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NCSHA Washington Report | July 2, 2021

Published on July 2, 2021

Web Washington Report Graphics - July 2, 2021

State programs expect to pay more than 200,000 renters more than $1 billion in assistance to cover back rent and utilities and avoid evictions and homelessness in July, according to projections NCSHA released this week.

NCSHA projects state programs will continue to increase this pace through the summer, based on data provided by state agencies administering federal emergency rental assistance funds. (In 27 states, it’s the HFA; in 23 and DC, it’s another agency.)

While some state programs opened sooner than others, and some are processing payments more quickly than others, every state has emergency assistance available for renters and landlords.

State programs provided approximately $880 million to more than 130,000 renters in June, according to data from state program administrators.

The number of households served and dollars paid to renters, landlords, and utility companies by state emergency rental assistance programs have increased exponentially in recent months.

  • In April, the number of renter households served and dollars paid were nearly double those amounts from January through March.
  • In May, states nearly doubled their April spending and number of households served.
  • Through late June, states more than doubled their May spending.

Based on projections by state officials, this progress will continue and likely accelerate throughout the summer, now that the program infrastructure has been built and revised federal policies have been issued.

Hundreds of locally-run programs, accounting for roughly one-third of federal emergency rental assistance funding appropriated by Congress, are not included in our analysis — meaning significantly more aid has reached more renters in need overall than data available to NCSHA show.

In addition to paying back rent and utilities, state and local emergency rental assistance programs are supporting eviction prevention and eviction diversion programs; mediation between landlords and tenants; housing counseling; specialized services for individuals with disabilities and seniors; and other services to ensure renters remain stably housed as vaccination rates increase and the economy improves.

Many state programs have revised their rules to make funds more accessible in response to changes in federal guidance and recommendations from renter advocates and landlords. State programs will continue to evolve and improve based on experience on the ground and continued input from program partners.

It’s an all-hands-on-deck moment.

Stockton-Williams-Washington-Report

Stockton Williams | Executive Director

Washington Report will return on July 16. 

State HFA Emergency Housing Assistance


In This Issue


NCSHA Welcomes Yardi to Leadership Circle, New Members
NCSHA welcomed Yardi® as a member of its distinguished Leadership Circle in June. Yardi® develops and supports compliance, accounting, and property management software for public housing agencies, streamlining compliance for every major affordable housing program including emergency housing assistance in response to COVID-19.

In addition to Yardi®, these organizations joined NCSHA as affiliate members in June: BlueGreen Alliance; Faithe, LLC; Federal Home Loan Bank of Chicago; HOTB Software Solutions; LSC Service Corporation; RDL Architects; and Richard Godfrey Consulting.

June Cosponsorship Round-Up for Housing Credit Legislation
Since our last report on cosponsorship of the Affordable Housing Credit Improvement Act (AHCIA; S.1136/H.R. 2573), six Senators and 43 House members have signed on as cosponsors. The addition of Senators Chris Van Hollen (D-MD), Kevin Cramer (R-ND), Sherrod Brown (D-OH), Roger Marshall (R-KS), Michael Bennet (D-CO), and Lisa Murkowski (R-AK) brings support in the Senate to 20 — 10 Democrats and 10 Republicans — including the bill’s leads.

The addition of Representatives John Katko (R-NY), Drew Ferguson (R-GA), Ted Budd (R-NC), Guy Reschenthaler (R-PA), Doug LaMalfa (R-CA), Young Kim (R-CA), Dean Phillips (D-MN), Cynthia Axne (D-IA), Salud Carbajal (D-CA), Eric Swalwell (D-CA), Julia Brownley (D-CA), Mike Levin (D-CA), Carol Miller (R-WV), David McKinley (R-WV), Michael Doyle (D-PA), Angie Craig (D-MN), Ayanna Pressley (D-MA), Jack Bergman (R-MI), Tim Walberg (R-MI), Tom Emmer (R-MN), Lee Zeldin (R-NY), David Kustoff (R-TN), Claudia Tenney (R-NY), John Rose (R-TN), Don Young (R-AK), Jim Costa (D-CA), Joe Neguse (D-CO), Ed Perlmutter (D-CO), Veronica Escobar (D-TX), Ed Case (D-HI), Marie Newman (D-IL), Scott Peters (D-CA), Mark DeSaulnier (D-CA), John Moolenaar (R-MI), William Timmons (R-SC), David Rouzer (R-NC), David Schweikert (R-AZ), Don Bacon (R-NE), Haley Stevens (D-MI), Rashida Tlaib (D-MI), Elaine Luria (D-VA), John Yarmuth (D-KY), and Alan Lowenthal (D-CA) brings support in the House to 64 — 33 Democrats and 31 Republicans — including the bill’s leads. Support on the tax committees is at 32 percent of the Senate Finance Committee and 42 percent of the House Ways and Means Committee. 

