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Saturday, September 21, 2024

Zinke halts $3 million federal fund clawback affecting Montana affordable housing

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Rep. Ryan Zinke, U.S. Representative for Montana's 1st District | Official U.S. House headshot

Rep. Ryan Zinke, U.S. Representative for Montana's 1st District | Official U.S. House headshot

On May 30, 2024, the federal Department of Housing and Urban Development (HUD) informed Congressman Ryan Zinke and the Montana Housing Authorities (MHA) that it will halt the planned clawback of federal funds from these programs. In April, Zinke was notified that HUD rescinded $4.5 million from MHA reserve accounts, jeopardizing housing assistance for approximately 576 Montana families. Following a committee hearing on May 2 where Zinke questioned the acting HUD secretary, and with support from MHA, HUD initiated an investigation and ultimately decided to stop further planned clawbacks.

“We are grateful for Congressman Zinke and his staff, for the time and hard work put in to protect Montanans who are struggling to make ends meet,” said Patti Webster, CEO of HomeFront. “Without his tough questioning in the hearing and relentless follow-up, HUD would have taken several million dollars from Montana Housing Authorities’ reserve accounts, making the housing crisis even worse. Along with many Housing Authorities across Montana, we are still working closely with Congressman Zinke to develop and pilot programs to address the most pressing issues with HUD, to allow for full flexibility in the use of those funds to assist the families in our local communities, and to stop the overreach of the continued offsets.”

“Montanans are feeling the pressure right now due to high inflation for gas, groceries, and rent. Even a family of three with two good jobs can’t make ends meet in this housing crisis,” said Congressman Zinke. “Rent is through the roof, building new units is more expensive than ever, and the availability of open units is extremely limited. Now is not the time for the administration to swipe money from struggling Montanans trying to make ends meet. I’m glad the officials at HUD were willing to work with us and halt any further swipes of funding and I’m working hard to make sure Montana gets our money back. I appreciate the Montanan Housing Authorities for bringing it to my attention and working with my staff to make sure we recoup those funds for the benefit of Montanans.”

In a House Appropriations Transportation Housing and Urban Development Subcommittee hearing, Congressman Zinke questioned acting HUD Secretary Adrianne Todman on $4.5 million diverted from MHA reserves used for financial assistance for renters in Montana facing extreme affordability issues due to high inflation and rising housing costs. According to MHA, rescinding these reserves affected roughly 576 families' access to housing assistance. Zinke urged immediate action so existing contracts could proceed without disruption.

Earlier this month, Zinke cosponsored H.R. 3170, known as the bipartisan Homes for Every Local Protector, Educator, and Responder (HELPER) Act. The HELPER Act aims to establish a new home loan program under the Federal Housing Administration (FHA), making homeownership more accessible by eliminating barriers such as high down payments and monthly mortgage insurance premiums for K-12 school teachers, first responders, law enforcement officers, and other essential public servants.

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