NCSHA Washington Report | September 26, 2024

Heading into NCSHA’s Annual Conference & Showplace next week, back by popular demand and with apologies to the Harper’s Index, a few handfuls of housing and other facts for the season.

Percentage of core inflation during the past 12 months (through August) attributable to housing costs: 70

Factor by which the average 30-year home mortgage interest rate increased from trough to peak between January 2021 and October 2023: 5

Amount this increase cost home buyers in higher monthly mortgage payments on a $400,000 mortgage: $1,265

Household income needed in 2020 to buy a median-priced home, assuming 30 percent of their income for housing, in the seven swing states expected to decide this year’s presidential election: $45,140

Amount needed as of July 2024: $86,421

Number more of buyers able to afford a median-priced home when mortgage rates are 6.25 percent compared to 7.25 percent: 4.5 million

Number of cities where “starter homes” cost $1 million or more in 2019: 84

Number today: 237

Reduction in the number of apartments nationwide available for rent at $600 or less since 2012: 2.1 million

Number of states where the Low-Income Housing Tax Credit finances 15 percent or more of all apartment construction: 40

Factor by which the number of very low-income renters grew compared to the number of them that received housing assistance between 2001 – 2021: 5

Projected annual federal cost of providing housing vouchers to all very low-income households (as of 2015): $41 billion

Actual annual federal cost of tax breaks for mostly upper-income homeowners (as of 2023): $165 billion

Percentage of Americans who describe the cost of owning/renting a home as “the most important financial problem facing your family today”: 14

Percentage earning $100,000 or more who ranked their own ability to afford housing as “one of their top-three concerns”: 60

Average duration, in years, of party control in the House and Senate, respectively, during the 20th century: 11.1 and 9

During the 21st : 4.8 and 4

Number of 435 House races considered “toss ups” by the Cook Political Report, as of September 6: 24

Number of days from Election Day until the reinstatement of the federal debt ceiling, at which point “if the ceiling has not yet been addressed, the Treasury will have to immediately resume extraordinary measures and policymakers will once again have to come together to find a solution”: 55

Stockton Williams | Executive Director

Washington Report will return October 11.

In This Issue

• NCSHA Welcomes New Members
• Congress Passes Continuing Resolution Averting Government Shutdown
• HOTMA Compliance Deadline Extended
• HUD Awards $48 Million to HFAs, Other Housing Counseling Organizations
• HUD Provides $15 Million to PHAs, HFAs to Prevent Youth Homelessness
• FHA Releases Proposed Guidance for New Flood Standards for Single-Family Homes
• Senate Budget Committee Discusses Housing Affordability
• USICH Releases Homelessness Prevention Framework
• Ivory Prize Nomination Period Open
• NCSHA in the News
• Looking Ahead

NCSHA Welcomes New Members
NCSHA has welcomed the following organizations as Affiliate members in September: District of Columbia Housing Authority; FHN Financial; Fidelity Capital Markets; Greenberg Traurig, LLP; National Bankruptcy Services, LLC; NESTER; and Siebert Williams Shank & Co., LLC. If you work with a partner interested in becoming a member, please contact Phaedra Stoger.

Congress Passes Continuing Resolution Averting Government Shutdown
Late Wednesday, with just a few days remaining before the end of the current fiscal year, Congress passed a continuing resolution to extend current levels of federal funding through December 20. The House and Senate both considered the measure, which also extends the National Flood Insurance Program for the same period, using expedited procedural mechanisms to ensure swift passage before recessing until after the November 5 election. President Biden is expected to sign the bill soon.

HOTMA Compliance Deadline Extended
On September 20, the U.S. Department of Housing and Urban Development (HUD) issued Notice H 2024-09 extending to July 1, 2025, the date by which HUD-assisted multifamily property owners must comply with the Housing Opportunity Through Modernization Act’s (HOTMA) income and asset limit calculation, documentation, and review requirements. The previous deadline had been January 1, 2025. The extension is needed because HUD has not yet released an update to the Tenant Rental Assistance Certification System (TRACS) necessary for HOTMA compliance. Owners of HUD multifamily housing that adopt HOTMA prior to HUD’s completion of the TRACS update should calculate incomes and rents manually and enter the information into the current TRACS system using the rent override function and must annotate tenant files accordingly.

HUD Awards $48 Million to HFAs, Other Housing Counseling Organizations
On Thursday, HUD’s Office of Housing Counseling announced the more-than 160 housing counseling organizations selected to receive a total of $48 million through the FY 2024 Comprehensive Housing Counseling Awards, including nearly $8.7 million for 16 HFAs. The funding will be used to support the organizations’ efforts to provide housing counseling services, train housing counseling professionals, and deliver educational resources on pre-purchase home buying, financial literacy, foreclosure and rental eviction prevention, reverse mortgage counseling, disaster recovery, appraisal bias, and heirs’ property management. As part of the awards, 14 organizations, including the Georgia Department of Community Affairs / Georgia Housing and Finance Authority, Louisiana Housing Corporation, and Pennsylvania Housing Finance Agency, will partner with Historically Black Colleges and Universities to provide educational resources to help narrow the racial homeownership gap. The list of award recipients is available here.

