December 18, 2009

H.R. 3288: FY 2010 Consolidated Appropriations Act

On Wednesday, President Obama signed H.R. 3288, the FY 2010 Consolidated Appropriations Act into law.  The legislation contains the funding levels both the House and Senate have agreed upon in conference for several FY 2010 appropriations bills.  The FY 2010 Consolidated Appropriations Act provides $450 billion to fund the government agencies that fall under the jurisdiction of the THUD, Commerce-Justice-Science, Labor-HHS-Education, Veterans, and State/Foreign Operations appropriations bills.  Overall, most HUD programs received significant increases.

NAHMA has posted a NAHMAnalysis that contains the HUD and RHS funding levels for the multifamily housing programs for FY 2010, which can be accessed by clicking here: http://www.nahma.org/member/NAHMAAnalysis/NAHMAnalysis%20FY%202010%20appropriations%20final.pdf

H.R. 2847: Jobs for Main Street Act of 2010

This week, the House passed H.R. 2847, the Jobs for Main Street Act of 2010, which provides $1 billion for the National Housing Trust Fund.  The Fund would provide communities with money to build, preserve, and rehabilitate rental homes that are affordable for extremely and very low-income households.  The legislation also sets aside $65 million for project-based vouchers to support units built by the Fund.  The legislation is now being considered in the Senate

H.R. 4173: Wall Street Reform and Consumer Protection Act of 2009

This week, the House passed H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009.  The bill’s primary purpose is to provide financial regulatory reform, protect consumers and investors, enhance Federal understanding of insurance issues, and regulate the over-the-counter derivatives markets.  Nevertheless, there is a provision in the legislation that would amend a provision in H.R. 1728, the Mortgage Reform and Anti-predatory Lending Act of 2009, passed earlier this year, which allows the government to transfer a property at risk of foreclosure without the owner’s permission.  H.R. 4173 would change the law to allow the government to transfer a property at risk of foreclosure when appropriate and with the owner’s permission.

The bill has been referred to the Senate Banking Committee.

 

December 11, 2009

Office of Affordable Housing Preservation Incorporated into Multifamily at HUD

NAHMA has learned that as of January 1, 2010, the Office of Affordable Housing Preservation will be incorporated into the Office of Multifamily Housing at HUD.  An official announcement has not been issues from HUD, but NAHMA has informally confirmed that such plans are underway.  More details will be provided as they become available.

H.R. 3288: The FY 2010 Consolidated Appropriations Act

Yesterday, the House passed the Congressional conference agreement on five of the remaining appropriations bills using H.R. 3288, the FY 2010 THUD Appropriations Act, as the legislative vehicle.  The legislation contains the funding levels both the House and Senate have agreed upon in conference for several FY 2010 appropriations bills.  The FY 2010 Consolidated Appropriations Act provides $450 billion to fund the government agencies that fall under the jurisdiction of the THUD, Commerce-Justice-Science, Labor-HHS-Education, Veterans, and State/Foreign Operations appropriations bills. 

The conference report funds several HUD affordable multifamily housing programs at the following levels for FY 2010:

• Tenant-Based Rental Assistance: $18.2 billion (total); $16.339 billion (contract renewals)
  - Budget Request:  $17.84 billion (total); $16.19 billion (contract renewals)
  - FY 2009 Appropriation:  $16.8 billion (total); $15 billion (contract renewals)

• Project-Based Rental Assistance:  $8.5 billion (total); $8.325 billion (contract renewals); $393 million as an FY 2011 Advanced Appropriation included in the total funding level
  - Budget Request: $8.1 billion total; $7.398 billion (contract renewals); $400 million in advanced appropriations for FY 2011
  - FY 2009 Appropriation: $7.1 billion (total); $6.87 billion (contract renewals); plus $400 FY 2010 Advanced Appropriation

• Limited English Proficiency (LEP) Funding: $500,000
  - Budget Request: $0
  - FY 2009 Appropriation: $500,000

• Section 202 Housing for the Elderly:  $825 million
  - Budget Request: $765 million
  - FY 2009 Appropriation:  $765 million

• Section 811 Housing for the Disabled:  $300 million
  - Budget Request: $250 million
  - FY 2009 Appropriation: $250 million

• HOME: $1.825 billion
  - Budget Request:  $1.825 billion
  - FY 2009 Appropriation: $1.825 billion

• CDBG: $4.45 billion
  - Budget Request: $4.45 billion  
  - FY 2009 Appropriation: $3.9 billion

• Hope VI: $200 million; $65 million for the Choice Neighborhoods demonstration program
  - Budget Request: $250 million
  - FY 2009 Appropriation: $120 million

• Energy Innovation Fund: $50 million; $25 million for an Energy Efficient Mortgage pilot program and $25 million for a Multifamily Energy Pilot program
  - Budget Request: $75 million
  - FY 2009 Appropriation: n/a

• Transformation Initiative: $20 million to combat mortgage fraud and allows the transfer of up to 1 percent of all program accounts to an account for IT improvements and technical assistance
  - Budget Request: Ability to transfer up to 1 percent of all program accounts to an account for IT improvements and technical assistance
  - FY 2009 Appropriation: n/a

The Senate hopes to pass the legislation as early as Sunday.  NAHMA plans to release a NAHMAnalysis on the FY 2010 affordable housing program appropriations late next week.

A summary of the HUD funding levels is available here: http://appropriations.house.gov/pdf/FY10_THUD_Conference_Summary.pdf

For the full bill, please visit here: http://appropriations.house.gov/FY2010_consolidated.shtml

H.R. 4213: The Tax Extenders Act of 2009

This week, the House passed H.R. 4213, the Tax Extenders Act of 2009.  The legislation would provide individuals and businesses with approximately $31 billion in tax relief in 2009 by extending for one year (through December 31, 2010) more than forty provisions that are scheduled to expire at the end of 2009.  The legislation would specifically extend the GO Zone tax credits and the LIHTC cash-exchange program.

For a copy of the text of H.R. 4213, please click here.

For a copy of a summary of H.R. 4213, please click here.

Senators John Kerry (D-MA) and Maria Cantwell (D-WA) have drafted a “Dear Colleague” letter to Senate Finance Chairman Max Baucus (D-MT) and Ranking Member Charles Grassley (R-IA) requesting them to consider a number of provisions to bolster the LIHTC program in future tax legislation.  This includes extending the cash-exchange program for one year and expanding the LIHTC investor base to some S corporations, limited liability companies, and closely held C corporations.

A copy of the draft letter is located here: http://www.nahma.org/Leg%20area/kerry-cantwell%20LIHTC%20Dear%20Colleage%2012%2009.pdf

The legislation has been referred to the Senate Finance Committee.  However, the media reports that the Senate is unlikely to pass the extenders bill by the December 31, 2009 deadline.

NAHMA encourages our members to contact their Senators and urge them to sign onto the Kerry-Cantwell LIHTC “Dear Colleague” letter and ask them to support the speedy passage of this legislation. 

H.R. 4173: Wall Street Reform and Consumer Protection Act of 2009

Last week, Congressman Barney Frank (D-MA) introduced H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009.  The bill’s primary purpose is to provide financial regulatory reform, protect consumers and investors, enhance Federal understanding of insurance issues, and regulate the over-the-counter derivatives markets.  Nevertheless, there is a provision in the legislation that would amend a provision in H.R. 1728, the Mortgage Reform and Anti-predatory Lending Act of 2009, passed earlier this year, that allows the government to transfer a property at risk of foreclosure with out the owner’s permission.  H.R. 4173 would change the law to allow the government to transfer a property at risk of foreclosure when appropriate and with the owner’s permission.

The bill is currently being considered on the House floor.

Donovan Testifies on FY 2009 FHA Actuarial Report before HFSC

Last week, HUD Secretary Shaun Donovan testified before the House Financial Services Committee on the FY 2009 FHA Actuarial Report.  His testimony focused on three areas: enforcement, improving the quality and sustainability of new loans insured by FHA, and increasing FHA capital.  The Secretary highlighted that HUD should be “providing people with the options they need to make good choices for their families” through emphasizing both home ownership and rental housing.

A copy of the Secretary’s full testimony can be found here: http://www.house.gov/apps/list/hearing/financialsvcs_dem/hud_testimony_-_fha_risk_management_-_final.pdf

S. 2827, H.R. 3641: Military Families Affordable Homes Act

This week, Senator Charles Schumer (D-NY) introduced a companion bill to H.R. 3641, the Military Families Affordable Homes Act of 2009.  The legislation would amend the Internal Revenue Code of 1986 to expand the military housing allowance exclusion to any county (or adjoining county) with a military installation or facility.  The size and growth of the instillation or facility (as currently defined in the code) would no longer be a factor in determining if a military housing allowance exclusion would apply.

The bill has been referred to the Senate Finance Committee.  NAHMA will be running this legislation through its public policy process over the next week to determine our position.

