HUD Staffing Cuts; Field Office Closures
A judge recently ruled against the firing of thousands of federal probationary employees saying it was illegal for the Office of Personnel Management (OPM) to do so. However, indications are the Trump Administration, through the Musk-led Department of Government Efficiency (DOGE), plans to lay-off nearly 50 percent of the HUD workforce in the coming weeks. The Office of Community Planning and Development (CPD) which administers CDBG, HOME, disaster recovery, and homeless assistance programs will see an 84% reduction in staffing which will gut program operations and provide fodder for deep program cuts and possible elimination of some programs.
Latest news also indicates HUD plans to close some field offices although NCDA has not been able to verify this through HUD.
March 10 Day of Action
Because of the proposed staff reductions, NCDA will join other national associations for a day of action on March 10 to support HUD staff and affordable housing and community development programs. We urge our members to join us by contacting Congressional offices to oppose reductions to HUD staff. Contact the U.S. Capitol switchboard at (202) 224-3121 to be connected to your Congressional office. Not sure who your members of Congress are? Go here to locate your Senators and here to locate your House representative.
If you’re unable to participate in direct outreach to Congress, please go here by March 11 to add your agency to a national letter urging Congress to protect HUD from staffing cuts. Please share the letter with your program subrecipients.
FY25 Funding – Year-Long CR Likely
The federal government is currently operating under a continuing resolution (CR) that expires on March 14. Congressional appropriation leaders have not reached agreement on final program numbers for FY25. House Speaker Mike Johnson (R-LA) and Senate Majority Leader John Thune (R-SD) have instructed appropriations staff to develop a yearlong CR that will run through September 30, 2025. A CR funds programs at the previous year’s levels so this would be good news for the HOME program which suffered a $1 billion cut in the FY25 House THUD measure. CDBG would also remain level-funded at $3.3 billion. The measure is expected to contain a list of “anomalies” to provide sufficient funding to renew existing project-based and tenant-based rental contracts and to renew 2025 CoC projects.
NCDA Submits Testimony to the House Subcommittee on Housing and Insurance
The House Subcommittee on Housing and Insurance held a hearing on March 4 on “Building Our Future: Increasing Housing Supply in America.” NCDA submitted a statement for the record which outlined improvements to federal programs to increase housing supply based on NCDA’s 2025 advocacy priorities. The priorities were created from a survey of members last year and approved by NCDA’s policy subcommittees and the Board of Directors.
CDBG Coalition Sends CDBG Letter to Congressional Leaders
The CDBG Coalition today sent a letter to House and Senate appropriation leaders urging higher funding for the CDBG program in FY26. The letter seeks $4.2 billion, the current authorized program level. With rising costs, stagnant allocations, and increased local demand, the program is not able to meet existing needs.
CDBG National Sign-On Letter – Deadline is March 14
The CDBG Coalition is circulating a national sign-on letter urging Congress to support increased funding for CDBG in FY26. Please join state and local organizations in urging Congress to increase CDBG funding to $4.2 billion. Please ask your subrecipients and program partner organizations to sign the letter. The deadline for organizations to sign on is March 14.
Order Your National Community Development Week Products by April 3
The NCDA National Community Development Week store offers a variety of products to help communities market and celebrate National Community Development Week, April 21-25. Given the tough budget year ahead it is more important than ever to celebrate National Community Development Week.
With the intense scrutiny on federal programs this year, we are asking local grantees to order the postcards available in the NCDA store to market the CDBG and HOME programs to Congress. Please ask your program beneficiaries to use the postcards to thank Congressional members for supporting the CDBG and HOME programs or share a quick note on how the programs have made a difference in their lives. This would be a useful activity for National Community Development Week.
Please order your products by April 3, 2025, to ensure delivery in time for National Community Development Week. Please view the National Community Development Week Took Kit for information on planning and executing activities.
HUD Issues Interim Rule Terminating the AFFH Proposed Rule
Late last month HUD Secretary Turner announced the termination of the Biden Administration proposed Affirmatively Furthering Fair Housing (AFFH) rule through the release of an interim final rule.
The proposed AFFH rule initiated by the Biden Administration to strengthen regulations implementing the Fair Housing Act’s mandate to affirmatively further fair housing was never finalized. Under the Biden Administration, state and local grantees were only required to complete an Analysis of Impediments to Fair Housing Choice which required grantees to take steps to overcome impediments to fair housing choice.
The Obama era AFFH final rule was more substantial and required grantees to use HUD-provided data and extensive community outreach to develop an Equity Plan (which replaced the Analysis of Impediment to Fair Housing Choice) to take concrete steps to overcome fair housing obstacles. That rule was quickly terminated in the first Trump Administration.
With the termination of the AFFH proposed rule, the obligation to conduct an Analysis of Impediments is also terminated. Grantees will now be required to maintain a certification in their CDBG files that they are affirmatively furthering fair housing in accordance with the Fair Housing Act. The actions to do so will be left up to the grantees to decide.
Survey: HUD Staffing Cuts
The Department of Government Efficiency (DOGE) has taken unprecedented steps to dismantle federal agencies through deep staffing cuts. These cuts will have a profound impact on local communities. To help NCDA ascertain the impact of the HUD staffing cuts, please share your knowledge of confirmed staffing cuts in your field office. Please also share how these cuts have impacted on your work. NCDA will share this information with its members and with Congressional offices to advocate for HUD and for CPD programs.
Upcoming NCDA Events
Subrecipient Management Basics Online
March 18-April 10
Tuesdays/Thursdays
2:00-4:30 pm ET
https://ncdaonline.regfox.com/
This course follows the CDBG subrecipient management process linearly, starting with establishing priorities in the Consolidated Plan and concluding with HUD’s role in monitoring the grantee’s relationship with subrecipients.
NCDA Leadership Institute: Communication for Community Development Professionals Online
March 24-April 18
Wednesdays – 1:30-3:30 pm ET
https://ncdaonline.regfox.com/
This interactive communications training is for new and experienced grantee supervisors and managers in the community development field.
IDIS Basics Online
April 29-May 22
Tuesdays/Thursdays
2:00-4:30 pm ET
https://ncdaonline.regfox.com/
This course provides a detailed overview of IDIS for CDBG and HOME grantees.
HOME Advanced + Underwriting – In Person, Raleigh, NC
May 14-16
In person
https://ncdaonline.regfox.com/
This course provides a more detailed look at actual HOME-funded projects, grant agreements, initial and ongoing compliance, and the use of innovative partnerships to address housing needs with HOME funds.
NCDA Annual Conference
Salt Lake City, UT
Little America Hotel
June 10-13, 2025
The conference and hotel registration links will be posted to the NCDA website by March 19.
Correction: We reported in a February news update that NeighborWorks America’s contracts with HUD had been cancelled. We received information that this is not the case. NeighborWorks America’s contracts have not been cancelled and remain in full effect.
