Calls by the new presidential administration to pause federal spending has laid bare the potential vulnerabilities of housing assistance programs. Construction may slow amid uncertainty about funding for programs overseen by the U.S. Department of Housing and Urban Development until future spending levels become more clear.
A majority of new affordable-housing projects depend on federal tax credits, specifically the Low-Income Housing Tax Credit program. This tax credit helps offset the cost to acquire, renovate or build new low-income rental housing.