 

November 20, 2009

H.R. 4109: Low-Income Housing Credit 5 Year Carry-Back

This week, Rep. Bill Pascrell (D-NJ), introduced H.R. 4109, a bill that would amend the Internal Revenue Code to allow the low-income housing credit to be carried back 5 years.  The legislation is the A.C.T.I.O.N carry-back proposal that NAHMA strongly supports.  A.C.T.I.O.N. (A Call To Invest in Our Neighborhoods), a group working to ensuring that families have access to affordable housing. 

The bill would allow investors to reinvest the entire amount of unused housing tax credits carried-back immediately into new LIHTC investments.  It would also make the LIHTC for new housing more competitive with other tax credits with shorter compliance and holding periods, by permitting future credits to be carried back up to five years throughout the 10-year credit period.  Both provisions would apply to existing and new investments.  The legislation has been referred to the Ways and Means Committee.

The Ways and Means Committee also spent some time this week to discuss LIHTC proposals which may be included in an upcoming jobs bill the House hopes to pass in December.  The committee discussed a package that included extending the LIHTC cash-exchange, making the LIHTC for new housing more competitive with other tax credits with shorter compliance and holding periods, and expanding the eligible investor base to sub-chapter S corporation community banks.  The committee proposal has left out the A.C.T.I.O.N. carry-back proposal that would allow investors reinvest the entire amount of unused housing tax credits carried-back immediately into new LIHTC investments.  The committee members reportedly are worried they cannot limit the carry-back to LIHTC and would need to include all general business tax credits, increasing the probable cost of the proposal to over $10 billion.  As a result, it is unknown now how H.R. 4109 will fare with the Committee.

NAHMA will continue to work with the A.C.T.I.O.N. campaign to include these important LIHTC proposals on the first available legislative vehicle.

H.R. 4099: Energy Efficiency Modernization Act of 2009

This week, Rep. Mary Jo Kilroy (D-OH) introduced H.R. 4099, the Energy Efficiency Modernization Act of 2009.  The bill would create a grant program to help improve energy efficiency in federally subsidized housing and allow the use of residual receipts as loans to make energy efficient improvements/retrofits.  HUD would develop the benchmarks for energy efficiency under this act.  There would be reporting requirements on the level of energy and resource reduction achieved after the improvements and retrofits are in place.  All HUD subsidized multifamily properties, regardless of their participation in the green retrofit programs, would also be required to report regularly to HUD regarding project consumption of electricity, water, gas, and other utilities for a larger annual report.

The legislation has been referred to the House Financial Services Committee.  NAHMA will also be running it through our public policy review and approval process.

H.R. 4106: Green Affordable Housing Act of 2009

This week, Rep. James Himes (D-CT) introduced H.R. 4106, the Green Affordable Housing Act of 2009.  The bill would authorize HUD to create a program to offer grants and loans to owners of federally assisted housing projects for costs of making green retrofit improvements.  The bill would require properties to submit their retrofit plans in advance of receiving the grant or loan.  Retrofits would be required to: lower electric, heating fuel, water consumption; lower emissions of harmful chemicals; increase the useful life of the buildings; increase use of biodegradable and recyclable materials; reduce the use of raw materials; and/or lower transportation costs of products delivered to the project.  The bill also authorizes appropriations for the program.

This legislation has been referred to the House Financial Services Committee.  NAHMA will also be running it through our public policy review and approval process.

HUD Unveils Choice Neighborhoods Proposal

This month, HUD introduced its Choice Neighborhoods Initiative (CNI) proposal.  CNI would be the next iteration of HOPE VI and would broaden the scope of the program to include a focus on transforming neighborhoods with extreme poverty.  The program would provide $250 million, from FY 2010 appropriations, for grants that HUD would award competitively to local governments, public housing agencies, community development corporations, assisted housing owners, and other for-profit and nonprofit entities. The current HOPE VI program only provides grants to housing agencies to revitalize severely distressed public housing.

The Senate’s FY10 HUD appropriations bill includes $250 million for CNI, as HUD requested in March. The House HUD appropriations bill does not including funding for CNI, but would fund HOPE VI. The House and Senate bills are now in conference to iron out their differences, including whether to include CNI in the final FY 2010 HUD appropriations bill.

A copy of the proposed legislation is available at: http://www.nahma.org/Leg%20area/HUD-CNI-bill.pdf.

 

November 6, 2009

ARRA Reporting Requirements Exemption Approved

NAHMA is pleased to report that the Office of Management and Budget has granted Project-Based Section 8 Housing Assistance Payments funding recipients a waiver from the American Reinvestment and Recovery Act of 2009 reporting requirements.  

A formal announcement is expected to be made in the coming days.  HUD will also be sending out a letter to affected owners in the near future. NAHMA will also be sending a more substantive message out to the general membership.

H.R. 3548: Unemployment Compensation Extension Act

This week, the House and Senate passed H.R. 3548, the Unemployment Compensation Extension Act.  The legislation would extend the $8,000 tax credit for first time homebuyers and unemployment insurance, and allow businesses that had operating losses in 2008 and 2009 to seek refunds for taxes paid on profits over the past five years.

While the bill does not contain the five-year carry-back specifically for LIHTC, Congress hopes the additional tax refunds for the five-year carry-back for net operating losses will allow businesses to retain employees or make new investments to bolster the economy in the future.  NAHMA and the A.C.T.I.O.N. campaign will continue to work with Congress to include the A.C.T.I.O.N. LIHTC proposals to stabilize the LIHTC program on the next available legislative vehicle.

The A.C.T.I.O.N. LIHTC proposals include:

• Increasing the Housing Tax Credit carry-back for up to five years;
• Extending the Housing Credit cash-exchange program (Section 1602) from the American Recovery and Reinvestment Act (ARRA) for one more year; and
• Expanding the LIHTC potential investor base to include pass-through entities – LLCs and Subchapter S corporations – and closely held corporations.

H.R. 3548 has been transmitted to the White House for Presidential approval.

S. 1733: The Clean Energy Jobs and American Power Act (CEJAP)

Last month, Senate Committee on Environment and Public Works (EPW) Chairwoman Barbara Boxer (D-CA) introduced a “chairman’s mark” for S. 1733, the Clean Energy Jobs and American Power Act (CEJAP). 

The mark includes the Retrofit for Energy and Environmental Performance (REEP) program, which allows HUD to facilitate cost-effective retrofitting of existing buildings, including public housing and federally assisted multi-family residences, to achieve maximum cost-effective energy efficiency improvements through existing programs.  HUD would be responsible for providing funding for REEP and developing and implementing standards for the program, in conjunction with the Department of Energy.

The mark also provides a set aside of 10% of the funds that go to states for the REEP program for units of public housing, Section 202, Section 811, and project-based Section 8, “or similar programs.” 

There is an additional section that provides a different portion of the funds to states for energy efficiency programs for energy retrofits and green investments in “subsidized housing,”, including REEP program.  The legislation does not provide a definition of “subsidized housing” for this section.
Chairwoman Boxer’s press release and text of the Chairman’s mark for S. 1733  is available at: http://epw.senate.gov/public/index.cfm?FuseAction=Majority.PressReleases&ContentRecord_id=84691b8e-802a-23ad-4728-e60de8d50fea&Region_id=&Issue_id

 

October 30, 2009

FY 2010 Continuing Resolution

Yesterday, both the House and Senate passed the conference report for H.R. 2996, the FY 2010 Interior-Environment Appropriations, which extended the FY 2010 Continuing Resolution from October 31, 2009 to December 18, 2009.  The CR will allow Congress additional time to finish uncompleted appropriations legislation, including the FY 2010 Transportation-HUD Appropriations.
In addition to providing funding for federal programs at FY 2009 levels, the CR extends the language which directs HUD to obligate funds to renew or amend, in a timely manner, all Project-Based Section 8, Section 202, and Section 811 rental assistance contracts and allows payments to be made beyond the December 18, 2009 end date. 

Under the new CR, PHA’s may use up to $200 million of the funds from the FY09 omnibus package to prevent the termination of low income housing assistance to families with Housing Choice Vouchers.

The legislation has been transmitted to the White House for Presidential approval.

Senate Banking Housing Subcommittee Hearing on S. 118 and S. 1481

Yesterday, the Senate Banking Subcommittee on Housing, Transportation and Community Development held a hearing to examine modernizing affordable housing for seniors and people with disabilities.  They specifically discussed the impact of S. 118, the Section 202 Supportive Housing for the Elderly Act, and S. 1481, the Frank Melville Supportive Housing Investment Act of 2009.

Representative Christopher Murphy (D-CT) testified on the first panel to discuss H.R.1675, the Frank Melville Supportive Housing Investment Act of 2009, which he sponsored.  H.R. 1675 passed the House last summer and was introduced into the Senate by Senator Bob Menendez (D-NJ) as S. 1481. 

