Several prominent housing organizations have been notified that the Department of Housing and Urban Development (HUD) intends to terminate their Section 4 nonprofit capacity building grants as well as funding for technical assistance programs to support community groups nationwide.
Enterprise Community Partners is one of the affected organizations.
“Make no mistake: Today’s decision will raise costs for families, hobble the creation of affordable homes, sacrifice local jobs, and sap opportunity from thousands of communities in all 50 states,” said Shaun Donovan, president and CEO of Enterprise, in a statement. “We intend to pursue every avenue to ensure these vital programs are not torn away from the neighborhoods and working Americans who benefit from them.”
Over the last 10 years, Enterprise has deployed $143 million in Section 4 grants to over 700 organizations across the nation, resulting in the creation or preservation of 45,000 affordable homes.
In addition, through Enterprise’s technical assistance work, the organization has administered over $80 million in technical assistance and direct contracts since 2010, partnering with more than 700 communities across the nation to create strategies, build capacity, connect partners, and leverage funding, said the organization.
“Taken together, Section 4 and technical assistance programs provide a vital lifeline to communities across the country,” said Donovan, former HUD secretary and director of the Office of Management and Budget. “Both provide support for building and preserving affordable homes, a particularly urgent need as we face an unprecedented housing crisis. These programs, though, aren’t just about affordable homes. They allow urban, rural, and Tribal communities to assess their own needs and leverage private dollars to invest in senior housing, establish local health clinics, fund child care centers, and so much more. It’s no surprise that both initiatives have long had deep, bipartisan support.”
Talking Points Memo reported several other organizations will be losing contracts.
When asked about the planned termination of contracts, HUD provided a comment to Affordable Housing Finance:
“The Section 4 program will continue, as mandated by statute. The department is NOT cutting the program; we are consolidating the contract. The department will continue to distribute the remaining funding and deliver on statutory responsibilities. Delivery of services will not slow down. Finally, we have staff at HUD, internally, who can do this work.”
The action comes as the Trump administration and its new Department of Government Efficiency (DOGE) look to make dramatic cuts across federal government. They are also taking steps to eliminate diversity, equity, and inclusion (DEI) efforts.
HUD secretary Scott Turner recently announced that $4 million in contracts promoting DEI had been terminated.
The agency has not responded to an AHF request for a list of the canceled contracts.
