The Illinois Housing Development Authority Board is raising alarms about proposed federal housing cuts that could slash U.S. Department of Housing and Urban Development funding by 44 percent. Board members say the reduction threatens rental assistance for nearly 400,000 Illinois households. They warn such cuts could severely disrupt affordable housing initiatives and impact community programs across the state. Officials stress that shrinking federal support may lead to increased homelessness and limited access to safe, stable homes for vulnerable families. The board urges lawmakers to reconsider the budget proposal, emphasizing the crucial role housing funding plays in sustaining Illinois communities.
“Programs like rental assistance are a necessity. They are lifelines that improve health, employment, and educational outcomes for families, seniors, veterans, and people with special needs,” said IHDA Board Chair King Harris. “Illinois receives an estimated $2.6 billion annually from HUD, dramatically cutting this funding would not only threaten the homes of our most vulnerable residents but also undermine decades of progress in affordable housing and equitable community investment. It would push countless families closer to eviction and homelessness while weakening the social and economic fabric of communities throughout Illinois.”
“These dramatic cuts, if passed, will destabilize communities and economies,” warned IHDA Executive Director Kristin Faust. “When families lose access to safe, affordable housing, the effects ripple outward: school districts face increased turnover, healthcare systems bear the weight of housing-related health crises, and local economies suffer from lost tax revenue. Furthermore, the loss of HUD subsidies will cause widespread economic turmoil for institutional investors in affordable housing, potentially triggering another housing crisis. Slashing HUD’s budget isn’t just fiscally short-sighted, it’s socially and economically destructive.”
- Assisted 1,721 people through its Section 811 Housing for Persons with Disabilities program,
- Assisted 5,415 people through its Section 202 Housing for the Elderly program,
- Assisted 221,210 people through its Housing Choice Voucher program,
- Assisted 66,110 people through its Public Housing Rental Assistance program, and
- Assisted 96,723 people through its Project-Based Rental Assistance program.
