The Impact of Federal Funding on Affordable Housing

In late January, President Trump signed a series of Executive Orders which led to the release of a memorandum that briefly froze all federal grant spending. The memorandum has since been rescinded, though its wake has left nonprofits around the country reeling with concerns about the future of federal funding cuts.

The Impact of Federal Funding Cuts on Affordable Housing

Federal funding plays a crucial role in supporting nationwide affordable housing initiatives. Programs such as the Low-Income Housing Tax Credit (LIHTC) program, the HOME Investments Partnership Program (HOME) and federal rental assistance programs are essential for developing and maintaining affordable housing communities.

The recent freeze on federal grants and loans temporarily disrupted funding for these programs and related essential services, including housing assistance, causing widespread concern. In states like Colorado, where the demand for affordable housing continues to outpace the supply, a reduction in financial support would hamper the ability of housing organizations to develop new projects and maintain existing properties.

For residents of these communities, a pause in funding not only impacts their access to safe and affordable housing, but jeopardizes their access to essential supportive services. At Archway, targeted populations include Veterans, seniors, adults exiting homelessness, immigrants, refugees and other at-risk individuals.

How do funding cuts impact Archway?

In 2024, Archway received over $220,000 in philanthropic support from public funding. This funding included three grants from state, local and federal agencies. Additionally, Archway has 60 HUD-VASH units and numerous residents who rely on federal rental assistance programs to subsidize their housing costs. On an annual basis, federal funding expands Archway’s capacity to provide a range of affordable housing options for our residents.

Last year, external funding helped support over 10,000 resident visits to our weekly no-cost food programming, more than 2,300 resident visits to on-site community events, nearly 600 resident visits to Kids Club programming, mental and physical health support, essential repairs and upgrades to our building and so much more.

In November 2024, Archway received federal and state Low-Income Housing Tax Credits from the Colorado Housing and Finance Authority. This funding will allow Archway to transform a formerly dilapidated apartment complex into a 150-unit transit-oriented development in Denver’s Villa Park neighborhood. 

With the support of public funding, Archway is able to increase access to affordable housing by bridging the affordability gap that stems from high development costs. Last year Archway added 391 affordable units to our portfolio and welcomed over 500 residents to the Archway community. As of today, Archway owns and operates 11 communities and is the third-party manager for an additional property. In total, we support over 1,700 residents throughout Colorado.

Moving Forward

As we find ourselves navigating a changing federal landscape and some funding uncertainties, our team remains committed to supporting our residents and upholding our mission of providing affordable housing, food security and supportive services to lower-income Coloradans. We recognize that the housing crisis is not going away, and we are preparing to mitigate upcoming challenges by diversifying our funding sources and strengthening our community partnerships. In the coming months, we plan to advocate for increased state and local government support, seek a larger number of private donations and explore alternative financing solutions. 

As a member of the Archway community, we need your help more than ever to ensure that our residents retain their housing and receive supportive services to help them meet their goals. By fostering a collective commitment to affordable housing, we can work together to develop sustainable solutions. 

Here are four ways in which you can support Archway today:

1. Donate today to support the provision of supportive services across our communities.
2. Join our mailing list to receive regular updates on federal funding changes and the latest affordable housing news. 
3. Contact your elected officials in the U.S. Congress to tell them you support federally funded affordable housing initiatives, such as Housing Choice Vouchers, Project-Based Vouchers, the LIHTC program and HOME. Visit congress.gov to find your members in the U.S. Congress.  
4. Contact our Director of Communications and Philanthropy, Georgeanne Barrett, at [email protected] to learn more about how you can get involved and support Archway.

Together, we are building the Archway to a more equitable future.