Here’s what to watch as Congress hashes out federal housing funds for next year.
On Thursday, the House Committee on Appropriations will mark up the fiscal year 2026 spending plan for the Department of Housing and Urban Development (along with the Department of Transportation and other related agencies).
The bill provides HUD with $67.8 billion in discretionary funds, about $939 million less than the level approved for fiscal year 2025. The bill calls for a 26 percent cut to HUD’s staff, which Republicans estimate will save $334 million in salaries and other expenses. It also provides no funding for the HOME Investment Partnerships Program, an affordable housing grant program.
House Democrats argue the measure will make it harder for Americans to “find and stay in affordable housing or own a home,” pointing to a $770 million cut to Section 8 housing vouchers (compared to fiscal year 2025), that threatens to “push nearly 415,000 households off of HUD assistance or face eviction.” They also raised concerns about provisions that expand the HUD secretary’s authority to set new requirements for rental assistance, including time limits or work requirements.
Much can change before this spending plan is finalized, and I’ll be watching where these proposed cuts — as well as where fair housing, community block grant and energy-efficiency programs — ultimately land.
The draft plan is not as drastic as President Donald Trump’s budget proposals, but housing groups aren’t taking any chances. The New York Housing Conference on Wednesday sent a letter to members of the New York Congressional Delegation, urging them to fully fund federal housing programs. The letter warns that Trump’s budget proposal, which called for slashing HUD’s budget by 44 percent, or $33.6 billion, would strip New York of $4.4 billion, or nearly half of its federal housing funds. The letter warns that setting time limits for rental assistance (something sought by Trump and potentially permitted under the appropriations bill) “would cause mass evictions, homelessness and widespread default on multifamily mortgages in areas with the highest concentration of Section 8 voucher use.”
“The ripple effects will extend to banks, CDFIs, and investors who have underwritten billions in loans backed by HUD-funded properties,” the letter states. “In communities where public-private partnerships have preserved affordable housing for decades, this budget would undo years of coordinated investment.”
What we’re thinking about: Who are you supporting in the mayoral race and why? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: The latest opponents of new construction are… 11 horses? Gothamist reports that noise from the construction of a luxury apartment building next door to the Prospect Park Stable has been stressing out its equine residents.
Elsewhere in New York…
— Under the newly approved federal tax cut package, New York will lose $29 million in funding for the Supplemental Nutrition Assistance Program, or SNAP, which helps low-income New Yorkers pay for groceries, Gothamist reports. State officials also estimate that work requirements will result in 300,000 people losing some or all of their SNAP benefits.
— Gov. Kathy Hochul and Assembly member Zohran Mamdani are playing nice, at least for now, Politico New York reports. That may change as Mamdani pushes to increase the corporate tax rate and income taxes, something that the governor opposes.
Closing Time
Residential: The top residential deal recorded Wednesday was $15 million for a 10,597-square-foot townhouse at 150 West 15th Street in Chelsea. Michael Koeneke and Ian Slater at Compass had the listing.
Commercial: The top commercial deal recorded was $55.7 million for a 40-unit rental building at 190 Berry Street in Williamsburg. The Real Deal covered the foreclosure in April 2024. LENY Group sold the 101,358-square-foot property to CIM Group.
New to the Market: The highest price for a residential property hitting the market was $22.8 million for a 6,630-square-foot condominium unit at 78 Irving Place in Gramercy. Jason Haber at Compass has the listing.
Breaking Ground: The largest new building application filed was for a proposed 88,943-square-foot, 99-unit mixed-use project at 67 Fourth Avenue in Park Slope. Kao Hwa Architects filed the permit on behalf of Shimon Kleinman of Borough Developers.
— Matthew Elo
