The Trump Administration has released additional supporting materials for its Fiscal Year 2026 (FY26) Budget Request. These new materials, including an appendix from the Office of Management and Budget and “Congressional Justifications” for individual agencies such as the U.S. Departments of Housing and Urban Development (HUD) and Agriculture (USDA), expand on the limited information provided earlier in the so-called “skinny” budget. However, much information still has not been released, including descriptions of tax proposals and potential housing finance reform ideas. Overall, the changes proposed in the FY26 budget envision a dramatic reduction in federal support for affordable housing and a major restructuring of how the remaining federal assistance is delivered.

HUD Program Funding

The budget proposes eradicating large swaths of the HUD budget. In total, the budget requests $43.5 billion in discretionary budget authority for HUD in FY26, as compared to $89.1 billion in FY25, representing a 51 percent decrease year over year. This reduction is attributable to the consolidation of various rental assistance and public housing programs into a single State Rental Assistance Program formula block grant and the elimination of virtually all funding for existing HUD block grant programs such as the HOME Investment Partnerships and Community Development Block Grant (CDBG) programs, among others, as well as a reduction of more than 2,000 full-time equivalent HUD staff. In particular:

• The budget requests $36.2 billion for a new State Rental Assistance Program, including $4.4 billion in advance appropriations to be available in FY27. This initiative would require Congress to enact new authorizing language to replace all of HUD’s current rental assistance programs, including the Housing Choice Voucher, Public Housing, Project-Based Rental Assistance, Section 202 Housing for the Elderly, and Section 811 Housing for Persons with Disabilities programs. Of note, the sum of discretionary authority for these programs in FY25 was approximately $63 billion as compared to $31.8 billion requested for FY26, with state and local governments presumably expected to make up the difference.
• The budget requests zero funding for the HOME Investment Partnerships Program, compared to $1.25 billion enacted in FY25. The budget argues that “[n]umerous factors and regulatory barriers stifle housing development; many [of which] cannot be solved, and may be worsened, by Federal involvement.” The budget also cites $5.2 billion in undisbursed “HOME” funding, presumably alluding to remaining HOME-ARP funding for which Congress provided an expenditure deadline of September 30, 2030; however, HOME-ARP was a unique, one-time program intended to address narrowly targeted activities and populations and is not a substitute for annual funding for the more broadly applicable HOME program.
• The budget requests zero funding for the CDBG program as compared to $3.4 billion enacted in FY25, arguing “[s]tate and local governments are better positioned to serve their communities’ needs than the Federal Government.” The budget further envisions providing no funding for the CDBG Disaster Recovery program in FY26, as compared to $12 billion provided in FY25 to address natural disasters occurring in 2023 and 2024.
• The budget proposes $4.024 billion for the Emergency Solutions Grants (ESG) program, a reduction of $27 million from the FY25 enacted level, and proposes consolidating all other HUD homelessness assistance, including the Continuum of Care, Permanent Supportive Housing, and Youth Homeless Demonstration programs, under the ESG program.

With respect to HUD’s single-family programs, the budget requests $400 billion in loan authority for the Federal Housing Administration’s Mutual Mortgage Insurance Fund, which supports FHA’s single-family “forward” and home equity conversion mortgage “reverse” mortgages; this is the same level as FY25. The administration also requests $160 million for administrative expenses to support a range of FHA functions, such as loan underwriting, claims processing, and risk monitoring, a $10 million increase from FY25. For FHA’s General Insurance and Special Risk Insurance fund, which finances FHA’s affordable multifamily activity, manufactured housing loans originated through FHA’s Title I program, and health care facility loan insurance programs, the administration asks that authority stay level at $35 billion.

The budget requests $550 billion in commitment authority for FY26 for Ginnie Mae, the same as the FY25 enacted level. The budget also requests $56 million in spending authority from offsetting collections ($197 million) for Ginnie Mae salaries and expenses.

USDA Rural Housing Program Funding

The budget requests $23 billion in discretionary budget authority for the U.S. Department of Agriculture, a decrease of more than 22 percent or $6.7 billion. The administration believes the budget will “improve the efficiency and effectiveness” of USDA’s Rural Development (RD) programs, including its housing programs, and allow RD to “refocus on its core mission.” Below is a summary of proposed funding levels for key RD housing programs for HFAs.

