NCSHA Washington Report | January 27, 2023
The disappointment expressed by both landlord groups and renter advocates at the Biden – Harris Administration’s announcement this week of new federal initiatives intended to “increase fairness in the rental market and further principles of fair housing” could create the impression that the administration’s approach represents a reasonable middle ground each should be able to live with.
Yet, the gulf between what advocates are demanding (including nationwide rent control) and industry is conceding (mostly voluntary actions and calls for development subsidies that would produce new units years in the future) seems so wide that the White House’s plans could bog down in advocacy battles of attrition resulting largely in stalemate, which nobody should want.
The apartment industry may feel under siege, facing the prospect of wide-ranging inquiries and potentially expansive new regulations from five federal agencies. Space for more constructive engagement could be created, perhaps, if the administration would be more specific about what it believes constitutes “egregious rent increases” and what are examples of firms “exploit[ing] market realities at the cost of renters’ housing access and stability.”
Yes, rents overall increased 17 percent between February 2021 and 2022, as the administration notes. But rent growth in “naturally occurring” affordable “Class C” apartments has been much slower and in subsidized affordable properties slower still. (Some state HFAs, including those in Pennsylvania and Wisconsin, are limiting them even more where they can.)
The Eviction Lab’s Matthew Desmond, whose groundbreaking work is the analytic foundation of much of the renter advocates’ agenda and the administration’s approach, makes an often-overlooked point: “Most landlords evict tenants rarely, if they ever do — even in neighborhoods that have high overall eviction rates. Yet, a small set of landlords displace large numbers of tenants, year after year.”
A more targeted federal renter protection effort could first hone in on where most of the problem seems clearly concentrated, rather than starting industrywide.
It would be worthwhile then to hear how many apartment companies have actually adopted that practice and others like it to support their renters’ housing stability. And whether industry leaders have actionable ideas about what they would be willing to do to reduce the large number of evictions that unconscionably occur for small amounts of back rent.
It’s also important that landlords, advocates, and agencies at every level of government not lose sight of the mounting risks of outright losses of rent-restricted affordable apartments from already insufficient supply.
While their preservation often requires physical improvements, and as a result typically is considered by policymakers to be part of the “supply problem,” keeping the current stock affordable, including through HFA policies to stop their premature removal from rent-restricted protections, is a quintessential “resident-centered management practice.”
Stockton Williams | Executive Director
State HFA Emergency Housing Assistance
In This Issue
- White House Announces Actions to Protect Renters, Promote Rental Affordability
- Treasury Awards $690 Million in Reallocated ERA Funds for Eviction Protection Activities
- HUD to Hold Briefings on Affirmatively Furthering Fair Housing Proposed Rule for Program Participants, Stakeholders
- NCSHA in the News
- Looking Ahead
White House Announces Actions to Protect Renters, Promote Rental Affordability
The White House announced Wednesday an initiative to protect tenants and make renting more affordable. The initiative includes a Blueprint for a Renters Bill of Rights that will guide federal agency actions to identify practices that unfairly treat tenants in and applicants for rental housing and a separate Resident-Centered Housing Challenge to landlords and state and local governments to take actions that protect renters. The White House statement lists early commitments under the challenge by agencies and groups including the Wisconsin Housing and Economic Development Authority, Pennsylvania Housing Finance Agency, Stewards of Affordable Housing for the Future, National Apartment Association, National Association of Realtors, and National Multifamily Housing Council.
NCSHA released a statement in response to the White House’s announcement commending the Biden – Harris Administration for its efforts to promote housing affordability and recommending detailed analysis, industry input, and public comment in the federal efforts to advance the administration’s initiative. The administration says it welcomes additional commitments from interested stakeholders to take actions aligned with the blueprint principles and to join the challenge for resident-centered housing practices. To join the challenge, interested partners should complete this survey by April 28. Questions regarding the White House Resident-Centered Housing Challenge may be directed to RCHousingChallenge@who.eop.gov. For more information, see NCSHA’s blog.
Treasury Awards $690 Million in Reallocated ERA Funds for Eviction Protection Activities
This week, the Treasury Department announced it will reallocate $690 million of Emergency Rental Assistance (ERA) program funding to assist with preventing evictions. The funds will be made available to 89 state and local governments, as well as nonprofit organizations, to provide rental assistance to individuals and families who have been impacted by the COVID-19 pandemic. The funds will be used to cover past-due rent, future rent, and utility payments to help keep people in their homes. These funds will be shifted from communities that did not meet certain Treasury-determined spending benchmarks by the end of Quarter 2, 2022, for the ERA 2 program to those that met these spending benchmarks and demonstrated continuing needs. Treasury has now reallocated more than $3.5 billion in rental assistance funds of the more than $46 billion provided under both ERA 1 and ERA 2.
