Affordable Housing Program Faces Termination, Raising Concerns Nationwide
A crucial initiative designed to maintain affordable housing for low-income individuals is facing discontinuation. This development has sparked alarm across the affordable housing sector, impacting thousands of housing units nationwide.
The Trump administration has decided to stop a $1 billion initiative aimed at preserving affordable housing. This decision, confirmed by a document obtained by The Associated Press, could jeopardize housing projects crucial for low-income Americans.
This move is part of broader budgetary reductions and funding suspensions at the U.S. Department of Housing and Urban Development (HUD). These changes, directed by President Donald Trump and the Department of Government Efficiency (DOGE) led by Elon Musk, have sent shockwaves through the affordable housing industry. The importance of maintaining these units often goes unnoticed compared to new housing developments, yet they are vital in addressing the nation’s housing crisis. Many low-rent apartments, in urgent need of repair, could be lost if this funding is withdrawn.
The program has already allocated funds to projects aimed at upgrading at least 25,000 affordable units nationwide, although the exact process of its winding down remains unspecified. Despite repeated inquiries, HUD has yet to provide any comments on the matter. However, an internal document reviewed by the AP indicates that the termination of the program has been directed by DOGE. Two HUD employees, familiar with the program, confirmed the directive under anonymity due to fears of retaliation.
The Green and Resilient Retrofit Program, legislated by Congress in 2022, provides grants and loans for energy-efficient upgrades in affordable housing. These improvements include repairing or replacing heating and cooling systems, roofs, insulation, windows, and floodproofing measures. The funds are also essential for maintaining affordability, with projects required to keep units affordable for up to 25 years and attract additional investments for major repairs.
Mike Essian, vice president at American Community Developers, Inc., highlighted the program’s significance, stating, “This money was essential in order for the project to come together. Projects will fail and these are projects that are already difficult to finance.”
The news has been particularly concerning for residents of Smith Tower Apartments in Vancouver, Washington, a complex in need of significant updates. The $10 million grant awarded to this 170-unit building was a vital part of its $100 million renovation plan. According to Greg Franks, president of the property’s management company, the potential loss of funding “seriously jeopardizes our ability to be able to provide an upgrade to the current systems.”
For tenants like Al Hase and Joan Starr, the possibility of losing this funding is daunting. The retired couple, who have resided in Smith Tower for 16 years, rely on their Social Security incomes and are deeply concerned about their future. “It’s kinda terrifying, it’s almost like getting news from a doctor that something’s going to take your life in six months or a year,” Hase shared with the AP.
The uncertainty surrounding the program’s future has led organizations to seek alternative funding sources. However, this could delay projects and increase costs. Travis Phillips from the Housing Development Center acknowledged the challenge, “If these funds aren’t reinstated, we will certainly seek other funding to fill that gap. The reality is that will take time and will inevitably make the project more expensive.”
As the situation unfolds, hundreds of affordable housing projects across 42 states, the District of Columbia, and Puerto Rico face an uncertain future. Michelle Arevalos, Smith Tower’s administrator, expressed the gravity of the situation, “In all honesty, if this building were not here, a lot of our folks actually probably would be homeless.”
Bedayn is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in
