The Trump administration is considering eliminating the HOME Investment Partnerships Program, which provides grants to make affordable housing possible in rural areas.
Funding for the program was not included in federal budget proposals submitted by House Republicans, but Senate Republicans have included funding for HOME in their draft budget, according to an Associated Press report. The two chambers will negotiate, and the ultimate fate of HOME’s funding remains to be seen.
Cuts to the program could set back thousands of affordable housing developments nationwide, particularly in Appalachian towns and rural communities where government aid is sparse and investors lack interest. The program is credited with helping build or repair more than 1.3 million affordable homes over the past 30 years, a large portion of which were in rural areas, AP said.
The HOME program was initiated during George H. W. Bush’s administration during the 1990s and has spent more than $38 billion nationwide, filling funding gaps and attracting investment to affordable projects. It has survived years of budget battles but faced increasing challenges as construction costs skyrocketed and funding stagnated.
According to the report, House Republicans have proposed to draw on nearly $5 billion from related pandemic-era funds to fill the gap left by proposed cuts. Those grants gave states until 2030 to spend on projects supporting people who are unhoused or facing homelessness. The report noted the full $5 billion may not actually be available, as many projects have yet to be logged into the Department of Housing and Urban Development’s (HUD) tracking system.
A HUD spokesperson said the HOME program, which it administers, is not as effective as other programs where funding could be better spent.
In congressional budget negotiations, HOME is an easier target than programs such as vouchers because most people would not immediately lose their housing, said Tess Hembree, executive director of the Council of State Community Development Agencies. The effect of any reduction would instead be felt in a slowing of new affordable housing supply.
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