NCSHA Washington Report | September 9, 2022
A more fluid political environment than either party expected when summer started has Democrats and Republicans in Congress especially eager to start the home stretch of campaigning sooner than later this fall, leaving precious little time to pass legislation before the mid-term elections. Even in the likely event of a lame-duck session afterwards, windows of opportunity to pass significant housing legislation are closing fast.
But they aren’t all closed yet.
Congress has to pass — before or after the elections — a bill or bills to fund all the federal agencies for the full fiscal year that starts October 1. We’re working hard to get the highest HOME appropriation in more than a decade — $1.7 billion — in the HUD bill which the House has already passed and Senate appropriators have proposed.
HOME is the most important HUD housing supply program and also supports down payment and rental assistance.
The USDA funding bill is another critical opportunity and NCSHA priority. The House has passed and Senate appropriators have signaled support for $2.3 billion more for rural housing next year.
The Senate bill also includes language to “de-couple” rental assistance for tenants living in properties in which the USDA loan has been paid off. This change, which HFAs have advocated for years, will preserve 15,000 units over the next two years and more than 130,000 units in the next decade.
We and others also expect Congress to act on a “tax extenders” bill by the end of the calendar year, which could — and we believe must — restore the 12.5 percent cut the Housing Credit sustained this year, at the worst possible time, when the increase enacted in 2018 was not extended at the end of 2021.
While extender bills tend to focus on continuing or restarting authorized incentives that have lapsed, there may be an imperative, post-mid-terms, to include more expansive policies, like a beefed-up child tax credit. If this year’s tax extender is any flavor besides plain vanilla, we will seek every opportunity in it to reduce the “50 percent test” for bond financing in connection with Housing Credits.
This congressional session has resulted in historic housing legislation. More than $56 billion in emergency rental and homeowner assistance to alleviate housing hardship from the pandemic. A 10-fold increase — to $3.5 billion — in weatherization for single- and multifamily homes to insulate low-income owners and renters from higher energy costs.
Legislation also passed that should make the numbers work better for solar and wind power in affordable apartment projects. And a bipartisan bill inspired the Treasury Department to give states and cities much greater flexibility to use fiscal recovery funds for housing production and preservation.
Yes, housers will be haunted for a while by what else could have been: a once-in-a-lifetime federal housing investment that fell just short in the Senate. But we are where we are now.
With a strong finish, the 117th Congress can be one of the most consequential for affordable housing in decades.
Stockton Williams | Executive Director
State HFA Emergency Housing Assistance
In This Issue
- THDA Recognized with Fair Housing Award
- HUD Publishes FY 2023 Fair Market Rents
- HUD Announces $40 Million to Protect Families from Home Health and Safety Hazards
- FHFA Orders Comprehensive Review of Federal Home Loan Banks
- NCSHA in the News
- Looking Ahead
THDA Recognized with Fair Housing Award
The Association of Real Estate License Law Officials (ARRELLO) has honored the Tennessee Housing Development Agency with its 2022 Fair Housing Award, citing THDA’s one-hour continuing education course on “Increasing Minority Homeownership.” The Fair Housing Award acknowledges impactful efforts to further fair housing and to promote anti-discrimination in housing.
HUD Publishes FY 2023 Fair Market Rents
Last week, the Department of Housing and Urban Development (HUD) published the Fair Market Rents (FMRs) for Fiscal Year (FY) 2023, which are used to determine payment standards for the Housing Choice Voucher program, initial rents for Housing Assistance Payment contracts, rent ceilings for HOME Investment Partnerships program rental units, and rent standards for other HUD programs. HUD also published the FY 2023 Small Area Fair Market Rents, which are calculated at the zip code level and must be used for Section 8 vouchers in certain areas. While the basic methodology HUD uses to estimate FMRs remained the same, HUD supplemented public-sector data with some private-sector data due to Covid-related interruptions in public data sources. According to HUD, the FY 2023 FMRs on average increased approximately 10 percent over the FY 2022 FMRs. The FY 2023 FMRs go into effect October 1.
