Issue Background

Federal Housing Programs

The Network advocates for:

  1. Promoting federal programs that enable the growth and success of permanently affordable housing programs and the advancement of inclusive communities-oriented development; and
  2. Removing regulatory barriers in federal programs that hinder the work of community land trusts and permanently affordable housing programs.

Preserving public investments in affordable housing and community development is critical, as federal programs supporting these activities continue to be underfunded. For example, since 2010, HOME funds have declined by 51%, and the Community Development Block Grants budget has declined by 25%. These two programs are the dominant federal sources of funding for the creation of permanently affordable housing. Other programs that impact community land trusts and permanently affordable housing programs include the National Housing Trust Fund, the Capital Magnet Fund, the Federal Home Loan Banks' Affordable Housing Programs, and the Federal Transit Administration's Pilot Program for Transit-Oriented Development. These programs should have adequate resources to enable the greatest impacts on low-income communities. In addition to funding limitations, regulatory barriers remain in federal housing programs that pose challenges for the growth and preservation of permanently affordable housing. As an example, regulations about what constitutes a fair return upon sale in the HOME program often precludes the funding of resale-restricted, permanently affordable homeownership.