The Department of Housing and Urban Development (HUD)
HUD is an acronym that represents that United States Department of Housing and Urban Development. This organization was developed in 1965 to meet the growing needs of the US housing market and provide assistance to homeowners in need. Throughout its time as a part of the United States government, HUD has become one of the most visited federal agencies in the country. This means that more private citizens interact regularly with HUD than with most other parts of the federal government. This is how the Department of Housing and Urban Development has been able to provide such a wide range of services to such a large amount of citizens.
Why HUD is Necessary
In the early 1960s, the United States was undergoing a radical amount of change as a whole. However, the brunt of these changes was most often felt in the poor and minority communities throughout urban America. Employment rates were low, wages were stagnating and there was an immense amount of political turmoil that made the cost of living rise despite mostly frozen wages. As a result of these many issues, a large number of people throughout the country found that they were in a very tough position when it came to housing.
In truth, many people throughout the country found themselves homeless or with crippling home ownership debt during this time. HUD was not necessarily strictly limited to providing relief to homeowners at the time and was more geared toward housing as a whole issue. This included things like rental homes and other types of housing assistance. To this day, HUD plays a very large role in ensuring fair housing practices around the country. It also provides housing assistance to both renters and owners of properties when they hit certain roadblocks.
How HUD Helps Homeowners
The first thing that the Department of Housing and Urban Development offers citizens is access to a huge amount of educational resources and general information. Department heads from HUD throughout the years have stressed that many problems homeowners run into could have been avoided if the proper information was available. This is because the largest problems that homeowners run into stem from something that they agreed to without fully understanding. In most cases, people believe that they truly understand what they're signing up for when in reality they do not. The first line of defense that HUD provides homeowners is based upon a strong appreciation of information and education.
HUD is also tasked with developing, implementing and managing housing initiatives with its regulatory powers. When bills are being developed that are meant to assist homeowners with mortgage issues, delinquencies and loan refinancing, HUD is tasked with providing feasibility and implementation strategies. In short, the organization is charged with helping develop actionable legislation that can actually have a real impact on people who are struggling with certain home ownership issues. Again, a major part of their role in the government is to provide information and assistance when it comes to housing-related issues.
HUD's Role in Regulation
In 1968, the fair housing act was enacted to fight discrimination in the housing market. Thanks to this law, many people who were not able to find homes before were able to find a place to live. Even today, HUD works with home buyers who feel as though they've been discriminated against on the basis of their skin color, religion, sexual orientation, or other reasons.
In 2007, the Department of Housing and Urban Development made a big leap forward with a new program that allows homeowners to buy a HUD home with a down-payment of only $100. This plan was put into place as a way to unload homes that had been foreclosed on through government-sponsored lenders. The cost of maintaining these properties and the impact of an empty home on a neighborhood were major factors in pushing this forward. By getting making it easier to get rid of homes that were not serving as anything but a financial burden for the government. It also allowed these homes to be very accessible to home buyers who may not have as much money saved for a down-payment. After all, the average down-payment expected on a home is around 10 per cent of the total value of the home. Therefore, getting a $200,000 home for a down-payment of $100 provides a net savings of at least $19,900. This has made home ownership much more accessible to more people.
It's an Essential Organization
The Department of Housing and Urban Development is an essential resource for many home owners, but its importance stretches beyond this. Many people around the country rely on this organization to provide necessary oversight in the struggle against homelessness and housing discrimination. With all of the benefits it provides, it's easy to see why HUD was turned into a cabinet-level organization.