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NCSHA Washington Report | January 10, 2025

Published on January 10, 2025

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Campaigning for president in 1976, Jimmy Carter proposed significant new federal investments in home building both “to solve the physical problems confronting our cities” and “put back to work hundreds of thousands of unemployed construction workers,” including direct subsidies and low-cost loans for development and “greater effort to direct mortgage money into the financing of private housing.”

After the campaign, President-elect Carter’s transition team considered a major initiative to stimulate apartment construction, but it gave way to other ideas the new administration embraced to spur a slowing economy upon taking office in 1977. Later that year, “a major battle erupted” between Carter’s White House budget office, which wanted to eliminate existing HUD programs and channel the savings into welfare reform, and his HUD Secretary, Patricia Harris, who sought to “push the housing production pedal to the floor.”

By the time of Carter’s “proposed comprehensive national urban policy” in 1978, housing had receded as a presidential priority, with a narrower focus on “conservation” of existing properties through a proposed doubling of a small HUD program and little in the way of stimulus for new building. Nevertheless, “existing housing programs reached high levels of production” during Carter’s administration, and he was able to sign into law in 1980 an expansion of HUD-subsidized apartment and public housing construction.

But by then, the impact of the country’s broader economic challenges — characterized by Time as “inflation and interest rates, both topping 18%, [that] are so far beyond anything that Americans have experienced in peacetime…as to inspire a contagion of fear” — was so hard on the housing market that only a much more aggressive federal response might have made a difference. In fact, the Carter Administration opposed more substantial interventions suggested then in Congress and instead pushed through spending cuts in the final year of its term.

It was after he left the White House that Jimmy Carter became a force for the importance of a decent place to live, on a global stage. He is said to have personally built or repaired through Habitat for Humanity International upwards of 4,500 homes in 14 countries — astounding figures to contemplate, yet surely tiny compared to the broader impact his and his wife Rosalynn’s sweat equity yielded in raising awareness around the world and inspiring countless others to follow their example.

Carter, who reportedly handed a signed Bible to families he built a home for, seemed to sum up his motivations in a 2018 interview, saying:

I think the main thing is for everybody to realize [we should] treat our neighbors the same way as we treat ourselves. For all of us who have a decent home, we need to realize there are many people around us who don’t…It kind of tears the whole structure of our family down. And when you tear the structure of family down, you make that person dependent on government.

That way of thinking defies a neat political categorization, especially in today’s terms, and in substance calls on human impulses beyond politics. Which is probably the point.

Stockton-Williams-Washington-ReportStockton Williams | Executive Director

Washington Report will return January 24.

In This Issue

Louisiana Housing Corporation, Ohio HFA Appoint Executive Directors
The Board of Directors of the Louisiana Housing Corporation has named Kevin J. Delahoussaye as executive director. Delahoussaye brings 28 years of commercial banking experience to his new role.

Bill Beagle has been selected as executive director by the Ohio Housing Finance Agency Board. Previously, Beagle served as the senior director of policy and program administration for the Ohio Treasurer of State and eight years in the Ohio Senate.

HUD Publishes Final HOME Rule Containing Significant Program Changes
On January 6, the U.S. Department of Housing and Urban Development (HUD) published a final rule with a number of changes for the HOME Investment Partnerships program. The final HOME rule represents the most significant regulatory update to the HOME program since the 2013 HOME rule. The final rule modifies a number of HOME program requirements and is intended to streamline administration to better align the program with other federal housing programs, including the Housing Credit and other HUD programs. The final rule includes numerous changes and updates proposed by NCSHA — as an individual organization and in its capacity as chair of the HOME Coalition — over the years and directly in response to the proposed rule HUD promulgated in 2024. Read more about the new rule in NCSHA’s blog here.