HUD to Hold Briefings on Affirmatively Furthering Fair Housing Proposed Rule for Program Participants, Stakeholders
As NCSHA has previously reported, the Department of Housing and Urban Development has published its Affirmatively Furthering Fair Housing (AFFH) proposed rule. This week, HUD announced it will hold three virtual briefings on the proposed rule for program participants and other stakeholders, at which it will cover the components of the proposed rule and present supplementary information tailored to the intended audience for each briefing. Briefing 1 will be held on February 6, 2:30 – 3:30 p.m. ET, for participants in community planning and development programs; Briefing 2 on February 9, 3:30 – 4:30 p.m. ET, for participants in public and Indian housing programs; and Briefing 3 on February 10, 3:30 – 4:30 p.m. ET, for residents and other community members. Registration information is available on HUD’s AFFH web page.
The AFFH proposed rule has not yet been published in the Federal Register. Comments will be due 60 days after its publication. To inform NCSHA’s comments, send your input to Jennifer Schwartz by February 28.
NCSHA in the News
Affordable Housing Finance, 1.25.23, White House Unveils Renter Protections, Industry Stakeholders Weigh In on the Administration’s Announcement
Builder, 1.25.23, White House Unveils Renter Protections, Industry Stakeholders Weigh In on the Administration’s Announcement
Multifamily Executive, 1.25.23, White House Unveils Renter Protections, Industry Stakeholders Weigh In on the Administration’s Announcement
Maine Beacon, 1.23.23, Maine’s housing affordability crisis needs a public option, says lawmaker
Legislative and Regulatory Activities
- February 6 | HUD Briefing for Community Planning and Development Program Participants | Affirmatively Furthering Fair Housing Proposed Rule
- February 7 | Comments Due to NCSHA | HUD Requests for Information on Disaster Recovery
- February 9 | HUD Briefing for Public and Indian Housing Program Participants | Affirmatively Furthering Fair Housing Proposed Rule
- February 10 | HUD Briefing for Residents and Community Members | Affirmatively Furthering Fair Housing Proposed Rule
- February 17 | Comments Due to NCSHA | DOE Request for Information on IRA Home Energy-Efficiency Rebate Programs
- February 21 | Comments Due | HUD Requests for Information on Disaster Recovery
- February 28 | Comments Due to NCSHA |Affirmatively Furthering Fair Housing Proposed Rule
- March 3 | Comments Due | DOE Request for Information on IRA Home Energy-Efficiency Rebate Programs
- March 14 | Application Deadline | HUD Notice of Funding Opportunity for Addressing Lead-Based Paint and Other Housing-Related Hazards
- March 14 | Comments Due | Joint HHS HUD Proposed Rule on Partnerships with Faith-Based and Neighborhood Organizations
NCSHA, State HFA, and Industry Events
- January 31 – February 1 | Affordable Housing Tax Credit Coalition’s 2023 Annual Meeting | Scottsdale, AZJennifer Schwartz will speak at this event.
- February 8 | NeighborWorks America Symposium, Advancing Equity for People of Color: Local Solutions for Housing Stability | Washington, DCGarth Rieman will speak at this event.
- February 9 | Habitat for Humanity’s Habitat on the Hill Conference | Washington, DCGarth Rieman will speak at this event.
- February 22 – 23 | Yardi Executive Briefing | Austin, TXStockton Williams and Jennifer Schwartz will speak at this event.
- February 22 – 23 | Mortgage Bankers Association’s Servicing Solutions Conference & Expo 2023 | Orlando, FLRosemarie Sabatino will speak at this event.
- February 28 | Noon – 5:45 p.m. ET | NCSHA’s Toward a Racially Just Housing System: Continuing Steps | Virtual
- February 28 | SAHF Webinar: Tools & Approaches for Resident-Centered Outcomes Measurement in Affordable Housing
- March 1 | Discounts End on Early Registration, Hotel Rates for NCSHA’s 2023 Legislative Conference
- March 6 – 9 | NH&RA Annual Meeting | Bonita Springs, FLStockton Williams will speak at this event.
- March 8 – 10 | National Affordable Housing Management Association’s Biannual Top Issues in Affordable Housing Conference | Washington, DCStockton Williams and Jennifer Schwartz will speak at this event.
- March 27 – 29 | NCSHA’s 2023 Legislative Conference | Washington, DC
- April 12 | E&A Team’s Annual Accessibility Summit | VirtualJim Tassos will speak at this event.
- April 17 – 19 | Nebraska Investment Finance Authority’s 2023 Annual Conference | Lincoln, NEJennifer Schwartz will speak at this event.
- April 25 – 27 | Affordable Housing Investors Council’s 2023 Spring Meeting | Baltimore, MDStockton Williams will speak at this event.
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