Find Homeowner Assistance Fund Programs by State: Read More

NCSHA Washington Report | July 30, 2021

Published on July 30, 2021

Web Washington Report Graphics -- July 30, 2021

Emergency rental assistance is a pretty plain-spoken term for a federal program, even if it’s jargon for lifeline. Many of us with a stake in its success now understand not nearly enough people who most need rent relief know it’s available or have tried to access it.

So everybody is doubling down on communications and outreach.

The influential National Multifamily Housing Council is urging its members to adopt Eviction Mitigation Principles that call on landlords to “encourage residents to seek rental assistance and apply on behalf of residents or assist with the application process where able” and “provide notice of at least 30 days to residents before filing an eviction for non-payment of rental obligations.”

Tech platforms with large customer bases are promoting ERA at the behest of the Biden – Harris Administration. “PayPal, where many pay their rent and monthly bills, will include messaging on emergency rental assistance …  Square, Inc. will provide information about the CFPB tool and emergency rental assistance on Cash App … and GoFundMe will send direct emails to roughly 20,000 people who have recently started fundraising campaigns in the ‘food, rent, or monthly bills’ category on the GoFundMe site.”

States are using multiple channels to get the word out both to landlords, as in this Illinois Facebook series, and renters, like this Arizona explainer on YouTube. Others are getting traction with traditional media. Albuquerque’s KOB 4 TV station aired a three-minute consumer-focused segment on New Mexico’s program. Elsewhere, administrators are hosting sign-up events in neighborhoods where renters live, like this one in Mississippi.

Relentless media attention on the small share spent so far of the $46 billion appropriated for Emergency Rental Assistance obscures the fact that most state administrators had funded more than 25 percent of the completed applications they received through June — and many had paid one-third or more. Processing times are steadily improving, even as they are still sluggish in some places.

Thankfully, the press is finally starting to report on some of people state and local ERA has already helped. That number likely exceeds one million by now.

The pace of spending is surging almost everywhere and will accelerate more over the next several weeks. New York, with $2.7 billion available, projects it will deploy it all by the end of August. States are also continuing to expand benefits and add flexibility, like Maine, which is now offering a year and a half of relief.

Nevada Governor Steve Sisolak spoke to his state’s efforts this week. “As the pandemic has changed and evolved, so has our approach to the moratorium,” he said. “We’ve been building out rental assistance programs with state and county partners, mediation programs with the court system, and most recently by partnering with the Nevada Legislature to create a so-called ‘glide path’ for evictions.”

Speaking at the same event, Susy Vasquez, executive director of the Nevada State Apartment Association, said it well: “Communication is key right now.”

Stockton-Williams-Washington-Report

Stockton Williams | Executive Director 

State HFA Emergency Housing Assistance

In This Issue

Johnson Hall Named CalHFA Executive Director
Tiena Johnson Hall has been appointed executive director of the California Housing Finance Agency (CalHFA) by Governor Gavin Newsom. A member of CalHFA’s Board of Directors since November 2014, Johnson Hall has served as a senior vice president and manager of community development finance for BBVA Compass Bancshares Inc. since October 2014. Previously, she has held various housing positions in both the private and public sectors.

Johnson Hall replaces Tia Boatman Patterson, who stepped down in February to join the Biden Administration in the Office of Management and Budget. CalHFA Chief Deputy Director Don Cavier has been serving as the agency’s acting executive director.

Treasury Announces ERA Grantees Distributed More Than $1.5 Billion in June
Treasury has released comprehensive data on Emergency Rental Assistance (ERA) spending and the number of households served, showing grantees significantly accelerated the provision of these resources to households in need in the month of June. Treasury reports state and local grantees provided more than $1.5 billion in assistance to eligible households last month, which is more than the amount of assistance provided in the prior five months combined. State grantees alone spent more than $1 billion in June. State and local grantees served nearly twice as many households in June as they did in May. NCSHA expects state spending numbers will be even higher in July than they were in June.

Eviction Moratorium to Expire Saturday Unless Congress Acts 
The Biden Administration has announced it will not extend the Centers for Disease Control and Prevention’s order barring evictions for nonpayment of rent due to the coronavirus crisis but urged Congress to act to extend it. The moratorium, initially instated during the Trump Administration and extended multiple times by Congress and the Biden Administration, is scheduled to expire on July 31. A statement released this week by the White House noted executive action to extend the moratorium is not legally viable given Supreme Court Justice Brett Kavanaugh’s statement after the court’s 5‒4 decision in June allowing the moratorium to remain in place. Kavanaugh voted with the majority in that case but said he would block additional extensions without congressional authorization. House leadership is currently working to see if it has the votes to pass an extension. Even if it does, extending the eviction moratorium would likely face an uphill climb in the Senate.

Urge House Democrats to Sign Letter to House Leadership Supporting Housing Credit Bill
Representatives Suzan DelBene (D-WA) and Don Beyer (D-VA) are circulating a Dear Colleague letter to House Democrats urging them to sign onto a letter to House Speaker Nancy Pelosi (D-CA) and House Minority Leader Kevin McCarthy (R-CA) in support of including the Affordable Housing Credit Improvement Act (AHCIA; H.R. 2573) in reconciliation legislation later this year. AHCIA is one of NCSHA’s top legislative priorities. We urge Washington Report readers to contact Democrats in their House delegations and ask them to sign the letter.