House Democrats and Republicans Announce New Committee Members
The House Democratic Steering and Policy Committee has announced new committee members for the 119th Congress. Republicans named their new committee members in December. New additions to the committees most important to affordable housing are as follows:

  • The Appropriations Committee, with jurisdiction over spending, including for HUD and U.S. Department of Agriculture housing programs: Representatives Mark Alford (R-MO), Nick LaLota (R-NY), Celeste Maloy (R-UT), Riley Moore (R-WV), Dale Strong (R-AL), Jim Clyburn (D-SC), Madeleine Dean (D-PA), Veronica Escobar (D-TX), Glenn Ivey (D-MD), Mike Levin (D-CA), Frank Mrvan (D-IN), and Marie Gluesenkamp Perez (D-WA). The committee chair and ranking member will remain Representatives Tom Cole (R-OK) and Rosa DeLauro (D-CT), respectively.
  • The Financial Services Committee, with jurisdiction over authorization and other policies impacting HUD programs and financial institutions: Representatives Troy Downing (R-MT), Mike Haridopolos (R-FL), Lisa McClain (R-MO), Tim Moore (R-NC), Maria Salazar (R-FL), Marlin Stutzman (R-IN), Janelle Bynum (D-OR), Cleo Fields (D-LA), and Sam Liccardo (D-CA). Representative French Hill (R-AR) has assumed the chairmanship, while Representative Maxine Waters (D-CA) will remain the committee’s lead Democrat.
  • The Ways and Means Committee, with jurisdiction over tax-related issues, including the Low-Income Housing Tax Credit and tax-exempt Housing Bonds: Representatives Aaron Bean (R-FL), Max Miller (R-OH), Nathaniel Moran (R-TX), Rudy Yakym (R-IN), Brendan Boyle (D-PA), and Tom Suozzi (D-NY) and Delegate Stacy Plaskett (D-USVI). Leadership of the committee — with Representative Jason Smith (R-MO) as chair and Representative Richard Neal (D-MA) as ranking member — remains unchanged from the previous Congress.

Senate Leaders Announce New Committee Members
Senate Majority Leader John Thune (R-SD) and Minority Leader Chuck Schumer (D-NY) separately announced their respective party’s rosters for committee membership in the 119th Congress. New members of the committees most critical to affordable housing are as follows:

  • The Appropriations Committee, with jurisdiction over spending, including for HUD and USDA housing programs: Joining the committee are Senators Markwayne Mullin (R-OK), Mike Rounds (R-SD), Kirsten Gillibrand (D-NY), and Jon Ossoff (D-GA). With Republicans taking the majority in the Senate, Senator Susan Collins (R-ME), previously ranking member, will chair the committee, while Senator Patty Murray (D-WA), previously chair, becomes ranking member.
  • The Banking Committee, with jurisdiction over authorization and other policies impacting HUD programs: Joining the committee are Senators Jim Banks (R-IN), Dave McCormick (R-PA), Bernie Moreno (R-OH), Pete Ricketts (R-NE), Angela Alsobrooks (D-MD), Ruben Gallego (D-AZ), Andy Kim (D-NJ), and Lisa Blunt Rochester (D-DE). Senator Tim Scott (R-SC), previously ranking member, becomes chair, and Senator Elizabeth Warren (D-MA) replaces former Senator Sherrod Brown (D-OH) as the committee’s lead Democrat.
  • The Finance Committee, with jurisdiction over tax-related issues, including the Low-Income Housing Tax Credit and tax-exempt Housing Bonds: Joining the committee are Senators Roger Marshall (R-KS), Ben Ray Lujan (D-NM), Bernie Sanders (I-VT), Tina Smith (D-MN), Raphael Warnock (D-GA), and Peter Welch (D-VT). Senator Mike Crapo (R-ID), previously the ranking member, becomes chair, and Senator Ron Wyden (D-OR), previously chair, becomes the ranking member.

Flood to Head House Housing Subcommittee
New House Financial Services Committee Chair French Hill (R-AR) yesterday announced new subcommittee chairs for this Congress. Representative Mike Flood (R-NE) is the new chair of the Housing and Insurance Subcommittee. Flood demonstrated strong interest in housing issues last Congress, introducing legislation to fund home repairs for low- and moderate-income homeowners, require HUD to develop frameworks for best practices in zoning and land use, and encourage local governments to cut burdensome zoning regulations. Flood takes over the gavel from Representative Warren Davidson (R-OH), who will now chair the Subcommittee on National Security, Illicit Finance, and International Financial Institutions. Other subcommittee chairs are Andy Barr (R-KY) for Financial Institutions; Dan Meuser (R-PA) for Oversight and Investigations; Bryan Steil (R-WI) for Digital Assets, Financial Technology and Artificial Intelligence; and Ann Wagner (R-MO) for Capital Markets. Representative Bill Huizenga (R-MI) will serve as committee vice chair.

