NEWS RELEASE
U.S. SENATORS GARY PETERS AND DEBBIE STABENOW
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WASHINGTON, DC – U.S. Senators Gary Peters (MI) and Debbie Stabenow (MI) joined a group of their colleagues in calling for increased funding to help expand access to affordable housing in Michigan and across the country. In a letter to the Chair and Ranking Member of the Senate Appropriations Subcommittee on Transportation, Housing and Urban Transportation, the senators called for increased funding for NeighborWorks America in the upcoming Fiscal Year 2025 government funding bill. As a congressionally chartered, national nonprofit organization, NeighborWorks aims to strengthen communities by creating more opportunities for Americans to live in safe, affordable homes. The organization partners with nearly 250 local and regional nonprofits nationwide to help advance local solutions to community development and affordable housing challenges. Peters, a member of the Senate Appropriations Committee, is currently working to help craft the annual government funding bills that provide resources to organizations, including NeighborWorks.
According to the Michigan State Housing Development Authority (MSHDA), Michigan is about 190,000 housing units short of demand. Moreover, an estimated 18 percent of Michigan families are “housing burdened,” meaning the cost of housing is more than 30 percent of their incomes.
“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,” wrote the senators.
“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,” the senators continued. “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.”
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. As Americans continue to experience the harmful impacts of a severe housing shortage of nearly 4 million units, with record-breaking rent and home prices, Peters and Stabenow underscored the critical need to increase funding for federal housing programs like NeighborWorks.
The text of the letter is copied below and available here.
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.
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