July 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), 21 House members have cosponsored the bill. The addition of Representatives Tom Cole (R-OK), Jason Crow (D-CO), Danny Davis (D-IL), Madeleine Dean (D-PA), Adriano Espaillat (D-NY), Tony Gonzales (R-TX), Anthony Gonzalez (R-OH), Brian Higgins (D-NY), Ro Khanna (D-CA), Adam Kinzinger (R-IL), James Langevin (D-RI), Rick Larsen (D-WA), Ted Lieu (D-CA), Lucy McBath (D-GA), Betty McCollum (D-MN), Bill Pascrell (D-NJ), Lloyd Smucker (R-PA), Norma Torres (D-CA), Ritchie Torres (D-NY), Roger Williams (R-TX), and David Valadao (R-CA) brings support in the House to 85 — 47 Democrats and 38 Republicans — including 51 percent of the Ways and Means Committee. No new Senators cosponsored S. 1136 in July.

NCSHA Urges Treasury to Issue HAF Guidance, Use Collaboratively Developed Documents
On Wednesday, NCSHA and the Housing Policy Council sent White House, Treasury, and HUD officials a letter transmitting three Homeowner Assistance Fund (HAF) documents that HAF-administering agencies, servicers, and NCSHA developed in collaboration over several months to facilitate standardized processes and practices across the county. The letter also urged Treasury to issue soon additional program guidance and templates that will enable states to finalize and officially submit their HAF plans.

NCSHA Requests FHA Exempt State HFA Program Loans from the ALM Requirement 
In a July 23 letter to Secretary Fudge, NCSHA requested that the Federal Housing Administration exempt state HFA program loans from its Advance Loan Modification (ALM) requirements because of the disruption the ALM would have on mortgage revenue bond (MRB) programs. In making this request, NCSHA cited prior precedent and described the impact of the ALM requirement in HUD’s Mortgagee Letter 2021-15 on state HFA MRB programs and operations.

NCSHA Signs CHCDF Letter Urging Robust Funding for Housing Programs
The Campaign for Housing and Community Development Funding, of which NCSHA is a steering committee member, sent a letter last week to congressional leadership and House and Senate Appropriations Committee leaders urging them to enact the highest possible funding levels for housing and community development programs for fiscal year 2022. NCSHA joined 11 other advocacy organizations in signing onto the letter.

NCSHA, COSCDA Press Congress for Housing Trust Fund Modifications in Light of Possible Funding Increase
NCSHA joined the Council of State Community Development Agencies in a letter to the chairs and ranking members of the Senate Banking, Housing, and Urban Affairs Committee; House Financial Services Committee; and House and Senate Appropriations Committees urging congressional action to allow certain flexibilities in the Housing Trust Fund program. Specifically, we asked Congress to waive the program’s 24-month commitment deadline, adjust the environmental review process to allow for development in more geographic locations, and increase the cap on administrative expenses to 15 percent from 10 percent of each state’s grant. These changes, while needed for program operations generally, are especially important in light of the possibility of Congress providing significant additional resources to the Housing Trust Fund as part of the reconciliation infrastructure legislation it is expected to consider this fall. NCSHA and COSCDA both support the administration’s proposal, which also is included in Financial Services Chair Maxine Waters’ (D-CA) Housing Is Infrastructure bill, to provide a one-time $45 billion investment in the Housing Trust Fund.

Ginnie Mae Proposes Risk-Based Capital Standards for Non-Banks
Ginnie Mae earlier this month released a request for input (RFI) on possible changes entities must meet to be eligible to issue single-family Ginnie Mae mortgage-backed securities. The RFI announces Ginnie Mae’s intention to increase net worth and liquidity standards for all issuers and to adopt new risk-based capital standards for non-bank issuers. Ginnie Mae will accept comments on the proposed new standards until August 9. NCSHA is concerned these standards could be burdensome for HFAs, hinder HFAs’ ability to issue Ginnie Mae securities, and reduce access to government insurance loan programs for low- and moderate-income home buyers. If you have feedback for NCSHA to consider as we draft comments, please send them to Greg Zagorski by Wednesday, August 4.

Treasury Updates Fiscal Recovery Fund FAQs
On July 19, the Treasury Department posted updated Frequently Asked Questions for its Coronavirus State and Local Fiscal Recovery Funds (FRF) program. The latest FAQs include responses to questions NCSHA submitted on whether the Davis-Bacon Act applies to FRF projects, whether grantees can make loans with FRF funds, and how FRF loan repayments may be used.

House Subcommittee on Coronavirus Crisis Holds Hearing on Eviction Practices
On July 27, the House Select Subcommittee on the Coronavirus Crisis held a hearing on landlord eviction policies. Subcommittee Chair James Clyburn (D-SC) expressed deep concern about what he maintains are “large corporate landlords aggressively and unfairly” attempting to evict households. He noted the Select Subcommittee has initiated an investigation into landlords alleged to have engaged in these practices. He also spoke about the Emergency Rental Assistance programs, remarking that, while some programs are having challenges, others are doing an excellent job and noting the month-over-month increases in ERA distribution and his confidence progress will continue.

