Sending Office: Honorable Mark DeSaulnier
Sent By:
Andrew.Perlstein@mail.house.gov

        Request for Signature(s)

Support Section 4 Capacity Building for Community Development and Affordable Housing Program in FY2020

 Deadline to Cosign: COB Monday, April 1, 2019

Dear Colleague,

Please join us 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.

From 2014 to 2018, Section 4 has been used to help build and preserve more than 39,000 affordable homes for low-income households, and has attracted $7.7 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.

With the economic challenges facing our nation’s low-income communities, 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 or would like to add your boss, please contact Andrew Perlstein in Congressman DeSaulnier’s office at andrew.perlstein@mail.house.gov or Katherine Moffitt in
Congressman Upton’s office at katherine.moffitt@mail.house.gov.

Sincerely,

                                                                                                                             

Mark DeSaulnier                                                       Fred Upton

Member of Congress                                                 Member of Congress

 

The Honorable David Price
Chair
Subcommittee on Transportation,
Housing and Urban Development
Committee on Appropriations
2358-A Rayburn House Office Building
Washington, DC 20515

The Honorable Mario Diaz-Balart
Ranking Member
Subcommittee on Transportation,
Housing and Urban Development
Committee on Appropriations
1016 Longworth House Office Building
Washington, DC 20515

Dear Chairman Price and Ranking Member Diaz-Balart:

As you prepare the Transportation, Housing and Urban Development (HUD), and Related Agencies Appropriations bill for Fiscal Year 2020, we write to respectfully request $40 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 nonprofit 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 for local nonprofit 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 2014 to 2018, Section 4 has been used to help build and preserve more than 39,000 affordable homes for low-income households, and has attracted $7.7 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.

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

Thank you for your consideration.

Sincerely,

 

Related Legislative Issues

Selected legislative information:Appropriations, Economy, Transportation

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