NCSHA Washington Report | August 25, 2023
Almost three weeks after the worst wildfire in modern U.S. history devastated the town of Lahaina and surrounding areas on the Hawaiian island of Maui, the human impacts of the disaster remain hard to comprehend: 115 confirmed dead and nearly 400 still unaccounted for, as of today.
Nearly 3,100 single- and multifamily properties with a total reconstruction value of $1.3 billion were within the hardest-hit areas, according to CoreLogic. Lahaina, a “site of incalculable Native Hawaiian importance,” may have lost more than half its housing, including affordable properties financed with Housing Credits and emergency shelters.
The Hawaii Housing Finance and Development Corporation is coordinating a massive effort to identify temporary housing for the displaced. On Tuesday, Governor Josh Green and agency interim executive director Dean Minakami reported that landlords and homeowners had offered immediate availability of 900 rental units for displaced households.
The federal government has responded on several housing fronts so far. The White House announced Wednesday the administration had “approved more than $12 million in assistance to over 3,300 households, including nearly $5 million in initial rental assistance.”
Earlier in the week, the five federal agencies most involved in housing finance announced a range of relief options for homeowners, and two of them — HUD and USDA — said they “are working to provide assistance and resources to tenants who have been displaced in federally assisted multifamily rental homes, as well as impacted owners and operators.”
Congress will need to help Maui rebuild as well. Senator Brian Schatz (D-HI), who chairs the Senate HUD Appropriations Subcommittee, is calling for a “bipartisan emergency supplemental appropriations bill that includes significant funding for Hawaii.”
The state also may need emergency allocations of Housing Bond and Housing Credit authority, the most effective tools for financing new affordable homes and apartments. Congress has provided it for other states in the past, most recently with supplemental Housing Credits for 11 disaster-impacted states and Puerto Rico in 2020, after an intensive advocacy campaign by NCSHA and other program stakeholders.
We stand ready to mount a similar effort for Hawaii.
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A note of appreciation from all of us at NCSHA to Susan Dewey, CEO of Virginia Housing, who announced this week her retirement at the end of the year from the position she has held since 1999.
Throughout her tenure, Susan’s influence has extended far beyond the borders of her beloved home state. Under her leadership, Virginia Housing won numerous national honors in NCSHA’s awards program for the agency’s leading-edge efforts in financing and management, rural and special needs housing, and communications and advocacy. Many of Virginia Housing’s innovations were picked up by other HFAs.
As President of NCSHA’s Board of Directors during the Great Recession, Susan led NCSHA’s efforts to negotiate with the federal government a temporary “HFA Initiative” that stabilized Housing Bond issuance in a turbulent financial environment and created $23 billion in new capital for affordable housing at a critical time. Virginia’s congressional delegations have long been among the best informed and most supportive of state HFA legislative priorities in the country, as a result of Susan and her team’s constant engagement.
Thank you for everything you have done for NCSHA and affordable housing, Susan!
Stockton Williams | Executive Director
Washington Report will return September 8.
State HFA Emergency Housing Assistance
In This Issue
- NCSHA Comments on FHFA Pricing Framework for Fannie Mae, Freddie Mac
- ACTION Partners with Local Leaders’ Organizations to Rally Support for Housing Credit Legislation
- OMB Issues Final Buy America Rule, Guidance for Infrastructure Projects
- Treasury Interim Rule Allows Fiscal Recovery Fund Use for Disasters, Community Development
- HUD Announces $73 Million to Aid Veterans Experiencing Homelessness
- HUD Awards Nearly $140 Million to Protect Families from Lead, Other Home Health and Safety Hazards
- HUD Report Shows More Renters Are Experiencing Worst-Case Housing Needs
- Looking Ahead
NCSHA Comments on FHFA Pricing Framework for Fannie Mae, Freddie Mac
In an August 14 letter responding to the Federal Housing Finance Agency’s May 15 request for input on Fannie Mae and Freddie Mac’s framework for pricing single-family mortgages, NCSHA urged FHFA to balance the need for the government-sponsored enterprises (GSEs) to maintain adequate capital with their public missions to support a liquid housing finance market, including for underserved markets. NCSHA asked FHFA to continue to exempt loans originated through the GSEs’ HFA-specific products, as well as other loans for low- and moderate-income home buyers, from upfront mortgage fees and to enact any future changes to the single-family pricing framework through an open process to increase transparency and give the market time to adjust.
ACTION Partners with Local Leaders’ Organizations to Rally Support for Housing Credit Legislation
The ACTION Campaign, led by NCSHA and Enterprise Community Partners, is partnering with the National League of Cities, National Association of Counties, and Mayors & CEOs for U.S. Housing Investment to spearhead a sign-on letter from mayors, county executives, and elected county board chairs calling on Congress to pass the Affordable Housing Credit Improvement Act (AHCIA, S. 1557 / H.R. 3238). Please urge your local leaders to sign onto the letter by September 7. A strong bipartisan showing will further the case for expanding and strengthening the Housing Credit through the AHCIA.