NCSHA Asks HUD for Additional National Housing Trust Fund Flexibility
In comments submitted on June 25, NCSHA asked the Department of Housing and Urban Development (HUD) to provide Housing Trust Fund (HTF) administrators additional flexibility on income targeting, affordability periods, operating cost assistance, environmental reviews, and other program rules. HUD requested comments on the interim final rule, which went into effect in 2015, to update it based on HTF grantees’ and other stakeholders’ experiences with the program since the rule was initially promulgated.

NCSHA Urges FHFA to Help Narrow the Racial Homeownership Gap
On June 29, NCSHA’s Garth Rieman participated in a listening session held by the Federal Housing Finance Agency (FHFA) on Closing the Gap to Sustainable Homeownership. NCSHA’s statement urged FHFA to improve the pricing and terms for HFA preferred loan products, remove impediments to responsible high loan-to-value ratio lending, and implement other policies to increase homeownership among people of color.

HUD Secretary Announces Black Homeownership Collaborative Plan
HUD Secretary Marcia Fudge joined Cleveland State University President Harlan Sands, Congressman Tim Ryan (D-OH), and Senate Banking Committee Chair Sherrod Brown (D-OH) to recognize Juneteenth and National Homeownership Month and announce the Black Homeownership Collaborative’s “3 by 30” initiative. This initiative aims to help Black people own a net of three million more homes nationwide by 2030 through a seven-point plan that includes homeownership counseling, credit and lending, homeownership sustainability, housing protection, civil and consumer rights, marketing and outreach, and down payment assistance. A member of the Black Homeownership Collaborative, NCSHA helped develop the recommendations in the plan.

House Appropriations Committee Passes FY 2022 Rural Housing Bill
The House Committee on Appropriations met Wednesday to mark up the FY 2022 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies appropriations bill. The FY 2022 bill would provide $26.55 billion in funding for agencies and programs in its jurisdiction, an increase of $2.85 billion over the FY 2021 enacted funding level. The House bill’s funding levels for USDA’s rural housing programs closely adhere to President Biden’s proposed budget, including $1.495 billion for rental assistance and vouchers and $30 billion for the Section 502 single‐family unsubsidized guaranteed loan program. The committee voted to favorably report the bill to the House, which will likely consider it in July.

Treasury Provides Additional Guidance on ERA and Releases Reporting Guidance
On June 24, the Treasury Department updated its Frequently Asked Questions (FAQs) for the Emergency Rental Assistance (ERA) program, addressing a number of issues — including recommendations NCSHA has made on ways to more efficiently use ERA resources to help eligible low-income renters maintain stable housing and pay utilities. The new guidance makes clear that grantees may establish agreements with utility providers and landlords to make bulk payments, provides new flexibilities for using ERA 2 funds for housing stability services, and establishes a new mechanism by which grantees can assist households who need to move to new homes. The guidance also provides information about the timing of Quarter 2 reporting to Treasury. For more information, see NCSHA’s blog

Treasury also published on June 30 reporting guidance for ERA grantees covering the expectations, procedures, and submission deadlines for reports on ERA program activity. Comments are due to Treasury by July 9. Send feedback for NCSHA’s consideration to Jennifer Schwartz by July 6. 

CDC Extends Eviction Moratorium One Month; Supreme Court Leaves Moratorium in Place
The Centers for Disease Control and Prevention (CDC) last week announced it would extend the agency’s federal eviction moratorium for one additional month to July 31. This extension is intended to be the last time the agency extends the moratorium.