Britt Expected to Chair Senate Housing Subcommittee
Senate Banking Committee Chair Tim Scott (R-SC) intends to nominate Senator Katie Britt (R-AL) to serve as chair of the committee’s Housing and Transportation Subcommittee, according to media reports. Also serving on the subcommittee will be Senators Kevin Cramer (R-ND), Mike Crapo (R-ID), David McCormick (R-PA), Bernie Moreno (R-OH), and Mike Rounds (R-SD). Britt will take over for Senator Cynthia Lummis (R-WY), who is expected to chair a new subcommittee focused on digital assets. Other subcommittee chairs will include Bill Hagerty (R-TN) for National Security, Thom Tillis (R-NC) for Financial Institutions, John Kennedy (R-LA) for Economic Policy, and Rounds for Security and Insurance.

Thompson to Step Down as FHFA Head
Federal Housing Finance Agency (FHFA) Director Sandra Thompson will resign January 19, the agency said Wednesday. Thompson has led FHFA for nearly 3.5 years. She first served as acting director in June 2021 after Mark Calabria stepped down. She was later confirmed as director by the Senate in March 2022. As director, Thompson pushed the government-sponsored enterprises Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to expand their support for affordable housing and equitable housing finance. In total, Thompson has worked nearly 25 years at FHFA. It was expected that President-elect Donald Trump would remove Thompson from her position soon after being sworn in on January 20. Trump has not yet announced his nominee to head FHFA.

NCSHA thanks Thompson for her service, partnership, and strong commitment to affordable housing.

HUD Awards $226 Million to Help Address Home Health Hazards
On January 3, HUD announced more than $226 million in funding, awarded through four programs, to protect children and families from housing-related hazards. Under the Older Adults Home Modification Program, 67 state and local governments and nonprofit organizations, including the Indiana Housing and Community Development Authority, were awarded more than $109 million to modify the housing of senior renters and homeowners to enable them to remain in their homes. Fifty-two state and local governments and nonprofit organizations, including the Indiana Housing and Community Development Authority, Maryland Department of Housing and Community Development, and MaineHousing, were selected to receive more than $93 million through the Healthy Homes Production grant program. These funds will be used to address homes with multiple home health hazards. More than $12 million has been awarded to two local government agencies under the Lead Hazard Reduction program to protect their communities from lead poisoning. An additional $9 million has been awarded to nine research organizations through the Healthy Homes Technical Studies grant program to further understanding of the long-term effects of home health hazard interventions. Read more about the grantees and their project summaries here.

HFAs, PHAs, Property Owners Receive Family Self-Sufficiency Awards
On Monday, HUD announced more than $140 million in grant awards through the Family Self-Sufficiency (FSS) Program. The FSS funding was awarded to 836 existing grantees, including eight HFAs: Alaska Housing Finance Corporation, Idaho Housing and Finance Association, Kentucky Housing Corporation, MaineHousing, Michigan State Housing Development Authority, New Hampshire Housing Finance Authority, Rhode Island Housing, and Tennessee Housing Development Agency. The HFAs, public housing agencies, and multifamily property owners selected to receive FSS awards will use the funds to support the salaries of 1,537 service coordinator positions. FSS program coordinators connect residents utilizing public housing assistance to comprehensive support services such as job training, financial literacy education, and health and wellness programs with the aim of helping the residents achieve economic independence and self-sufficiency. Read more about the organizations selected to receive FSS grants here.

USDA Rule Expands Manufactured Home Financing
On January 3, USDA published a final rule amending the Section 502 Single-Family Direct and Guaranteed Loan programs to make some existing manufactured homes eligible for Section 502 financing. Current regulations allow USDA to finance only new manufactured homes, existing manufactured homes on sites already financed with Section 502 loans, and USDA real estate-owned manufactured home property. The final rule, which goes into effect March 4, will enable USDA to finance existing manufactured homes built in conformance with the Federal Manufactured Home Construction and Safety Standards, on or after a date determined by USDA.

