The Trump administration has stagnated at least $ 60 million in funds a large extent for affordable housing developments throughout the country, launching hundreds of projects to a precarious limbo, according to the information and documents obtained by Associated Press
The movement is part of a burst of Freezing financing, staff cuts and cancellations of Trump Administration contracts in the Department of Urban Housing and Development of the United States, changes that have instill generalized uncertainty in the affordable housing industry.
The $ 60 million are destined to go to small non -profit organizations for community development in small subsidies. Money is often used as an initial financing for affordable housing projects, turning a concept into viable development and, consequently, attracting a more public and private investment.
Congress chose three non -profit organizations to distribute subsidies, but HUD said in letters that he was canceling contracts with two of the organizations that together had to distribute the $ 60 million. That has pushed millions of funds already promised to small non -profit organizations, or have not yet been granted, to the twilight zone.
“Many of these organizations have already committed funds to pay workers, such as HVAC technicians, local contractors, housing property counselors,” said Shaun Donovan, CEO of Enterprise Community Partners, one of the two groups whose contract was canceled.
“They will have to stop that job immediately. That will cost local jobs, it will limit the creation of affordable houses and will stop in hundreds of communities. “
An HUD spokesman said the program, called Section 4, will continue and is not cutting, but that “the department is consolidating some subsidies, while others remain.”
It is not clear how or when financing will reach small non -profit organizations, which has put its work in disorder.
“Not knowing for me means that we assume that the money does not come, and that means that I have to pivot,” said Jonathan Green, executive director of a non -profit organization in Mississippi that is building a development of affordable homes of 36 units in Biloxi.
Green said that about $ 20,000 in dollars of subsidies are now in Limbo, the money that was destined to pay an environmental review that could cost more than $ 10,000 and licenses and permits. That threatens the discussions that Green is having potential partners and investors who want to see all the work in advance first.
“My fear is that, if the project stops completely, we may never start again,” he said.
It is assumed that the development is in East Biloxi, where the lots still remain empty after Hurricane Katrina in 2005. Before an ounce of land has moved in the project, the Green organization has received enough calls from anxious people to become tenants who began a waiting list.
That is the position in which hundreds of other small non -profit organizations have been found, not only with their subsidies funds in question but also investments in the line. For each dollar in subsidies disbursed by Enterprise Community Partners, local non -profit organizations take over $ 95 in another capital, said CEO Donovan.
The Congress gave national non -profit organizations the work of managing subsidies, filming and evaluating hundreds of applications, so that the government does not have to do it, Donovan said.
In one of the termination letters of the contract obtained by the AP, HUD said the contracts were canceled by the Directorate of the Government Efficiency Department. He said the group’s operations “did not comply” with Trump’s executive order Direct diversity, equity and inclusion initiatives. The letter also allows organizations to appeal the termination.
The local initiative support corporation is the other group whose contract was canceled.
“Without access to this capital of seeds, housing projects for workers, families will stop, get the shortage and push the uploaded neighbors in overpopulated or homeless conditions,” he said in a statement.
Habitat for Humanity International is the third non -profit organization that disburse subsidies, but the organization has not responded to repeated requests for comments or said if its contract was canceled.
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Bedayn is a member of Associated Press’s body/Report for America Statehouse News Initiative. Report for America is a non -profit national service program that places journalists in local writing rooms to report covered issues.