In related news, the Supreme Court announced June 29 it had decided, in a 5–4 vote, to leave the moratorium in place. The moratorium has been challenged in several lawsuits. In May, a federal judge vacated the order but later stayed her ruling pending appeal by the Justice Department. The plaintiffs in the case filed a motion to vacate the emergency stay, but the U.S. Court of Appeals for the District of Columbia Circuit ruled against the motion. The plaintiffs then petitioned the U.S. Supreme Court to vacate the stay.

Federal Agencies Extend Eviction, Foreclosure Moratoriums
Over the last week, various federal agencies have issued foreclosure moratorium extensions through July 31. With Mortgagee Letter 2021 – 15, the Federal Housing Administration (FHA) extended the date by which borrowers may request initial COVID-19 forbearance from June 30 until September 30 and established a new COVID-19 advance loan modification, which offers borrowers who are currently 90 or more days delinquent, or at the end of their COVID-19 forbearance, the opportunity for a 30-year rate-and-term mortgage modification to bring their mortgages current and reduce the principal and interest portion of their monthly mortgage payments by at least 25 percent. The letter also requires servicers to review their FHA-insured servicing portfolios and proactively reach out to homeowners who meet the criteria for the new COVID-19 advance loan modification.

USDA Rural Development announced it is extending its moratorium on foreclosures until July 31 for Single-Family Housing Direct Loan Program and Guarantee Program borrowers. Additionally, Rural Development is permitting lenders to continue to provide impacted borrowers relief by offering forbearance of a borrower’s guaranteed loan payment for up to 180 days.

The Veterans Administration issued Circular 26-21-10 extending its foreclosure moratorium through July 31 and permitting servicers to allow a borrower to receive COVID-related forbearance if the borrower makes the request not later than September 30.

Finally, Fannie Mae updated Lender Letter 2021-02 (twice) and Freddie Mac issued Lender Bulletins 2021-23 and 2021-24 to extend the suspension of foreclosure-related activities through July 31 and to clarify servicers are prohibited from making any new foreclosure referrals or first legal filings that would be prohibited by CFPB’s final rule between July 31 and when the CFPB final rule (see below) goes into effect on August 31.

CFPB Issues Final Rule on Protections for Borrowers Affected by COVID-19
On June 23, the Consumer Financial Protection Bureau (CFPB) published its final rule to assist mortgage borrowers affected by COVID-19. The final rule, which will become effective August 31, establishes temporary procedural safeguards to help ensure servicers review borrowers’ loss mitigation options before making the first notice or filing required for foreclosure on certain mortgages. In addition, the final rule would temporarily permit mortgage servicers to offer certain loan modifications made available to borrowers experiencing a COVID-19-related hardship based on the evaluation of an incomplete application. CFPB also released an executive summary and unofficial redline of the changes. 

HUD Publishes Proposed Rule Reinstating Obama Era Disparate Impact Regulations
On June 25, HUD issued a proposed rule to reinstate the Discriminatory Effects Standard regulations — commonly referred to as the disparate impact rule or burden-shifting framework — put in place under the Obama Administration in 2013. Discriminatory effects are facially neutral practices that have an unjustified discriminatory effect on a protected group, even if unintentional. The disparate impact rule sets up a process for court consideration of cases related to discriminatory effects. Under the Trump Administration, in September 2020, HUD issued the final rule, titled HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard, intended to replace the 2013 Discriminatory Effects Standard. For more information, refer to NCSHA’s blog. Comments on HUD’s proposal to recodify the 2013 rule are due to HUD on August 24. Please send any feedback for consideration to Jennifer Schwartz by August 3. 

White House Announces Nominations for Key HUD, FHFA, USDA Posts
On June 24, President Biden announced his intent to nominate Julia Gordon to become HUD Assistant Secretary for Housing – Federal Housing Commissioner and David Uejio to become HUD Assistant Secretary for Fair Housing and Equal Opportunity. Gordon is currently the president of the National Community Stabilization Trust. Uejio is acting director of the Consumer Financial Protection Bureau.

The White House appointed Sandra Thompson Acting Director of the Federal Housing Finance Agency on June 23. Thompson, who has been FHFA’s Deputy Director of the Division of Housing Mission and Goals since 2013, will serve as acting director until the administration nominates, and the Senate confirms, a permanent director. NCSHA issued a statement on the Gordon nomination and Thompson appointment.

