The newly formed Trump Administration has passed a number of controversial orders that are causing havoc in the country. Joining this array of problematic orders comes another one that has concerned many. Trump has officially halted the funds supporting affordable housing options. The new move is also a part of the number of frozen funds, staff cuts, canceled contracts, and more. The halt on funds has plunged the affordable housing industry into widespread uncertainty. If you want to know more about the news, this article is for you. It brings you all you need to know about Trump halting affordable housing projects. The following article also includes the reactions from project owners.
Trump Halts Affordable Housing Projects Funds Worth $60 Million Frozen
The small community development nonprofit organizations were going to receive small grants worth $60 million. These funds were going to be the seed funding for various affordable housing projects. It would have helped turn a merry concept into a viable development that helps draw in investments. Congress selected three nonprofit organizations to distribute these funds. However, the latest notice HUD has issued says the government is canceling the contract with two of them. This has also pushed hundreds of nonprofits who are promised funds into uncertainty.
What Shaun Donovan Had To Say About The Funds Halt?
Shaun Donovan is the CEO of Enterprise Community Partners that is one of the two groups whose contract with the government was canceled. He mentioned in his statement how many such organizations have already committed funds to their workers. These workers include people such as HVAC technicians, local contractors, and homeownership counselors. The halt in the funds will cause these organizations to stop their work immediately. This will cost the American masses local jobs and opportunities to have affordable housing options.
What The Spokesperson From HUD Said About The Halts?
A spokesperson from the HUD also made a statement regarding the halt on funds. The spokesperson explained that the program named Section 4 will continue and is not completely stopped. However, the department is currently considering some of the grants while others will remain. The statement has only led to more uncertainty in the Industry. The nonprofits don’t know when and how the funds will reach them.
What Jonathan Green Had To Say About The Funds Halt?
Jonathan Green is the executive director of a nonprofit operating in Mississippi. He is building a 36-unit affordable housing development in Biloxi. Jonathan mentioned in his statement how not knowing for him means money is not coming. This means he will have to pivot. Green also mentioned that grants worth $20,000 are now uncertain. He was going to use the funds for environmental review as well as licensees and permits. The fund’s halt is threatening discussions with potential investors who want to see all the up-front work done before investing. He is afraid if the project stops altogether, they may never get it started again.
Current Situation Of The Affordable Housing Projects
Jonathan Green was going to develop housing in East Biloxi which is still empty following Hurricane Katrina of 2005. Before the project even stepped into the construction process, the organization received many calls from families eager to become tenants. Green’s organization had to create a waiting list for the people interested.
The situation of hundreds of similar nonprofit organizations is pretty much the same. They do not only have the grants in question but also the future investments. Shaun Donovan also mentioned how every dollar in grants disbursed means local nonprofits leveraging another $95 in other capital.
