NCSHA Washington Report | January 21, 2022
As Democrats in Washington weigh their options for trying to pass some of President Biden’s Build Back Better program this year, proponents of the historic housing investments in the version the House passed in 2020 have to address inflation.
A credible argument can be made that the gradual pace of the plan’s housing spend-out over 10 years should take the concern off the table. Last August, when inflation seemed to be easing and the White House was confident it would pass its whole domestic enchilada, its economists even said the “infrastructure and Build Back Better plans are designed to be long-term packages.”
There’s also a case that BBB’s housing proposals would help reduce price pressures, eventually. Virginia Democrat Don Beyer, who chairs Congress’ Joint Economic Committee, argues: “With more choices about where to live, workers can seek out jobs that better fit their skills and needs, which leads to higher productivity and lowers costs across the economy, not just in a booming housing sector.”
Then there’s the Fed. With several rate increases expected this year, the bank will remain focused on inflation overall and on a sectoral basis. Fed Chair Jerome Powell said last month, “We understand that high inflation imposes significant burdens, especially on those less able to meet the higher costs of essentials like food, housing, and transportation.”
A complete case for BBB’s housing section should also square up to a critique that could apply to other planks in the platform too: that the progressive preference for more federal investment isn’t always aimed at reducing costs. Progressive columnist Ezra Klein concedes:
This is the driving theory of most of the progressive policy agenda, most of the time: give people money or a money-like voucher they can use to buy something they need or even just want…But progressives are often uninterested in the creation of the goods and services they want everyone to have. This creates a problem and misses an opportunity.
In fact, several of the BBB’s signature housing proposals epitomize the opportunity Klein sees in a new “supply-side progressivism.” The expansion of the Housing Credit, HOME, and Housing Trust Fund; creation of a Neighborhood Homes Tax Credit; and infusion of capital funding for public housing all address directly a primary cause of high housing costs: the historic shortage of homes and apartments.
Importantly, a lot of funding from these programs would support the repair and renovation of all kinds of existing housing. This would cut costs for home energy, save considerably on inefficient maintenance expenditures, and help cool demand for major appliances. Rents wouldn’t rise much as a result of the improvements either, due to various statutory controls in the programs.
And while it’s true BBB-funded new housing projects would have to pay up in the short term for the supply chain disruptions and labor and materials shortages that are exacerbating residential-sector inflation, those costs have to be paid at some point. Otherwise, the housing shortage, and higher housing costs, will only get worse.
Stockton Williams | Executive Director
State HFA Emergency Housing Assistance
In This Issue
- Bell Named Acting Director of Oregon Housing and Community Services
- Heckles Appointed HUD Regional Administrator
- Appropriators Report Progress in Discussions on FY 2022 Government Funding Bill
- Talks to Resume on Build Back Better
- Senate Banking Committee Advances Several HUD Nominees
- HUD Provides Disaster Recovery, Loss Mitigation Funds to Several States and Territories
- NCSHA’s Schwartz to Receive NAHMA Industry Partner Award
- NCSHA in the News
- Looking Ahead
Bell Named Acting Director of Oregon Housing and Community Services
Governor Kate Brown has named Andrea Bell acting director of Oregon Housing and Community Services (OHCS), effective in February. Bell joined OHCS in April 2019 as the assistant director for homeless services and became the director of housing stabilization in 2020. Previously, she was a housing administrator for Medicaid health plan Mercy Care.
Heckles Appointed HUD Regional Administrator
Yesterday, President Biden appointed Maryland Department of Housing and Community Development Assistant Secretary and Community Development Administration Director Matthew Heckles to serve as the HUD Administrator for Region 3, covering Delaware, Maryland, Pennsylvania, Virginia, West Virginia, and Washington, DC. Before joining DHCD in 2016, Heckles worked in a variety of positions at the Delaware State Housing Authority. We look forward to working with Matt in his new role.
Appropriators Report Progress in Discussions on FY 2022 Government Funding Bill
House and Senate Appropriations Committee chairs and ranking members have been holding what they have described as constructive meetings to discuss the completion of FY 2022 appropriations bills. A continuing resolution (CR) is in effect until February 18. Congress must either approve final FY 2022 appropriations bills or pass another CR by then to avoid a government shutdown.
The meetings are a sign of progress, though disagreements remain on the percentage increase in non-defense discretionary spending versus defense spending and the inclusion of certain policy language. If negotiators cannot reach agreement, it is likely Congress would pursue a short-term CR through March to provide more time for negotiation. Multiple or lengthy CRs have severe impacts on affordable housing and community development programs and the people they serve. NCSHA and our allies are urging Congress to enact FY 2022 appropriations bills as soon as possible.
