If Funds Get Cut, Here's How to Support Affordable Housing
Santa Fe does not have enough affordable housing to support the working class.1
With the 2023 census finding that over 25% of American renters spend more than half of their income on housing, this holds true both locally and across the country.2
This shocking statistic indicates that we should be spending more money on affordable housing, not threatening the funding of the organizations that make affordable housing possible. Yet recent executive orders have done just that.
In March, the president signed an executive order that declared the US Community Development Financial Institutions (CDFI) Fund "unnecessary," calling for it to “be eliminated to the maximum extent consistent with applicable law.”3
The CDFI fund supports community banks and other financial institutions that provide much needed financial services and assistance to some of the most underserved communities in America, including rural areas, low income communities and communities of color, and Native American tribes.4
These cherished institutions, which qualify as local Community Development Financial Institutions, are critical funders of affordable housing. They provide low interest loans to affordable housing developers and mortgage assistance to low income and first time homebuyers, among other services.
In New Mexico, well known CDFIs include Nusenda Credit Union, Native Partnership for Housing and Tiwa Lending Services, the Santa Fe Community Housing Trust, and Homewise.5
These organizations are essential in helping Santa Fe remain an affordable place to live for local residents. Considering that more than half of Santa Fe’s workforce lives outside of the city due to affordability issues, this work could not be more important.6
Homewise has helped over 6,000 New Mexicans purchase homes, and has helped thousands more install energy efficiency updates, refinance their homes, and get the financial education they need to become successful first-time home owners. 7
Nationally, at least a third of all affordable housing units built in the US in the last year were financed by the national CDFI fund.8
Luckily, the CDFI fund has bi-partisan support. Shortly after the executive order was issued, 23 senators from both sides of the aisle sent a letter to the secretary of the US Department of the Treasury urging him to protect the CDFI fund.9 On March 21, the Treasury issued a report finding that all 11 programs run by the fund are required by law.10
For now, at least, this means that the CDFI fund and its vital programs can't be scrapped. However, they could still be subject to funding and staffing cuts, which could reduce their ability to support the institutions that provide the financial services working class Americans depend on.11
The good news is we can all do something to support affordable housing. Volunteering or donating to local organizations and advocating for affordable housing policy in local government are both fantastic ways to get involved. But there are also several other options for investors who want to use finance as a tool for change.
At the community scale, many local CDFIs offer the opportunity for regular people to participate in impact investing. Homewise, for example, allows anyone to invest in their programs with a minimum commitment of $1,000. Investors are paid back with interest rates of 1% to 4% depending on the length of their commitment, and terms range from one to ten years.12
It’s also possible to support affordable housing at the national level by investing in “impact” funds like Community Capital Management’s Affordable Housing MBS ETF (OWNS) or RBC Bluebay Access Capital Community Investment Fund (ACCSX).13 These and similar funds can be easily purchased through most brokerage accounts.
Such funds screen mortgage backed securities to make sure that the loans in their portfolios are issued to underserved communities and create positive social outcomes. Affordable housing makes up a large portion of their investments. These funds show lenders that there is demand for investments in affordable housing, which can make lenders more willing to issue loans to impactful projects.
No one should have to sleep on the streets. But when people are severely cost burdened, they are at much higher risk of becoming homeless.14 And when a quarter of American renters are likely to forgo basic necessities just to make rent, increasing affordable housing should be a top priority. This problem is unlikely to be solved without government support, but all of us can contribute to solutions.
This material is intended for education purposes only. LongView Asset Management, LLC (referred to as "LongView") does not warrant that the provided information will be free from error. None of the information provided is intended as investment, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon for transacting securities or other investments. Under no circumstances shall LongView be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the materials provided. In no event shall LongView Asset Management, LLC have any liability to you for damages, losses, and causes of action for accessing this commentary. Past performance is not indicative of future results. This content not reviewed by FINRA. Photo by Teo Zac on Unsplash.
1] https://santafehousingaction.org/action/sir/
2] https://www.congress.gov/crs_external_products/R/PDF/R48450/R48450.2.pdf
3] https://www.whitehouse.gov/presidential-actions/2025/03/continuing-the-reduction-of-the-federal-bureaucracy/
4] https://www.cdfifund.gov/
5] https://cdfi.org/wp-content/uploads/2018/02/New-Mexico.pdf
6] https://santafehousingaction.org/wp-content/uploads/2018/11/AAHLN-Advisory-Group-Report_Final.pdf
7] https://homewise.org/invest-in-homewise/
8] https://www.yardimatrix.com/publications/download/file/6789-MatrixResearchBulletin-AffordableHousingReport-0225; https://www.cdfifund.gov/news
9] https://www.crapo.senate.gov/imo/media/doc/cdfilettertotreas03202025.pdf
10] https://www.consumerfinanceandfintechblog.com/wp-content/uploads/sites/58/2025/04/CDFI-Report.pdf
11] https://philanthropynewsdigest.org/news/federal-cdfi-fund-may-lose-staff-capacity-to-administer-programs
12] https://homewise.org/invest-in-homewise/
13] https://www.ccminvests.com/company/about-us/
14] https://endhomelessness.org/state-of-homelessness/#why_do_people_experience_homelessness