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In late February, the federal government abruptly cut funding to dozens of organizations that fight housing discrimination across the country, threatening their survival and dealing a setback to civil rights enforcement efforts in the United States, fair housing advocates say. More than 160 groups nationwide rely on federal funding to investigate and file complaints on behalf of people who think they have been denied housing because of disability, race, sex, national origin, religion, or because they have children. In some states, including California, fair housing organizations also represent people who suspect they’ve been discriminated against because they pay rent with government housing assistance, like Section 8 vouchers. I was shocked, said Caroline Peattie, executive director of Fair Housing Advocates of Northern California, who received notice that her organizations grant funding had ended abruptly. Housing discrimination is illegal under the landmark Fair Housing Act of 1968. But the law has no teeth if advocates dont have the resources to enforce it, Peattie said. The current administration appears to have targeted fair housing programs for deep cuts, despite their relatively low cost. Housing advocates worry the cuts will mean they wont be able to pursue discrimination cases and that some fair housing groups will have to cease operating altogether. Peattie received a notice from the federal Department of Housing and Urban Development that said HUD is terminating this award because it no longer effectuates the program goals or agency priorities. This affects us, and our ability to be a viable organization that can provide housing services to communities that we serve, Peattie said. There was no warning whatsoever. Last month, Fair Housing Advocates of Northern California was among 78 grantees that got sudden notice that theyd no longer receive funding, said Nikitra Bailey, executive vice president of the National Fair Housing Association, whose members include fair housing groups nationwide. The total cost of the canceled grants is estimated at $12.1 million, Bailey said, or less than a half-percent of Housing and Urban Developments total $255 billion budget for fiscal 2025. A HUD spokesperson wrote in an email, The Department is responsible for ensuring our grantees and contractors are in compliance with the Presidents Executive Orders. If we determine they are not in compliance, then we are required to take action. Trumps executive orders have targeted programs that mention diversity, equity, inclusion, and accessibility across the federal government. However, fair housing advocates arent sure how their programs conflict with the orders. The HUD spokesperson didnt explain why the canceled grants might have violated executive orders and didnt answer a follow-up email asking for specific examples of noncompliance on the part of the agencies whose contracts were canceled. Peattie said she had not been notified that her organization was noncompliant. Housing discrimination is especially common in cities like New York and Los Angeles where vacancy rates are low and competition for apartments is stiff. So our concern, Peattie said, is that as things get tighter in the rental markets, we will start to see more cases of housing discrimination. The budget cuts send a message, said Jasmine Perry, a home health aide in the San Francisco Bay Area, who was denied housing and filed a discrimination complaint through Fair Housing Advocates of Northern California nearly two years ago. It gives the people who denied me the okay to keep doing what theyre doing and to do it more. Its really sad, Perry said. Landlords repeatedly rejected Perrys rental applications as she searched for an apartment in Santa Rosa, north of San Francisco. Perry, who is Black, suspected discrimination based on her race or because she planned to use a Section 8 rent subsidy to pay her rent. Section 8 is the nations largest housing assistance program for low-income peopleit provides a subsidy that tenants can use in any apartment, provided rents dont exceed limits set by local housing authorities. Perry finally obtained the voucher after 11 years on a waiting list, and she had just 90 days to use it before it expired. She turned to Fair Housing Advocates of Northern California, which investigated and found that the management of one apartment building where she was rejected welcomed applicants without subsidies while discouraging those with them. Perry won a $37,000 settlement from the building management. She said her experience with filing a discrimination complaint showed her that I have rights. I can exercise my rights. Bailey of the National Fair Housing Association would not say how her group would respond to the funding cuts. However, some members of the organizations leadership are currently appealing to members of Congress to restore the funding. Even groups that have not received notices of grant cancellations are on edge. In Southern California, the Long Beach-based Fair Housing Foundation told Capital & Main in an email that its funding remained intact. Likewise, funding had not been cut at the Fair Housing Council of Orange County. But the groups David Levy wrote, We are still monitoring the situation as we believe we could still get a notice of cancellation. And Levy worries about funding for the coming year. The grant cancellations have now called into question whether the new administration will fund [fair housing] grants at all. In an email to Capital & Main, a HUD spokesperson said, The Department will continue to serve the American people, including those facing housing discrimination or eviction. When the Department puts out a notice of funding opportunity (NOFO) any eligible organization is invited to apply. But the administration has given other indications that fair housing programs could be on the chopping block at Housing and Urban Developmentand employees of the department are also stressed. An internal documentobtained by the American Federation of Government Employees Council 222, which represents HUD workers, and viewed by Capital & Mainshows the agency plans to slash fair housing staff positions within the agency by more than 75%. Union president Antonio Gaines said the document is unofficial, and is derived from multiple sources that have proven to be reliable in the past. In early February, a web page describing the types of discrimination covered under the Fair Housing Act disappeared from the HUD website. It was replaced with a page not found message but the page is currently accessible on the Internet Archive Wayback Machine. There is a perpetual state of fear, anxiety, fear of retaliation or reprisal, anxiety, every other distressful terminology that you can use can be applied to the environment, Gaines said. By Robin Urevich, Capital & Main This piece was originally publihed by Capital & Main, which reports from California on economic, political, and social issues.
