, expanding access to affordable housing, and fostering sustainable communities.” Further, the statement commended the appointment of Todman as Acting Secretary. “Acting HUD Secretary Adrianne Todman may be the most qualified leader of HUD in history. With her deep experience in a wide range of areas, she has proven to be an invaluable asset and a highly effective leader of the department during her current tenure.”  

Biden’s Cabinet has remained remarkably stable since he took office in 2021. Fudge is only the second Secretary to leave the Biden-Harris Administration.  

“It’s time to go home,” Fudge said in an interview. “I do believe strongly that I have done just about everything I could do at HUD for this Administration as we go into this crazy, silly season of an election.” 

Biden Administration releases $7.3 trillion FY25 Budget

The Biden-Harris Administration released its Fiscal Year (FY) 2025 budget request, totaling $7.3 trillion. The release starts the next fiscal year’s appropriations process, coinciding with Congress’s passage of a final spending bill for FY 2024 that required multiple continuing resolutions to keep the government operating. The Administration’s request does not stipulate actual funding amounts but guides the Administration’s priorities for the upcoming year.

Under the request, HUD would receive $72.6 billion, a 0.7% increase from FY23. The request notes that the increase is “in recognition of challenges in the housing market” and includes “significant mandatory and tax proposals to prioritize and expand rental assistance, homeownership, and affordable and climate resilient housing supply.”

The Administration’s budget specifically calls for expanding the Low-Income Housing Tax Credit (LIHTC), establishing the proposed Neighborhood Homes Tax Credit, incentivizing more home building through $20 million in competitive grants, and doubling the annual Federal Home Loan Banks contribution. The budget is also proposing a one-time $7.5 billion investment to address public housing units’ capital needs, including $7.5 billion in funding for new long-term contracts with HUD for project-based rental assistance that will allow private for-profit or non-profit owners to rent new affordable housing units. Further, the budget calls for investing $1.3 billion in the HOME Investment Partnerships program and providing a middle-class, first-time homebuyers tax credit of up to $10,000, among various other provisions. President Biden mentioned several of these priorities in last week’s State of the Union Address.

The Center on Budget and Policy Priorities analyzed the budget, highlighting that the proposal funds programs below 2024 levels or maintains cuts made in the final 2024 appropriations legislation due to the 2023 debt ceiling agreement. This includes the Community Development Block Grant (CDBG) Program, which the Administration’s budget proposal funds at $2.9 billion, a $400 million decrease from FY24.  

Senate committee discusses ways to boost affordable housing

The Senate Committee on Banking, Housing, and Urban Affairs held a hearing to discuss proposals to address the country’s growing affordable housing needs. The hearing, “Examining Proposals to Address Housing Affordability, Availability, and Other Community Needs,” featured testimony from Dr. E.J. Antoni, Research Fellow, Public Finance Economist at The Heritage Foundation; Matt Josephs, Senior Vice President of Policy at the Local Initiatives Support Corporation; and Peggy Bailey, Vice President of Housing and Income Security at the Center on Budget and Policy Priorities. In his testimony, Josephs called on Congress to bolster housing production and preservation by enacting the Affordable Housing Credit Improvement Act, the Neighborhood Homes Investment Act, and the Rural Housing Reform Act. The hearing also touched on the cost of regulation during housing production.

Speakers mentioned several pieces of legislation during the hearing, and two Senators announced two new bills. First, the Chairman of the Committee, Sen. Sherrod Brown (D-Ohio), announced the Yes In God’s Back Yard Act, which would support faith-based organizations and colleges in building and preserving affordable housing on land they own. “Housing is too expensive and too hard to find in almost every community in America,” said Brown. “This is a common sense solution – families need more housing, and churches, synagogues, and other religious organizations want to put their faith into action by developing housing on land they already own. By helping these institutions cut through red tape, we can lower the cost of housing and expand options in Ohio and around the country.”

The second new piece of legislation introduced at the hearing came from Sen. Elizabeth Warren (D-Mass.). She announced the Tribal Rural Housing Access Act, which would expand housing access for rural tribal communities by setting aside 5% of certain Rural Housing Service funds for Tribal Nations, tribally designated housing entities, tribal members, and tribal-owned entities, including Native community development financial institutions. Ranking Member Sen. Tim Scott (R-S.C.) renewed his call for action on housing and uplifted his ROAD to Housing Act. 

HUD signs declaration to transition to zero emissions

During the United Nations Buildings and Climate Forum, HUD highlighted energy-efficient measures as a top priority to help tackle the climate crisis and its impacts on housing. At the event's conclusion, HUD led the U.S. delegation in signing the Declaration de Chaillot, signaling a global commitment to transitioning the building sector to zero emissions. The forum gathered over 1,800 participants to initiate international collaboration and commitment to decarbonization efforts following the Conference of the Parties held in December. HUD announced key initiatives at that conference, including partnering with the Department of Energy to reduce carbon emissions, launching an Energy and Water Benchmarking Service, and joining the White House's U.S. Global Change Research Program. Through its Climate Action Plan, HUD has made significant strides in benchmarking, increasing energy efficiency, and enhancing resilience in HUD-assisted units. Additionally, HUD supports sustainable initiatives by funding programs like the Green and Resilient Retrofit Program. HUD has awarded over $368 million for providing climate and energy updates to 84 multifamily properties, improving over 9,000 homes.  

HUD launches new SOI discrimination website

HUD launched a new website to combat Source of Income (SOI) discrimination faced by families utilizing Housing Choice Vouchers (HCVs). The website gathers resources to inform HUD stakeholders about SOI discrimination and existing available protections as a “one-stop shop” for tenants, landlords, housing authorities, and other stakeholders. Aligned with the Biden-Harris Administration’s Blueprint for a Renter’s Bill of Rights, HUD aims to ensure equitable housing access to HCV holders and combat the legacies of discrimination. 

“There is no reason that those with vouchers should face discriminatory barriers that hinder or halt their housing search. This experience is still too common for renters, despite having Source of Income protections in many states and jurisdictions,” said Principal Deputy Assistant Secretary for Public and Indian Housing Richard Monocchio. “In order to address this issue, it is important to work with stakeholders to eliminate those practices.” 

SOI discrimination encompasses policies hindering voucher utilization, prompting HUD to support evidence-based policies. Principal Deputy Assistant Secretary for the Office of Fair Housing and Equal Opportunity, Demetria McCain, said, “Fair housing testing is an indispensable investigative tool to root out housing discrimination and FHEO encourages testing activities designed to identify discrimination that violates the Fair Housing Act.”  

HUD allocates nearly $70 million to Tribal communities

HUD announced it allocated $50 million to 27 Tribal communities in its second round of funding stemming from the fiscal year (FY) 2023 Indian Community Development Block Grant (ICDBG) program. HUD has now allocated nearly $70 million to 38 Tribal communities nationwide. Tribal communities can use the grants, designed to benefit American Indian and Alaskan Native families, for various purposes such as infrastructure enhancement, housing rehabilitation, economic development, and more.

“As we commemorate the 50th anniversary of the ICDBG program, we are investing in the continued growth and prosperity of Tribal communities across our Nation,” said HUD Secretary Marcia Fudge.

“Though the need for additional funding is still pressing, we know tribes and Tribal Organizations will leverage every available dollar for the benefit of their members,” said Principal Deputy Assistant Secretary for Public and Indian Housing, Richard Monocchio. For further details on the ICDBG program’s impact, visit https://www.hud.gov/codetalk.