Housing and homelessness are critical structural factors that profoundly impact health outcomes. The sudden termination of the Section 4 program, which supports affordable housing, disproportionately affects low-income individuals and families who depend on these resources increasing thier risk of homeless. Because contracts were ended abruptly, many housing projects are now stalled mid-construction, left in limbo without sufficient funding to reach completion.
Department of Housing and Urban Development
An internal instruction issued by a government agency outlining policies, procedures, or actions to be followed by agency employees. While not legally binding outside the agency, these directives guide agency operations and decision-making.
Who It Impacts: Employees and divisions within the issuing federal agency. These directives guide how staff enforce regulations, allocate resources, and interpret laws. They may also affect industries regulated by the agency.
Who Is Not Impacted: The general public and businesses are not directly bound by agency directives, though these policies may indirectly influence enforcement practices that affect them.
Date Enacted
February 28, 2025
Last Updated
May 30, 2025
Policy Type
Housing
Social Safety Net
Children and Families
Summary
This action terminates contracts and grants for the U.S. Department of Housing and Urban Development’s (HUD) Section 4 program, also known as the Capacity Building for Community Development and Affordable Housing Program. Section 4 provides funding to Community Development Corporations and Community Housing Development Organizations to support affordable housing initiatives and community development projects that directly benefit low- and moderate-income families and individuals.
Impact Analysis
Legal Challenges
Enterprise Community Partners announced Wednesday that it has won its appeal to HUD to reinstate its Section 4 funding. The department had previously canceled $40 million in funding for Enterprise’s capacity building grants for local housing and community development organizations. https://www.enterprisecommunity.org/news/hud-reaffirms-section-4-partnership-enterprise-reduce-housing-costs
Take Institutional Action
Health systems and providers play a crucial role in addressing the social determinants of health by supporting housing and community investments within the populations they serve. This support can take many forms, including direct investment in local housing initiatives and backing community-led funding efforts by providing health outcome data for individuals experiencing homelessness or the impact of high housing costs on the community's health. Additionally, health systems and providers can routinely assess patients’ housing needs during medical visits and connect them with appropriate resources and support services to improve overall health outcomes.
Associated or Derivative Policies
Policy Prior to 2025
Additional Resources
Investing in Community Health: A Toolkit for Hospitals https://centerforcommunityinvestment.org/our-resources/investing-in-community-health-a-toolkit-for-hospitals/
Make the case for hospital investment in housing https://www.aha.org/system/files/media/file/2019/05/AIHC_issue_brief_final.pdf