• The Section 502 Single-Family Housing Direct Loan Program would not be funded under the budget, a reduction of $880 million from FY25 enacted funding levels. The budget states that not requesting funding for the Direct Loan Program reflects “the focus and priority” on the Guaranteed Loan Program.
• The loan level for the Section 502 Single-Family Housing Guaranteed Loan Program would be $25 billion, the same as enacted in FY25. Loan authority would be available for two years to facilitate the program’s operation, including during continuing resolutions.
• The Section 515 Multifamily Housing Direct Loan Program would receive $50 million, a decrease of 17 percent from FY25 enacted funding levels.
• The Section 538 Multifamily Housing Guaranteed Loan Program would be funded at $400 million, the same as in FY25.
• The Section 521 Rental Assistance Program would receive nearly $1.72 billion, an increase of seven percent or more than $107 million. This amount would cover renewals of existing rental assistance contracts. The budget also authorizes USDA to continue, for another year, decoupling rental assistance from Section 515/516 properties with expiring mortgages, preserving the affordability of these units.
• The Section 542 Rural Voucher Assistance Program would not be funded under the budget, a reduction of $48 million. The administration believes the decoupling authority will allow USDA to preserve most of its project-based rental assistance, which will decrease the need for tenant-based voucher assistance in the future. It says the majority of current voucher holders “will be able to adjust without the continued assistance, or with alternative local, state and Federal programs.”
• The Rental Preservation Demonstration Program would receive $15 million, a decrease of $19 million or 56 percent, from FY25 enacted funding levels.

For additional information, refer to NCSHA’s May 2 blog, Trump Administration Releases “Skinny” FY26 Budget Proposal.

This year marks the Oklahoma Coalition for Affordable Housing’s 10-year anniversary—a decade of advocacy, collaboration, and impact in expanding access to safe, affordable housing across our state.

Don’t miss your last chance to join us for a special celebration at the Annual Member Appreciation Luncheon on Wednesday, May 14, at The Capitol View Event Center in Oklahoma City, immediately following the OHFA Board of Trustees Meeting.

• Registration & Networking: 11:45 A.M.

• Lunch Served: 12:30 P.M.

• Tickets: $25 (members) | $45 (non-members)

Non-members are welcome and encouraged to attend to learn more about our mission and connect with housing leaders from across Oklahoma.

Let’s celebrate 10 years of building stronger communities—together. Register now before it’s too late!

2025 Member Appreciation Luncheon

This year marks the Coalition’s 10-year anniversary—a milestone that honors a decade of advocacy, collaboration, and progress toward ensuring all Oklahomans have access to safe, affordable housing. Join us for a special celebration at the Oklahoma Coalition for Affordable Housing Annual Member Appreciation Luncheon on Wednesday, May 14, at The Capitol View Event Center in Oklahoma City, immediately following the OHFA Board of Trustees Meeting. Registration and networking opens at 11:45 A.M., with lunch served at 12:30 P.M.

Tickets are $25 for Coalition members and $45 for non-members, who are encouraged to join us to learn more about our mission and connect with leaders in the housing field. Don’t miss this exciting opportunity to celebrate 10 years of building stronger communities together! Register Now!

*This luncheon follows the OHFA Board of Trustees Meeting. Times have been adjusted due to the agenda.

On Monday December 9, OHFA held a public input session to take comments regarding our Housing Stability Program applications. We received great input from everyone present as we are working to make changes to the applications for the 2025 calendar year.

Redline versions of the Homebuilder Program application and the Increased Housing Program application have been posted on the OHFA website for public review.

We are taking public input until January 10. If you would like to comment on changes that you believe may be necessary in the applications, we are happy to take your input into consideration. Please email Eli Vargas at eliezer.vargas@ohfa.org or Corey Bornemann at corey.bornemann@ohfa.org with comments by Friday January 10.

In its first year, Oklahoma Housing Stability Program loans helped kickstart the new construction of 628 houses and rental units in communities all across the state. 

Moving into the program's second year, we are seeking input from applicants regarding the application process and other program requirements.

The input session will be held in-person at the OHFA offices.

Monday, December 9 from 10 a.m. to 11 a.m.
Oklahoma Housing Finance Agency 
100 N.W. 63rd Street
Oklahoma City, OK 73116

To view a red-line version of the current application and for more event details, visit the OHFA website. 

For more information or to provide input prior to this meeting, contact:

Eli Vargas, HSP Administrator
eliezer.vargas@ohfa.org
(405) 419-8201

Emily Myers, Housing Development Allocation Supervisor
emily.myers@ohfa.org

ACTION has recently updated its National, State, and Congressional District Fact Sheets, which demonstrate the impact of the Housing Credit across the country and the need for more affordable housing. Since the program's inception, the Housing Credit has financed the development or preservation of around 4 million homes across the country, serving approximately 9.28 million low-income households. These Housing Credit investments have supported an estimated 6.6 million jobs, generated an estimated $268.1 billion in tax revenue, and $746.5 billion in wages and business income.

Please use these fact sheets in your advocacy! Also, be sure to share them with your partners, members, and other allies. We need you to help keep building support for the AHCIA and the Housing Credit, which will help position the AHCIA better for major tax negotiations next year.