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Neom, the insane urban development project in Saudi Arabia, appears to be sinking faster than the giant holes they keep digging in the middle of nowhere. Increasing delays and soaring cost overruns have led to project cancellations and a general scaling back of the original vision. Now a Wall Street Journal report has uncovered an internal audit that reveals evidence of deliberate manipulation of finances by management to justify rising cost estimates to investors. The sense of impending disaster is even more shocking when you look at the only crazy structure that is now standing in Neom: an unbelievably giant palace. New satellite images obtained by Business Insider via US space company Maxar Technologies have revealed the gigantic complex, which appears to feature at least 16 buildings (plus other buildings in the property), four swimming pools, private beaches, extensive gardens, a marina, 10 helipads, and its own golf course. The palace is thought to be owned by Saudi Arabian ruler Mohammed bin Salman, and its only one of five palaces that will be built for the royal family in the 10,230-square-mile region known as Neom. The development of Neom is supposed to become Saudi Arabia’s transitional path from an oil economy towards one based on technology, advanced manufacturing, green energy, and tourism. It includes a 110-mile-long vertical city called the Linewhich has since been scaled back to just over one milealong with other futuristic settlements that will allegedly include everything from hydrogen processing plants to luxury hotels. Bin Salman chairs the boards of Neom and its sub-projects, frequently approving architectural choices seemingly impossible to build, like this giant 30-story-high chandelier conceptualized by a Marvel concept artist because, reportedly, the Prince likes The Avengers. Fraud is in the air These lavish personal palaces and flashy renderings offer a stark contrast to the financial reality of the project. Initially, its promoters were looking to attract $500 billion in public and private capital, but Neom is reportedly having a hard time getting the money. The delays and cost overruns kept mounting and, in 2024, bin Salman fired Neoms CEO of six years, Nadhmi al-Nasr, putting in a new team tasked with turning the project around in place. Now the WSJ has uncovered an internal audit that reveals evidence of deliberate manipulation of finances by management to justify rising cost estimates. Capital expenditure for building Neom to its end-state by 2080 was estimated at $8.8 trillion, more than 25 times the annual Saudi budget. According to the paper, the high costs due to the remote location, ambitious design, and unrealistic projections seem insurmountable, despite executives hiding rising costs by inflating profit assumptions. The audit shows that the crown prince encouraged Neom to use the internal rate of return (IRR) to assess project profitability, leading to concerns about the projects financial viability. Then revenue estimates were increased to cover cost overruns, leading to a higher internal rate of return. Along the way, the Neom staff suggested a few cost-cutting measures, like reducing the height of The Line, but the crown prince rejected this. He ordered to find cost savings elsewhere. And when a project manager challenged the unrealistic cost estimates, he was removed. The WSJ reports that McKinsey helped create financial models, validated projections, and served as both planner and validator, raising potential conflicts of interest. Despite the audit findings, a Neom spokeswoman told the WSJ that the project remains on track and is demonstrating tangible progress. On social networks and YouTube, the organization and its top brass keep posting videos claiming progress. I follow them. They always look like the same holes in the middle of nowhere. We wont have to wait long to see if the Prince and his organization can actually realize these pharaonic visions or if they will just end digging the most expensive hole in history. The Lines first phase is supposed to open its first half-mile section, including a stadium, in 2034. Just nine years away. That will be the year the World Cup starts in Saudi Arabia, right in that stadium. No matter if it gets finished on time or not, I’m sure bin Salman will be watching the kick off game from one of the hundred (Im guessing given its size?) living rooms in his cozy new palace.