Rep. Murphy discussed the need to provide permanent, supportive housing to disabled Americans.  He said that the number of households requiring Section 811 housing far exceeded the program’s capacity to produce new units and S. 1675 would do much to boost construction for the program without additional costs to the federal government.

The second panel of witnesses included testimony from: Ann O’Hara of the Technical Assistance Collaborative on behalf of the Consortium for Citizens with Disabilities Housing Task Force; NAHMA Past-President Michelle Norris of National Church Residences, on behalf of American Association of Homes and Services for the Aging; Michael Jones, a parent of a disabled son from Brick, NJ; and Toby Halliday of the National Housing Trust; and Sheila Crowley, President of the National Low-Income Housing Coalition.

In addition to supporting S. 118 and S. 1481, the industry panelists highlighted the need to pass the Section 8 Voucher Reform Act and provide an additional $1 billion for the National Housing Trust Fund to support and strengthen any changes made to the Section 202 and Section 811 programs.  They also echoed the need to strengthen the Project-Based Section 8 program as part of any comprehensive plan to assist elderly and disabled tenants.

Ms. O’Hara discussed how the Section 811 reform bill would quadruple the number of units within the first year of enactment and how using the LIHTC program with PRACs and state and local rental assistance would make the program significantly more affordable while increasing the number of people the program could assist.

Ms. Crowley discussed the importance of preserving existing Section 202 units as the program aged and the need to streamline the development process.  Ms. Norris explained that the changes in S. 118 would make it easier to transfer existing properties to preservation entities and provide enhanced service delivery to the elderly through the Assisted Living Conversion Program.

H.R. 3897: Removing Reward for Section 8 Fraud Act of 2009

The NAHMA Federal Affairs Committee and Board of Directors have voted to strongly support H.R. 3897.  To that end, NAHMA met with Rep. Elton Gallegly’s (R-CA) staff to discuss the legislation in more detail this week.  In the coming weeks, NAHMA will send Rep. Gallegly a formal endorsement letter for the legislation and will roll out a grassroots advocacy campaign encouraging our members to contact their Congressional Representatives and urge them to co-sponsor this important legislation.  We will also urge our members to contact their Senators and urge them to introduce a companion bill for this legislation.  

H.R. 3897 would amend Section 12 of the United States Housing Act of 1937 to close a loophole that allows Project-Based Section 8 properties to lower rents for families who are repaying the government when welfare fraud has been detected. Public housing agencies are already prohibited from lowering rents under such circumstances.

H.R. 3929: Extending LIHTC Placed-In-Service Dates for Disaster Areas

Introduced by Representative Charlie Melancon (D-LA), H.R. 3929 would provide an extension of the LIHTC placed-in-service date requirement for the Gulf Opportunity Zone, the Rita GO Zone, and  the Wilma GO Zone from January 1, 2001 to January 1, 2013.  The legislation has been referred to the Committee on Ways and Means.

S. 1835, S. 1937: Five Year Carry-Back of Operating Losses

This week, Senator Sam Brownback (R-KS) introduced two pieces of legislation that would amend the Internal Revenue Code to allow 5-year carry-back of operating losses for the 2008 and 2009 taxable years, excluding TARP recipients.  The bills have been referred to the Senate Finance Committee.  NAHMA is seeking additional information on the legislation at this time, including information on the possible inclusion of the LIHTC carry-back.

S. 1861: Two-Year Extension of Go Zone Tax Credits

Senator Mary Landrieu (D-LA) introduced S. 1861 this week.  The legislation would amend the Internal Revenue Code of 1986 to provide a two-year extension of the increased rehabilitation credit for structures in the Gulf Opportunity Zone from December 31, 2009 to December 31, 2011.  The legislation has been referred to the Senate Finance Committee.

 

October 23, 2009

H. R. 3812: Distressed Communities Reinvestment Act of 2009

Last week, Rep. Suzanne Kosmas (D-FL) introduced a bill to amend the Internal Revenue Code of 1986 to encourage businesses to purchase commercial and residential property in distressed communities by providing an exclusion from tax on certain gains.  Distressed communities are defined as communities that:

• Have a residential or commercial mortgage foreclosure rate of 110 percent, or more of the national average;
• Have a decline in the average fair market value of housing of at least 20 percent;
• Have an unemployment rate of 110 percent or more of the national average;
• Are in a county where more than 50 percent of loans secured by housing had a loan-to-value ratio of greater than 80 percent; or
• Are in a disaster area.

The bill has been referred to the House Committee on Ways and Means.

H.R. 3897: Removing Reward for Section 8 Fraud Act of 2009

This week, Rep. Elton Gallegly (R-CA) introduced legislation that would amend Section 12 of the United States Housing Act of 1937 to close a loophole that allows Project-Based Section 8 properties to lower rents for families who are repaying the government when welfare fraud has been detected.

Passed in 1998, the Quality Housing and Work Responsibility Act of 1998 was intended to prohibit the owners and operators of the Section 8 programs from lowering the rent for tenants who commit welfare fraud or who refuse to participate in a self sufficiency program.  However, the law only specifically identified PHA’s as part of the Section 8 program, and was not applied to residents residing in Project-Based Section 8 properties.

The legislation closes the loophole by requiring privately owned Section 8 properties to maintain rent levels for any household whose welfare benefits are reduced because the welfare agency has determined and verified:

• The family has committed welfare fraud; and
• The enforced sanction on the household is a result of noncompliance with a requirement to participate in an economic self-sufficiency program.

The bill has been referred to the House Financial Services Committee.

 

October 16, 2009

H.R. 3793, S. 1658: The Healthy Housing Council Act of 2009

This week, Rep. Robert Brady (D-PA) introduced the House companion bill to S. 1658, the Healthy Housing Council Act of 2009, which would establish an interagency Council on Healthy Homes.  Members would include the heads of Health and Human Services, HUD, the Environmental Protection Agency, Energy, Labor, Veterans Affairs, IRS/Treasury, Agriculture, and Education.
The Council is intended to:

• Promote the supply and demand for health housing;
• Coordinate actions to improve access to healthy housing and efficiency between the agencies;
• Identify program deficiencies and best practices; and
• Improve the quality of housing available.

To that end, the Council is expected to produce an annual report to Congress and the President detailing their findings.
NAHMA has voted to remain neutral on this legislation.  NAHMA members are concerned that the legislation could result in too many policy makers recommending actions that are difficult, costly, and/or time consuming to implement into national housing programs.  We are also concerned that the reports and suggestions from the agency would result in unnecessary administrative burdens and that the council would not include industry participant input.  NAHMA is currently discussing these concerns with the office of the bill’s sponsor, Senator Jack Reed (D-RI).

S. 1676:  The Affordable Housing Preservation and Revitalization Act of 2009

S. 1676 would allow the use of residual receipts from project-based voucher funded properties with expiring contracts to be transferred to nonprofit agencies that commit to picking up the affordable units.

NAHMA members would support the legislation if the use of residual receipts was opened to all affordable preservation entities, both for-profit and non-profit.  The bill has been referred to the Senate Banking Committee.

 

October 9, 2009

H.R. 2997: FY 2010 Agricultural Appropriations

This week, both the House and Senate passed the conference report on the FY10 Agriculture Appropriations bill.  The conference legislation contains funding for the rural multifamily housing programs, including:

• $980 million for rural rental assistance;
• $45 million for rural housing assistance grants for rehabilitation and repairs;
• $69.5 million for Section 515 Housing Direct Loans;
• $129 million for Section 538 Housing Loan Guarantees (interest subsidies not included); and
• $43.2 million to the Multifamily Housing Revitalization Program ($16.4 million in vouchers, $25 million for the demonstration program, and $2 million for non-profit loans).

The rural housing rental assistance grants are a consolidation of grant line items previously listed individually for each section funding level. The bill has been transmitted to the White House for Presidential approval.

S. 1733: Clean Energy Jobs and American Power Act

Last week, Senator Barbara Boxer (D-CA) and Senator John Kerry (D-MA) introduced the Clean Energy Jobs and American Power Act, S. 1733 (CEJAP). The Senate bill includes several, but not all, provisions of the Green Resources for Energy Efficient Neighborhoods (GREEN) Act, which was included in the House climate change bill (H.R. 2454), passed last June.  The Senate legislation includes a set-aside of "cap and trade" funds for public and assisted housing. This set-aside is part of the Retrofit for Energy and Environmental Performance (REEP) program, a new state block grant program proposed by the bill that would be funded by a specific allocation of permits.  Ten percent of the allocation value of each state’s REEP funds would be prioritized for public and assisted housing.  
The bill does not include GREEN Act’s:

• Standards for green building and appliances;
• Energy efficient mortgages; or
• The Project-based Section 8 energy efficient building pilot program that would:

• Authorize $50 million a fiscal year for three years; and
• Retrofit 50,000 units.

The legislation has been referred to the Senate Environment and Public Works Committee.

