NCSHA Washington Report | September 8, 2023

With apologies to the Harper’s Index, a set of numbers that shed some light on the state of housing affordability heading into the fall:

• Years since the average 30-year home mortgage interest rate was as high as it was at the end of August: 21
• Percentage of monthly income required for the median family buying the median home to make their mortgage payment in June 2023: 29
• In 2020: 14
• Number of Black and Hispanic households who could become homeowners with $25,000 each in down payment assistance: 1.1 million
• Percentage amounts by which this would reduce racial homeownership gaps for each group, respectively: 8 and 3
• Amount of down payment assistance provided by state HFAs in 2022: around $1 billion 

• Number of times since 1991 HUD has reported a higher annual number of Americans with “worst case housing needs” than it did last month: 0
• Number of federally-subsidized apartments projected to reach the end of their statutory rental affordability periods between 2022 and 2027: 327,525
• Average annual number of at-risk apartments HFAs have allocated Housing Credits to preserve their affordability over the past five years: 37,000
• Median annual income of renters in Housing Credit apartments as of 2021: $18,600
• Portion of newly constructed Housing Credit properties awarded credits between 2014 and 2019 located in low poverty Census tracts: 1/3
• Percentage located in majority non-BIPOC Census tracts with average incomes 80 percent or greater than the area median income: 42 

• Percentage of newly built single-family homes that are starter homes: 8
• Percentage that are rentals: 12
• Share of current apartment construction considered “luxury”: 70
• Percentage of office buildings in the commercial districts of the 105 largest cities that are physically suitable for conversion to housing: 11
• Number of federal office buildings and other properties deemed “excess or obsolete” as of 2015: 7,000
  

• Number of times in the last 12 elections that control of the House, Senate, and/or White House has changed: 10
• Number of the 44 House races currently ranked by the Cook Political Report as “competitive” that are in suburban districts: 42
• Democrat/Republican co-sponsor split on Affordable Housing Credit Improvement Act: 50/50
• Numbers of House Members and Senators needed to achieve majority co-sponsorship of the bill, respectively: 54 and 23

Stockton Williams | Executive Director

State HFA Emergency Housing Assistance

In This Issue

• NCSHA Welcomes New Members
• NCSHA Expresses Support for New FHA Rule on Contacting Borrowers in Default
  
• HUD Updates Fair Market Rents, Makes $113 Million Available in Affordable Housing Vouchers
• RHS Plans to Increase Single-Family Manufactured Housing Purchase Options
  
• HUD Publishes Update to Housing Counseling Program Handbook
• HUD Announces FY23 Choice Neighborhoods Grant Funding Opportunity
• Banking Committee Examines Impact of Property Insurance Market on Housing Costs
• NCSHA in the News
• Looking Ahead

NCSHA Welcomes New Members
These organizations have joined NCSHA as affiliate members since August: AEM Corporation, BayGrape, Columbus Metropolitan Housing Authority, Fairstead, The Kelsey, Nevada Affordable Housing Assistance Corporation, PFM Asset Management LLC, South Coast Improvement Company, and Wyoming Department of Family Services. If you work with a partner interested in becoming a member, please contact Phaedra Stoger.

NCSHA Expresses Support for New FHA Rule on Contacting Borrowers in Default
On Tuesday, NCSHA submitted comments on the U.S. Department of Housing and Urban Development’s proposed rule on Modernization of Engagement with Mortgagors in Default, expressing support for HUD’s proposal to expand its current face-to-face meeting requirement for defaulted borrowers to a broader range of communication methods. NCSHA also urged HUD to be as expansive as possible when it defines terms necessary for the implementation of the final rule in future mortgagee letters.

HUD Updates Fair Market Rents, Makes $113 Million Available in Affordable Housing Vouchers
On August 31, HUD’s Office of Policy Development and Research published fair market rents (FMRs) for fiscal year 2024, which determine the maximum amount of rent covered by a Housing Choice Voucher (HCV) in a given market. Nationally, FMRs will increase by an average of approximately 12 percent, although increases vary widely across the country. You can see the newest FMRs and learn more about HUD’s methodology here.

