Rep. Maxine Waters (D-Calif.), the top Democrat on the House Financial Services Committee, has requested an emergency hearing following reports of drastic cuts at the Department of Housing and Urban Development (HUD).
In a Feb. 25 letter, Waters calls on chairman French Hill (R-Ark.) to schedule a hearing with new HUD secretary Scott Turner “so that the Committee can fully understand the impact of these actions on our nation’s worsening affordable housing and homelessness crisis.”
Waters continues that Turner has “partnered with unelected billionaire Elon Musk and the DOGE [Department of Government Efficiency] to terminate thousands of HUD employees who carry out the work of the agency—with further plans to substantially cut staffing levels in D.C. and local field offices.”
She also cites reports that “the Secretary has continued to improperly withhold program funding appropriated by Congress, despite a court-ordered restraining order on the Office of Management and Budget’s funding freeze directive.”
Waters adds there is growing concern that cuts at Ginnie Mae and the Federal Housing Administration may harm the mortgage market and prevent mortgage closings.
“Housing advocates are alarmed that many nonprofits that manage the provision of rental assistance may be denied funds appropriated by Congress, leaving both renters and landlords in the lurch,” continues the letter. “The Committee should be afforded the opportunity to investigate what is happening before irreparable harm is done to our economy.”
Mass layoffs are expected at several key offices within HUD, including Community Planning and Development, Fair Housing and Equal Opportunity, Policy Development and Research, and Public and Indian Housing, according to sources.
On average, the cuts could be up to 40% or 50%, estimated Antonio Gaines, president of American Federal of Government Employees National Council 222 of HUD Locals, which represents about 5,300 HUD employees, in a Feb. 20 interview with Affordable Housing Finance.
Affordable housing advocates also have growing concerns that Green and Resilient Retrofit Program funds that have been committed to projects will not be disbursed. Communities have also been waiting for award letters for Continuum of Care program funds that were awarded earlier this year.