S. 1761: Extension of the GO Zone LIHTCs

This week, Senator Mary Landrieu introduced legislation that would extend the place-in-service deadline for Gulf Opportunity (GO) Zone low-income housing tax credits from January 1, 2011 to January 1, 2012.

"The extension of the workforce housing tax credits will mean that more Louisianians who were displaced by the 2005 hurricanes and haven't been able to find workforce housing will be able to return home," Sen. Landrieu said. "It is essential that builders have enough time to finish their developments and still receive the tax credit so that we can continue to rebuild our communities."

It has been referred to the Senate Finance Committee.

H.R. 3766: Main Street TARP Act of 2009

This week, Chairman Barney Frank (D-MA) the Main Street TARP Act.  The legislation would transfer $1 billion from the Treasury’s Troubled Asset Relief Program to HUD’s Affordable Housing Trust Program.  It would also provide funding to single family home owners in the form of emergency mortgage relief.

It has been referred to the House Financial Services Committee.

S. 1731: Preserving Homes and Communities Act of 2009

This week, Senator Jack Reed (D-RI) introduced his companion bill to H.R. 3766, the Main Street TARP Act of 2009.  It would provide grants and subsidized loans to states for homeowners in default and authorizes appropriations for this purpose.  The legislation would also transfer $1 billion from the Treasury’s Troubled Asset Relief Program to HUD’s Affordable Housing Trust Program.

It has been referred to the Senate Banking Committee.

H.R. 3715, S. 1743: Community Restoration and Revitalization Act of 2009

Rep. Allyson Schwartz (D-PA) and Sen. Blanche Lincoln (D-AR) introduced legislation that would amend the Internal Revenue Code to expand the Section 47 historical rehabilitation tax credit this week.  The bill would expand the tax credit from 20 to 30 percent for smaller projects whose rehabilitation costs, excluding energy efficiency improvements, are below $7.5 million.  The credit does encompass residential buildings.  It also increases the credit for moderate rehabilitations to 50 percent and allows for an energy efficiency supplement to the rehabilitation credit.

The legislation has been referred to the House Ways and Means Committee and the Senate Finance Committee, respectively.

 

October 2, 2009

FY 2009 Continuing Resolution

On Wednesday, the Senate passed H.R. 2918, the FY 2010 Legislative Branch Appropriations, which included a continuing resolution.  The CR gives Congress additional time to complete the other FY 2010 appropriations bills, which include both FY 2010 Agriculture and Transportation-HUD (THUD) bills.  The legislation will fund all government programs at FY 2009 levels unless otherwise specified in the CR.  Section 149 of the CR directs HUD to obligate funds to renew or amend, in a timely manner, all Project-Based Section 8, Section 202, and Section 811 rental assistance contracts.  It also allows payments to be made beyond the October 31, 2009 end date.  Under the CR, HOPE VI has been extended until October 31, 2009.

The CR will last through October 31, 2009 or until the respective appropriations Acts are completed, whichever occurs first.  President Obama signed the legislation into law on October 1, 2009 as P.L. 111-68.

H.R. 2997, S. 1406: The FY 2010 Agriculture Appropriations Act

This week, the joint conference report on the FY 2010 Agriculture Appropriations bill was published.  These are the funding levels that both the House and the Senate negotiators have agreed to for the FY 2010 appropriations.

For rural housing, the legislation included:

• $980 million for rural rental assistance;
• $45 million for rural housing assistance grants for rehabilitation and repairs;
• $69.5 million for Section 515 Housing Direct Loans;
• $129 million for Section 538 Housing Loan Guarantees (interest subsidies not included); and
• $43.2 million to the Multifamily Housing Revitalization Program ($16.4 million in vouchers, $25 million for the demonstration program, and $2 million for non-profit loans).

The rural housing rental assistance grants are a consolidation of grant line items previously listed individually for each section funding level. H.R. 2997 must now be considered by both the House and the Senate.

H.R. 3641: Military Families Affordable Homes Act

This week, Rep. Glenn Nye (D-VA) introduced legislation that would expand the military housing allowance exclusion within the LIHTC program for purposes of for determining area median gross income for qualified residential rental project exempt facility bonds.

H.R. 3670: Historic Homeowners Revitalization Act of 2009

Introduced by Rep. Russ Carnahan (D-MO) this week, the legislation amends the Internal Revenue Code to include a tax credit of 20% of qualified rehabilitation expenditures for a qualified historic home and expands  the incentives for the rehabilitation of older buildings, including owner-occupied and multifamily residences.  The bill has been referred to the House Ways and Means Committee. 

 

September 25, 2009

FY 2009 Continuing Resolution

The House and Senate will not finish all 12 appropriations bills before the September 30, 2009 deadline.  They have agreed to include a continuing resolution (CR) on H.R. 2918, the FY 2010 Legislative Branch Appropriations, to give them additional time to finish the other FY 2010 appropriations bills, which include both FY 2010 Agriculture and Transportation-HUD (THUD) bills.  While the text of the bill was unavailable at press time, the legislation will fund all government programs at FY 2009 levels unless otherwise specified in the CR.  Section 149 of the CR specifies that fund will be obligated to renew or amend, in a timely manner, all Project-Based Section 8, Section 202, and Section 811 rental assistance contracts and allow payments to be made beyond the October 31, 2009 end date.  Under the CR, all housing programs that would otherwise expire have been extended until October 31, 2009.

The CR will last through October 31, 2009 or until the respective appropriations Acts are completed, whichever occurs first.  The House is expected to approve the legislation as early as today.  The Senate must approve it before September 30.

NAHMA Meets with HUD Secretary Donovan

Yesterday, NAHMA President Dan Murray and NAHMA staff met with HUD Secretary Donovan to discuss NAHMA’s top ten regulatory policy priorities for 2009.  Also participating in the meeting were Multifamily Housing DAS Carol Galante and a representative from FHA Commissioner Stevens’ office.  The meeting focused on Section 8, 2530/APPS process, REAC, and rebuilding a sense of partnership between the Agency and the industry.  We also discussed our appropriations request, which included full funding for Section 8 programs and completing the Big Buy. 

S. 1676:  The Affordable Housing Preservation and Revitalization Act of 2009

This bill was introduced by Senator Ron Wyden (D-OR) this week.  The legislation would allow the use of residual receipts from project-based voucher funded properties with expiring contracts to be transferred to nonprofit agencies that commit to picking up the affordable units. Currently, owners are required to hold on to residual receipts. The bill would prevent the loss of units by allowing these residual funds to be used as replacement reserves and to pay for: rehabilitation costs; tenant services; acquisition of the property; and any other costs that have been approved by HUD.

The bill is going through NAHMA’s public policy process and is being reviewed by the Federal Affairs Committee.  One concern, however, is that we believe the process should be open to all affordable preservation entities, not just nonprofits.  The bill has been referred to the Senate Banking Committee.

 

September 18, 2009

H.R. 3288:  FY 2010 Transportation-HUD (THUD) Appropriations Act

Yesterday, the Senate passed H.R. 3288, the FY 2010 THUD Appropriations Act, 73-25.  The Senate also agreed to the Manager’s Amendment from Sen. Patty Murray, making a number of overall changes to the bill.  The text of that amendment was not available at press time.

If no changes were made to funding levels by that amendment, the Senate FY 2010 THUD Appropriations Bill included:

• Tenant-Based Section 8: $18.1 billion, with $200 million set aside to prevent termination of assistance to families;
• Project-based Section 8: $8.1 billion;
• Section 202:  $785 million;
• Section 811:  $265 million;
• HOME: $1.825 billion;  
• LEP translations and support: $500,000;
• Choice Neighborhoods Program: $250 million (replaces the HOPE VI program);
• Community Development Block Grant (CDBG): $3.99 billion; and    
• Energy Innovation Fund: $0 million.

The Senate also agreed to two amendments from Sen. Coburn.  The first would require HUD to prepare and post an on-line report regarding the number of homes owned by the agency and the cost to taxpayers for acquiring, maintaining and selling such homes.  The second would require that reports made to House and Senate Appropriations Committees be posted on the panels' websites, baring those that would compromise national security or contain proprietary information.

The Senate and the House will now send the bill to conference in order to mitigate the discrepancies between their two versions.

H.R. 3527: FHA Multifamily Loan Limit Adjustment Act of 2009

This week, the House passed H.R. 3527, the FHA Multifamily Loan Limit Adjustment Act.  The legislation would increase the maximum mortgage amount limitations under the FHA mortgage insurance programs for multifamily housing projects with elevators and for extremely high-cost areas. 

NAHMA supports this legislation and will urge for its quick passage in the Senate.

S. 1658: Healthy Housing Council Act of 2009

Last week, Senator Reed (D-NY) introduced a bill that would establish an interagency Council on Healthy Homes.  Members would include the heads of Health and Human Services, HUD, the Environmental Protection Agency, Energy, Labor, Veterans Affairs, IRS/Treasury, Agriculture, and Education.

