Understanding the Stakes
The Department of Oversight and Governance (DOGE) is focusing on the funding allocated to NeighborWorks America (NWA), as detailed in a recent bulletin. Despite a lack of clarity regarding DOGE’s objectives or timelines, it is noteworthy that the team involved has previously overseen the closures of the U.S. Agency for International Development (USAID) and the U.S. Institute for Peace (USIP), according to the National Housing Conference (NHC).
NWA operates as a congressionally chartered nonprofit, relying on Congressional appropriations for funding, combined with some private donations. In the fiscal year 2023, NWA had a total budget of $232.5 million, which included $166 million from core Congressional sources. This funding supports grants and technical assistance for 247 community development organizations across the country.
Maximizing Investment Efficiency
David Dworkin, president and CEO of NHC, emphasized the organization’s impressive leverage of federal dollars, which stands at a rate of 71 to 1. “In a context where the focus is on achieving more with fewer resources, NeighborWorks is a pivotal partner,” he stated in an interview with HousingWire.
The uncertainty surrounding DOGE’s investigation prompts NHC to raise concerns, given the rapid manner in which other federal entities have been dismantled. The NHC alert pointed out the swift elimination of USIP, which occurred in less than ten days, despite that organization being similarly funded directly by Congress.
In another instance, a DOGE team made inquiries to a different nonprofit regarding oversight of federally funded projects, but those inquiries were subsequently retracted.
A Strategic Opportunity
Dworkin asserted that NWA’s achievements in constructing numerous affordable housing projects justify their independence from DOGE involvement. “NWA is not an executive branch entity, and its employees are not government workers, making DOGE’s interest unwarranted,” he explained.
He further argued that the potential savings from such oversight do not justify the attention given to NWA and suggested that if any policy issues arise, they should be resolved through the federal appropriations process. Dworkin added, “Expanding investments in NeighborWorks would align with a strategic approach to enhancing housing availability while minimizing government presence.”
Dworkin expressed hope that the U.S. Department of Housing and Urban Development (HUD) would recognize the vital role of NeighborWorks in addressing the affordable housing crisis, particularly in areas often overlooked by policymakers.
Doug Robinson, head of media relations at NeighborWorks America, articulated the organization’s commitment to partnering with the administration to meet ambitious housing objectives, noting that their efforts have consistently provided affordable housing opportunities across the United States and its territories.
In summary, Robinson emphasized, “No other organization—public or private—replicates our impact on affordable housing accessibility for American communities. Maintaining NeighborWorks America is essential for serving the nation effectively.”