HOTMA Compliance Deadline for CPD Programs Extended
On December 30, HUD published guidance to extend the compliance date of the Housing Opportunity Through Modernization Act (HOTMA) final rule until January 1, 2026, for all Community Planning and Development programs, including the HOME Investment Partnerships program. The Federal Register notice extends the compliance deadline for HOTMA but allows grantees ready to comply to set an earlier compliance date between January 1, 2024, and January 1, 2026. In addition, HUD is allowing the implementation of certain income safe harbors established in the HOTMA final rule prior to the HOTMA compliance date.

HUD Requests Feedback on Housing Resiliency Measures and Insurance Costs
On December 30, HUD published a request for information (RFI) in the Federal Register relating to property resiliency measures and insurance coverage. This RFI follows an insurance summit convened by HUD in July, which highlighted the need to increase property resilience to natural hazards and to clarify the relationship between resiliency measures and costs to property owners, including the cost of insurance. Through this RFI, HUD seeks public input regarding how best to assess measures to increase resiliency of residential properties to natural hazards and extreme weather. This information will allow HUD to develop policies that better support its program participants in increasing resiliency and accessing affordable insurance for their properties. Comments are due February 28. To inform NCSHA’s comments, please provide feedback to Jim Tassos by February 14.

FHFA, Treasury Announce Agreement for Treasury Veto Over Possible GSE Privatization
On January 2, the Federal Housing Finance Agency and U.S. Treasury Department announced they had reached an agreement to give Treasury the authority to block any proposal to remove Fannie Mae or Freddie Mac from conservatorship. Specifically, the agreement amends the Preferred Stock Purchase Agreements (PSPAs) between Treasury and each GSE that govern the terms of the federal government’s stake in each firm. The new change to the agreements restores a provision initially included in the PSPAs when they were first established in 2008 and suspended in 2021. Treasury and FHFA also released a side letter agreement requiring that FHFA seek public input and report its findings to the Financial Stability Oversight Council before requesting permission from Treasury to remove one or both of the GSEs from conservatorship. In the statement announcing the agreement, FHFA Director Sandra Thompson said the new process would help maintain market certainty and minimize disruptions when the GSEs exit conservatorship.

Homelessness Increased 18 Percent from 2023 to 2024, HUD Finds
The number of people experiencing homelessness increased by 18 percent from January 2023 to January 2024, according to HUD’s Annual Homelessness Assessment Report released December 27. The report says more than 770,000 people were living in shelters or outside on a single night in January 2024, the largest number since the report’s inception in 2007. Much of the increase can be attributed to a lack of affordable housing, according to Jeff Olivet, formerly executive director of the U.S. Interagency Council on Homelessness, who said, “We simply don’t have enough homes that people can afford.” Some of the increase was also due to increasing numbers of migrants and asylum seekers.

Biden Administration Announces New Efforts to Address Homelessness
The Biden Administration has announced a number of new or recent efforts to address homelessness, including a recently finalized joint rule among the General Services Administration, Department of Health and Human Services, and HUD intended to streamline the repurposing of unused federal properties to address homelessness, as well as the award of approximately $40 million in additional funding through the HUD-Veterans Affairs Supportive Housing program.

Looking Ahead

Legislative and Regulatory Activities

NCSHA, State HFA, and Industry Events

  • January 12 – 17 | NCSHA’s HFA Institute 2025 | Washington, DC
  • January 29 – 30 | Affordable Housing Tax Credit Coalition’s 2025 Annual Meeting | Newport Beach, CA
    Jennifer Schwartz will speak at this event.
  • February 11 | National Housing Conference: “Federal Home Loan Banks: Shaping the Future of Affordable Housing and Community Investment” | Washington, DC, and Virtual
    Stockton Williams will speak at this event.
  • March 10 – 12 | NCSHA’s 2025 Legislative Conference | Washington, DC

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