Weekly update from the National Housing Conference

“These people are crazy” – a government shutdown looms and a negotiated settlement is nowhere in sight

By David M. Dworkin, President & CEO, National Housing Conference

On Friday morning, President Donald Trump, who presided over the longest government shutdown in United States history, told reporters at the White House that the Democrats “are crazy” and if the government “has to shut down, it’ll have to shut down. But they’re the ones that are shutting down.” House Democratic Leader Hakeem Jeffries (D-N.Y.) was no less bellicose, telling Punchbowl News, “they spent the whole year telling America they have a massive mandate to do whatever the hell they want, and now they want to act like Democrats are somehow responsible for their continued efforts to destroy the American way of life? No one’s buying that.” He added that the Democrat leadership in the House and Senate have “been preparing for a government shutdown showdown for months.”

In this high stake game of chicken, we’ve had near misses before, and it’s still possible that a short term continuing resolution could be enacted. However, that temporary reprieve looks increasingly unlikely, and even if it occurs, the two sides are so far apart an October shutdown appears inevitable. The Senate won’t be back in session until Monday, September 29, and the House won’t resume its work until Tuesday, September 30.

The impact of a protracted shutdown on all Americans will be profound, and the impact on housing, in the midst of a major housing affordability crisis, will be severe. Even after the dispute is fully resolved, the ability of Federal agencies to administer programs could be undercut. Agencies are already significantly understaffed following previous mass firings and the deferred resignation program, also known as the “fork in the road” offer. Employees who accepted that offer will be officially separated from the federal government on September 30. Earlier this year, HUD experienced significant reductions in its workforce and the Consumer Financial Protection Bureau has effectively been shut down. The U.S. Department of Veterans Affairs' (VA) and U.S. Department of Agriculture’s (USDA) mortgage programs have also experienced meaningful staff cuts, resignations, and retirements. As a result, there are already reports of significantly longer approval timelines for FHA multifamily deals, VA voucher approvals, and more.

Now, the Office of Management and Budget (OMB) is threatening that Federal workers won’t just be furloughed, as in the past, but may be subject to a Reduction in Force that would permanently eliminate their positions. While it is unlikely the threat will be carried out immediately, there’s no telling how these odds would change over the course of a protracted impasse.

As we prepare for a long siege, it’s important to keep in mind that we have been here before and housing leaders across the country have meaningful experience upon which to draw. Agencies generally follow a set procedure when facing a shutdown, and activity and “excepted” staff (those permitted to work during a shutdown) will be kept to an absolute minimum. Efforts to support renters will be harder than in the past, however. In 2019, over one thousand project-based, §202 (seniors), and §811 (disabled) rental contracts were unable to be processed during the shutdown. No one was evicted at that time, but had the shutdown continued for a few more weeks, the widespread fears of eviction could have been realized. More...

News from Washington | By Brittany Webb

HUD pulls back from fair housing, whistleblower says

The U.S. Department of Housing and Urban Development (HUD) is allegedly systematically limiting its enforcement of the Fair Housing Act (FHA), according to a slew of internal documents sent from whistleblowers at HUD to Senator Elizabeth Warren (D-Mass.). According to a New York Times article, HUD has made it almost impossible for employees within the Office of Fair Housing to do their job through gag orders, prohibitions on citing legal precedent, and restructuring or removal of archival documents, among broader directions to “cease and desist all work activities associated with environmental justice, diversity, equity, and inclusion.”

“The documents received by my office allege that “recent actions by HUD’s political and career leadership” at HUD’s Office of General Counsel and the Office of Fair Housing and Equal Opportunity “have placed the Department on an unalterable course towards violating its statutory and regulatory obligations to safeguard the equal distribution of federal funds, to combat housing discrimination in the public and private sectors, and to protect the lives of countless survivors of domestic violence,” reads the letter Senator Warren sent to HUD OIG Acting Inspector General Brian Harrison, demanding an investigation.

The Office of Fair Housing has reportedly lost 65% of its workforce since January, with only six lawyers remaining out of 22. The resulting impact of these changes is a legal settlement collection amounting to less than $200,000 from January to July. Comparatively, in each of the last five years the Office collected between $4 million and $8 million. Just four charges of discrimination came from the office since the Administration change, down from an average of 35 a year. Pending cases were frozen, and some settlements were revoked entirely.

