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Housing advocates urge restoration of rental housing funds as DHCD outlines $352.7M capital plan
Summary
DHCD presented a $352.7 million capital plan for FY27, including $93.5 million for rental housing programs and BEAD/ARPA broadband activity; dozens of nonprofit witnesses urged lawmakers to restore Rental Housing Works funding to prior levels and raised concerns about 'fenced' awards and equitable competitive processes.
Emily Haskell, the DLS analyst for the Department of Housing and Community Development, told the subcommittee DHCD proposed $352.7 million in FY27 capital spending. She said rental housing programs total $93.5 million for FY27 (level with last year’s CIP), and that DHCD has included awards for state revitalization programs in the governor’s budget for the first time. Haskell also reviewed broadband capital (ARPA and BEAD) and noted $13 million of ARPA funds remain unawarded and federal guidance is pending for some BEAD reuses.
Secretary Jake Day said DHCD used a rigorous, multi‑agency competitive scoring process for awards and that his agency expects to fully expend ARPA broadband funds by the December 2026 federal deadline. Day emphasized leverage: in FY25 DHCD investments generated an estimated $8.5 billion in statewide economic impact and he said the department aims to direct limited resources toward projects with measurable outcomes.
Public testimony included dozens of nonprofit developers, land trusts and community organizations. Multiple witnesses urged restoring Rental Housing Works funding from the proposed $65 million back to prior levels (noted in testimony as $85 million or $110 million in earlier years). Testifiers described on‑the‑ground projects that rely on predictable state capital—shared commercial kitchens, modular net‑zero homes, major home‑repair programs, neighborhood revitalization awards—and decried the practice of pre‑allocating or ‘fencing’ large shares of funds as it can undercut competitive processes and equity.
Committee members asked for data on program impacts and metrics; DHCD said it can provide project‑level economic impact, job creation and leverage ratios used in its annual reports. No subcommittee votes were recorded.
