DearColleague.us

Letter

Mark DeSaulnier

From the office of:

Mark DeSaulnier

Sending Office: Honorable Mark DeSaulnier
Sent By:
Ethan.VanNess@mail.house.gov

        Request for Signature(s)

Deadline to Cosign: COB Thursday, March 12, 2020

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 2015 to 2019, Section 4 has been used to help build and preserve more than 40,000 affordable homes for low-income households and has attracted $8.4 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 space. Section 4 has also provided disaster relief by helping local nonprofits rebuild homes and community facilities.

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, please contact Ethan Van Ness in Congressman DeSaulnier’s office at ethan.vanness@mail.house.gov. To add your boss, please fill out the form here.

 

Sincerely,           

            

Mark DeSaulnier                                                         Fred Upton

Member of Congress                                                  Member of Congress

 

Letter Text

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 2021, we write to respectfully request $45 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. We also request additional appropriations for the Self-Help Assisted Homeownership Program (SHOP) in order to support the $45 million for 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
of 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, the District of Columbia, and Puerto Rico. 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.

From 2015 to 2019, Section 4 has been used to help build and preserve more than 40,000 affordable homes for low-income households and has attracted $8.4 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 space. Section 4 has also provided disaster relief by helping local nonprofits rebuild homes and community facilities.

Section 4 funds are matched on a 3 to 1 basis and have a proven track 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.

However, in real dollars, Section 4 has been cut by 25 percent since 2004. With the exception of Recovery Act funding, Section 4 has been funded at or below $35 million since Fiscal Year 2004, until receiving a boost to $36 million in Fiscal Year 2020. This
$1 million increase was much needed, but unfortunately the demand for affordable housing and small business investments in low income communities continues to grow alongside new challenges such as opioid abuse and disaster recovery. An increase to $45 million
will right size the program to meet the growing needs of the communities and families that rely on non-profits to provide critical services and support, as well as leverage $900 million of total investments.

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 communities.

Thank you for your consideration.

Related Legislative Issues

Selected legislative information:Appropriations, Transportation

icon eDC logo e-Dear Colleague version 2.0
 
e-Dear Colleagues are intended for internal House use only.