Trump Administration Throws Hundreds Of Affordable Housing Projects Into Limbo After Contract Cuts
HuffPost
The AP found the Trump administration has stalled at least $60 million in funding intended largely for affordable housing developments nationwide.
The Trump administration has stalled at least $60 million in funding intended largely for affordable housing developments nationwide, throwing hundreds of projects into a precarious limbo, according to information and documents obtained by The Associated Press
The move is part of a flurry of funding freezes, staffing cuts and contract cancellations by the Trump administration at the U.S. Department of Housing and Urban Development, changes that have instilled widespread uncertainty in the affordable housing industry.
The some $60 million is intended to go to small community development nonprofits in small grants. The money is often used as seed funding for affordable housing projects, turning a concept into a viable development and consequently drawing in more public and private investment.
Congress chose three nonprofits to distribute the grants, but HUD said in letters that it was cancelling contracts with two of the organizations which together were to distribute the $60 million. That’s pushed millions in funding already promised to small nonprofits, or yet to be awarded, into the twilight zone.
“Many of those organizations have already committed funds to pay workers, such as HVAC technicians, local contractors, homeownership counselors,” said Shaun Donovan, CEO of Enterprise Community Partners, one of the two groups whose contract was cancelled.
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