NCSHA Washington Report | August 27, 2021
This week, the Treasury Department announced new flexibilities for state and local governments administering federal Emergency Rental Assistance (ERA) funds, and the House passed a budget resolution that sets the stage for congressional consideration of hundreds of billions of dollars in new funding for housing this fall. Both bore the influence of state HFA advocacy, and you can read more about each below.
Somewhere in between the former flows of funds states are already directing and the latter wave that could be coming soon is a “sleeper” source that in almost any other period in time would be headline news itself.
It’s the huge housing opportunity in the Coronavirus State and Local Fiscal Recovery Funds Program. That’s the $350 billion in broad-based state and local aid that was part of the American Recovery Plan passed in the spring. The Treasury Department’s rules for the program explicitly allow jurisdictions to use funds for a wide range of housing assistance, among many other uses.
According to NCSHA’s analysis, as much as $6.5 billion and possibly more in recovery funds have been committed or proposed by governors, state legislatures, and state HFAs for housing in 14 states and the District of Columbia so far. North Carolina Governor Roy Cooper wants to use $575 million for housing development, rehabilitation, and down payment assistance in his state. Colorado has approved $550 million for programs focusing on housing instability and homelessness.
Last month, NCSHA made several recommendations to improve the Treasury Department’s interim program rules. We urged Treasury to give states flexibility in the targeting and structuring of recovery funds for housing so they can do the most good. The National Low Income Housing Coalition, Stewards of Affordable Housing for the Future, and others expressed similar views.
Vermont HFA Executive Director Maura Collins, whose state has approved $94 million in recovery funds for deeply targeted housing, has alerted us that Treasury’s proposed guidelines may inadvertently prevent the funds from supporting Housing Credit-financed developments now stalled because of higher costs caused by the pandemic — precisely the type of use we’d argue Congress intended for the program.
Novogradac’s Mark Shelburne, observing “the dramatic rise in the cost of lumber and other construction materials,” points out that “[d]evelopments with low-income housing tax credits (LIHTCs) have the added challenge of a limited ability to increase sources, causing many to face difficult or insurmountable gaps.” A few adjustments to Treasury’s rules for recovery funds could fill them.
This week, Senator Sanders, Senator Leahy, and Representative Welch from Vermont called on Treasury Secretary Yellen to address the issue, writing, “We are concerned that the guidelines lack the clarity necessary to ensure this ongoing investment of [recovery] Funds in much-needed quality, perpetually-affordable housing.” We agree and look forward to working with Treasury to fix.
Stockton Williams | Executive Director
Washington Report will return on September 10.
State HFA Emergency Housing Assistance
In This Issue
- NCSHA Welcomes New Members
- Supreme Court Strikes Down Eviction Moratorium
- New Treasury ERA Program Guidance Includes NCSHA Recommendations
- NCSHA Asks Congress to Include Affordable Housing Priorities in Reconciliation Bill
- NCSHA, Other Health and Housing Advocates Push for FY 2022 Voucher Funding
- House Passes Budget Resolution Setting the Stage for Reconciliation and Bipartisan Infrastructure Legislation
- House Members Urge Leadership to Include Housing Credit in Reconciliation Bill
- HUD Provides Nearly $95 Million in Grant Funding to Remove Lead, Other Health Hazards for Low-Income Families
- NCSHA in the News
- Looking Ahead
NCSHA Welcomes New Members
These organizations have joined NCSHA as affiliate members since June: BC Davenport, LLC; Black Knight, Inc.; BlueVector AI, LLC; Collier County, FL; CMS/Bremerton Housing Authority; Gate House Strategies LLC; Merchants Capital; NCRC Community Development Fund, Inc.; Neighborly Software; Polygon Research, Inc.; Vector 6 Consulting LLC. If you work with a partner interested in joining NCSHA, please contact Phaedra Stoger.
Supreme Court Strikes Down Eviction Moratorium
Late yesterday, the U.S. Supreme Court issued an opinion blocking the new Centers for Disease Control and Prevention (CDC) eviction moratorium that went into effect on August 3; the previous CDC moratorium ended July 31. The moratorium was intended to last through October 3. The opinion states, “It is indisputable that the public has a strong interest in combating the spread of the COVID-19 Delta variant. But our system does not permit agencies to act unlawfully even in pursuit of desirable ends… It is up to Congress, not the CDC to decide whether the public interest merits further action here… If a federally imposed eviction moratorium is to continue, Congress must specifically authorize it.”
New Treasury ERA Program Guidance Includes NCSHA Recommendations
The Treasury Department on August 25 issued updated Frequently Asked Questions guidance on the Emergency Rental Assistance (ERA) program, adopting many of the recommendations NCSHA has been pursuing since last spring. The FAQ enhancements are intended to help grantees streamline program administration and accelerate the utilization of ERA resources to help more households pay rent and utilities. Major changes NCSHA has been seeking that Treasury included are greater clarity and flexibility on using applicant self-attestation in lieu of documentation for eligibility purposes and new rules making it easier to make bulk payments to larger landlords and utility providers on behalf of multiple renter households at once. NCSHA issued a statement commending Treasury for the changes in its guidance. Treasury also released data (available on Treasury’s ERA website) on spending rates in July, showing state and local grantees distributed nearly $1.7 billion to 340,000 households last month. For more information, see NCSHA’s blog.