The Council is intended to:

• Promote the supply and demand for health housing;
• Coordinate actions to improve access to healthy housing and efficiency between the agencies;
• Identify program deficiencies and best practices; and
• Improve the quality of housing available.

To that end, the Council is expected to produce an annual report to Congress and the President detailing their findings.

HFSC Hearing: “Proposals to Enhance the Community Reinvestment Act”

This week, the House Financial Services Committee held a hearing examining “Proposals to Enhance the Community Reinvestment Act.” 

Rep. Eddie Bernice Johnson (D-TX) discussed her bill, H.R. 1479, the Community Reinvestment Modernization Act. According to Rep. Johnson, the CRA Modernization Act would increase the responsiveness and accountability of banks to all communities, require CRA exams in most geographical areas that community banks serve, address racial and income disparities in lending, and require the Federal Reserve Board to create a database on foreclosures and loan modifications.

Industry stakeholders suggested evaluating and reforming the ratings system and lending procedures, eliminating discrimination within lending and increasing access to the disenfranchised, increasing the number of institutions who are subject to CRA (which will also improve investment in LIHTC and help underserved areas), improving efficiency within the program, and strengthening performance incentives and enforcement tools.

 

September 11, 2009

FY 2010 THUD Appropriations

The Senate began considering the H.R. 3288, the FY 2010 THUD Appropriations bill, this week.  Senate Appropriations Committee leadership expects the bill to be passed early next week.  Under the legislation, HUD would receive nearly $46 billion, including $18.1 billion for Section 8 housing choice vouchers to help low-income families hold on to their homes during the recession; $8.1 billion for Section 8 project-based rental assistance; $1.9 billion for homeless assistance grants; $785 million for housing for low-income elderly; and $365 million for the disabled.  The Senate bill also would provide $3.99 billion in Community Development Block Grants.

Additionally, today NAHMA sent a letter to House and Senate Appropriators detailing the affordable housing industry’s four major concerns in the FY 10 appropriations process.  Eight other industry organizations have joined our request.  Please find a copy of the letter available by clicking here.

The concerns we asked Congress to resolve include:

• Providing full and timely funding for project-based Section 8 contract renewals.

• Waiving reporting requirements for multifamily property owners who received project-based section 8 contract funding from the American Recovery and Reinvestment Act (ARRA).

• Providing $6.6 million for HUD to complete lead-based paint risk assessment reimbursements for multifamily properties which enrolled in the “Big Buy” program.

• Securing $500,000 to continue HUD’s Limited English Proficiency technical assistance program.

Please contact your Congressional Representatives and let them know the importance of including these funding provisions in the FY 2010 appropriations bills.  For information on contacting your Congressional members, please see the NAHMA grassroots webpage, available by clicking here: http://www.nahma.org/content/grassroots.html.

 

August 7, 2009

H.R. 3288: FY 2010 Transportation-HUD (T-HUD) Appropriations Bill

This week, NAHMA learned that the Senate has included $500,000 for limited English proficiency funding in their version of the FY 2010 T-HUD Appropriations bill.  NAHMA is working with the House Appropriations Committee staff to ensure this important funding remains in the legislation when the bill goes to conference to resolve differences between the Senate and House versions.

H.R. 2997, S. 1406: The FY 2010 Agriculture Appropriations Act

This week, the Senate passed H.R. 2997, the FY 2010 Agriculture Appropriations bill.  For rural housing, the legislation included:

• $980 million for rural rental assistance;
• $69.5 million for Section 515 Housing Direct Loans;
• $129 million for Section 538 Housing Loan Guarantees; and
• $39.7 million to the Multifamily Housing Revitalization Program.

Under the Senate legislation, the Multifamily Housing Revitalization Program would receive an increase over both FY 09 appropriations and the FY 2010 budget request.  Both Section 515 and Section 538 would be flat funded under this legislation compared to both FY 2009 appropriations and the FY 2010 budget request.  The Section 538 interest subsidies are not included in this funding.  Rural rental assistance would receive an increase in funding over FY 2009 appropriations but fall short of the FY 2010 budget request.

H.R. 3527: The FHA Multifamily Loan Limit Adjustment Act of 2009

Sponsored by Rep. Anthony Weiner (D-NY), H.R. 3527 would increase the maximum mortgage amount limitations under the FHA mortgage insurance programs for multifamily housing projects with elevators and for extremely high-cost areas.  Additional details on the legislation are forthcoming.  NAHMA supports this bill.

Recess

The Senate began its month long recess today after confirming Sonia Sotomayor to the Supreme Court.  Both the House and Senate will be on recess until Tuesday, Sept. 7.  The NAHMA Washington Update will resume Friday, September 11.

 

July 31, 2009

H.R. 3288: FY 2010 THUD Appropriations

Yesterday, the Senate Appropriations Committee unanimously passed their version of the  FY 2010 THUD appropriations bill.  The Committee suggested increased levels of funding for almost all HUD programs over FY 2009 levels and equal to or higher than the FY 2010 budget request.  The HUD funding summary for the Senate includes:

• Tenant-Based Section 8: $18.1 billion
  -Increase over FY 2009 Appropriations: $2.03 billion
  -Increase over FY 2010 Presidential Request: $260 million
• Project-based Section 8: $8.1 billion
  -Increase over FY 2009 Appropriations: $1 billion
  -Increase over FY 2010 Presidential Request: $0
  

• Section 202:  $785 billion
  -Increase over FY 2009 Appropriations: $20 million
  -Increase over FY 2010 Presidential Request: $20 million

• Section 811:  $265 million
  -Increase over FY 2009 Appropriations: $15 million
  -Increase over FY 2010 Presidential Request: $15 million
  

• HOME: $1.825 billion  
  -Increase over FY 2009 Appropriations: $0.175 billion
  -Increase over FY 2010 Presidential Request: $175 million

• Choice Neighborhoods Program: $250 million; HOPE VI: $0     
  -Increase over FY 2009 Appropriations: $120 million
  -Increase over FY 2010 Presidential Request: $0
• Community Development Block Grant (CDBG): $3.99 billion    
  -Increase over FY 2009 Appropriations: $100 million
  -Decrease over FY 2010 Presidential Request: $300 million
• Energy Innovation Fund: $0 million
  -Increase over FY 2009 Appropriations: $0
  -Decrease over FY 2010 Presidential Request: $75 million

For a summary of the legislation, please click here: http://appropriations.senate.gov/News/2009_07_30_Summary_of_FY_2010_THUD_Appropriations.pdf?CFID=8556368&CFTOKEN=19470832

The text of the legislation is not yet available, but NAHMA is following up with Congressional staff to determine the status of funding priorities, including limited-English proficiency and the Affordable Housing Trust Fund.  NAHMA is working to maintain the LEP funding line item.  We will provide additional details as they are made available.  No amendments were offered on the legislation at the Committee level, but several are expected to be added in on the floor.  The Senate will begin consideration of the bill on the floor next week.

Recess

The House will begin recess for the month of August on August 3rd.  The Senate will remain in session next week to finish votes on appropriations bills, including FY 2010 THUD appropriations, and the confirmation vote of Sonia Sotomayor to the Supreme Court.

 

July 24, 2009

H.R. 3288: FY 2010 Transportation-HUD (T-HUD) Appropriations Bill

Last night, the House passed the FY 2010 T-HUD appropriations bill (H.R. 3288). The bill increased levels of funding for almost all HUD programs over FY 2009 levels and equal to or higher than the FY 2010 budget request. 

The HUD funding summary includes:

• Tenant-Based Section 8: $18.2 billion; $16.3 billion on contract renewals
  -Increase over FY 2009 Appropriations: $1.2 billion
  -Increase over FY 2010 Presidential Request: $406 million
• Project-based Section 8: $8.7 billion; $8.47 billion on contract renewals
  -Increase over FY 2009 Appropriations: $1.2 billion
  -Increase over FY 2010 Presidential Request: $600 million
• Section 202:  $1 billion; $872 million for capital advance and project-based rental assistance awards with $90 million for service coordinators
  -Increase over FY 2009 Appropriations: $235 million
  -Increase over FY 2010 Presidential Request: $235 million
• Section 811:  $350 million; $214 million for capital advance and project-based rental assistance awards
  -Increase over FY 2009 Appropriations: $100 million
  -Increase over FY 2010 Presidential Request: $100 million

• HOME: $2 billion  
  -Increase over FY 2009 Appropriations: $0.175 billion
  -Increase over FY 2010 Presidential Request: $175 million

• HOPE VI: $250      
  -Increase over FY 2009 Appropriations: $120 million
  -Increase over FY 2010 Presidential Request: $0
• Community Development Block Grant (CDBG): $4.6 billion    
  -Increase over FY 2009 Appropriations: $725 million
  -Increase over FY 2010 Presidential Request: $174 million
• Energy Innovation Fund: $50 million; $25 million for the Multifamily Energy Pilot
  -Increase over FY 2009 Appropriations: $75 million
  -Decrease over FY 2010 Presidential Request: $25 million

In addition, the House Appropriations Committee decided against funding the Administration’s proposed Choice Neighborhoods Program, citing lack of program authorization and the duplication of HOPE VI activities.  Furthermore, no funding has been set aside for limited English proficiency translations. For more information, please visit the House Appropriations Committee website, http://appropriations.house.gov/.