IMMEDIATE ACTION NEEDED FOR PROPERTY MANAGERS/OWNERS:

HB3499 – This bill will add language requiring LIHTC properties only to conduct an individualized review of all criminal history records and the impact on the household’s suitability for admission.  It requires defined criminal history screening policies that state that applicants with felony convictions may only be denied housing if an individualized review shows that the safety of residents and the property.  This policy must include criteria for lookback periods, no blanket denials and procedures for individualized reviews.  Many of our property management members have indicated that this bill is too subjective and may inadvertently lead to Fair Housing issues as it cannot be consistently applied.  This issue could also be more easily addressed through the OHFA rulemaking process rather than a state statute. This has passed the Senate Finance Committee with new language.  Our organization was not given the opportunity to review this draft bill at any point prior to its presentation. You may CLICK HERE to read the new bill.  The bill can now hit the Senate Floor at any time. 

For those that are looking to take action, the best course is to have your staff contact every Senator by phone and email ASAP.  We recommend you do this prior to the close of business on Monday, April 15, 2024.  We also recommend that you also request Senator Treat and Senator McCortney to not schedule this bill for the Senate Floor.  CLICK HERE for contact information for all the. 

Talking points include:

• This bill will cause affordable housing owners and managers to essentially lease to any felon, regardless of the situation, for fear of being sued.
• The proposed language is too subjective, allowing for varied interpretations and risk of leading to inconsistent application.
• The cost of compliance with HB3499 that will mitigate risk to property owners and managers will have a negative effect on the production of affordable housing.  Either the rents will need to increase, or fewer units will be produced to cover the administrative burden. Applications for tax credits are highly competitive due to the limited resources and developments with the tightest budgets are the ones that win.
• Felons that meet certain objective criteria, which is currently fairly lenient, are already allowed to live tax credit developments.  Our developers are in the business of providing housing to low-income households and these developments only provide a return to the investors if the units are leased.  Property managers are already willing to lease to felons provided there is not a safety risk to other residents or the property. 
• HUD and the IRS already extremely monitor the LIHTC program.  Any proposed state statutes should not impede those rules.
• The better way to handle these changes would be the OHFA Administrative Rules process.
• The Oklahoma based affordable housing industry advocates have not been consulted in this work and the impact to their business and industry has not been taken into consideration.
• This is a very nuanced issue and this bill needs additional input from LOCAL IN-STATE stakeholders before passage.
• This could lead to reduced investor demand as investors view the felons as increased risk.  The lower demand for tax credit developments in Oklahoma will lead to lower pricing for developments and increased perm debt and increased rental rates.

When calling the Senators, a simple message with your name and a request to VOTE NO ON HB3499 is sufficient.  You may also add a succinct reason on why.

Increasing Affordable Housing Supply: A Primer of Strategies to Implement

Housing For Communities, Inc., a regional nonprofit housing organization, is pleased to announce a groundbreaking workshop, "Increasing Affordable Housing Supply: A Primer of Strategies to Implement," scheduled for May 21, 2024, at the MetroTech Springlake Campus. This one-day event aims to provide a comprehensive exploration of essential strategies to address the pressing need for affordable housing in communities across Oklahoma.

The day will commence with an introduction and welcome from the U.S. Department of Housing and Urban Development (HUD), followed by a presentation of the Oklahoma Academy Town Hall Results, providing valuable viewpoints and insights from stakeholders across the state.

 Community leaders attending the workshop will gain valuable insights into strategic planning by exploring fundamental approaches to expanding local affordable housing, enabling informed decision-making to bridge the affordability gap.

 The workshop will feature an in-depth exploration of the four HUD Affordable Housing Strategies:

 1. Effective Use of Public Funds: Discover federal and state resources that support affordable housing production, examples of projects, and tips on applying for these federal funds.

 2. Effective Use of Other Funds: Learn about other financing options that support affordable housing development and households seeking homeownership.

 3. Policies, Infill Development & Land Use: Hear about zoning policy research, zoning changes, Guthries’ Build and Invest Initiation and how a local housing development organization puts it all together to create a neighborhood.  Gather ideas for infill development, density bonuses, expedited permitting, working with cities and more.

 4. Development of Public Land & Partnerships: Discover ways to kickstart the production of affordable housing using existing assets through the development of public land and community partnerships.

The workshop will conclude with a wrap-up session, providing a snapshot of the day's presentations and capturing group thoughts on ways Oklahoma can implement these strategies.

Registration is $149, available until May 15th at https://HousingPrimer.eventbrite.com. 

Sponsorships are still available through May 3rd.

This event will provide 8 hours of real estate HOT Topic CE credit.

Register Today!

Affordable Housing Day at the Capitol 4/22/24 - Thank you to our members in attendance who helped us advocate for affordable housing in Oklahoma.

WASHINGTON, April 18, 2024 - U.S. Department of Agriculture (USDA) Rural Development Under Secretary Dr. Basil Gooden today announced that USDA will begin accepting applications on April 19, 2024, for financing to build new housing that will ensure year-round and seasonal domestic farmworkers have safe, modern, and affordable places to live.

This funding availability follows USDA’s recent announcement inviting applications to construct, repair and modify affordable housing units for farmworkers.

Read full stakeholder announcement.