California housing advocates shocked by the sudden cancellation of federal contracts

HUD has paused grantee funding through the Fair Housing Initiatives Program; however, the agency says the program has not been canceled.

SACRAMENTO, Calif. — The Trump administration has canceled contracts providing fair housing advocates with funds to help fight discrimination under the Fair Housing Act, a spokesperson for the U.S. Department of Housing and Urban Development told ABC10 Thursday. The termination of the contracts caught housing resource agency leaders, like Caroline Peattie, executive director of Fair Housing Advocates of Northern California (FHANC), off guard.

She received letters telling her two federally-funded contracts were being canceled. “No warning; we just got those termination letters effective immediately,” Peattie said. Peattie received the letters a few weeks after the U.S. Department of Housing and Urban Development announced it formed its own “DOGE” task force to root out waste, fraud and abuse within the department. “HUD will be detailed and deliberate about every dollar spent to serve rural, tribal and urban communities,” HUD Secretary Scott Turner said in the announcement. HUD has paused funding for grantees and organizations through the Fair Housing Initiatives Program (FHIP); however, a spokesperson said, "The department is not canceling FHIP."

A source with HUD told ABC10 FHIP funding is being withheld while new program criteria are developed and organizations will be able to apply for the new grants once applications open. “The department is responsible for ensuring our grantees and contractors are in compliance with the President’s Executive Orders. If we determine they are not in compliance, then we are required to take action.

The Department will continue to serve the American people, including those facing housing discrimination or eviction,” a HUD spokesperson said in a statement. Grant funding through FHIP allows nonprofits like Peattie's to help tenants seek housing assistance and fight against unlawful actions by landlords and property owners. One of the grants the organization received focused on education and outreach programs educating people about the resources available to fight housing discrimination. The other contract, which was worth over $400,000, was for the agency’s investigation division. This division investigates housing discrimination cases which are then filed with HUD or the California Civil Rights Department.


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