Source: NMHC & HUD

Date Published: 10.01.2025

Link: Potential Implications of the Government Shutdown

As of October 1, 2025, the federal government entered a shutdown due to a lapse in appropriations. HUD’s contingency plan keeps about 2,400 of its 6,100 employees working on essential functions, primarily to protect life, property, and market stability, while most other operations are paused. The multifamily sector faces limited short-term disruption since Fannie Mae and Freddie Mac remain unaffected as self-funded entities. Within HUD, the FHA will continue to close multifamily loans with prior commitments but will not process new applications. Section 8 Project-Based Rental Assistance can continue using previously appropriated funds until they are exhausted. Existing Housing Choice Vouchers will still be honored, though new vouchers will not be issued. Meanwhile, the National Flood Insurance Program cannot issue or renew policies but will maintain coverage and pay claims as long as existing funds remain available.