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While the rest of the nation watched in horror, bad weather turned deadly and quickly wreaked havoc. Houses were ravaged, and tens of thousands of residents were displaced. Thats Los Angeles since the historic wildfires struck in January, destroying more than 16,000 structures and leaving thousands of people homeless. It was also western North Carolina in late September after Hurricane Helene created raging rivers that flooded some houses and swept others away. Nearly 74,000 homes in the area were damaged or destroyed, around 10,000 of which were in Buncombe County, where the city of Asheville is located. Every disaster is unique, and these two were markedly different. But from a housing perspective, they have some important similaritiesand L.A. leaders can learn from what Buncombe County has already gone through in its recovery. Among other things, both regions have been hot real estate markets with ever-increasing property values that have been gradually pushing lower-income people out. Catastrophes like fires and hurricanes can, paradoxically, cause housing prices to rise over time: Supply is tighter, speculators may capitalize on newly vacant properties, and investors and residents often rebuild bigger than before. That makes it imperative to get residents into safe homes as quickly as possible, before conditions change that might make that unfeasible. From left: Before and after roof repair [Photo: Asheville Area Habitat for Humanity] Buncombe County is still in the early stages of its response; the disaster was so overwhelming that simply accounting for everyone and filing initial claims has taken months. But the Federal Emergency Management Agency has come, state legislators have allocated aid and are debating more, and federal assistance seems to be on its way, though given the Trump administrations focus on government downsizing, its unclear when it will arrive or whether the amount will be even close to whats needed. The governments of Asheville and Buncombe County have been very responsive, observers say. But whats been truly critical is the work of community organizations, which have cooperated with one another in an unprecedented way to help thousands of renters and homeowners begin returning to their homes. Its been a grassroots effort of seeing what the community needs and how to respond, says Lukas Ray, communications and engagement officer at Mountain Housing Opportunities, an affordable housing group. Its a collaboration: Put your head down and work together. In some ways, the region was well-positioned for a disaster, if such a thing is possible. Weeks before the hurricane, the city had released a 100-plus-page affordable housing plan that it spent a year hammering out with local housing and social service agencies. So when the storm hit and brought mass unemployment with it, they knew just how vulnerable many of the areas renters were, and made preventing displacement a priority. [Photo: Asheville Area Habitat for Humanity] An eviction moratorium would have been ideal, but thats a state-level decision that officials in Raleigh failed to enact. However, more than $5 million in rental assistance has been a boon to the 1,000-plus households who received it. Some of those funds came from the city and county, but most were raised through private donations and distributed by a church. Rental assistance was recommended [in the affordable housing plan] to prevent further displacement, said Susan Bean, housing and transportation director at MountainTrue, a grassroots environmental group. That made it easierit was a need that was clear. Another of the plans recommendations was to expand home repair resources for low-income homeowners, work that was already underway pre-Helene. Following COVID-19, the areas Habitat for Humanity affiliate had aimed to streamline the work of a few home repair organizations, using bespoke software and a universal intake form. The initiative, Asheville Regional Coalition for Home Repair, or ARCHR, was on the verge of a soft rollout when the storm hit, and the coalition quickly took it live. Theyve since received more than 300 applications from low-income households. “We see a lot of roof issuestrees on roofs, wind damage, or roofs that were already in disrepair before the storm, said Joel Johnson, home repair director at the Asheville Area Habitat for Humanity. ARCHR is a one-stop shop that allows each group to tackle the job its best at, whether thats roof repair or access issues or water damage. And as an organized, coordinated entity, its better positioned to receive government funding and individual donations. [Photo:Asheville Area Habitat for Humanity] ARCHR is also part of a bigger-picture effort thats getting underway. In the early months after the hurricane, community stakeholders talked to leaders from places like Louisiana, Florida, and eastern North Carolina that had experienced similar disasters. They recommended Buncombe County form a long-term recovery group, a collaborative body composed of key nonprofits, local governments, and community funders that includes subgroups focusing on case management, rental assistance, repairs, and construction. This is a local way to respond to a disaster, to provide a coordinated process, says Sarah Roth, interim director of emergency operations at United Way of Asheville and Buncombe County, which is helping lead the process. The groups look different in every community. Buncombe Countys long-term recovery group is still figuring out its mission and scope. Leaders are seeking a fiscal sponsora tax-exempt nonprofit organization that can accept funding on their behalfso they can hit the ground running when government assistance finally arrives. In the meantime, theyre sharing real-time data with policymakers and advocating for on-the-ground needs. The housing groups are concerned that damaged or destroyed properties may be replaced by more expensive structures. In response, said David Bartholomew, an attorney with Pisgah Legal Services, Were all looking to make sure that when theres opportunity, we get in there and can take advantage. One group is already doing that. In December, the nonprofit BeLoved Asheville bought an 8-acre parcel of land in Swannanoa, one of the regions hit hardest by the storm, for $1.6 million in community donations. Its leaders plan to build a small enclave of at least 15 two- and three-bedroom houses for very-low-income people. Their purchase is timely. While Buncombe Countys real estate prices have remained stable so far, theyre likely to rise soon as the weather warms and investors begin eying vacant properties. Property values could look very different next year. L.A. housing leaders may want to take note. The speed, creativity, and collaboration could serve them well, too, as they launch a recovery effort that, as in Buncombe Countys case, is predicted to last around a decade.
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