NCSHA Washington Report | September 15, 2023
The fact that last summer’s debt ceiling deal averted the worst possible outcome of a U.S. government default and passed Congress with bipartisan support in the House and Senate led some to forecast relatively smooth fiscal sailing for the country through the 2024 elections.
In fact, the deal contained the seeds of political and budgetary chaos that were on full view in Washington this week.
Members of the House Freedom Caucus, furious about being “rolled” in the debt deal, are insisting they will vote against a short-term bill to avoid a federal shutdown at the end of the month and implying they may force a vote to remove House Speaker McCarthy (R-CA), using new powers provided in the debt agreement, unless the House cuts spending even more than the deal established and House appropriations committees have approved — levels which are already lower than the agreement authorized.
Not even McCarthy’s concession this week to caucus members’ demands to start an impeachment inquiry into Biden family business matters assuaged them, and on Wednesday they and other conservatives in the House blocked annual funding for the military until and unless they see further spending reductions.
“We’re gonna use our votes to defund as many things as we can,” said one Freedom Caucus member, Rep. Good (R-VA). “We are going to have a shutdown…It’s just a matter of how long,” said another, Rep. Norman (R-SC).
Yet, with the likelihood of at least a partial shutdown rapidly increasing, economists and Wall Street analysts “seem pretty relaxed about the risks,” Axios reported. As during the debt drama, the financial gurus seem to be taking a macro, historical view: Past shutdowns haven’t dented economic growth or hurt the stock market much, so don’t worry — the worst probably won’t happen.
Allow us to suggest such a big-picture view is more than a little short-sighted.
For one thing, the four federal shutdowns that have affected government operations for more than one business day — in 1995–96, 2013, and 2018–2019 — have averaged 19 days in length. So, anything beyond a procedural pause is likely an extended closure.
Even a week or two is enough time for delays to create detrimental ripple effects for owners, developers, and state and local agencies already dealing with multiple challenges in financing and operating projects.
In such a scenario, “any project waiting on HUD or USDA approval will stop moving forward,” Novogradac’s Mark Shelburne said recently. “There’s also a chance of delayed DDA/QCT designations, which could have ramifications for applications/QAPs.” The last time this happened was also highly disruptive for the most vulnerable renters and community-based support organizations.
Even if Congress can head off an October 1 shutdown by passing some sort of short-term funding extension between now and then, it’s hard to see the combustible forces sparked in the debt ceiling deal cooling in a few months’ time. More likely the opposite.
Stockton Williams | Executive Director
State HFA Emergency Housing Assistance
In This Issue
- HUD Announces First Green and Resilient Retrofit Program Awards
- FHFA Accepting Membership Applications for Equitable Housing Advisory Committee
- Senate Subcommittee Examines Tools for Increasing Housing Supply
- Looking Ahead
HUD Announces First Green and Resilient Retrofit Program Awards
On September 13, the Department of Housing and Urban Development (HUD) announced the first awards made under the new Green and Resilient Retrofit Program (GRRP). Funding through GRRP is available to owners of HUD-assisted multifamily properties for investments in energy efficiency, renewable energy generation, and climate resiliency. Initial awards, totaling approximately $18 million, were issued to support retrofits of 28 properties. HUD will continue to make GRRP funding available and issue awards on a rolling basis through 2023 and 2024. The list of grantees is included in HUD’s announcement.
FHFA Accepting Membership Applications for Equitable Housing Advisory Committee
The Federal Housing Finance Agency (FHFA) announced Wednesday it will begin accepting applications to serve on its Federal Advisory Committee on Affordable, Equitable, and Sustainable Housing. The committee will advise FHFA on how Fannie Mae, Freddie Mac, and the Federal Home Loan Banks can foster affordability, sustainability, and equity in the housing finance market. FHFA is seeking members with expertise in a variety of areas, including fair housing, single-family lending and servicing, multifamily housing, and state and local government housing programs. To apply to serve, email ApplyACAESH@fhfa.gov by October 13.
Senate Subcommittee Examines Tools for Increasing Housing Supply
On Tuesday, the Senate Banking Subcommittee on Housing, Transportation, and Community Development held a hearing to examine potential policies and innovations to boost the supply of affordable housing options. Subcommittee Chair Tina Smith (D-MN) and Ranking Member Cynthia Lummis (R-WY) both expressed significant concern about the affordable housing shortage in their states and across the country and said they hoped to work together to advance solutions. Subcommittee members and witnesses discussed zoning reforms, land banks, manufactured housing, and modular construction, among other potential solutions. In his written statement, Gregory Good, chief real estate development officer and director of asset management with Invest Newark, said the Housing Credit is critical to addressing the nation’s housing shortage. Eric Schaefer, chief business development officer with Fading West Development, favorably cited Virginia Housing’s efforts to support modular construction to develop affordable homes.
Legislative and Regulatory Activities
- September 22 | Comments Due to NCSHA | EPA Proposed Rule on Reconsideration of the Dust-Lead Hazard Standards and Post-Abatement Clearance Levels
- September 29 | Comments Due | Council on Environmental Quality Proposed Rule on National Environmental Policy Act Implementing Regulations Revisions Phase 2
- September 29 | Comments Due | HUD Proposed Rule on Modernization of Engagement with Mortgagors in Default
- October 2 | Comments Due | EPA Proposed Rule on Reconsideration of the Dust-Lead Hazard Standards and Dust-Lead Post-Abatement Clearance Levels
- October 4 | Comments Due to NCSHA | RHS Proposed Rule to Update Manufactured Housing Provisions
- October 6 | Comments Due to NCSHA | Treasury’s Interim Final Rule to Implement Amendments to the Coronavirus State and Local Fiscal Recovery Funds
- October 12 | Application Deadline EXTENDED | Solar for All Notice of Funding Opportunity
NCSHA, State HFA, and Industry Events
- September 18 | Discounted Early Registration Deadline | NCSHA’s 2023 Annual Conference & Showplace | Boston
- September 24 – 26 | Louisiana Housing Conference | Baton Rouge, LA
Stockton Williams is speaking at this event. - September 28 – 29 | Novogradac 2023 Housing Tax Credit and Bonds Conference | New Orleans, LA
Jennifer Schwartz is speaking at this event. - October 4 | Maine Affordable Housing Conference | Portland, ME
Stockton Williams is speaking at this event. - October 14 – 17 | NCSHA’s 2023 Annual Conference & Showplace | Boston
- October 23 – 24 | North Carolina Affordable Housing Conference | Raleigh, NC
Stockton Williams will speak at this event.
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