NCSHA Washington Report | January 28, 2022
This week’s HFA Institute included the annual deep dive into the latest on the housing program that has been around longer and done more good than it ever seems to get credit for: HOME.
The all-purpose housing block grant has been a staple of the system and the glue in countless transactions for a generation — and in fact is only a few years younger than the Housing Credit, which is routinely cited for its historic long-running success.
HOME and the Housing Credit both emerged from the sea change in federal housing policy during the 1980s. The federal government largely withdrew from funding new development as part of the “new federalism” in ascendance. States created hundreds of new housing programs to fill the void. And a patchwork of community-based housing organizations matured into a significant new delivery system.
The idea for what became HOME was the signature proposal of a 1987 congressionally appointed task force chaired by developer James Rouse and Fannie Mae head David Maxwell; Michigan SHDA’s Terry Duvernay represented the state HFAs on it.
Their report the following year recommended a “Housing Opportunity Program” as the foundation of “a new system … to reaffirm the federal commitment in ways that will build on and build up local and state efforts throughout urban and rural America.” The sweeping Cranston-Gonzalez National Affordable Housing Act of 1990 (which passed the Senate 93‒6!) enacted the concept as the HOME Investment Partnerships program.
HOME has been the Swiss Army knife for state and local housing efforts ever since, often filling the final funding gap in rental development financings, homeowner rehabs, and rental assistance initiatives.
As impressive as the aggregate accomplishments are — more than 1.3 million homes completed and 360,000 renters assisted — HOME’s value proposition may be best expressed in a much smaller number: $4.59. That’s the amount of funding from other sources, including the private sector, that every dollar of HOME attracts, according to HUD.
To really see HOME’s impact though, you have to look beyond the numbers to the stories. Like the one the Washington Post wrote last fall about Gloria Jean Lewis of Greenwood, MS, who was able to fix up and stay in the house she has owned for decades thanks to a HOME grant from the Mississippi Home Corporation. There are countless more.
When Congress passed the American Rescue Plan last year, it turned to HOME to do the hardest housing job of all: create new options for people experiencing or on the brink of homelessness, through a special $5 billion appropriation. NCSHA is working closely with HUD’s superb HOME team to ensure the funds can do the most good in the hands of state administrators.
We’re also talking to leaders in Congress about some statutory tune-ups to the core program. And, through the national HOME Coalition, we’re making sure Congress continues to invest in HOME every year.
Stockton Williams | Executive Director
State HFA Emergency Housing Assistance
In This Issue
- HUD Awards $51 Million in Housing Counseling Grants to 19 State HFAs, Others
- 13 States Open HAF Programs; Treasury Has Approved 41 State HAF Plans
- HUD Approves Two States’ HOME-ARP Plans; Several Other States Have Submitted Plans
- GAO Recommends Treasury Develop Process for ERA Audits
- Harvard Joint Center Report Documents Hot Rental Market, Impact by Income and Race
- NCSHA in the News
- Looking Ahead
HUD Awards $51 Million in Housing Counseling Grants to 19 State HFAs, Others
On Monday, HUD announced $51.4 million in housing counseling grants to 177 HUD-approved housing counseling agencies and intermediary organizations, including more than $10.3 million to 19 HFAs. Of the FY 2021 Comprehensive Housing Counseling Awards, $49.4 million will directly support housing counseling services provided by the 177 grantees, including 16 HUD-approved housing counseling agencies partnering with Historically Black College and Universities, Hispanic Serving Institutions, or other Minority Serving Institutions. The remaining $2 million will help provide training for Home Equity Conversion Mortgages counseling and HUD’s housing counselor certification exam. A full list of grantees and their award amounts is available here.
13 States Open HAF Programs; Treasury Has Approved 41 State HAF Plans
As of this writing, 13 states have launched their statewide Homeowner Assistance Fund (HAF) programs and are accepting applications for assistance, and the Treasury Department has approved the HAF plans of 41 states and territories. More state HAF programs will launch next week. For the latest information about which states have opened their programs or are running pilot programs, see NCSHA’s HAF program webpage.
HUD Approves Two States’ HOME-ARP Plans; Several Other States Have Submitted Plans
During NCSHA’s HFA Institute this week, HUD announced it has approved two states’ HOME-ARP plans and 19 plans have been submitted and are under review. The Kentucky Housing Corporation and Alaska Housing Finance Corporation are the first approved state participating jurisdictions (PJs). HOME-ARP was established under the American Rescue Plan Act and provides $5 billion to HOME PJs to deliver housing and services for households experiencing, or at risk of, homelessness. HOME-ARP may be used to develop affordable housing, for tenant-based rental assistance, to provide supportive services, and for the acquisition and development of non-congregate shelter units.
GAO Recommends Treasury Develop Process for ERA Audits
The U.S. Government Accountability Office (GAO) this week released a report calling on government agencies, including the Treasury Department, to improve oversight of COVID relief funding. One of the programs the GAO report addresses is the Emergency Rental Assistance (ERA) program. GAO notes Treasury has not yet created processes needed to identify and recover overpayments made by ERA grantees, such as post-payment reviews or recovery audits, and recommends Treasury do so. Treasury has agreed with the recommendation. GAO also recommends the Office of Management and Budget (OMB) consult with Treasury and issue guidance on the ERA programs in OMB’s Compliance Supplement for single audits to help ensure that auditors are able to identify deficiencies in grantees’ compliance with the program’s requirements.
Harvard Joint Center Report Documents Hot Rental Market, Impact by Income and Race
The Harvard Joint Center for Housing Studies released its America’s Rental Housing 2022 report last week. The report shows rental housing demand increased in 2021, leading to low vacancy rates and steep rent increases. The overall rental vacancy rate dropped to 5.8 percent, its lowest since the mid-1980s, driving broad rent increases, with the highest average increase of 13.8 percent for higher-quality buildings. The report notes that part of this spike reflects the lack of inventory in the for-sale market, which has kept many higher-income renters from buying homes.
The report also shows the disproportionate impact of the existing rental affordability crisis and the compounding effect of the pandemic on lower-income renters and renters of color. Federal assistance helped many renters remain in their homes and current on rent during the pandemic. However, lower-income renters, and especially renters of color, were hardest hit by income losses and more likely to fall behind. The report points to the need for a comprehensive approach to address the pandemic’s financial disruptions that continue to fuel the rental affordability crisis, including large-scale investments in both new and existing rental housing and in subsidy programs.
NCSHA in the News
National Mortgage Professional, 1.26.22, Standard Communities Creates Affordable Housing For The ‘Missing Middle’
AllOnGeorgia, 1.25.22, Dept of Community Affairs Says Georgia’s Rental Assistance Impacted by Unemployment
WSAZ, 1.24.22, Officials: $3M in returned funds won’t affect COVID rental help in W.Va.
Legislative and Regulatory Activities
- February 2 | House Financial Services Subcommittee on Housing, Community Development, and Insurance Hearing on Housing America: Addressing Challenges in Serving People Experiencing Homelessness
- February 25 | Comments Due | FHFA Proposed Rule on Fannie Mae and Freddie Mac Annual Capital Plans
NCSHA, State HFA, and Industry Events
- February 2 – 4 | National Community Development Association 2022 Winter Conference | Virtual
Jennifer Schwartz will speak at this event. - March 9 | Institute of Real Estate Management’s Advocacy Impact Day | 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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