Trump Administration stops $1B affordable housing program – Worries Grow Around the Country as Affordable Housing Program Is Nearly Cuts. There is talk of removing a vital program that helps low-income people keep their housing costs down. The affordable housing sector is on high alert due to this new development, which might affect thousands of units across the country.
A $1 billion program to maintain affordable housing has been halted by the Trump administration.
The Associated Press has received a document that confirms this decision, which could put vital housing projects for low-income Americans at risk. The United States Department of Housing and Urban Development (HUD) has cut its budget and suspended financing for various programs, including this one. The affordable housing industry has been rocked by these measures, which were ordered by President Donald Trump and overseen by Elon Musk’s Department of Government Efficiency (DOGE). When compared to new housing constructions, the significance of sustaining existing units is sometimes overlooked, despite their critical role in resolving the nation’s housing issue. Withdrawal of this funding could lead to the loss of numerous low-rent apartments that are in critical need of repairs.
While the specifics of the program’s dissolution are still up in the air, it has already dispersed funding to initiatives with the goal of improving 25,000 affordable dwellings around the country. The Housing and Urban Development Department (HUD) has not responded to our several requests for feedback. But according to an internal memo that the AP obtained, DOGE has ordered the program’s termination. Under threat of reprisal, two anonymous HUD officials familiar with the program verified the order.
Affordable housing can apply for grants or loans through the Green and Resilient Retrofit Program, which was established by Congress in 2022. These programs offer energy-efficient renovations. Roofs, insulation, windows, HVAC systems, and flood protection are all part of these upgrades. Projects necessitating these money will ensure that units remain affordable for a minimum of 25 years and will entice further investments for substantial renovations.
“This money was essential in order for the project to come together,” said Mike Essian, VP of American Community Developers, Inc., emphasizing the program’s importance. Projects are bound to fail, especially when they are already tough to fund. Trump Administration stops $1B affordable housing program
The news has been especially upsetting for the people living in the badly outdated Smith Tower Apartments in Vancouver, Washington. As part of its $100 million refurbishment plan, this 170 unit building was received a $10 million grant. The possibility of a reduction in financing “seriously jeopardizes our ability to be able to provide an upgrade to the current systems,” claims Greg Franks, president of the property management firm.
Losing this assistance would be a devastating blow to tenants like Joan Starr and Al Hase. The elderly couple has lived in Smith Tower for the past 16 years, and they are very worried about their future because they depend on Social Security payments. In an interview with the Associated Press, Hase described the experience as “terrifying,” comparing it to hearing from a doctor that something will kill you within the next six months to a year.
Businesses are looking for other ways to get money because they don’t know what the future holds for the program. This, however, has the potential to raise expenses and postpone projects. “If these funds aren’t reinstated, we will certainly seek other funding to fill that gap,” Housing Development Center’s Travis Phillips said, acknowledging the problem. In all honesty, that is going to add time and money to the project.
Hundreds of low-income housing developments in 42 states plus DC and PR are facing an unclear future as this crisis develops. “To be completely honest, if this building weren’t here, a lot of our folks actually probably would be homeless,” said Smith Tower administrator Michelle Arevalos, expressing the seriousness of the situation. Trump Administration stops $1B affordable housing program
About the Author
