Making housing affordable for all Americans

It is no secret that housing costs have been a leading driver of economic anxiety for families across the U.S., particularly over the past five years.

Now, the uncertainty created by recent federal executive actions is putting additional upward pressure on Americans’ ability to buy a home or pay an affordable rent and shaking the confidence of private investors in the sector.

This is not speculation; it is already happening. I am hearing from HPN members—both developers and lenders—that the threat of tariffs is being priced into the cost of building materials. Builders and developers are seeing construction delays because immigrant workers are afraid to go to work sites. And they are experiencing first-hand how vital federal housing programs are compromised by cuts to the federal workforce.

As some investors back away from or reduce their investment commitments, developers are seeing the start of planned construction and renovation efforts stalled. And, if this continues, we expect to see significant financial stress on multifamily owners and properties. The effects will ripple throughout local economies.

These shifts are not happening in a vacuum. They are layered on top of existing housing shortages and operational stressors, like natural disasters and skyrocketing insurance, all of which are threatening the well-being of the nation’s infrastructure of housing providers. Many developers, particularly nonprofits, are still dealing with the lingering economic impact of the pandemic on their properties and their organizations. If they can’t access federal funds already obligated and can’t secure investor commitments, we will likely see some projects and some developers fail. We will lose units from our existing affordable housing stock—which the country clearly cannot afford—and the upheaval will endanger our ability to build long into the future.

The country needs Congressional action—urgently. There is already a lineup of bipartisan tax and housing policies that have proven to be successful. Even in a complicated political environment, we are urging lawmakers to act on them to safeguard the interests of the families and businessowners they represent and to protect the local economies that are so vital to their well-being.

More specifically, we have asked Congressional leaders to:

Expand and strengthen the Low Income Housing Tax Credit which underpins the majority of affordable housing development in the country.

Make the New Markets Tax Credit permanent so it can continue to incentivize economic opportunity and community development.

Pass the Neighborhood Homes Investment Act to mobilize private capital to support the development and rehabilitation of single-family homes for low- and middle-income homeowners.

Protect funding for CDFI Fund to help support mission-driven community lenders that lend to and invest in tens of thousands of affordable housing units every year.

Preserve HOME and CDBG resources which provide critical resources to communities and are fundamental to making many affordable housing development deals work.

Protecting and expanding resources for housing counseling and homeownership education programs are vital amid our national housing crisis.

Provide new statutory authority to the secretaries of HUD, USDA and Treasury to reduce regulatory burdens for housing production, preservation and operation.

Require Federal Home Loan Banks to invest more in affordable housing to deliver significant benefits to the housing finance market.

Read my full letter to Congressional leaders here.

Without action, we will continue to see a negative impact on household budgets business operations, and regional economies. A community that desperately needs more health services for residents won’t be able to attract nurses because they can’t afford to buy or rent in the area. Rural communities won’t be able to attract teachers because there are no affordable homes for them. Employers won’t be able to attract skilled workers because local housing is too expensive.

These trends are not sustainable, not if our country hopes to have a vibrant, growing economy that offers families the chance to build a good quality of life. We need leaders in Congress to come together to address housing production and affordability. The urgency is now. I encourage you to reach out to your senators and representatives and urge them to act.