The White House also announced the nomination of former Congresswoman Xochitl Torres Small (D-NM) on June 18 to become Under Secretary of Rural Development at USDA.

House Budget Committee Discusses HUD’s FY 2022 Budget
The House Budget Committee held a June 23 hearing to discuss the Biden Administration’s proposed FY 2022 budget for HUD. The committee heard from HUD Secretary Marcia Fudge, who used her testimony to argue that the president’s budget request, which would provide HUD $9 billion more than it received in FY 2021, was necessary to address the critical shortage of affordable housing in the country and to ensure HUD has the staff and resources it needs to carry out its mission. Fudge also touted the housing proposals included in the administration’s proposed infrastructure plan, including expanding the Housing Credit and enacting the Neighborhood Homes Investment Act. 

Committee Chair John Yarmuth (D-KY) praised the president’s proposals, which he said were critical for addressing the nation’s housing needs, and singled out the Housing Credit as an effective tool for building affordable housing. Ranking Member Jason Smith (R-MO) expressed concerns about the overall level of spending in the president’s budget, which he said would drive up inflation, and that Congress has not reauthorized many of the HUD programs currently operating. 

Senate Banking Committee Reviews Affordable Housing Bills
The Senate Banking Committee held a June 24 hearing to examine several bipartisan legislative proposals that would help address the affordable housing shortage. In his opening statement, Committee Chair Sherrod Brown (D-OH) noted many bipartisan housing bills introduced in prior Congresses did not receive committee hearings. Brown said it was his plan for the committee to do more on housing this Congress. Ranking Member Pat Toomey (R-PA) said he shares Brown’s goal of increasing access to affordable housing but most of the bills being considered would only increase government spending and interference in the housing market while having few tangible results.

House Financial Services Committee Hearing Looks at Credit Reporting
On Tuesday, the House Financial Services Committee held a hearing to consider possible reforms to the credit reporting system. In her opening statement, Committee Chair Maxine Waters (D-CA) argued the current credit reporting system often unfairly restricts access to credit for people of color and low-income consumers. She highlighted a discussion draft she authored that would establish a federal public credit rating agency to address these issues. Ranking Member Patrick McHenry (R-NC) said that, while he agreed with the need for reforming the credit reporting market, the best solution is to foster more competition in the private credit reporting market instead of establishing a new federal agency he fears will take over the entire industry. The committee heard witnesses from Consumer Reports, Demos, the National Consumer Law Center, Liberation in a Generation, and the Cato Institute.

USDA Schedules Workshop on Off-Farm Labor Housing Program Funding Availability
USDA Rural Development will hold a workshop on August 25 for potential applicants interested in increasing the affordable housing supply for farm laborers. In February, USDA announced it would conduct three rounds of grant funding to stimulate activity in its Section 514 Off-Farm Labor Housing loan and Section 516 Off-Farm Labor Housing grant programs to produce more affordable housing for active, retired, and disabled domestic farm laborers. USDA will post availability for the second round of funding on August 2, which will open on September 1. Interested parties can email Off-FLHapplication@usda.gov to attend the August 25 workshop.

NCSHA in the News
Notes from Novogradac, 7.1.21, Enhancing, Expanding Tax Incentives Is Key Part of Funding Infrastructure
WBCK 95.3, 6.28.21, Could You Be Eligible for Another Federal Stimulus Check, Do You Own a Home?
Charlottesville CBS 19 News, 6.25.21, EXPLAINER: What will the end of the eviction ban mean in DC?
PA Patriot News, 6.24.21, Stimulus checks for homeowners: Here’s who’s eligible for the economic benefit
The Real Deal, 6.21.21, NY Flooded With Nearly 100k Rent Relief Applications in Two Weeks
iTech Post, 6.21.21, Stimulus Check 2021 Update: How to Get Financial Assistance to Help You Pay for Your Mortgage

Looking Ahead…

Legislative and Regulatory Activities

NCSHA, State HFA, and Industry Events

  • August 18 – 20 | Arizona Housing Forum | Tucson, AZ
    Jennifer Schwartz will speak at this event.
  • September 26 – 28 | NCSHA’s 50th Annual Conference | Detroit

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