The Senate Appropriations T-HUD Subcommittee plans on marking up their companion bill on Wednesday, July 29.  The full Senate Appropriations Committee plans on voting on the legislation on July 30. Please know that NAHMA is vigorously working to include funding for LEP in the Senate bill.

NAHMA members are strongly encouraged to contact their senators and request their support “for including a $500,000 line item in the Transportation-HUD Appropriations bill for HUD to provide technical assistance to recipients of federal funds for document transitions and supportive services to persons with limited English proficiency.” A list of Senators who serve on the Appropriations Committee is available at http://appropriations.senate.gov/members.cfm.

H.R. 3045: SEVRA

This week, the House Financial Services Committee passed H.R. 3045, the Section 8 Voucher Reform Act.  The legislation now includes the Waters’ Amendment, which incorporated the Moving to Work program.

NAHMA has received word that Committee Chairman Barney Frank plans to have the LEP authorization language added as an amendment when the full House considers SEVRA. Please recall this language authorizes a task force of industry advocates and civil rights colleagues to identify documents for translation, requires HUD to translate those documents within 6 months, creates a 24-hour toll-free number to assist with oral interpretation needs, and authorizes appropriations for HUD to carry out these activities.

SEVRA has not been reintroduced in the Senate at this time.

S. 1481, H.R. 1675:  The Frank Melville Supportive Housing Investment Act of 2009

This week, H.R. 1675 was passed by the House.  A companion bill, S. 1481, was introduced in the Senate this week by Sen. Robert Menendez (D-NJ).  The bill would increase the amount of affordable, supportive housing available for people with disabilities.  The act would provide assistance to private nonprofit organizations to expand the supply of housing for persons with disabilities through capital advances and contracts for project rental assistance and provides incremental vouchers to the Section 811 properties through Tenant Based Section 8. The bill would also modernize the capital advance program and the tenant selection process and increase tenant protections. The legislation would authorize a new demo program to expand the supply of disabled housing through project rental assistance. Furthermore, the act would make technical corrections to Section 811 to increase project flexibility, authorizes appropriations for the new programs, conduct a GAO study to determine the adequacy and effectiveness of Section 811 programs, and calls for HUD to issue new regulations and guidelines for the program within 180 days.  NAHMA continues to support this legislation.

 

July 17, 2009

David Stevens Sworn in as FHA Commissioner

Last Friday, David H. Stevens was approved by the Senate to be the new HUD FHA Commissioner.  He was officially sworn in this week.

FY 2010 THUD Appropriations

This week, the House Appropriations Subcommittee on Transportation and Housing and Urban Development passed the THUD FY 2010 appropriations Chairman’s mark.  The mark suggested increased levels of funding for almost all HUD programs over FY 2009 levels and equal to or higher than the FY 2010 budget request.  The HUD funding summary includes:

• Tenant-Based Section 8: $18 billion
  -Increase over FY 2009 Appropriations: $1.93 billion
  -Increase over FY 2010 Presidential Request: $160 million
• Project-based Section 8: $8.1 billion
  -Increase over FY 2009 Appropriations: $1 billion
  -Increase over FY 2010 Presidential Request: $0
  

• Section 202:  $1 billion
  -Increase over FY 2009 Appropriations: $235 million
  -Increase over FY 2010 Presidential Request: $235 million

• Section 811:  $350 million
  -Increase over FY 2009 Appropriations: $100 million
  -Increase over FY 2010 Presidential Request: $100 million
  

• HOME: $1.825 billion  
  -Increase over FY 2009 Appropriations: $0.175 billion
  -Increase over FY 2010 Presidential Request: $175 million

• HOPE VI: $250      
  -Increase over FY 2009 Appropriations: $120 million
  -Increase over FY 2010 Presidential Request: $0
• Community Development Block Grant (CDBG): $4.45 billion    
  -Increase over FY 2009 Appropriations: $550 million
  -Increase over FY 2010 Presidential Request: $150 million
• Energy Innovation Fund: $50 million
  -Increase over FY 2009 Appropriations: $75 million
  -Decrease over FY 2010 Presidential Request: $25 million

The Full House Appropriations Committee is expected to mark-up the THUD FY 2010 appropriations today.  The text of the legislation is not yet available to the public, so we are unsure if funding has been made available for LEP translations or the Affordable Housing Trust Fund.  For a copy of the Subcommittee summary, please click here: http://appropriations.house.gov/pdf/THUD_SubC_Top_Line_Summary_Table-07.13.2009.pdf.

Affordable Preservation Hearing

This week, the House Financial Services Subcommittee on Housing and Community Opportunity held a hearing entitled “Legislative Options for Preserving Federally- and State-Assisted Affordable Housing and Preventing Displacement of Low-Income, Elderly and Disabled Tenants.”  NAHMA submitted written testimony for the record discussing our support for the legislation, but our concerns over provisions such as the first right of purchase, 3rd party beneficiary status to tenants, and the restructuring restrictions for Section 515 rural housing.  Testimony was given by the Rural Housing Administrator Tammy Trevino and industry members.

Trevino discussed the lack of interest subsidy in the Section 538 program.  She testified she has seen deals work with and without the interest credit; however, the interest subsidy was the more popular option and a good preservation tool.  She also said it was too early to determine the impact removing the interest subsidy would have on the Section 538.  Trevino also commented on how an estimated 80% of the rural portfolio would need some form of rehabilitation in the next 6 to 7 years.

Allan Isbitz, President of the National Leased Housing Association, testified that the legislation should stop focusing on the difference between non-profits and for-profits, and instead should focus on “good stewardship” for the affordable housing program.  He also aired NLHA’s support for H.R. 2887, the “exit tax” legislation.

Ricky Leung, Treasurer of the National Alliance of HUD Tenants, testified on the organization’s strong support for the right of first purchase provisions.  He discussed the New York courts nullification of the New York right of first purchase, saying the nullification was due to pre-emption, not constitutional concerns as stated in HUD Secretary Shaun Donovan’s preservation testimony last month.  Leung concluded, saying that “establishing a national Right of First Purchase, or altering the federal Notice laws, will not present any federal “preemption” problems.”

 

July 10, 2009

H.R. 2997, S. 1406: The FY 2010 Agriculture Appropriations Act

Yesterday, the House passed H.R. 2997, the FY 2010 Agriculture Appropriations bill, 260-161.  For rural housing, the legislation included:

• $980 million for rural rental assistance;
• $80 million for Section 515 Housing Direct Loans, with $22 million being set aside for repair, rehabilitation, and new construction;
• $129 million for Section 538 Housing Loan Guarantees and these loans would not be subject to a guarantee fee and the interest subsidy removed; and
• $32 million to the Multifamily Housing Revitalization Program, distributed as $2 million for revolving loans, $5 million for rural housing vouchers, and $25 million for demonstration program grants.

Additionally, the Senate introduced S. 1406, their companion to H.R. 2997 this week.  It contains:

• $980 million for rural rental assistance;
• $69.5 million for Section 515 Housing Direct Loans;
• $129 million for Section 538 Housing Loan Guarantees and these loans would not be subject to a guarantee fee and the interest subsidy removed; and
• $39.7 million to the Multifamily Housing Revitalization Program.

Under the Senate legislation, the Multifamily Housing Revitalization Program would receive an increase over both FY 09 appropriations and the FY 2010 budget request.  Both Section 515 and Section 538 would be flat funded under this legislation compared to both FY 2009 appropriations and the FY 2010 budget request.  The Section 538 interest subsidies would still be removed.  Rural rental assistance would receive an increase in funding over FY 2009 appropriations but fall short of the FY 2010 budget request.

H.R. 3045: Section 8 Voucher Reform Act

This week, the House Financial Services Committee began their mark-up of H.R. 3045, the Section 8 Voucher Reform Act.  While several changes were made to the legislation, some of the NAHMA supported amendments did not get adopted.
Most notably, Congresswoman Judy Biggert’s (R-IL) amendment 19, which would have eliminated all language regarding former criminal tenant protections, was defeated.  However, the Committee did agree to Biggert amendment 20 which tightened up the formal criminal tenant protections language.  The new language reads: “No denial of admission may be made pursuant to this subsection based on a misdemeanor charge and conviction unless such denial is based on a pattern of activity [or the commission of] any offense against a child, including child pornography offenses, offenses involving a child victim, sexual assault, assault, or violent, disruptive, or illegal behavior that disrupts that right of other tenants’ right to peaceful enjoyment of the property.” 

