U.S. Department of Housing and Urban Development (HUD)
The cabinet-level federal department, created in 1965, that runs the nation's main housing assistance, community development, mortgage insurance, and fair housing programs.
What Is HUD?
The U.S. Department of Housing and Urban Development (HUD) is the executive department responsible for federal housing and community development policy. The Federal Register describes it as the principal federal agency for programs concerned with the nation’s housing needs, fair housing opportunities, and the improvement and development of the nation’s communities. A Secretary appointed by the President and confirmed by the Senate leads the department.
Congress created HUD in 1965 to bring scattered housing agencies under one cabinet department. The law transferred to it the functions of the Housing and Home Finance Agency, including the Federal Housing Administration (FHA) and the Public Housing Administration.
How HUD Works
HUD mostly works through others rather than building or managing housing itself. Its main lines of business:
| Area | What it does | Delivered through |
|---|---|---|
| Rental assistance | Funds public housing, Housing Choice Vouchers, and project-based Section 8 | Local public housing agencies and private owners |
| Community development | HOME, CDBG, and homeless assistance grants | States, cities, counties, and nonprofits |
| Mortgage insurance | FHA single-family and multifamily insurance | Private lenders |
| Fair housing | Enforces the Fair Housing Act | HUD’s fair housing office |
| Data and research | Publishes income limits and Fair Market Rents | HUD’s research office |
Communities that receive HUD block grants must prepare a consolidated plan describing local housing needs and how they will spend the money. HUD’s funding is set each year by Congress through appropriations, so program levels can change from year to year.
Why It Matters for Workforce Housing
Most HUD rental programs serve households at or below 80% of area median income (AMI), and many target far lower incomes. Workforce housing aimed at roughly 80% to 120% of AMI therefore relies mostly on other sources: state and local funds, employers, tax-exempt bonds, and FHA-insured or GSE-backed loans. HUD still shapes that market. Its AMI figures are the yardstick nearly every workforce program uses, and FHA insurance helps finance both homes for first-time buyers and multifamily rentals. Anyone working on affordable or workforce housing will run into HUD’s definitions, even on projects that receive no HUD money.
Sources
- 42 U.S. Code § 3532 — Establishment of Department (Cornell LII) (opens in a new tab)
- 42 U.S. Code § 3534 — Transfer of functions (Cornell LII) (opens in a new tab)
- Federal Register — Housing and Urban Development Department agency profile (opens in a new tab)
- HUD User — Low-Income Housing Tax Credit (LIHTC) Program Data (opens in a new tab)
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