Talks to Resume on Build Back Better
After a month-long hiatus, congressional Democrats and the White House are returning their attention to the Build Back Better Act to consider how to rework the bill so that all 50 Democrats can support it. Last month, Senator Joe Manchin (D-WV) announced he would not vote for the Build Back Better Act as it was envisioned at that time, leaving the legislation in limbo. The bill, which is moving under the budget reconciliation process so it would not be subject to Senate filibuster, needs every Democrat’s support given the Senate’s even party split. Manchin specifically objected to the Child Tax Credit as it had been drafted and other provisions in the bill but also expressed concern about total cost and the impact additional spending could have on inflation.
President Biden and House Speaker Nancy Pelosi (D-CA) both suggested this week that Democrats would need to scale back the bill to a less ambitious set of provisions to enact any. As leaders in Congress and the White House renegotiate the legislation’s scope, housing advocates must communicate to Congress that affordable housing, in particular provisions to expand and strengthen the Housing Credit and fund HOME, down payment assistance, and other housing programs, remain in the bill. While the president has suggested the bill could be split up into multiple bills that Congress might pass more easily, only one will retain reconciliation status, so others would be subject to a difficult-to-overcome 60-vote threshold in the Senate.
Senate Banking Committee Advances Several HUD Nominees
The Senate Banking Committee Wednesday voted to advance the nominations of Julia Gordon to serve as Assistant Secretary of Housing and Federal Housing Commissioner, David Uejio to serve as Assistant Secretary for Fair Housing and Equal Opportunity, Arthur Jemison as Assistant Secretary for Public and Indian Housing, Solomon Greene as Assistant Secretary for Policy Development and Research, and Elizabeth de Leon Bhargava as Assistant Secretary for Administration. Gordon, Uejio, Jemsion, and Greene each advanced on tied party-line votes (under current Senate rules, a tie vote in committee advances the nomination). De Leon Bhargava advanced by voice vote. All these nominees were initially cleared by the Banking Committee last year but had to be resubmitted after the full Senate failed to consider their nominations before the end of 2021. NCSHA has expressed support for Gordon and Greene’s nominations.
The committee also reported favorably several other nominees, including Brian Michael Tomney to serve as inspector general of the Federal Housing Finance Agency, who advanced via voice vote. It is not yet known when the Senate will consider any of these nominees.
HUD Provides Disaster Recovery, Loss Mitigation Funds to Several States and Territories
Earlier this month, HUD announced allocations of Community Development Block Grant Mitigation (CDBG-MIT) and Community Development Block Grant Disaster Recovery (CDBG-DR) funds totaling more than $270 million to aid states’ and territories’ long-term disaster recovery and mitigation efforts. The funds were appropriated by the Additional Supplemental Appropriations for Disaster Relief Act of 2019 to be used by the states and territories “most impacted and distressed” by disasters that occurred during 2018 and 2019. The states and territories receiving funds through the two notices are Alaska, American Samoa, California, Florida, Georgia, Hawaii, the Northern Mariana Islands, Puerto Rico, Texas, South Carolina, and Wisconsin. Hawaii, the Northern Mariana Islands, and Texas were awarded funds through both announcements.
NCSHA’s Schwartz to Receive NAHMA Industry Partner Award
The National Affordable Housing Management Association (NAHMA) will bestow its 2021 Industry Partner Award on NCSHA’s Director of Tax and Housing Advocacy Jennifer Schwartz in recognition of her leadership and advocacy work on the Housing Credit and the Emergency Rental Assistance program over the last year. NAHMA gives the Industry Partner Award annually to a government agency or other affordable housing organizational partner who has made a significant contribution to the cause of affordable housing in the previous year. NAHMA will present the Industry Awards during its Biannual Top Issues in Affordable Housing Winter Conference in March.
NCSHA in the News
Inside Mortgage Finance, 1.20.22, Servicers Coordinating with States on Homeowner Assistance
WKRC, 1.15.22, Another stimulus check is unlikely, but here’s another way to receive financial aid
Legislative and Regulatory Activities
- February 25 | Comments Due | FHFA Proposed Rule on Fannie Mae and Freddie Mac Annual Capital Plans
NCSHA, State HFA, and Industry Events
- January 24 – 28 | NCSHA’s HFA Institute 2022 | Virtual
- January 26 – 27 | Affordable Housing Tax Credit Coalition 2022 Annual Meeting | Austin, TX
Jennifer Schwartz will speak at this event. - February 2 – 4 | National Community Development Association 2022 Winter Conference | Virtual
Jennifer Schwartz will speak at this event. - March 9 – 11 | National Affordable Housing Management Association’s Winter Conference | Washington, DC
Jennifer Schwartz will speak at this event. - March 14 – 16 | NCSHA’s 2022 Legislative Conference | Washington, DC
- March 24 – 25 | IPED Learn the Basics: Housing Tax Credits 101 | Boston, MA
Jennifer Schwartz will speak at this event.
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