A Phil Hall Op-Ed: Scott Turner has only been the Secretary of Housing and Urban Development (HUD) for two weeks and his first two major announcements for the department involved stopping enforcement of the Biden-era gender identity rule that allowed individuals to self-identify their gender without regard to their biological sex and working with Elon Musk’s Department of Government Efficiency (DOGE) to audit and streamline the department’s operations.
Personally, I don’t think reversing the gender identity rule needed to be Turner’s first act as the HUD leader, but I believe the DOGE action was long overdue, not only for HUD but for other bloated federal agencies. But if Turner wants to get HUD realigned into a more viable operation, there are four key issues that deserve priority attention.
How Will HUD Spend Its Money? During his Senate confirmation hearing, Turner pushed back at suggestions from some Senate Democrats that HUD needed more federal dollars to achieve its goals. Turner observed, “There’s record funding from HUD and we’re still not meeting the need.”
Turner’s right, of course, but the real challenge comes in determining where to direct the department’s funds. Turner announced that HUD’s DOGE task force already identified $260 million in what he described as wasteful spending. He added that the department “will be very detailed and deliberate about every dollar spent in serving tribal, rural and urban communities across America” and vowed to “identify and eliminate all waste, fraud, and abuse.”
Yes, Turner is saying all the right things – but absent of details, it is easy to assume he came into office without a specific game plan. Hopefully, more details will be made available in the coming weeks.
Addressing the Housing Shortage. Also during his Senate confirmation hearing, Turner made the following declaration: “As a country, we are not building enough homes. We need millions of homes, all kinds of homes – multifamily, single family, duplex, condo, manufacturing housing, you name it – we need housing in our country for individuals and families to have a roof over their head and to call home.”
But that raises the obvious question: How is the goal going to be achieved? President Trump’s 2024 election campaign was vague on details outside of a proposal to sell some federal lands for housing development – but that only applies to isolated regions where there is no infrastructure in place to support new housing or the economic environment that will enable people to make a living.
Turner promised in his Senate confirmation hearing that he would work with state and municipal leaders to address the obstacles and challenges that delaying or blocking housing construction across the country. The sooner he gets started on that, the better. The Biden-era HUD never addressed this issue in a serious manner. The Trump-era HUD cannot afford to make the same mistake.
Getting Serious About Homelessness. There was an 18.1% increase in homelessness during 2024, with HUD reporting more than 770,000 people were counted as homeless. That followed the 12% rise in homelessness recorded in 2023. The 2024 data included a 39% increase in family homelessness, which was primarily attributed to the influx of migrants into the country, while the Maui wildfires brought more than 5,200 people sleeping in disaster emergency shelters following the destruction.
HUD claimed that homelessness among veterans was down by nearly 8%, from 35,574 in 2023 to 32,882 in 2024. That was a bit of good news, but the level is still abominably high.
The Biden administration mostly ignored the issue during its four years in power. In late December, it issued an outrageous press release that insisted: “Since day one, the Biden-Harris Administration has tackled the nation’s homelessness crisis with the urgency it demands, prioritizing resources and programs that help communities reconnect individuals to housing, while maintaining a long-term focus on increasing the availability of affordable housing.”
Turner acknowledged HUD’s failure to seriously solve this crisis in his Senate confirmation hearing, but this needs to be a priority for his department. And new ideas are desperately needed – the old routine of throwing money at cities and hoping for the best has not worked.
A New Approach to Homebuilding. Last summer, HUD allocated $600,000 to a project using 3D-printing technology to construct an affordable housing unit in Nome, Alaska. The project had the dual purpose for creating both affordable housing and a residence that could withstand extreme weather.
Perhaps it is time for HUD to spend more time focusing on the viability of 3D-printing to address housing needs across the full country. The technology allows for homes to be constructed in a cost- and time-efficient manner, with fewer workers – not to mention fewer, if any, illegal immigrants who populate too much of the construction industry.
Aside from the Nome project, the Biden-era HUD was indifferent to this approach to homebuilding. Turner has the chance to literally start a new chapter in housing by giving the 3D-printing homebuilding technology the attention and funding it deserves.
Phil Hall is editor of Weekly Real Estate News. He can be reached at phil@wrenews.com.
I have a young couple qualified in my area for $140,000 mortgage. There are no homes for this price except ones needing 203K financing. Due to the number of foreclosures in the Country under this price range that need extensive rehabbing, this would be a good option for first time home buyers with limited funds to purchase and rehab.
Hud should start concentrating on this young buyers who stay in their communities and contribute to the local areas.
Joyce, how exactly should HUD do more? The only thing anyone can do is to encourage this person to find a better paying job like everyone else in this local RE market you speak of. What is wrong with FHA 203K program and why are you avoiding it? The best plan is to have the state provide assistance for its residents like Florida does.
Absolutely agree Joyce. Also I don’t have a problem with finding out how money is spent in a department and where waste is etc. I do have a problem with letting unvetted people make these decisions and then firing half of the employees before figuring out who is essential. I had a short sale with HUD and it took 6 weeks to even acknowledge they had the right forms. Another 3 weeks to approve it. This was with a full workforce. Imagine now what is going to happen when only half of them are there. Also may be nice to put someone in charge of the department that had experience with real estate or housing. We need to make housing more affordable and easier to obtain especially for the younger generation who now thinks it to be impossible.
The 203k loan program was a nightmare of a loan years ago. Finally, it has become more manageable and we are in the process of completing one now. I would encourage looking at the loan program again. It could work for your borrowers.
The idea of telling a borrower to go get a higher paying job is a bit insulting.
It’s not insulting. It’s realistic. Taxpayers should not be burdened with paying for their own home and have to supplement other people’s income! Prospective homeowners can find additional sources of income like getting a part time job instead of being a slug and taking other people’s hard earned money!! If people won’t do that, they can keep renting!!
Deb, HUD had nothing to do with the slow pace of a short sale. I have done MANY in my 36 years in real estate. In fact, I did the very first one in my area, before the process even had a name. It’s not manpower that slows the pace, it’s the game the loan underwriter servicing agents play. It happens every time, and usually they take months to complete, after resending in all the documents over and over again, with the servicer claiming they never received it, as your sitting at your desk with your fax receipt in hand. It’s all a game, not manpower.
Real estate is expensive in the metropolitan areas that everyone wants to live in. Work is necessary in order to earn an income to afford any kind of housing. Rural areas are less expensive but also have less employment opportunities, yet, that is the best place that people can afford to live in.
Homeless need to be relocated out of the metro areas and into the more rural areas with a plan on how they can work and support themselves.