The Trump administration has decided to cease a $1 billion initiative aimed at maintaining affordable housing, putting numerous projects that support living conditions for low-income Americans at risk. This action, part of a series of budget cuts and funding reductions at the U.S. Department of Housing and Urban Development (HUD), directed by President Donald Trump and the Department of Government Efficiency (DOGE), has sent shockwaves through the affordable housing sector.
Preservation of existing affordable housing units might not attract much public attention compared to new developments, but it plays a fundamental role in tackling the national housing crisis. Without these efforts, hundreds of thousands of low-rent apartments, many of them old and urgently needing repairs, could be taken away from vulnerable low-income citizens.
The now-halted program had already allocated funds to improve at least 25,000 affordable housing units across the nation. However, the detailed process of winding down this program remains vague. In response to inquiries, a HUD representative did not provide comments. An internal document reviewed indicated the program is directed to discontinue by DOGE, with confirmation from two HUD employees who chose to remain anonymous due to concerns of retribution.
The over $1 billion Green and Resilient Retrofit Program, approved by Congress in 2022, was originally designed to make energy-efficient renovations. It offered grants and loans to owners of affordable housing needing modernization, such as upgrading heating systems, repairing leaky roofs, or implementing flood protection. Yet, these funds contribute vastly to maintaining affordable living spaces. Projects that receive this financial support are required to remain affordable for up to 25 years, while this money also attracts additional investments essential for critical repairs and renovations.
A metaphor compares this program to a Jenga tower, where the grants or loans, ranging from several hundred thousand to millions, are foundational blocks necessary for new investments, according to experts. Mike Essian, a vice president at American Community Developers, Inc., highlighted the importance of these funds, noting that projects relying on them may collapse without this essential support.
For tenants like Al Hase and Joan Starr living in an apartment building targeting low-income seniors in Vancouver, Washington, the news has been devastating. Their residence, the 170-unit Smith Tower Apartments constructed in the 1960s, requires significant updates, including its first extensive sprinkler system. A $10 million award had been crucial to its nearly $100 million project, serving as leverage for other potential investments.
The loss of funding could “seriously jeopardize” necessary upgrades to sustain the building’s livability for potentially another six decades, as stated by Greg Franks, president of the management company responsible for Smith Tower. Hase and Starr, both retirees relying on limited Social Security, reacted with alarm upon receiving a letter from the apartment’s management company detailing the potential loss of funding.
“It’s almost as if receiving dreadful news from a doctor,” Hase remarked, while reflecting on their financial standing and the struggles posed by climbing rental costs. “It’s the difference between living and not being able to live,” he concluded.
Given HUD’s silence on future actions regarding the program, several organizations are exploring backup strategies despite nearly two dozen projects expecting to receive funding, an insider from HUD claimed. Many projects, however, are now in a state of uncertainty. “Finding alternative funding will definitely take time and expenses will increase,” explained Travis Phillips of the Housing Development Center concerning Smith Tower.
This dilemma is a reality for hundreds of affordable-housing projects across 42 states, the District of Columbia, and Puerto Rico. Michelle Arevalos, who manages Smith Tower, noted if their building ceased to exist, many residents could become homeless, underscoring the critical need for such housing support.