In conjunction with its announcement of the FY24 FMRs, HUD announced the award of $113 million in funding for the HCV program, which will support an additional 9,500 vouchers across the country. You can learn more about this award and see funding allocations by state in HUD’s announcement.

RHS Plans to Increase Single-Family Manufactured Housing Purchase Options
Last month, the Rural Housing Service (RHS) issued a proposed rule that would allow home buyers to use Section 502 Single-Family Direct and Guaranteed loans to purchase existing manufactured units built after January 1, 2006, which meet HUD’s manufactured housing construction and safety standards. The proposed rule also would provide additional flexibility for financing manufactured and modular homes that meet certain energy efficiency standards; remove an RHS requirement to review and maintain a list of approved manufactured housing dealers, which RHS believes was causing unnecessary delays in loan processing; and revise the definition of ‘manufactured home’ to remove certain thermal performance standards. RHS is accepting comments on the proposed rule until October 16. Please send any feedback to Glenn Gallo by October 4 to inform NCSHA’s comments.

HUD Publishes Update to Housing Counseling Program Handbook
HUD today announced the release of an updated version of its Housing Counseling Program Handbook. The first comprehensive changes to the handbook since 2010, the revisions are intended to provide enhanced guidance on a number of ways counselors can help individuals and families buy, rent, or sustain their homes, including through HUD’s Home Equity Conversion Mortgage program. The updated guidance released today will go into effect January 1, 2024. A list of the revised sections to the handbook is available here.

HUD Announces FY23 Choice Neighborhoods Grant Funding Opportunity
On Wednesday, HUD announced $256 million is available in Choice Neighborhoods Implementation (CNI) Grants for FY23. Selected public housing authorities, local governments, and tribal entities could receive up to $50 million each through this round of funding. CNI grants are primarily used to fund the redevelopment of severely distressed public and other HUD-assisted housing properties. Redevelopment typically combines preservation, increasing the supply of affordable housing within a distressed property, and resident services. New Implementation Grant applications are due December 11, and applications for Supplemental Grants are due March 4, 2024. More application information is available here.

Banking Committee Examines Impact of Property Insurance Market on Housing Costs
The Senate Banking Committee Thursday held a hearing to consider how recent developments in the property insurance market are impacting consumers, with particular emphasis on housing costs. In his opening statement, Committee Chair Sherrod Brown (D-OH) noted increased frequency of severe weather events and rising costs associated with reconstruction after those events have prompted many property insurers to increase premiums substantially, restrict coverage options, and in some cases, stop operating entirely in certain states. In addition, Brown asserted, there is evidence insurance costs are increasing for multifamily properties as well as single-family dwellings, and these costs are generally passed along to renters. Ranking Member Tim Scott (R-SC) contended the biggest driver of recent insurance premium increases are unnecessary regulations and legal systems that subject insurance companies to frivolous lawsuits. Scott said the best solution was for state governments to pare back mandates and foster more market competition. Witnesses included Douglas Heller of the Consumer Federation of America, Michelle Norris of National Church Residences, and Jerry Theodorou of the R Street Institute.

NCSHA in the News
AS USA, 9.2.23, What is the Housing Choice Voucher program and how does Section 8 work?
National League of Cities, 9.1.23, Let’s Talk Housing Finance: Housing Supply Accelerator Convening, Tacoma, WA
Lahood.house.gov, 8.28.23, LaHood’s Affordable Housing Credit Improvement Act Surpasses 150 Cosponsors

Looking Ahead…

Legislative and Regulatory Activities

• September 12 – 14 | HUD’s Office of Housing Counseling 2023 Community Conference | Virtual
  Glenn Gallo will attend this event.
• September 12 | Senate Banking Committee Housing Subcommittee Hearing on Housing Supply and Innovation
• 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 | Comment 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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