Alabama Habitat for Humanity's eight person delegation, composed of affiliate leaders, Habitat homeowners, and state office recently attended Habitat for Humanity's annual legislative conference, Habitat on the Hill. Nearly 500 advocates convened in Washington, D.C., February 11-13, for intensive discussions, training sessions, and direct advocacy opportunities to their members of Congress.
Alabama Habitat had the opportunity to visit with all Alabama federal offices in D.C.; including personal meetings with Senator Katie Boyd Britt, Representatives Dale Strong, Robert Aderholt, Mike Rogers, and key legislative staff of Senator Tommy Tuberville, Representatives Shomari Figures, Barry Moore, Gary Palmer, and Terri Sewell.
Congress has not yet finalized FY2025 appropriations and instead has passed two Continuing Resolutions (CRs) to fund the government at level amounts. The current CR deadline is March 14. 2025. As Congress works to finalize appropriations for FY2025, Habitat for Humanity urges Congress to finalize the FY2025 appropriations process as quickly as possible and ensure robust funding for critical housing programs.
According to Habitat for Humanity's 2025 State of Home Affordability, in Alabama, 1 in 8 households spend more than half their income on housing. Lower income households are especially likely to have unaffordable housing costs, requiring more than 30% of their income. Increasingly, the typical renter can't afford to buy a home in Alabama. The income needed to purchase a median-priced home is $57,659 per year, however median renter income is $32,000 per year. Additionally, a record shortage of starter homes is driving up home prices and pushing the dream of homeownership out of reach for hard-working, modest-income Alabama families. The chief driver of sustained high prices is the record low supply of homes for sale, caused by years of underbuilding. Affordable homes - essential for long-term stability and wealth building - are particularly scarce.
Alabama Habitat for Humanity's meetings with Congress focused on support of specific federal solutions in the FY2025 & FY2026 budgets, utilized by affiliates in Alabama and across the country. Habitat's top three appropriation priorities include: Self-Help Homeownership Opportunity Program (SHOP), HOME Investment Partnership Program, and Section 502 Single Family Housing Direct Loan Program.
SHOP is the only Housing and Urban Development (HUD) grant program that provides funding exclusively for homeownership projects serving low-income families. Habitat affiliates use SHOP funds to purchase land and develop infrastructure, creating opportunities for families to own a Habitat home. Funding for SHOP in FY2024 was $12 million (a $1.5 million decrease from FY2023). Congress has not finalized FY2025, but current proposals are $13 million (Senate) and $9 milion (House). Habitat supports an increase for the program in FY2026 to at least $20 million.
HOME provides formula grants to states and localities that communities can use in partnership with local nonprofit groups, including Habitat affiliates, to fund a wide range of affordable housing activities, such as: repair and rehabilitate housing, fund new construction and land acquisition, and offer down payment assistance to families. The Alabama Habitat delegation included 2 homeowners from Madison County, their home completed by accessing HOME funds. Funding for HOME in FY2024 was $1.25 billion (a $250 million decrease from FY2023). Congress has not finalized FY2025, but current proposals are $1.425 billion (Senate) and $500 million (House). Given HOME's strong track record of building affordable housing, Habitat supports funding HOME at no less than $1.5 billion in the FY2026 Transportation-HUD appropriations bill.
Section 502 Single Family Housing Direct Loan Program (Section 502 Direct) is the only federal homeownership loan program that exclusively assists low income and very low income families living in rural areas, helping them secure safe, decent, and affordable homes. Eligible families apply for and receive a direct subsidized, low interest loan from USDA Rural Development for their Habitat home, which means USDA serves as the mortgage lender for the homeowner. The loans have 33 year terms (38 for very low income borrowers) and interest rates that can be as low as 1% with subsidy. The loan funds may be used to build, renovate, or relocate a home in a rural area. Loan funds can also be used to finance the purchase and preparation of sites, including providing water and wastewater facilities. Funding for Section 502 Direct in FY2024 was $880 million, a significant cut from the previous year. As a result, the program was fully depleted before the end of the fiscal year, leaving qualified families in limbo, unable to close on their home loans. Congress has not finalized FY2025, but current proposals are $1 billion (Senate) and $950 million (House). Habitat supports funding Section 502 Direct at no less than $1.25 billion in the FY2026 Agriculture, Rural Development, Food & Drug Administration appropriations bill.
Alabama Habitat for Humanity is part of a global, nonprofit housing organization operated on Christian principles that seeks to put God’s love into action by building homes, communities and hope. Alabama Habitat is dedicated to eliminating substandard housing through constructing, rehabilitating and preserving homes; by advocating for fair and just housing policies; and by providing training and access to resources to help families improve their shelter conditions. Habitat for Humanity was founded on the conviction that every man, woman and child should have a simple, durable place to live in dignity and safety, and that decent shelter in decent communities should be a matter of conscience and action for all.