The National Fair Housing Alliance issued a press release summarizing the accusations into three categories: setting a policy of refusing to act on any fair housing complaints that the Trump Administration does not favor; stripping authority to act on statutorily required fair housing responsibilities from career HUD officials; and undermining fair housing enforcement within the agency.

“These illegal acts leave many vulnerable people who rely on HUD’s fair housing resources without protection. People HUD has abandoned include: veterans with disabilities seeking to get off the streets and into permanent housing; seniors who need a safe place to live; survivors of domestic violence and/or sexual assault fleeing abuse with their children; people with disabilities who are denied accessible housing; Black and Latino consumers trying to secure a home loan on fair terms; women experiencing sexual harassment by their landlords; and others seeking housing free of discrimination during the escalating fair and affordable housing crisis,” NFHA states, with signatures of support from dozens of organizations denouncing the alleged acts of HUD leadership.

A spokesperson from HUD has denied the allegations, calling the case system “deeply inefficient” as it stood.

EARLY BIRD REGISTRATION NOW OPEN

On December 3, the National Housing Conference (NHC) will host its annual Solutions for Affordable Housing convening at the National Press Club in Washington, D.C. This event brings together a diverse range of affordable housing stakeholders—including policymakers, advocates, lenders, developers, and researchers—to explore strategies that are tangible, impactful, and achievable to address today’s most pressing housing challenges.

Panel discussions will focus on key housing challenges, including affordability, supply, access, and policy reforms that shape the future of rental, ownership, and subsidy programs. Experts will also explore innovative solutions such as new housing models, rural and middle-income strategies, homelessness prevention, and resilience in the property insurance market. Don't miss the panel:

"Next Steps for Federal Housing Policy"

This panel will discuss major housing policy changes enacted under the Trump administration and how they are expected to reshape the housing landscape. Panelists will examine how these policies are being implemented, assess early outcomes, and explore the practical challenges and opportunities they present. Panelists will also discuss emerging legislative and regulatory priorities that could influence housing affordability, supply, and access in the years ahead.

Thank you to our current event sponsors: JPMorganChase, Bank of America, Wells Fargo, Rocket Companies, NeighborWorks® America, and Cotality.

Sponsorship opportunities are available starting at $1,000. Click here to learn more.

Take advantage of special early bird member pricing through Oct. 17!

In Person Tickets

$150*

(Increases to $250 after Oct. 17)

*Use Code: Member2025

Virtual Tickets

$100*

(Increases to $175 after Oct. 17)

*Use Code: MemberVirtual2025

VA awards $84 million to fight veteran homelessness

The Department of Veterans Affairs (VA) announced $84 million in grants to 176 organizations nationwide to help Veterans who are homeless or at risk of homelessness. The funding will be evenly split, with $42 million dedicated to legal services and $42 million for case management.

Through VA’s Legal Services for Homeless Veterans and Veterans At-Risk for Homelessness program, the grants will expand access to legal aid, including covering landlord–tenant disputes, court proceedings, child support issues, and defense in certain criminal cases. At the same time, VA’s Grant and Per Diem program will use the funds to add nearly 100 case manager positions, assisting Veterans with housing searches, home visits, and connections to benefits and community resources.

VA Secretary Doug Collins said the grants are part of VA’s continued focus on housing stability. “No Veteran should experience homelessness in the country they fought to defend,” Collins said, noting that these resources are designed to help Veterans maintain safe, stable housing while accessing health care, education, and employment opportunities.

FHFA leaves green financial system group

The Federal Housing Finance Agency (FHFA) has announced its withdrawal from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). In a letter to the NGFS chair, FHFA withdrew from all committees, taskforces, and working groups. The move follows similar exits by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp.

“Consistent with President Trump’s Executive Orders, we are removing these distractions to ensure Fannie, Freddie, and our housing finance system stay laser focused on delivering the American dream of homeownership,” said FHFA Director William Pulte.

Pulte also announced via social media that FHFA was disbanding an affordable, equitable and sustainable housing committee.

Chart of the week

Homebuilding stalls as residential construction job growth turns negative for a third straight month

New research from MetLife Investment Management highlights a concerning slowdown in residential building construction job growth, which has turned negative for three consecutive months as of July 2025. Year-over-year growth in residential construction employment, after rebounding sharply following the 2020 recession, has steadily declined and now signals a contraction in homebuilding activity. Recent surveys and news reports indicate anti-immigration policies and high-profile ICE enforcement have exacerbated labor shortages by driving away immigrant workers—a group that makes up a substantial share of the construction workforce. These headwinds indicate these actions are causing direct project delays and escalating costs, compounding the declines and threatening further disruption to residential construction employment and output.

