Warner, Kaine, Colleagues Demand Trump-Vance Administration Release Affordable Housing Construction Funds
WASHINGTON – RealEstateRama – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) joined Sen. Jack Reed (D-RI) and several colleagues in a letter urging the Office of Management and Budget (OMB) to unlock community development tools and promptly release $750 million in federal housing construction funds.
Earlier this month, Congress passed the bipartisan 21st Century ROAD to Housing Act to help build more housing, lower costs, streamline construction regulations, preserve affordable homes in rural areas, help reduce homelessness, and curb private equity’s ability to buy up single-family homes and drive up housing prices.
The bill incorporates provisions from several pieces of legislation that Warner and Kaine championed, including provisions to improve transparency of mortgage loans for veteran homebuyers, create a pilot grant program to support new housing and community development activities, create a down payment assistance fund for first-time homebuyers, end tax breaks for large institutional investors that buy single-family homes, create a program to help communities convert vacant buildings into affordable homes, implement reforms to help preserve affordable housing in rural areas, and make it easier for community and regional banks to lend money for housing projects.
Instead of signing the law, which passed with veto-proof majorities, President Donald Trump is sitting on it.
With housing prices near record highs, the Trump-Vance administration is also sitting on approximately $750 million in housing construction funds available under the Capital Magnet Fund (CMF), Housing Trust Fund (HTF), and Housing Production-Financial Assistance Awards (HP-FA) programs. These federal funds can be leveraged by state and local organizations to develop, preserve, rehabilitate, and increase the supply of affordable housing. Together, these programs strengthen communities, revitalize neighborhoods, create jobs, and ensure more Americans can afford a high-quality home at a decent price that fits their budget.
The housing affordability crisis is compounded by the fact that President Trump’s policies – including his tariffs and reckless war with Iran – have increased the cost of construction and slowed the pace of building new affordable housing units nationwide.
“We write to urge you to immediately direct the Department of Housing and Urban Development and the Department of the Treasury to release approximately $750 million in housing construction funds available under the Capital Magnet Fund (CMF), Housing Trust Fund (HTF), and Housing Production-Financial Assistance Awards (HP-FA) programs,” the senators wrote.
“Today, Americans are suffering through a housing affordability crisis. Single-family home prices and the average age of first-time homebuyers hit record highs last year, while more households are paying unsustainable amounts of rent than ever before. This crisis is nationwide: home prices have surged 40% in Texas, 43% in Iowa, 54% in Georgia, and 65% in Maine over the past six years – far outpacing wages and overall inflation. You have the ability to increase our nation’s housing supply and help address this crisis. With that in mind, we urge you to direct the release of these funds without any further delay,” the senators concluded.
In addition to Warner and Kaine, the letter is signed by U.S. Sens. Jack Reed (D-RI), Elizabeth Warren (D-MA), Jeanne Shaheen (D-NH), Bernie Sanders (I-VT), Tina Smith (D-MN), Ben Ray Luján (D-NM), Sheldon Whitehouse (D-RI), Catherine Cortez Masto (D-NV), Chris Van Hollen (D-MD), Peter Welch (D-VT), Cory Booker (D-NJ), John Hickenlooper (D-CO), Jacky Rosen (D-NV), Andy Kim (D-NJ), Ron Wyden (D-OR), Richard Blumenthal (D-CT), Angus S. King, Jr. (I-ME), Ruben Gallego (D-AZ), Patty Murray (D-WA), Raphael Warnock (D-GA), and Lisa Blunt Rochester (D-DE).
Full text of the letter is available here and below:
Dear Director Vought:
We write to urge you to immediately direct the Department of Housing and Urban Development and the Department of the Treasury to release approximately $750 million in housing construction funds available under the Capital Magnet Fund (CMF), Housing Trust Fund (HTF), and Housing Production-Financial Assistance Awards (HP-FA) programs.
These funds, which are derived from the profits of Fannie Mae and Freddie Mac and revenue from the Emergency Capital Investment Program, could pay to build or rehabilitate over 63,000 homes at no cost to American taxpayers. OMB has never failed to ensure annual CMF and HTF funds are released, even during President Trump’s first term. Regrettably, the Trump Administration has now withheld some of these funds for over a year.
Today, Americans are suffering through a housing affordability crisis. Single-family home prices and the average age of first-time homebuyers hit record highs last year, while more households are paying unsustainable amounts of rent than ever before. This crisis is nationwide: home prices have surged 40% in Texas, 43% in Iowa, 54% in Georgia, and 65% in Maine over the past six years – far outpacing wages and overall inflation. You have the ability to increase our nation’s housing supply and help address this crisis. With that in mind, we urge you to direct the release of these funds without any further delay.
Thank you for your attention to this important matter.
Sincerely,
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