04.15.19

Cantwell, Van Hollen, Colleagues Send Bipartisan Letter Urging Increased Funding for Affordable Housing

WASHINGTON, D.C. – U.S. Senators Maria Cantwell (D-WA), Chris Van Hollen (D-MD) and a bipartisan group of 39 of their colleagues sent a letter urging increased funding for the Section 4 Capacity Building affordable housing program at the U.S. Department of Housing and Urban Development (HUD). The Section 4 Program works with local community development organizations around the country to improve affordable housing, finance small businesses, and provide for other community needs.

“The Section 4 Program allows HUD to partner with national nonprofit community development organizations to provide education, training, and financial support to local community development corporations (CDCs) across the country,”  the senators wrote. “Section 4 funds are required by law to be matched 3:1 with private investments, but program funds have consistently leveraged substantially higher amounts.”

“We are disappointed that the President’s budget has slated this program for elimination after decades of successful economic and community development,” the senators continued. “Since the HUD Demonstration Act was authorized in 1993, Section 4 has proven to be a valuable and cost-effective program that has produced tangible results. Through a nationwide support network, Section 4 provides programmatic and training assistance to local organizations, ensuring program goals are met while granting the necessary flexibility to meet community-specific needs. As communities across the country continue to look for ways to expand economic development and provide affordable housing, funding for Section 4 remains critically important.”

In addition to Cantwell and Van Hollen, the letter was also signed by U.S. Senators Todd Young (R-IN), Margaret Hassan (D-NH), Bill Cassidy (R-LA), Richard Blumenthal (D-CT), Dianne Feinstein (D-CA), Thomas R. Carper (D-DE), Tammy Baldwin (D-WI), Catherine Cortez Masto (D-NV), Sheldon Whitehouse (D-RI), Christopher Murphy (D-CT), Tammy Duckworth (D-IL), Bernie Sanders (I-VT), Amy Klobuchar (D-MN), Ron Wyden (D-OR), Robert P. Casey, Jr. (D-PA), Cory Booker (D-NJ), Martin Heinrich (D-NM), Debbie Stabenow (D-MI), Sherrod Brown (D-OH), Richard J. Durbin (D-IL), Jeanne Shaheen (D-NH), Mazie K. Hirono (D-HI), Angus S. King, Jr. (I-ME), Robert Menendez (D-NJ), Brian Schatz (D-HI), Jacky Rosen (D-NV), Kamala D. Harris (D-CA), Edward J. Markey (D-MA), Tina Smith (D-MN), Jon Tester (D-MT), Joe Manchin III (D-WV), Kyrsten Sinema (D-AZ), Jeffrey A. Merkley (D-OR), Kirsten E. Gillibrand (D-NY), Gary C. Peters (D-MI), Ben Cardin (D-MD), and Elizabeth Warren (D-MA).

The full text of the letter is available HERE and below:

Dear Chair Collins and Ranking Member Reed:

We write to respectfully request that as your Subcommittee works to complete its FY 2020 Transportation, Housing and Urban Development, and Related Agencies appropriations bill, you support a funding level of $40 million for the Department of Housing and Urban Development’s (HUD) Section 4 Capacity Building for Community Development and Affordable Housing Program.

The Section 4 Program allows HUD to partner with national nonprofit community development organizations to provide education, training, and financial support to local community development corporations (CDCs) across the country. Section 4 funds are required by law to be matched 3:1 with private investments, but program funds have consistently leveraged substantially higher amounts. For each dollar of Section 4 funding, a total of $20 or more in private investment has been brought into local communities for economic and community development. From 2014 to 2018, Section 4 helped 973 local CDCs nationwide leverage approximately $7.7 billion for community and economic development and helped to build or preserve more than 39,000 homes in low-income neighborhoods. Since the Program’s inception, Section 4 has benefitted all 50 states as well as the District of Columbia and Puerto Rico. The targeted federal investments made through Section 4 attract and accelerate private sector involvement and funding into critical local community development projects. 

We are disappointed that the President’s budget has slated this program for elimination after decades of successful economic and community development. Since the HUD Demonstration Act was authorized in 1993, Section 4 has proven to be a valuable and cost-effective program that has produced tangible results. Through a nationwide support network, Section 4 provides programmatic and training assistance to local organizations, ensuring program goals are met while granting the necessary flexibility to meet community-specific needs. As communities across the country continue to look for ways to expand economic development and provide affordable housing, funding for Section 4 remains critically important.

As the Subcommittee works through the process of determining how to effectively appropriate federal funds, it is our hope that you will continue your support for Section 4 in FY 2020. We thank you for your consideration.

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