House Approves FY 2022 HUD, Rural Housing Funding in Omnibus Appropriations Bill
The House of Representatives on Thursday passed an omnibus appropriations bill (H.R. 4502) containing several appropriations bills previously passed by the House Appropriations Committee, including those for HUD and the Department of Agriculture (USDA). The bill includes substantial increases to many HUD programs, including the HOME Investment Partnerships program and Section 8 rental assistance. More details on funding levels for HUD and USDA Rural Housing programs can be found in NCSHA’s blog.

Senate Votes to Consider Bipartisan Infrastructure Bill; Sets Stage for Further Action
On July 28, the Senate voted 67–32 — all 50 Democrats plus 17 Republicans — to begin consideration of the bipartisan infrastructure legislation a number of Senators have developed over the past several weeks. While the bipartisan bill doesn’t include housing provisions, advancing it is essential for Democratic congressional leaders’ plan to move bipartisan infrastructure legislation in tandem with the FY 2022 Budget Resolution, which will allow Democrats to later advance other priorities, including affordable housing, through the reconciliation process. The vote to advance the legislation is the first procedural step in the Senate, setting up the bill for debate, which is expected to include many amendments from both sides of the aisle that could disrupt the carefully crafted agreement. The bill will also need to be considered by the House.

OCC Rescinds CRA Rule; Banking Agencies Pledge to Work Together on Future Changes
The Office of the Comptroller of the Currency (OCC) announced last week it is officially rescinding its May 2020 rule that substantially amended its Community Reinvestment Act (CRA) regulations. The rescission follows a May 2021 announcement pledging OCC would review the rule before implementing it. NCSHA and other housing and community advocates were deeply concerned that OCC’s CRA reforms would likely reduce bank demand for key housing investments, including Housing Credits and Housing Bonds. The same day the OCC announced the CRA rule rescission, it joined the Federal Deposit Insurance Corporation and the Federal Reserve Board in a statement announcing they would work together to issue a joint rule amending the current CRA regulations.

Financial Services Committee Questions Fudge on HUD Budget, ERA
The House Financial Services Committee last week held a hearing with HUD Secretary Marcia Fudge to discuss the Biden Administration’s proposed FY 2022 budget for HUD. In her written and oral testimony, Fudge told the committee the budget’s proposed funding increases were vital to help the economy recover from the COVID-19 pandemic and to increase equity. Committee Democrats largely praised the administration’s budget, while Committee Republicans expressed concerns that the funding increases would increase the deficit and contribute to inflation. Committee Republicans, including Ranking Member Patrick McHenry (R-NC), also pressed Fudge on why more Emergency Rental Assistance program funding hasn’t been distributed to renters and suggested Treasury Secretary Janet Yellen should have been invited to testify given Treasury’s role in administering ERA. Fudge noted ERA is mostly administered by Treasury and the administration has allocated all ERA funding to states and localities, whose job it is now to provide it to renters and landlords. Committee Chair Maxine Waters (D-CA) and other Committee Democrats made similar points in defense of Fudge and the administration.

Banking Subcommittee Discusses Preserving, Improving Safety of Federally Assisted Housing
The Senate Banking Subcommittee on Housing, Transportation, and Community Development last week held a hearing to consider strategies and investments to improve the safety of federally assisted housing. Subcommittee Chair Tina Smith (D-MN) began her testimony recalling a fire that occurred in a Minneapolis public housing building that killed five residents, which she said would not have been as deadly had the building had sprinklers. She then called on Congress to dedicate additional resources to boost the safety of federally assisted housing, including to address fire prevention and lead and radon poisoning. Ranking Member Mike Rounds (R-SD) said he agreed with the need to improve the safety of federally assisted housing but questioned the need for new funding. He instead suggested federal, state, and local housing agencies could operate more efficiently which would free up the resources they need for critical improvements. Rounds expressed particular concern about the safety of housing on Native American reservations.

NCSHA in the News
Milwaukee Journal Sentinel, 7.22.21, Joaquín Altoro is dedicated to being the banker of the underserved and underrepresented
Bloomberg News, 7.22.21, ‘Where Is the Money?’: Millions Risk Eviction on Tardy U.S. Aid
FOX 5 Atlanta, 7.20.21, First-time homebuyers programs: What new buyers need to know
CBS News, 7.16.21, Congress racing to make sure billions make it to renters before eviction moratorium ends

Looking Ahead…

Legislative and Regulatory Activities

NCSHA, State HFA, and Industry Events

Back to NCSHA Washington Report

 
 

Are you a member? Sign up for exclusive news! 

 
Array

 

Only members receive NCSHA Blog and Washington Report.

Learn more about membership here.

Newsroom

HFA Communities

Connect with your HFA peers for best practices, advice, and solutions.

Join the Conversation

Upcoming Events

event

View Event

Membership

Login

Get NCSHA Updates

Stay informed about the issues, legislation, and regulations important to state HFAs.

Subscribe