Congressman David Price (R-GA) was able to include amendment 14, prohibiting owners and mangers from restricting firearms within federally assisted housing, and amendment 16, defining acceptable identification to determine citizenship.

Congressman Randy Neugebauer’s (R-TX) amendment 18, which would strike the tenant protection at foreclosure language that would extend the protections defined in S. 896, Helping Families Save Their Homes, signed into law earlier this year, was defeated.

Congresswoman Shelly Moore Capito (R-WV) was able to include a study on the effect of the Section 8 program on the HUD Budget and Programs (amendment 5).

For copies of the amendments, please click here: http://www.house.gov/apps/list/speech/financialsvcs_dem/mrk_070809.shtml

HUD Official Update

Effective Monday July 13, Bev Miller, Director of Multifamily Asset Management, and Bill Hill, Director of the Policy & Participation Standards Division, in the Office of Multifamily Housing will be moving to new positions at the agency.  Ms. Miller will now be working in Single Family Asset Sales and Mr. Hill will be transferring to the Baltimore office.  NAHMA will let the membership know as soon as replacements are announced.

H.R. 3068: TARP for Main Street Act of 2009

This week, the House Financial Services Committee held a hearing on H.R. 3068, TARP for Main Street, which contains provisions for a Multifamily Mortgage Resolution Program, which would use TARP funds to stabilize multifamily properties that are in default or foreclosure, or have recently been foreclosed, and provide $1 billion for the Affordable Housing Trust Fund, established last year in the Housing and Economic Recovery Act.

Both the President of the National Low-Income Housing Coalition, Shelia Crowley, and the Associate General Counsel of AFL-CIO, Damon Silvers, testified in favor of these provisions.  However, Republican Committee members pushed back on the recycling of TARP funds saying the money should go back to the Treasury to pay down the debt. 

Affordable Housing Preservation Hearing July 15

The House Financial Services Subcommittee on Housing and Community Opportunity will be holding a hearing on “Legislative Options for Preserving Federally- and State-Assisted Affordable Housing and Preventing Displacement of Low-Income, Elderly and Disabled Tenants” with witnesses from the affordable housing industry on Wednesday, July 15 at 2 pm EST in 2128 Rayburn House Office Building.  NAHMA will be submitting written testimony for the hearing.

The hearing will also be available via live Webcast, available by clicking here: http://www.house.gov/apps/list/hearing/financialsvcs_dem/hhr_071509.shtml

H.R. 3026: Hazard Mitigation for All Act of 2009

Congressman Bennie Thompson (D-MS) introduced legislation to the House this week that would amend the United States Public Housing Act of 1937 to establish a pre-disaster mitigation grant program to benefit public and assisted housing residents through improving the resilience of residential structures to withstand storms and other natural disasters.

 

June 26, 2009

Nominations

Yesterday, the Senate Banking Committee approved the nominations of David H. Stevens to become the new HUD Federal Housing Administration Commissioner and Raphael Bostic to become the Assistant Secretary for Policy Development and Research.  These nominations must now be approved by the full Senate.

Marcedes Marques was confirmed as the new Assistant Secretary for Community Planning and Development.

H.R. 2997: Agriculture, Rural Development, Food and Drug Administration Appropriations Act of 2010

This week, the House Appropriations Committee filed a report on H.R. 2997 with more detailed information on the FY 2010 Agricultural Appropriations. The House has proposed:

• $980 million for rural rental assistance;
• $80 million for Section 515 Housing Direct Loans, with $22 million being set aside for repair, rehabilitation, and new construction;
• $129 million for Section 538 Housing Loan Guarantees and these loans would not be subject to a guarantee fee and the interest subsidy removed; and
• $32 million to the Multifamily Housing Revitalization Program, distributed as $2 million for revolving loans, $5 million for rural housing vouchers, and $25 million for demonstration program grants.

The Multifamily Housing Revitalization Program and Section 515 funding would receive an increase over both FY 09 appropriations and the FY 2010 budget request.  Section 538 would be flat funded under this legislation compared to both FY 2009 appropriations and the FY 2010 budget request and interest subsidies would still be removed.  Rural rental assistance would receive an increase in funding over FY 2009 appropriations but fall short of the FY 2010 budget request.

HFSC Affordable Housing Preservation Hearing

Yesterday, the House Financial Services Committee held a hearing on Chairman Barney Frank’s draft affordable housing preservation bill, with testimony given by HUD Secretary Shaun Donovan.  The hearing focused on several aspects of the legislation, including the need for HUD to become a responsible business partner, the creation of a national affordable housing database, challenges of rehabilitating in rural versus urban areas, exit tax relief, and the right of first purchase.

In his testimony, Secretary Donovan emphasized the need for HUD to become a better leader and partner in preservation efforts.  The Secretary plans to streamline regulations and establish a problem-solving ethos to avoid past problems of regulation conflicting with effective preservation.  He also wants to provide more information to assist preservation efforts and, to that end, supports the creation of a national affordable housing database to determine what properties are assisted, where mixed financing occurs, and when mortgages are maturing. However, the Secretary pointed out that some of the information that would be released under the draft bill is protected as financial and competitive data. He also recognized that one-size does not fit all in terms of preservation policy.  There are different challenges that surround rural and urban properties as well as deeply troubled and well-maintained properties.  HUD, Donovan said, needs flexibility and is discussing the preservation challenges with the industry to determine what issues exist.

Chairman Barney Frank (D-MA) asked Donovan for his views on exit tax relief.  The Secretary said it was less costly to preserve existing buildings than new construction or enhanced vouchers.

Housing and Community Opportunity Ranking Member Shelley Moore Capito (R-WV) asked what the Secretary planned to do to address HUD fatigue.  Donovan said the real issue was ensuring adequate full funding for 12 month contracts to restore credibility to the program after years of short term contract extensions.  He reiterated HUD’s commitment to becoming a better partner to the affordable housing industry.

Housing and Community Opportunity Chairwoman Maxine Waters (D-CA) asked Donovan for HUD’s position on the national right of first purchase.  The Secretary responded that there were a number of complex constitutional and local legal issues surrounding the right of first purchase that would need be resolved.  Tenant sponsored purchases are not the most important tool to ensure the properties are preserved, he said.  He said the strongest barriers to tenant preservation included timely access to information, technical assistance with financial issues, and the lack of adequate financial resources to preserve.  He reiterated that the legal issues surrounding the provision would still need to be dealt with before addressing the tenant purchase issues. (The multifamily industry, including NAHMA, has argued that the first right of purchase is an unconstitutional “taking” of private property.)

Congressman Michael Castle (R-DE) asked what sources are available to preserve existing housing units today.  The Secretary explained that over 50 percent of LIHTCs are used for affordable housing preservation, and that using state and local resources were important in effective rehabilitation projects.

The Secretary also discussed how the legislation would allow HUD to move Section 8 contracts to other properties, ensuring a timely replacement of units and increase flexibility within the program.

H.R. 3045: Section Eight Voucher Reform Act (SEVRA)

Rep. Maxine Waters has re-introduced the SEVRA bill (H.R. 3045).  Cosponsors of H.R. 3045 include Rep. Barney FRANK, Rep. Joe BACA, and Rep. Steve Cohen and Rep. Judy Biggert.  The bill could be voted on in the Committee soon after the July 4th recess. NAHMA has heard that July 8 is a possible date.

Unfortunately, the Limited English Proficiency section was removed (for now) due to concerns about “germaneness.” Because the LEP language applies generally to HUD programs (not just Section 8), having the language in the introduced bill would open it to amendments which involve other HUD programs. NAHMA has received assurances that Chairman Frank still supports this section, and he wants to add it back as an amendment either in markup or on the House floor. Members may recall that when LEP was originally added to SEVRA in 2007, the language was included in an amendment that was offered during floor consideration by the House of Representatives.

H.R. 2995, S. 1326: The Disaster State Housing Recovery Act of 2009

S. 1326 was introduced this week by Senators Evan Bayh (D-IN) and Richard Shelby (R-AL) in the Senate. Companion legislation, H.R. 2295, was introduced in the House by Congressman Artur Davis (D-AL).  The legislation would make GO Zone and Midwestern Disaster Credits eligible for Treasury’s Section 1602 Tax Credit Exchange Program (cash for credits).  NAHMA strongly supports this legislation.

S. 1246: Home Energy Retrofit Finance Program Act

This week, Senator Bernard Sanders (D-VT) introduced a bill that creates and authorizes appropriations for a home energy retrofit finance program within the Department of Energy (DOE).  These grants, which are repaid over time, would establish or expand a revolving finance fund to support financing offered by qualified program delivery entities for energy efficiency measures and renewable energy improvements to existing homes and residential buildings.  State energy efficiency retrofit programs must coordinate with existing Federal home energy efficiency retrofit programs.  States must provide program evaluation reports every two years, with a national report to be complied three years after enactment.  Multi-units buildings with five or less stories and that receive federal assistance would be eligible for the grants.

