WASHINGTON - President Clinton today proposed increasing the Department of Housing and Urban Development's budget by $6 billion in Fiscal Year 2001 to $32.1 billion - the strongest HUD budget in more than 20 years, with increases in every program area.

"This budget shows that HUD is back in business, and has achieved a new level of public trust and confidence by proving it can create and run quality programs," HUD Secretary Andrew Cuomo said. "The budget will build on HUD's success and help unlock the door to prosperity for people and places left behind in these good economic times.

"Just a few years ago, our critics were calling for the elimination of HUD," Cuomo added. "Today, HUD is held up as a model of successful government reinvention."

Cuomo said the budget that the President submitted to Congress provides HUD with the tools it needs to deliver on its core mission of promoting adequate and affordable housing, economic opportunity, and a suitable living environment free from discrimination. Those tools are provided in the budget by:

1) 120,000 new Incremental Housing Vouchers, at a value of $690 million, to address the growing need for affordable housing.

2) The Public Housing Capital Fund at $2.955 billion, an $86 million increase, to sustain existing housing resources.

3) Elderly Housing Production at $779 million, a $19 million increase, to create housing tailored to the needs of senior citizens.

4) The Continuum of Care Homeless Assistance grant program at $1.2 billion, a $180 million increase, to fund community-designed solutions to help homeless people get housing and become self-sufficient.

1) A $119 million increase in the Community Development Block Grant program to $4.9 billion, to help communities remain competitive and create economic opportunity.

2) America's Private Investment Companies at $37 million, to stimulate $1.5 billion in private debt and equity investment in low- and moderate-income areas.

3) A Round III of Empowerment Zones, in which 10 new urban Zones would be designated.

4) The Economic Development Initiative/Community Empowerment Fund at $100 million, a $76 million increase, to create jobs and promote economic development in distressed areas.

President Clinton is proposing at $50 million Fair Housing budget - a 12 percent increase - to step up the fight against housing discrimination.

1) A $30-million Community Gun Safety and Violence Reduction Initiative, which will help communities reduce gun deaths and lower crime, making communities more attractive and stimulating revitalization.

2) A $20-million Community and Interfaith Partnerships Initiative, which will help community groups supply affordable housing, create economic opportunity, promote the goal of fair housing, and increase the effectiveness of housing voucher programs.

The new budget proposal builds on two years of excellent budgets for HUD and the successful implementation of sweeping management reforms that were instituted by Cuomo. The Department's budget for the current fiscal year is expanding and preserving the supply of affordable housing, benefiting senior citizens, creating jobs, and helping revitalize communities.

The current year's budget includes 60,000 new rental assistance vouchers, following the approval of 50,000 vouchers last year after four years of no new vouchers. The current budget also contains increased funding for many programs, including public housing, efforts to help homeless people get housing and become self-supporting, and the fight against housing discrimination.

SUMMARY OF PROPOSED FY2001 HUD BUDGET INCREASES
(Budget Authority in Millions)

** Funded as mandatory for FY2001