Make plans to attend: NCSHA's Annual Conference & Showplace Learn more.

NCSHA Washington Report | October 11, 2024

Published on October 11, 2024

NCSHA logo, text reading, Washington Report, October 11, 2024, image of a flooded area and destroyed house

The last two weeks have eliminated any doubt that the country’s capacity to respond to natural disasters has reached a breaking point.

On October 2, as bodies were still being recovered in communities devastated by Hurricane Helene, Department of Homeland Security Secretary Alejandro Mayorkas said, “FEMA does not have the funds to make it through the season.” Mayorkas has also had to push back on reporting by the New York Times that FEMA — currently engaged on more than 100 declared disasters — “is running out of staff” to deal with the fallout from Hurricane Milton and others that may yet arrive this year.

The Small Business Administration’s disaster loan program, a critical source of money for housing repair and rebuilding, will run out of money by next week, Administrator Isabel Casillas informed Congress yesterday. House Speaker Johnson (R-LA) has dismissed President Biden’s call for Congress to pass additional aid before the elections.

Meanwhile, the National Flood Insurance Program is $20.5 billion in the hole — before accounting for Helene and Milton. Since 2005, losses to the program have exceeded premiums by $36 billion largely because, as TD Cowen analyst Jaret Seiberg observes, “Congress finds it politically unacceptable to charge the premiums needed to keep it solvent.” Congress has repeatedly tried and failed to reform the NFIP, enacting 31 short-term reauthorizations since 2017, the most recent of which extends it until December 16.

Things could be much worse — probably should be — from a federal fiscal perspective anyway. Only about four percent of U.S. households — and fewer than one percent in the counties across the seven states hit hardest by Helene — have flood insurance, according to the Washington Post.

In at least one respect, the flooding from Helene that inundated communities hundreds of miles from the coast wasn’t that unusual: More than 40 percent of recent FEMA claims have come from outside “high-risk” areas. That’s due partly to the increased frequency of major disasters and also another failure of our own making: “FEMA’s flood maps are known to be incomplete and outdated, and they don’t adequately consider factors like river overflows or mountain landslides caused by intense rain.”

Against this backdrop of chronic federal dysfunction, state and local governments have to carry a heavier load in recovery and rebuilding. Most states have created special accounts to pay for some disaster costs “but most don’t have a consistent strategy for funding [them],” according to the Pew Charitable Trust.

And the situation on the ground in western North Carolina, where the 92 local and 25 county governments that cover the most impacted areas likely “will struggle to manage a complex housing recovery, in part because of their relatively small sizes and limited experience with major disasters,” reflects a reality around the country.

The thousands of federal, state, and local agency personnel working tirelessly to help people in dire need deserve a better system. The nation desperately needs one.

Stockton-Williams-Washington-ReportStockton Williams | Executive Director

In This Issue

Biden Administration Calls for Lead Pipe Replacement; HUD Announces $420 Million to Eliminate Home Lead Hazards
On Tuesday, the Biden – Harris Administration announced the Lead Pipe and Paint Action Plan, an effort involving 10 federal agencies to replace all lead pipes in the country over the next decade. As part of the plan, the U.S. Department of Housing and Urban Development (HUD) announced more than $420 million in awards to remove lead hazards from homes and HUD-assisted properties in 32 states, the District of Columbia, and Puerto Rico. Two HFAs — the Maryland Department of Housing and Community Development and New Hampshire Housing — will receive nearly $12 million through the FY 2024 Lead Hazard Reduction Grant Awards as part of the announcement. The full list of award recipients is available here.

USDA Announces Availability of Preservation Funding
Late last month, the U.S. Department of Agriculture (USDA) published a notice of funds availability (NOFA) for its Multifamily Housing Preservation and Revitalization Demonstration (MPR) and Section 515 Loan programs. The loans and grants awarded through the NOFA will help preserve and improve existing rural rental housing and off-farm labor housing projects to extend their use as affordable housing. Applications for award funding are due by December 26. USDA will host an October 17 webinar to provide an overview of the MPR and Section 515 programs, discuss the application process, and explain borrower/applicant eligibility. Register here.

Alaska HFC, 22 Other Organizations Receive $28 Million in HOPWA Grants
HUD on Wednesday announced nearly $28 million in funding for local advocacy organizations and government agencies, including the Alaska Housing Finance Corporation, through its Housing Opportunities for Persons with AIDS Permanent Supportive Housing Renewal and Replacement Grants. This program funds rental assistance and supportive services to ensure Americans living with HIV and AIDS and their families have access to stable, safe, permanent housing.