HUD Announces $40 Million to Protect Families from Home Health and Safety Hazards
On September 6, HUD announced the availability of $40 million through the Healthy Homes Production Grant Program to help transform communities by fixing older housing, preserving affordable housing, and improving communities and the health of children and families in these communities. Eligible applicants include 501(c)(3) nonprofits and state, local, and Native American tribal governments. Applications are due October 18.
FHFA Orders Comprehensive Review of Federal Home Loan Banks
The Federal Housing Finance Agency (FHFA) last week announced it will conduct a comprehensive review of the Federal Home Loan Bank (FHLB) system this fall. The review will focus on all areas of the FHLBs’ operations, including general mission and purpose in a changing marketplace; organization, operational efficiency, and effectiveness; role in promoting affordable, sustainable, equitable, and resilient housing and community investment; how they address the unique needs of rural and financially vulnerable communities; member products, services, and collateral requirements; and membership eligibility and requirements. FHFA’s review process will include two public listening sessions and regional roundtables to hear from stakeholders. The first listening session will be held on the afternoon of September 29. NCSHA intends to speak at this event on behalf of all HFAs. FHFA will accept written comments until October 21. Please email Greg Zagorski by COB October 10 with any input you would like NCSHA to consider for its comment letter.
NCSHA in the News
Housing Wire, 9.7.22, Latest Duty to Serve plans are an improvement, affordable housing coalition says
BadCredit.org, 9.7.22, NCSHA and State Housing Finance Agencies Partner to Address Rising Housing Costs
AS USA, 8.30.22, What is the Housing Choice Voucher program and how does Section 8 work?
Route Fifty, 8.29.22, ‘Really Disappointing’: For Housing Advocates, Democrats’ New Spending Law Is a Major Letdown
Legislative and Regulatory Activities
- September 15 | Comments Due to NCSHA | Ginnie Mae/FHA Request for Input on Title I Manufactured Housing Programs
- September 16 | Comments Due to NCSHA | HUD’s Draft Solicitation on Housing Assistance Payments Contract Support Services (HAPSS)
- September 26 | Comments Due | Ginnie Mae/FHA Request for Input on Title I Manufactured Housing Programs
- September 28 | Comments Due | HUD’s Draft Solicitation on Housing Assistance Payments Contract Support Services (HAPSS)
- October 10 | Comments Due to NCSHA | FHFA Review of Federal Home Loan Bank System
- October 17 | Comments Due | FHFA Proposed Affordable Multifamily Housing Goals for Fannie Mae and Freddie Mac
- October 20 | Applications Due | HUD Continuum of Care Program Supplemental Funding Opportunity to Address Unsheltered and Rural Homelessness
- October 21 | Comments Due | FHFA Review of Federal Home Loan Bank System
NCSHA, State HFA, and Industry Events
- September 14 – 16 | 2022 New Mexico Housing Summit | Albuquerque, NM
Stockton Williams and Jennifer Schwartz will speak at this event. - September 27 – 29 | Oklahoma Housing Conference | Oklahoma City, OK
Stockton Williams will speak at this event. - September 29 – 30 | Novogradac 2022 Affordable Housing Tax Credit and Bonds Conference | Nashville, TN
Jennifer Schwartz will speak at this event. - October 18 | Ohio Housing Council Fall Symposium | Columbus, OH
Jennifer Schwartz will speak at this event. - October 19 – 21 | Affordable Housing Investors Council 2022 Affordable Housing Summit | Minneapolis, MN
James Tassos will speak at this event. - October 22 – 25 | NCSHA Annual Conference & Showplace | Houston, TX
- October 25 – 28 | National Affordable Housing Management Association Fall Conference | Washington, DC
Jennifer Schwartz will speak at this event. - November 8 | ProLink Technology Live 2022 | Virtual
Jennifer Schwartz will speak at this event. - November 15 | New Hampshire Housing’s Housing & Economy Conference | Manchester, NH
Jennifer Schwartz will speak at this event. - November 16 | 2022 Vermont Statewide Housing Conference | Burlington, VT
Jennifer Schwartz will speak at this event.
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