Press Releases

An overview of the role our federal government plays in meeting the housing needs of American families – and the economic and human impacts of weakening its capabilities.

Cuts to funding and staff for federal agencies that administer housing programs, along with the cancellation of related contracts, would severely reduce affordable housing options and critical community services across America, with far-reaching consequences for our financial markets and the overall economy. Cuts at HUD, USDA, and Treasury would directly harm millions of low-income families, seniors, people with disabilities, and first-time homebuyers who rely on federal housing programs. Efforts to expand our nation’s housing supply would be significantly impeded by cuts to financing for new construction and rehabilitation projects, worsening the nationwide affordable housing shortage. Homelessness would likely increase as rental assistance programs are reduced and emergency housing services become more limited. These disruptions would ripple through the broader economy, reducing construction activity, limiting job creation, and potentially destabilizing housing finance markets that depend on the certainty and liquidity provided by federal programs.

Key Impacts of Housing Program Cuts

• Housing Supply Crisis: Cuts to federal funding and staffing would severely restrict affordable housing construction and preservation nationwide, worsening the existing shortage of affordable homes in communities of all sizes.
• Diminished Private Investment: Federal funding cuts and staff reductions would impair program implementation and create significant uncertainty for housing deals that include private sector investment. This uncertainty would jeopardize the financial viability of affordable housing developments in markets that rely on stable federal programs to attract and maintain crucial private investment partnerships.
• Homeownership Barriers: Reduced federal support would limit mortgage access and increase costs, especially for first-time homebuyers, veterans, and moderate-income families seeking to build wealth through homeownership.
• Rising Homelessness: Funding cuts and staff reductions in rental assistance and supportive housing programs would push more Americans into housing instability and homelessness, increasing pressure on emergency services and healthcare systems.
• Vulnerable Population Impact: Staff and funding cuts would leave seniors, veterans, people with disabilities, and low-income families without critical housing supports and program administration, leading to increased financial strain and potential displacement.
• Disaster Recovery Challenges: Communities affected by hurricanes, floods, wildfires, and other natural disasters would face significantly longer rebuilding timelines without adequate federal recovery funding and staffing to coordinate response efforts, potentially forcing permanent population displacement.
• Economic Damage: Reduced federal investment and staff capacity would hurt local economies, eliminate construction and housing-related jobs, and delay vital infrastructure and community development projects in struggling communities.

About National Association of Affordable Housing Lenders

Founded in 1990, the National Association of Affordable Housing Lenders (NAAHL) is the national alliance of banks, CDFIs, and other lenders and investors in affordable housing and community development.

For more information, visit www.naahl.org.