OMB Issues Final Buy America Rule, Guidance for Infrastructure Projects
On August 14, the Office of Management and Budget (OMB) published final implementation guidance on the Infrastructure Investment and Jobs Act’s statutory requirements on domestic sourcing for manufactured products, construction materials, and iron and steel used in federally funded infrastructure projects, or so-called Build America Buy America (BABA) requirements. Among the information in the guidance, in response to comments from NCSHA and others requesting broad exemptions from BABA requirements for affordable housing construction, OMB stated:
“Projects consisting solely of the purchase, construction, or improvement of a private home for personal use, for example, would not constitute an infrastructure project. Federal agencies will have more specific information on how BABA applies to their specific programs. OMB also notes that HUD and USDA have issued certain general applicability waivers, which may apply to some of the relevant housing projects. Recipients may consider requesting waivers from Federal agencies for evaluation by the relevant Federal agency under the waiver process in section 184.7 of the guidance.”
HUD currently has waivers in place through August 23, 2024, for the HOME Investment Partnerships, Housing Trust Fund, and other affordable housing programs. NCSHA will continue to advocate for HUD to exercise its waiver authority where appropriate and advise HFAs as to their obligations under BABA as implementation continues.
Treasury Interim Rule Allows Fiscal Recovery Fund Use for Disasters, Community Development
According to an interim final rule the U.S. Department of the Treasury released earlier this month, Coronavirus State and Local Fiscal Recovery Funds (SLFRF) recipients may now use their SLFRF funds to respond to natural disasters, build critical infrastructure, and support community development. The interim final rule implements provisions enacted December 29, 2022, in the Consolidated Appropriations Act of 2023. The Treasury Department also published an executive summary to explain the interim final rule. Treasury is seeking public feedback on all aspects of the rule. Comments are due 60 days after it is published in the Federal Register, which we expect soon. Please send any feedback to Garth Rieman by October 6 to inform NCSHA’s comments.
The SLFRF Program, established by the American Rescue Plan, delivers $350 billion to state, local, territorial, and tribal governments to support their response to and recovery from the Covid-19 public health emergency.
HUD Announces $73 Million to Aid Veterans Experiencing Homelessness
Last week, the U.S. Department of Housing and Urban Development announced the FY 2023 HUD-Veterans Affairs Supportive Housing (VASH) Summer Registration of Interest. HUD estimates the $73 million available will support approximately 7,500 new HUD-VASH vouchers. The HUD-VASH program combines HUD’s Housing Choice Voucher program with case management and clinical services provided by the Department of Veterans Affairs. Applications for this round of funding will be accepted through September 15.
HUD Awards Nearly $140 Million to Protect Families from Lead, Other Home Health and Safety Hazards
HUD announced last week the 36 state and local government agencies selected to receive nearly $140 million in grant funding through its Lead-Based Paint Hazard Reduction, Lead Hazard Reduction Capacity Building, and Healthy Homes Supplemental programs. HUD anticipates these grants will help control significant lead and other health hazards in more than 3,400 low-income homes that otherwise would have gone untreated. Many grant recipients are city- and county-level agencies; however, MaineHousing received an award totaling $5.7 million to assist residents. Read summaries of the grantees’ projects here.
HUD Report Shows More Renters Are Experiencing Worst-Case Housing Needs
On August 21, HUD released its “Worst Case Housing Needs: 2023 Report to Congress.” The report found the number of households with worst-case housing needs hit a record high in 2021. The report defines households with ‘worst-case housing needs’ as those with incomes at or below 50 percent of the area median income who receive no government housing assistance and pay more than half of their income toward rent, live in severely inadequate conditions, or both. According to the report, 8.53 million households had worst-case housing needs in 2021, even higher than the previous record of 8.48 million in 2011. Additionally, the report found that, since 2019, worst-case housing needs increased across demographic groups, household types, and regions throughout the United States. Read the executive summary and download the report here.
Legislative and Regulatory Activities
- September 22 | Comments Due to NCSHA | EPA Proposed Rule on Reconsideration of the Dust-Lead Hazard Standards and Post-Abatement Clearance Levels
- September 26 | Application Deadline | Solar for All Notice of Funding Opportunity
- September 29 | Comments Due | Council on Environmental Quality Proposed Rule on National Environmental Policy Act Implementing Regulations Revisions Phase 2
- September 29 | Comments Due | HUD Proposed Rule on Modernization of Engagement with Mortgagors in Default
NCSHA, State HFA, and Industry Events
- September 6 – 8 | Housing Iowa Conference | Cedar Rapids, IA
Stockton Williams is speaking at this event. - September 18 | Discounted Early Registration Deadline | NCSHA’s 2023 Annual Conference & Showplace | Boston
- September 24 – 26 | Louisiana Housing Conference | Baton Rouge, LA
Stockton Williams is speaking at this event.
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