Shaun Donovan, Secretary of the U.S. Department of Housing and Urban Development, fired off warning shots, noting the housing industry could take a big hit from budget sequestration at a National Community Reinvestment Coalition conference on Wednesday.
"Not everyone will feel the pain of these cuts right away — but it is coming," said Donovan.
Donovan noted that the upcoming risks include about 125,000 individuals and families nationwide—more than half of whom are elderly and disabled—losing assistance provided by the Housing Choice Voucher program.
Additionally, he said another 100,000 homeless and formerly homeless people—the majority of whom are families, disabled adults or veterans—will be removed from their current housing or emergency shelter programs.
Overall, Donovan stated that sequestration will likely cause significant damage to the nation’s housing market at the precise time it is helping lead the economic recovery.