The Trump administration has halted a $1 billion program designed to preserve affordable housing, threatening thousands of low-income housing projects.
This decision is part of broader funding cuts and freezes at the Department of Housing and Urban Development (HUD), directed by President Trump.
The move has shaken the affordable housing industry, with concerns that many aging units will become unlivable for vulnerable Americans.
While new housing developments receive more attention, preserving affordable units is a critical part of solving the housing crisis.
Hundreds of thousands of low-rent apartments, many needing urgent repairs, could be lost without continued federal assistance.
The
Green and Resilient Retrofit Program, passed by Congress in 2022, was meant for energy-efficient improvements and critical renovations.
It provided grants and loans for replacing heating systems, repairing roofs, installing insulation, and flood-proofing vulnerable buildings.
Under this program, 25,000 affordable units were set for upgrades, ensuring they remained available to low-income renters for decades.
A leaked internal HUD document confirmed that the Department of Government Efficiency (DOGE) directed the program’s termination.
Despite multiple requests, HUD has not provided an official response on how the shutdown will affect ongoing housing projects.
For developers, the sudden funding cut creates a domino effect, jeopardizing projects that rely on multiple investment sources.
Mike Essian, vice president at American Community Developers, Inc., said projects would fail without the promised federal support.
The loss of funding has directly impacted tenants, including retirees at Smith Tower Apartments in Vancouver, Washington.
This 170-unit building, housing low-income seniors, was relying on a $10 million grant for critical safety upgrades.
Without funding, necessary renovations, including the installation of a fire sprinkler system, may now be indefinitely delayed.
Greg Franks, president of the property’s management company, warned that losing the funds threatens the building’s long-term viability.
For Al Hase and Joan Starr, longtime residents of Smith Tower, the funding cut has created fear and uncertainty.
The couple, living on modest Social Security incomes, say relocating would be impossible due to rising rent prices.
“This news is terrifying,” said Hase, comparing it to receiving a life-threatening medical diagnosis with no available solution.
Housing advocates say the lack of federal communication has left affected organizations scrambling for contingency plans.
Although some projects may still receive funding, hundreds remain in limbo, affecting affordable housing developments in 42 states.
Travis Phillips from the Housing Development Centre warned that replacing lost funding would be costly and time-consuming.
Michelle Arevalos, an administrator at Smith Tower, said the building’s closure could push many elderly residents into homelessness.
