No Money For HUD? What Happens to Affordable Housing?

This Capstone project with Citi Community Capital (CCC) will assess the risks and potential impacts of drastic federal funding cuts to affordable housing programs under the Trump Administration’s FY2026 budget proposal. The proposed 44% reduction to HUD’s affordable housing, homelessness, and community development programs—including a 43% cut to rental assistance and consolidation of rental programs into a state-run block grant—poses significant threats to CCC’s $7 billion national portfolio and the broader affordable housing ecosystem.

The project will evaluate how these proposed changes could affect Citi’s lending, investment, and development partners that rely on federal support through programs such as Section 8, LIHTC, and other HUD-related initiatives. Working closely with Citi, the team will integrate policy research, risk modeling, and stakeholder interviews to deliver a comprehensive report outlining financial risks, data enhancement recommendations, and strategic actions. By quantifying potential outcomes and identifying mitigation pathways, this project aims to equip Citi with a forward-looking framework for managing affordable housing investments in an era of fiscal austerity—helping protect vulnerable communities and sustain the national supply of affordable homes.