HUD Provides $15 Million to PHAs, HFAs to Prevent Youth Homelessness
Last Friday, HUD announced $15.4 million would be distributed through two programs designed to support young Americans transitioning out of foster care and experiencing or at risk of experiencing homelessness. The Foster Youth to Independence (FYI) program is awarding $12.5 million to 21 public housing agencies (PHAs) — including the Idaho Housing and Finance Association and the Michigan State Housing Development Authority — for supporting young adults under the age of 25 who have left foster care or are transitioning out of foster care. HUD also is awarding $2.7 million to 25 PHAs in the form of 168 FYI housing assistance vouchers in partnership with public child welfare agencies. The PHAs receiving award funding through the FYI program are listed here and administering housing assistance here.

FHA Releases Proposed Guidance for New Flood Standards for Single-Family Homes
The Federal Housing Administration (FHA) Monday published a draft mortgagee letter updating its single-family program guidelines to implement new flood protection standards for HUD-insured properties published in April. The new standards require single-family homes located in 100-year floodplains built beginning in 2025 to be elevated two feet above base flood elevation to qualify for FHA mortgage insurance (manufactured homes would be exempt). Current FHA policy requires such homes to be built no lower than the base flood elevation. The draft mortgagee letter incorporates the new requirement into FHA’s Single Family Policy Handbook. FHA will accept comments on the draft mortgagee letter until October 7 via its online Drafting Table.

Senate Budget Committee Discusses Housing Affordability
The Senate Budget Committee held a hearing Wednesday to explore potential solutions to the affordable housing shortage. In his opening statement, Committee Chair Sheldon Whitehouse (D-RI) argued the federal government needs to do more to help increase the supply of affordable for-sale and rental homes and favorably cited Rhode Island’s recent efforts to make it easier to build affordable housing in the state. Whitehouse also touted legislation he introduced the previous day, the Affordable Housing Construction Act, that would triple the Housing Credit allocation for each state. Ranking Member Charles Grassley (R-IA) agreed there is an acute shortage of affordable housing but countered that additional federal spending would only make the problem worse by driving up costs. The solution, he argued, was to reduce regulations that are holding back housing construction. Committee Republicans largely agreed with Grassley while committee Democrats generally expressed support for more federal initiatives, including expanding the Low-Income Housing Tax Credit.

In response to a question from Senator Tim Kaine (D-VA), witnesses Paul Williams of the Center for Public Enterprise and Greta Harris of the Better Housing Coalition both said the Housing Credit is the most effective tool for building affordable housing. Williams also expressed support for Senator Mark Warner’s (D-VA) efforts to clarify that Fannie Mae and Freddie Mac are not classified as tax-exempt controlled entities to enable them to continue making Housing Credit investments through multi-investor pools.

USICH Releases Homelessness Prevention Framework
On Monday, the United States Interagency Council on Homelessness (USICH) released a federal homelessness prevention framework, the first of its kind, intended to serve as a guide for a wide audience of stakeholders, including state, local, and tribal governments, as well as service providers and advocates for housing, health, education, and other sectors. The framework focuses on three categories of homelessness prevention, including prevention by promoting stable housing; diversion by helping people avoid homelessness; and rehousing and stabilization for people currently experiencing homelessness. Read more about the release and the framework itself.

Ivory Prize Nomination Period Open
The Ivory Prize for Housing Affordability is an annual award recognizing ambitious, feasible, and scalable solutions to housing affordability. The prize considers innovations in three categories — construction/design, finance, and policy/regulatory reform — and awards winners in each category with up to $100,000 in prize money; includes organizations selected in the top 25 finalists in the Ivory Prize portfolio network; and gives finalists non-financial benefits including connections to funders, pro bono consulting support, and summer student internships funded by Ivory Innovations. The nomination window for the 2025 Ivory Prize is open and closes December 6, 2024. To nominate an organization, visit ivoryprize.org.

NCSHA in the News
American Banker, 9.19.24, Can Home Loan Bank reforms help Harris accomplish her housing goal?

Looking Ahead

Legislative and Regulatory Activities

• October 7 | Comments Due | FHA Flood Standards for Single-Family Homes
• October 14 | Comments Due to NCSHA | Fannie Mae and Freddie Mac Affordable Housing Goals, 2025 – 2027
• October 16, 3:00 pm ET | HUD Webinar: Exploring the Opportunities of 811 PRA | Virtual
• October 28 | Comments Due | Fannie Mae and Freddie Mac Affordable Housing Goals, 2025 – 2027

NCSHA, State HFA, and Industry Events

• September 28 – October 1 | NCSHA’s 2024 Annual Conference & Showplace | Phoenix
• October 9 | “Reimagining New York State’s Role in Affordable Housing Development: Embracing Greater Risk for Greater Reward?” | NYU Furman Center, New York, NY
  Stockton Williams will speak at this event.
• October 21 – 22 | ProLink Technology Live 2024 | Virtual
  Jennifer Schwartz is speaking at this event.
• October 23 – 25 | National Affordable Housing Management Association Top Issues in Affordable Housing Conference | Washington, DC
  Jennifer Schwartz will participate in this event.
• November 14 | Vermont Statewide Housing Conference | Burlington, VT
  Stockton Williams will speak at this event.
• November 21 – 22 | NAHB Mortgage Roundtable | New York, NY
  Stockton Williams will participate in this event.