Federal Support for Affordable Housing Under Attack
Crescent Grove in Castro Valley, a 72 unit development with a mix of studio 1-, 2-, and 3-bedroom apartments for people earning 20% to 60% of the area median income.
Community Solutions Must Rise
Every sector of society is feeling the slash and burn approach of the Trump administration and DOGE. It’s especially intense for those of us working in social, racial and economic justice.
The current example: affordable housing creation and preservation.
Federal funding for affordable housing is being cut or suspended; HUD staff are being fired and field offices at risk of being closed; and key regulations and policies are under threat.
Building affordable housing not only provides homes to us and our neighbors, it is also a major job creator. This strengthens local economies, improves lives, and increases financial stability for all of us.
We don’t have to wait for the federal government or bend to the demands of big banks and billionaire oligarchs.
We can create our own local solutions—rooted in care, community, and financial justice. We can do this without raising taxes and with a clear vision of independent local economic resilience.
Eliminating Federal Regulations and Funding for Affordable Housing
The Community Reinvestment Act (CRA), established in 1977, has been a cornerstone in ensuring that banks serve the credit needs of all communities, particularly low- and moderate-income neighborhoods. By mandating that financial institutions invest in underserved areas, the CRA has facilitated significant funding for affordable housing projects across the nation.
Moves by the Trump administration and DOGE have raised concerns about the future of the CRA.
Meanwhile, actions already taken are disrupting affordable housing creation and preservation, hurting our neighbors, community, jobs, and local economies.
Weakening the CRA and Drying Up Financing: Discussions at the federal level demonstrate an effort to weaken CRA regulations. This would diminish the obligation and incentives of big banks to invest in affordable housing initiatives. Recently, the Trump administration struck down new rules developed in 2023 that advocates for economic justice spent years developing.
Freezing New Affordable Housing: An estimated $60 million intended for affordable housing developments was stalled, affecting hundreds of projects nationwide and destroying the livelihoods of construction workers and adjacent jobs. Many projects may not be able to restart, even if the funding axe is lifted.
Halting of Key Preservation Programs: The Trump Administration refused to move forward with a $1 billion program aimed at preserving aging affordable housing units. This choice doesn’t only endanger current residents in affordable housing, but also dissuades developers and investors from creating new homes. In addition, federal funding cuts will result in local governments diverting their resources from new development to preservation.