WASHINGTON – Recently, U.S. Senators John Hickenlooper, Michael Bennet, and 42 of their colleagues called on Senate Appropriations Committee leaders to increase funding for the Neighborhood Reinvestment Corporation in the fiscal year 2025 government funding bill to help expand access to affordable housing. The Neighborhood Reinvestment Corporation – also known as NeighborWorks America – is a congressionally chartered national nonprofit that creates opportunities for Americans to live in affordable and safe homes.
“Congress should recommit to battling the affordable housing crisis and provide the necessary support for federal housing programs,” wrote the senators. “With a modest increase in federal investment, NeighborWorks
will be able to provide more grants to network community-development organizations, leverage additional investments from private sources, and create opportunities for more Americans to live in affordable homes.”
In fiscal year 2023, NeighborWorks created and maintained over 45,000 jobs, repaired 82,500 homes, and empowered 16,300 new homeowners. That same year, NeighborWorks provided 111,600 families with affordable housing counseling, helping prospective homebuyers and renters make informed housing decisions. Despite NeighborWorks’ continued success, Congress slashed its budget in fiscal year 2024 by $12 million, bringing the program back to pre-pandemic funding levels. Funding for federal housing programs like NeighborWorks is crucial to address the severe housing shortage of nearly 4 million units with record-breaking rents and home prices.
Text of the letter is available HERE and below.
Dear Chairman Schatz and Ranking Member Hyde-Smith:
As you consider the Fiscal Year 2025 (FY25) Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Act, we ask that you provide at least $185 million for the Neighborhood Reinvestment Corporation, commonly known as NeighborWorks America. With the nation’s housing crisis continuing to worsen and high interest rates putting homeownership out of reach for working families across the country, now is the time to increase our investment in ensuring that Americans have access to reasonably-priced and quality housing options.
As a Congressionally-chartered, national nonprofit, NeighborWorks creates opportunities for Americans to live in affordable and safe homes by providing community development organizations in all fifty states with financial resources and counseling services. In FY23, NeighborWorks created and maintained over 45,000 jobs, repaired 82,500 homes, and empowered 16,300 new homeowners. That same year, NeighborWorks provided 111,600 families with affordable housing counseling, helping prospective homebuyers and renters make informed housing decisions.
Providing consumers access to this kind of accurate, comprehensive information throughout the home-buying process can help protect our nation from another mortgage crisis. This has all come at a relatively low cost—NeighborWorks has demonstrated the ability to attract private sector investments to its affordable housing projects, leveraging $59 in private capital for every $1 appropriated to the program.
Additionally, NeighborWorks’ Rural Initiative is specifically dedicated to delivering a range of services to rural communities in America that face unique challenges when it comes to creating affordable homeownership and rental opportunities. With approximately 20 percent of our nation’s population living in rural communities, NeighborWorks’ financial services, technical assistance, leadership development, and training for community-based development are critical to empowering rural homeownership and rental opportunities.
After five straight years of funding increases, Congress appropriated NeighborWorks only $158 million in FY24, a $12 million decrease from FY23, bringing the program back to FY20 funding levels. The nation is in the midst of a severe housing shortage of nearly 4 million units with record-breaking rents and home prices.1 For FY25, Congress should recommit to battling the affordable housing crisis and provide the necessary support for federal housing programs.
Given NeighborWorks’ demonstrated record of success in increasing access to affordable housing and its continued bipartisan support in Congress, we request that you provide NeighborWorks at least $185 million in funding in FY25. With a modest increase in federal investment, NeighborWorks will be able to provide more grants to network community-development organizations, leverage additional investments from private sources, and create opportunities for more Americans to live in affordable homes.
We ask that you work with us to invest in our communities and our constituents by providing robust funding to NeighborWorks. Thank you for your consideration of this request.
Sincerely,
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