HUD programs viewed as necessary to protect life and property will continue. This includes HUD homeless assistance grants, supportive housing for veterans and housing for people with AIDS.

Separately, bailed out housing giants Fannie Mae ( FNMA) and Freddie Mac ( FMCC) have said they will be unaffected by the shutdown and will continue to guarantee loans, according to a report from HousingWire.

While they may be in conservatorship, they are still private companies, they said.

-- Written by Shanthi Bharatwaj New York.

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Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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