What we're reading

The U.S. Census Bureau released 2024 data measures on Poverty in the United States, showing poverty falling in 2024 by 0.4 percentage points to 10.6% from 2023. The rate declined significantly for White, Asian, and Hispanic groups, but not for other demographics. There were 35.9 million people experiencing poverty in 2024. The Supplemental Poverty Measure (SPM), which takes into account geographic variation in housing expenses and includes federal and state taxes, work expenses, and medical expenses, showed no statistically significant difference from 2023. The SPM continues to illustrate that social security benefits lift 28.7 million out of poverty as the largest antipoverty program.

An article in Fortune discusses the prediction of “The Oracle of Wall Street” Meredith Whitney that the housing market will remain stuck in place. Whitney points out that seniors own more than 54% of homes in the country, up from 44% in 2008. Further, 79% of seniors own their homes, and three-fourths of them don’t have a mortgage, implying that the housing market will be difficult to change for the foreseeable future.

An upcoming book written by Sharon Cornelissen, director of housing at the Consumer Federation of America, follows her residency of a $7,000 home in Detroit’s Brightmoor neighborhood, one of the most depopulated areas in the country. “The Last House on the Block: Black Homeowners, White Homesteaders, and Failed Gentrification in Detroit,” describes longtime Black residents working to maintain their homes alongside white newcomers attracted by low-cost properties and open land for urban farming. Instead of sparking revitalization, these efforts ran up against decades of decline, leaving Brightmoor even emptier nearly a decade later. The account highlights how depopulation, rather than solely gentrification, is shaping many struggling communities.

NHC's Membership Corner

Here's what's happening at our member organizations:

Wells Fargo: Transforming How People are Housed Nationwide

Solving the affordable housing crisis demands scalable investments and transformative grantmaking that help people stay housed, build credit, and become homeowners.

Integrating wraparound services with affordable housing is a solution with a proven track record, and Mercy Housing California leads in this area. Supported by a $1 million Wells Fargo grant, the organization established an endowment to fund health and wellness programs, after-school enrichment, and financial education for residents.

In New York, Breaking Ground’s Harlem project— a 19-story building with 435 affordable and supportive units—showcases the power of combining philanthropy and innovative financing. Similarly, in Los Angeles, The Veterans Collective reimagines housing for veterans with stable homes, career transition, and wellness programs, all with the support of Wells Fargo funding.

Wells Fargo also offers assistance tailored for low- and moderate-income homebuyers. Since 2023, over 1,000 eligible customers have benefitted from the Homebuyer Access grant; in 2024, more than 1,700 received closing cost credits, and more than 3,400 utilized low-down-payment mortgages.

Additionally, Wells Fargo is one of the top affordable housing lenders nationally. From 2020 to 2024, it provided $22.9 billion in debt and equity investments for nearly 65,389 affordable units. Through partnerships with Fannie Mae, Freddie Mac, and HUD, the bank added $10.3 billion in long-term financing, preserving and improving more than 82,620 affordable units.

Housing access and affordability are among the most pressing challenges of this decade. Wells Fargo is committed to continuing to support affordable housing initiatives vital to thriving, inclusive communities where everyone has the chance to succeed.

The Week Ahead

Monday, September 29

AE/AP Leadership Symposium | National Apartment Association, September 29 – October 1

Tuesday, September 30

2025 Fahe Annual Meeting - Housing Can't Wait! - Campaign, September 30 – October 2

Wednesday, October 1

Reflection, Resistance, and Repair: Growing Our Capacity to Eradicate Homelessness and Create Home | Joint Center for Housing Studies, 1 PM ET

NHT's Insights on Housing Webinars | National Housing Trust, 2 PM ET

Thursday, October 2

No events listed.

Friday, October 3

Building for Safety: Assessing Fire Codes in Multifamily Housing | Joint Center for Housing Studies, 12:15 PM ET

Saturday, October 4

2025 Annual Conference & Showplace — NCSHA, October 4 – 7

STAY CONNECTED

www.nhc.org

The National Housing Conference is a diverse continuum of affordable housing stakeholders that convene and collaborate through dialogue, advocacy, research, and education, to develop equitable solutions that serve our common interest.

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