Department of Urban Housing and Development Secretary Scott Turner put budget cuts and a department name change at the top of his list, while fair housing and diversity, equity, and inclusion programs were noticeably absent.
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Hours after his confirmation, Department of Housing and Urban Development Secretary Scott Turner outlined his top priorities for the next four years, including a department name change, a massive budget overhaul, and assisting with the privatization of Fannie Mae and Freddie Mac.
Scott Turner
In an exclusive interview with The Wall Street Journal, Turner said his team will be going through HUD’s programs and policies with a “fine-toothed comb” to determine which ones can be minimized or eliminated from the department’s budget.
HUD’s housing choice voucher program, better known as Section 8, will likely be the first area of broad change, as Turner already said he’d like to reduce the program’s reach by enacting work requirements. Turner also said HUD’s diversity, equity and inclusion policies will be scrutinized; however, he didn’t provide specifics on what policies are at risk, including fair housing.
While vouchers are on the cutting-room floor, Turner said he looks forward to expanding the Opportunity Zones program he spearheaded during the first Trump term. The Opportunity Zones program offers developers tax breaks when they invest their realized capital gains in projects across 8,700 designated zones. He also floated the idea of changing HUD’s name to reflect the department’s presence in rural and tribal communities.
“[It would] take a lot of time and conversation and thought,” he said of the name change.
Turner also highlighted the privatization of Fannie Mae and Freddie Mac as a top-line item. Both government-sponsored enterprises — whose business model relies on purchasing loans from banks and selling them as mortgage-backed securities — were put under conservatorship during the height of the subprime mortgage crisis. Fannie and Freddie have since crawled out of $5.4 trillion of debt, with their latest net worth reaching $147 billion.
President Trump released a 49-point plan to privatize the government-sponsored enterprises in 2019; however, the plan didn’t get enough traction before the end of his term. Housing experts expect Trump to take a second shot at taking Fannie and Freddie private, this time with private equity CEO Bill Pulte potentially at the helm of the Federal Housing Finance Agency.
Turner said he’s ready to assist FHFA and the Treasury Department on their privatization efforts.
“There are partners that will be at the table and obviously we’ll be one of them,” he said. “When you’re a quarterback, you’ve got to work with the entire huddle.”
As Turner gets ready to charge forward on his vision for HUD, several housing rights organizations have shared their priorities for the new secretary.
“Fair housing is a national policy of the U.S.,” National Fair Housing Alliance Executive Vice President Nikitra Bailey said in a written statement. “As our nation grapples with a fair and affordable housing crisis impacting millions, HUD’s new secretary must prioritize solutions for everyday people struggling with rising housing costs, a lack of affordable housing supply, increased complaints of housing discrimination, and technology’s growing role in determining housing decisions.”
Bailey said she was particularly concerned about the future of the Property Appraisal and Valuation Equity (PAVE) Task Force, which has been removed from HUD’s website. The task force has been key in combating appraisal bias among Black homesellers, who’ve reported receiving lowball appraisals compared to white counterparts who live in the same area.
LoanDepot settled a high-profile appraisal bias case in 2022 that involved a Black couple whose home was undervalued by $250,000 during an initial appraisal. When the couple replaced their photos with photos of their white friends before a second appraisal, the results jumped from $472,000 to $750,000.
“HUD’s mission requires it to create vibrant, inclusive communities with opportunities for all people to thrive, and the agency demonstrated important leadership in finally creating a government-wide approach to address appraisal bias through the Property Appraisal and Valuation Equity (PAVE) Task Force,” she said. “Appraisal bias is a feature and not a bug of the housing system that must be addressed, and the Fair Housing Act and other civil rights laws must be used to eliminate it.”
“NFHA looks forward to meeting with HUD Secretary Turner soon to discuss his priorities on safeguarding civil rights and advancing fair housing, equitable opportunities, and thriving communities,” she added.
Meanwhile the National Alliance to End Homelessness implored Turner to focus on the nation’s record-level homelessness. In its 2024 Point-in-Time report, HUD said more than 770,000 people lived in shelters, temporary housing or on the streets — a number that reflects an 18 percent year-over-year rise in homelessness.
“The Alliance emphasizes that addressing homelessness demands a collaborative and non-partisan approach, and homelessness and housing affordability affect people in red and blue states alike,” the statement read. “Solutions must be grounded in evidence and informed by the invaluable insights of communities and people with lived experience of homelessness.”
“The Alliance especially calls on Turner to draw upon the deep expertise of career staff at HUD, who have dedicated their careers to the rigorous evaluation and understanding of what works best to make housing affordable and end people’s homelessness,” it added.
Email Marian McPherson
