HUD Budget Highlights New Focus on Sustainable Development

For Immediate Release: May 18, 2009
For More Information Contact: Ellen Vaughan at (202) 662-1893 or evaughan [at] eesi.org

The President’s FY 10 budget request for the Department of Housing and Urban Development (HUD) reflects a new focus on community development and redevelopment as a key part of the solution to climate change and energy independence. New programs are proposed to advance "sustainable and inclusive growth patterns at the metropolitan level, communities of choice at the neighborhood scale and energy efficiency at the building scale" and to promote "affordable, livable and sustainable living environments." A new Energy Innovation Fund is proposed to re-engineer the FHA Energy Efficient Mortgage program and test innovative on-bill utility financing or billing arrangements to provide streamlined energy audit and technical services to participating property owners. A new Sustainable Communities Initiative – funded from an increase in the Community Development and Block Grant program – would integrate transportation and housing planning. The proposed initiative is intended to produce “walkable, transit-oriented, mixed income and mixed use communities” that reduce transportation costs and save energy by reducing Vehicle Miles Traveled (VMT). It also includes $40 million in community challenge grants to encourage local leaders to make changes to zoning, land use rules, and building codes. The budget includes $2.4 million for a new Office of Sustainable Housing and Communities to be the lead on energy and sustainability issues, reporting directly to the Deputy Secretary.