NCSHA Asks Congress to Include Affordable Housing Priorities in Reconciliation Bill
This week, NCSHA sent letters to House and Senate leadership and the leadership of the Senate Banking and House Financial Services committees and Senate Finance and House Ways and Means committees laying out NCSHA’s affordable housing priorities, which we urged Congress to include in the reconciliation legislation Democrats will work to pass this fall. NCSHA’s priorities include various enhancements to the Housing Credit, creation of a new Neighborhood Homes Credit for owner-occupied housing, funding increases for the HOME and Housing Trust Fund programs, and investments in down payment assistance. For more information, see NCSHA’s blog.
NCSHA, Other Health and Housing Advocates Push for FY 2022 Voucher Funding
NCSHA and 34 other national housing and healthcare advocacy groups sent a letter this week to Senate Appropriations Committee leaders urging them to include funding levels as close as possible to the amount President Biden requested for the Housing Choice Voucher program in their fiscal year 2022 Transportation, Housing, and Urban Development spending bill. The letter specifically requests adequate funding for additional vouchers, administrative costs, and mobility services.
House Passes Budget Resolution Setting the Stage for Reconciliation and Bipartisan Infrastructure Legislation
The U.S. House of Representatives Tuesday advanced the fiscal year 2022 Budget Resolution. This legislation would authorize $3.5 trillion in new federal spending for a variety of purposes, including affordable housing. The Budget Resolution includes specific instructions, known as reconciliation instructions, directing nearly every congressional committee to advance legislation by September 15 that will authorize new amounts of federal spending and, in some cases, achieve savings to offset spending increases. Bills advanced under the reconciliation process can pass the Senate via simple majority and cannot be filibustered. Congressional Democrats and the Biden Administration hope to use the reconciliation bill to address priorities they were unable to include in the bipartisan infrastructure bill currently being considered in Congress. A memorandum released by Senate Majority Leader Charles Schumer when the resolution was first introduced calls for increased spending on some federal housing programs, including HOME, the Housing Trust Fund, down payment assistance, and housing tax incentives, to be included among the investments. NCSHA summarized the House vote on the Budget Resolution in more detail in our blog.
House Members Urge Leadership to Include Housing Credit in Reconciliation Bill
On April 25, 111 Democrats in the House of Representatives sent House Speaker Nancy Pelosi (D-CA) and House Minority Leader Kevin McCarthy (R-CA) a letter urging them to include the Affordable Housing Credit Improvement Act (H.R. 2573) in the reconciliation package Congress will consider when members return to Washington in September. Housing Credit champions Suzan DelBene (D-VA) and Don Beyer (D-VA) led the effort.
HUD Provides Nearly $95 Million in Grant Funding to Remove Lead, Other Health Hazards for Low-Income Families
HUD on Wednesday announced a new round of grant funding for 28 state and local government agencies to identify and rectify lead and other health and safety hazards in low-income families’ homes. The nearly $95 million, disbursed through a combination of the Lead Based Paint Hazard Reduction Grant and the Healthy Home Supplemental Funding programs, will be used in 19 states to aid an estimated 3,700 homes for which other resources are not available. A project-by-project summary of the programs receiving grants is available here.
NCSHA in the News
Politico, 8.25.21, Rental aid holdup threatens eviction catastrophe
Pasadena Now, 8.19.21, Chu Urges Tenants and Landlords to Apply for Rent Relief as Soon as Possible
North Dallas Gazette, 8.19.21, Despite CDC short-term rental eviction reprieve, no permanent solution found
Legislative and Regulatory Activities
- September 9 – 10, 13 – 14 | House Ways and Means Committee Markup of Reconciliation Legislation
- September 13 | House Financial Services Committee Markup of Reconciliation Legislation
- October 11 | Comments Due to NCSHA | FHFA Proposed Affordable Housing Goals for Fannie Mae and Freddie Mac
- October 25 | Comments Due | FHFA Proposed Affordable Housing Goals for Fannie Mae and Freddie Mac
- November 16 | Application Deadline | FR-6500-N-25, Notice of Funding Opportunity FY 2021 Continuum of Care Competition
NCSHA, State HFA, and Industry Events
- August 30 | EXTENDED Entry Deadline | ACTION Campaign Housing Credit Video Contest
- September 1 | Special Purpose Credit Programs ‒ A Virtual Forum
- September 1 – 2 | WHEDA Conference 2021 | Virtual
- September 7 – 8 | 2021 HousingIowa Conference | Cedar Rapids, IA
Stockton Williams will speak at this event. - September 20 – October 8 | Up for Growth 2021 Virtual Summit for Housing Changemakers | Virtual
- September 21 | #HousingDC21 | Virtual
Stockton Williams and Garth Rieman will speak at this event. - September 23 | Affordable Housing Tax Credit Coalition 2021 Fall Meeting | Washington, DC
Jennifer Schwartz will speak at this event. - September 26 – 28 | NCSHA’s 50th Annual Conference
- October 4 ‒ 6 | The 28th Annual Washington State Affordable Housing Conference | Virtual
Garth Rieman will speak at this event. - October 20 – 21 | 2021 Maine Affordable Housing Conference | Virtual
Stockton Williams will speak at this event.
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