House Financial Services Committee Portion of COVID-19 Relief Bill Includes Assistance for Homeowners and Renters
House Financial Services Chairwoman Maxine Waters (D-CA) has released the text of legislation providing COVID-19 relief that her committee will mark up on Wednesday, February 10, and an accompanying memorandum about the bill. The legislation the Financial Services Committee marks up will be combined with the work of other committees into the larger package Congress will consider soon, pursuant to the recently passed FY 2021 Budget Resolution’s reconciliation instructions, allowing the bill to pass with a simple majority vote in the Senate.
The Senate Banking Committee yesterday held a hearing on the nomination of Representative Marcia Fudge (D-OH) to serve as Secretary of the U.S. Department of Housing and Urban Development (HUD). Fudge’s written and oral testimony highlighted that she understands and is ready to address the housing challenges facing HUD and the country, including the lack of housing affordability and the instability of renters and homeowners exacerbated by COVID-19.
Treasury Guidance on Emergency Rental Assistance Requires Third-Party Documentation of Income, Hardship
Today, the U.S. Department of the Treasury published a Frequently Asked Questions document providing guidance on the $25 billion Emergency Rental Assistance program enacted under the Consolidated Appropriations Act of 2021. Despite the seemingly unanimous urging of NCSHA and other organizations representing both grantees and low-income households, Treasury is requiring applicants for assistance to provide third-party source documentation evidencing income and their experience of unemployment or financial hardship due directly or indirectly to COVID-19.
On January 15, the Internal Revenue Service (IRS) issued Notice 2021-12 which extends all COVID-19 relief measures originally provided under Notice 2020-53 and provides further relief not included in that original COVID-19 relief notice. The deadline extensions and waivers provided under Notice 2020-53 expired at the end of 2020.
President-Elect Releases COVID-19 Response Plan with Additional Housing Assistance, Foreclosure Prevention
President-elect Joe Biden announced his American Rescue Plan, an ambitious $1.9 trillion COVID-19 recovery platform including a national vaccination program, assistance to households, and other supports for communities struggling due to the pandemic. The announcement today includes proposals that are part of the first step in what will be a two-step plan. The second step will be an economic recovery plan focused on job creation, combating the climate crisis, and building “back better than before.”
Treasury Launches Rental Assistance Web Portal; Grantees Must Submit Signed Terms Forms by January 12
On January 6, the U.S. Department of the Treasury published a new web portal with information about the Emergency Rental Assistance (ERA) program enacted in late December under the Consolidated Appropriations Act of 2021. As NCSHA has previously reported, this critical program will allow states, localities, and Indian tribes to provide rental assistance to households earning no more than 80 percent of area median income who have faced hardships due to the coronavirus pandemic and resulting economic fallout. This Treasury web portal is a critical step towards implementation of the program, which must be expedited under the time constraints set by the statute.
On December 22, HUD published a final rule in the Federal Register amending existing regulations for the Section 542(c) Housing Finance Agencies Risk-Sharing Program. The final rule adopts without substantive changes the March 8, 2016, proposed rule HUD developed after dialogue with NCSHA and a working group of HFAs. The rule is intended to better align the Risk-Sharing program regulations with current industry and HUD policies and practices and provide greater flexibility for program participants.
Year-End Legislation Includes Emergency Rental Assistance, Permanent 4 Percent Housing Credit Rate, and More
Congressional negotiators this afternoon unveiled the mammoth year-end omnibus legislation that includes appropriations for all federal departments and agencies, coronavirus relief, and tax provisions. Notably, the bill includes $25 billion in emergency rental assistance, a minimum 4 percent rate for Housing Credit developments, and additional Housing Credit disaster authority for some states – provisions on which NCSHA had worked with members of both parties and other housing groups to advance. Through the nationwide state HFA delivery system, they will help hundreds of thousands of needy households in the months ahead.
Today, NCSHA submitted comments to the Internal Revenue Service (IRS) urging it to make changes to the Low Income Housing Tax Credit (Housing Credit) Average Income Test (AIT) minimum set-aside regulations the Service put forth in a recent Notice of Proposed Rulemaking. NCSHA worked closely with Housing Credit leaders in Congress on developing the concept of the AIT and drafting the legislative language, which first appeared in the Affordable Housing Credit Improvement Act of 2016 and was eventually enacted as part of the Consolidated Appropriations Act of 2018. Unfortunately, the IRS AIT proposed rule sets what NCSHA believes to be an unnecessarily rigid standard for meeting the AIT minimum set-aside, creating excessive risk to investors and likely negatively impacting interest in AIT properties. It also stymies practical implementation of the AIT by preventing owners from changing unit income designations over time, even if such changes are needed to comply with other housing program rules or if the lack of such flexibility creates conflicts with fair housing- and accessibility-related laws.
Late yesterday, the so-called 908 Coalition—a bipartisan group of centrist Senators and members of the House Problem Solvers Caucus—released the text of its $908 billion coronavirus relief plan, split into two separate bills. The first bill is a $748 billion package that includes $25 billion for emergency rental assistance and spending on other programs and has wide support on both sides of the aisle. The second bill includes the two pieces of the plan that have met with resistance from some on the Hill: liability protection—favored by Republican leadership but opposed by Democratic leadership—and $160 billion in funding for state and local governments—favored by Democratic leadership but opposed by Republican leadership.