From: The Honorable Elizabeth H. Esty
Sent By:
matthew.colvin@mail.house.gov

Date: 3/28/2017

Support Section 4
Capacity Building for Community Development and Affordable Housing Program

Deadline: COB Friday, April 1st, 2017

Deadline to Enter Online Submission: Tuesday, April 4th, 2017

**This is an FY18 Programmatic Request**

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Dear Colleague,

Please join me in a letter urging the Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Subcommittee to continue funding for the Capacity Building for Community Development and Affordable Housing Program, commonly
referred to as Section 4.

Section 4 ensures that community-based organizations throughout the nation’s lower income communities, both urban and rural, have adequate community development resources to create and sustain jobs, increase housing production, and preserve the vitality
and affordability of housing developments nationwide. It is the sole HUD program specifically designed for non-profit capacity building and is an important, unique, and efficient program that leverages significant private capital using minimal federal dollars.

Section 4 funds are matched on a 3 to 1 basis, and have a proven record of leveraging additional public and private capital. Total aggregate leverage has consistently been in the range of $20 or more for each dollar of Section 4 funding – leading the GAO
and OMB to recognize Section 4 as a cost-effective program.

From 2012 to 2016, Section 4 has been used to build and preserve more than 41,000 affordable homes for low-income households, and has attracted over $6.8 billion in investment for lower-income neighborhoods and communities across the country. In addition,
Section 4 has helped create jobs, support small businesses, and develop millions of square feet of commercial, retail, and community facility space.

As the economic challenges facing our nation’s low-income communities continue to deepen, it is necessary to preserve effective funding programs like Section 4, that provide high performing community development corporations and community-based non-profits
with the tools they need to revitalize their communities.

If you have any questions about the letter, please contact Matthew Colvin in Congresswoman Esty’s office at
matthew.colvin@mail.house.gov or 202-225-4476.

 

April 1, 2017

 

The Honorable Mario Diaz-Balart                                The Honorable David Price

Chair                                                                        Ranking Member

Subcommittee on Transportation,                               Subcommittee on Transportation,

Housing and Urban Development                                Housing and Urban Development

Committee on Appropriations                                     Committee on Appropriations

2358-A Rayburn House Office Building                       1016 Longworth House Office Building

Washington, DC 20515                                              Washington, DC 20515

 

Dear Chairman Diaz-Balart and Ranking Member Price:

As you prepare the Transportation, Housing and Urban Development (HUD), and Related Agencies Appropriations bill for Fiscal Year 2018, we write to respectfully request $35 million in funding for the critically important U.S. Housing and Urban Development
(HUD) Capacity Building for Community Development and Affordable Housing Program, commonly referred to as Section 4.

Section 4 ensures that community-based organizations throughout the nation’s lower income communities, both urban and rural, have adequate community development resources to create and sustain jobs, increase housing production, and preserve the vitality
and affordability of housing developments nationwide. It is the sole HUD program specifically designed for non-profit capacity building and is an important, unique, and efficient program that leverages significant private capital using minimal federal dollars.

Since Congress authorized the program in 1993, Section 4 funding has benefited all 50 states and the District of Columbia. Section 4 strengthens communities across the nation by providing flexible support to local non-profit organizations to develop affordable
housing, finance small businesses, revitalize commercial corridors, and help address local healthcare, childcare, education, and safety needs. Through direct financial assistance, training, and guidance, Section 4 provides local organizations with the staffing,
program development, and financial resources necessary to maximize the impact of the services they provide and to ensure the long-term sustainability of their investments.

Section 4 funds are matched on a 3 to 1 basis, and have a proven record of leveraging additional public and private capital. Total aggregate leverage has consistently been in the range of $20 or more for each dollar of Section 4 funding – leading the GAO
and OMB to recognize Section 4 as a cost-effective program.

From 2012 to 2016, Section 4 has been used to build and preserve more than 41,000 affordable homes for low-income households, and has attracted over $6.8 billion in investment for lower-income neighborhoods and communities across the country. In addition,
Section 4 has helped create jobs, support small businesses, and develop millions of square feet of commercial, retail, and community facility space.

As the economic challenges facing our nation’s low-income communities continue to deepen, it is necessary to preserve effective funding programs like Section 4, that provide high performing community development corporations and community-based non-profits
with the tools they need to revitalize their communities.

Thank you for your consideration.

Sincerely,

_____________________

Elizabeth H. Esty

Member of Congress