New Treasury Data Shows HAF Has Helped 550,000 Families Stay in Their Homes
The Homeowner Assistance Fund (HAF) has provided $7.35 billion in assistance to nearly 550,000 struggling homeowners through the first half of 2024, according to data released by the Treasury Department at the end of September. This represents a three percent increase over the first quarter of 2024, a sign most state HAF programs are winding down. In total, state HAF programs have expended nearly 90 percent of the $9.42 billion they received through HAF. The data shows HAF continues to assist underserved communities. Eighty-eight percent of HAF recipients had incomes at or below area median income (AMI), including 51 percent who earned 50 percent or below AMI. Further, 39 percent of HAF beneficiaries identified as Black and 20 percent as Latino.

FHA Revises Cybersecurity Incident Requirements
On September 30, the Federal Housing Administration’s (FHA) Office of Single-Family Housing released a new draft mortgagee letter (ML) on Revised Cyber Incident Reporting Requirements, which seeks to update requirements for when FHA-approved mortgagees must notify HUD of the occurrence of a reportable cyber incident. The draft ML defines a cyber incident as “an occurrence that results in actual harm to the confidentiality, integrity, or availability of an information system or the information that the system processes, stores, or transmits” and requires FHA-approved mortgagees to notify HUD as soon as possible and no later than 36 hours after determining a reportable cyber incident has occurred. FHA’s changes conform its standards to the computer security incident notification standards established by federal banking agencies. Comments on the draft ML may be provided via the Drafting Table through October 30.

HUD Requests Feedback for Updating Multifamily Asset Management and Project Servicing Handbook
HUD announced recently it is seeking input from the public as it updates its Multifamily Asset Management and Project Servicing Handbook. HUD says this project ultimately should result in the consolidation of different policy documents, hopefully making compliance easier for property owners and managers of HUD-assisted multifamily properties. The first chapter HUD will update is “Bifurcating Section 8 Contracts;” comments are due November 18.

$279 Million in Awards Announced Under Green and Resilient Retrofit Program
HUD has announced the award of $279 million in grants and loans to properties across 23 states and territories under its Green and Resilient Retrofit Program. To date, $1.12 billion has been awarded through the program to 225 properties including nearly 26,000 HUD-supported rental homes. Award proceeds can be used for a variety of applications, including new insulation, windows and doors, energy-efficient heating and cooling, and other improvements. HUD anticipates making one final award announcement in the coming months before exhausting funding for the program.

HUD Creates New Guidance, Resources for Retrofitting, Weatherization
HUD recently released a new technical assistance guide to help support retrofitting and weatherization of affordable housing. The guide is intended to increase awareness of available federal resources to improve energy and water efficiency and provides information on how to evaluate property and portfolio needs to identify eligible projects. In addition, HUD has updated its funding navigator tool, which consolidates a number of different funding opportunities from a variety of different agencies in one location.

NCSHA in the News
Westlaw Today, 9.19.24, Can Home Loan Bank reforms help Harris accomplish her housing goal?
Aol, 9.30.24, Do you qualify for homebuyer assistance? You might — even if you’ve already owned a home

Looking Ahead

Legislative and Regulatory Activities

NCSHA, State HFA, and Industry Events

  • October 17 | Urban Institute Seminar: Sustainable Homeownership and Wealth Preservation for Communities of Color | Washington, DC, and Virtual
  • October 21 – 22 | ProLink Technology Live 2024 | Virtual
    Jennifer Schwartz will speak at this event.
  • October 23 – 25 | National Affordable Housing Management Association: Top Issues in Affordable Housing Conference | Washington, DC
    Jennifer Schwartz will speak at this event.
  • November 13 | Maine Affordable Housing Coalition: 2024 Housing Policy Conference | Portland, ME
    Jennifer Schwartz will speak at this event.
  • November 14 | Vermont Statewide Housing Conference | Burlington, VT
    Stockton Williams will speak at this event.
  • November 15 | Women’s Affordable Housing Network Quarterly Policy Update | Virtual
    Jennifer Schwartz will speak at this event.
  • November 21 – 22 | NAHB Mortgage Roundtable | New York, NY
    Stockton Williams will participate in this event.

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