 

June 19, 2009

FY 2010 Appropriations Legislation

THUD

Today, the House Appropriations Subcommittee on Transportation, Housing and Urban Development held a hearing to discuss HUD’s FY 2010 budget request, with testimony given by HUD Secretary Shaun Donovan.  While the majority of the discussion focused on FHA and the foreclosure crisis, Donovan did discuss the Section 8 rent formula, CDBG, the Choice Neighborhoods Program, and the Transformation Iniative.

Secretary Donovan also explained they were examining multiple formulas for CDBG.  He would like both HUD and Congress to reach a joint conclusion on how to reform the CDBG formula. 

Congressional members also stressed their desire to close the gap between the needs and resources of the HUD affordable housing programs.  The Secretary agreed, saying that was why HUD requested an increase in funding for programs like Section 8 vouchers and Project-Based Section 8.

Congresswoman Carolyn Kilpatrick (D-MI) commented on how much she loved the HUD budget for the first time in 13 years.  She began a series of inquiries on the effectiveness of the Choice Neighborhoods program.  Donovan reassured the committee there would be enough funding for distressed public housing despite the fact they Administration has requested the Hope VI program be expanded to assisted housing through the Choice Neighborhoods program.  He said public housing has three times the number of distressed units than assisted housing in areas of concentrated poverty and would be funded appropriately.  He also discussed how HUD was using the American Recovery and Reinvestment Act funds to rehabilitate distressed public housing. 

Congressman Ed Pastor (D-AZ) asked about the Transformation Initiative and HUD’s plans to improve the IT systems.  Secretary Donovan said HUD wanted to provide the most accountable, accurate, and transparent information to Congress so HUD could serve more people at the same funding levels.  He said HUD would use the working capital fund for program maintenance and the Transformation Initiative for technological improvements and upgrade.  HUD has already begun prioritizing IT systems to upgrade.  Donovan said the top IT upgrades would include FHA and Section 8.

Agriculture

Yesterday, the full House Appropriations Committee approved the FY 2010 Agriculture Appropriations bill.  Unfortunately, the Committee has approved cuts in RHS loan subsidies, rental assistance, and multifamily housing.  The RHS loan subsidies have been reduced by $42 million over FY 2009 appropriations and match the Obama Administration’s FY 2010 budget request in order to lower subsidies to maintain program funding levels.  Rural rental assistance has been reduced to the cost of covering the contracts, which is no change from the FY 2009 appropriations and a reduction of $111 million over  the Obama Administration’s FY 2010 budget request.  RHS Multifamily Housing has also been reduced by $1 million over FY 2009 appropriations and matching the Obama Administration’s FY 2010 budget request, which lowers the subsidy needed to maintain the program funding level.  No additional information was available at press time.

For a copy of the legislation summary, please click here: http://appropriations.house.gov/pdf/Ag_FY10_FC_Summary_As_Amended_06-18-09.pdf

For a list of line items terminations and funding reductions, please click here: http://appropriations.house.gov/pdf/Ag_FY2010_Reductions_and_Eliminations_Table_06.18.09.pdf

H.R. 2336: The GREEN Act of 2009

This week, HUD Deputy Secretary Ron Sims testified before the House Financial Services Subcommittee on Housing and Community Opportunity about HUD’s energy efficiency and green programs as well as its ability to implement aspects of H.R. 2336, the GREEN Act.

He discussed HUD’s commitment to improving energy efficiency in federally subsidized private housing through: the expenditure of $250 million for green energy retrofits in the American Recovery and Reinvestment Act (ARRA); $5 billion for the Department of Energy (DOE) Weatherization program for low-income persons appropriated in ARRA; and HUD’s Energy Innovation Fund Multifamily Pilot program proposed in the FY 2010 budget request.

He said that HUD spends an estimated $5 billion on energy, either directly in the form of public housing operating subsidies or indirectly through utility allowances and Section 8 contracts in assisted multifamily housing. “A modest savings of just 5 percent per year,” Sims said, “Could generate a savings of $1 billion over the next 5 years.”  Sims elaborated that:

“Average owner-paid per-unit utility costs for federally assisted housing increased by 28 percent between 2000 and 2005. In addition, HUD spent an estimated $3.2 billion on project- and tenant-based utility allowances in 2007. The average tenant-based Section 8 utility allowance is now $1,467 per year.”

HUD is already encouraging a higher standard than the minimum IECC standard in the GREEN Act, specifically the Energy Star standard for New Homes.  Nevertheless, Deputy Secretary Sims stated that any new standards applied to HUD-assisted properties through the GREEN Act would have to supersede or complement the standard already contained in Section 481 of the Energy and Independence Security Act of 2007 (EISA), which covers new construction of properties whose mortgages are insured under the National Housing Act.  According to Sims, HUD has also considered applying a higher energy efficiency and green standard to multifamily properties because owners apply for financing early on in the development process and have a better idea of the financial needs than single-family properties.

The Deputy Secretary explained that the Energy Innovation Fund pilot programs would help expand proven financial market models through competitive grants, lowering the cost of energy efficient improvements in single family and multi -family housing.  Already, LIHTC and HOME grants have helped create some of the models that have made HUD-assisted housing more energy efficient.

Finally, Sims said that HUD’s biggest challenge with implementing the GREEN Act will be ensuring that the grantees or recipients of HUD funding in states that have yet to adopt the 2009 IECC standards would need to familiarize themselves with the stricter code requirements and the impact of “green premium” costs are accounted for in advance by HUD and grant/loan recipients.

NAHMA has no position on H.R. 2336 at this time.  However, NAHMA staff are preparing a summary of the GREEN Act for the Federal Government Affairs Committee to review and make its initial public policy recommendation.

The Economic Disaster Area Act of 2009

The House Financial Services Committee held a hearing today on a draft of the Economic Disaster Area Act, which will soon be introduced by Rep. Dennis Cardoza (D-CA).  The legislation would provide additional resources through CDBG to areas that have been hardest hit by the housing crisis and the economic downturn, specifically areas with unemployment 175% above the national average and/or a home price decline of 150% above the national average for the last 12 months.  The disaster area designation would last for two years and the additional funding would be used for job creation, job training, economic development, and housing.

NAHMA has no public policy position at this time.  It still must be considered by the Federal Government Affairs Committee.

H.R. 2876: Rural Housing Preservation Act of 2009

Introduced by Rep. Lincoln Davis (D-TN), H.R. 2876 would require USDA to prepare and approve a long-term viability plan, a physical needs assessment, and create a financial plan for each project and develop a financial restructuring plan with preservation incentives.  Under the proposed law, owners would be committed to long-term low-income rural multi-family housing usage for 30 years or the remainder of their loans and rents could not exceed 30% of adjusted income of the tenants.  Finally, the bill would amend Section 542 to make voucher assistance available to each eligible household and permit USDA to extend rural tenant protection vouchers to families residing in foreclosed upon projects. 

However, one of NAHMA’s major concerns from the legislation introduced last year in the 110th Congress is still present: Restructuring would not be available to those who are involved in ongoing civil action to authorize the prepayment of the section 515 loan for the eligible project or a damages action against the Emergency Low Income Housing Preservation Act of 1987, unless they agreed to pay the lesser of 50% or $100,000 from the damages.  NAHMA opposes this because it would violate the settlement agreement and penalizes owners who exercise their legal rights to prepay.  We feel the 30-year capital needs assessment is too far into the future to create a substantial outline of the property’s needs for the period.  We would like to recommend capital needs assessment for 20 years in order to refinance and restructure.  The bill has been referred to the House Financial Service Committee’s Subcommittee on Housing and Community Opportunity.

NAHMA will work with our Rural Housing Committee to develop a formal policy position on this bill.

H.R. 2887: Affordable Housing Preservation Tax Relief Act of 2009

Introduced by Representative Davis (D-AL) this week, H.R. 2887 would bills provide “exit tax” relief to preserve affordable housing.  The bills would exclude the gains made from the sale of eligible multifamily housing, which is attributed to depreciation from gross income.  This exclusion would only become available if a sale of eligible multifamily housing property or an exchange of the property were to remain and preserved by the entity who would agree to maintain the affordability.  If passed, the incentives would be effective for taxable years after December 31, 2009.  NAHMA strongly supports this legislation.

 

June 12, 2009

House FY 2010 Agriculture Appropriations

The House Appropriations Subcommittee on Agriculture approved their FY 2010 appropriations legislation yesterday.  Rural Housing Service grants and loans received an additional $37 million boost, a 3% increase over FY 2009 appropriations.  This figure was $95 million below the FY 2010 budget request from the Obama administration.  No additional details about the individual accounts were available at press time.  NAHMA will update our members as more information emerges.

Last week, USDA Secretary Tom Vilsak testified before the Senate Appropriations Agriculture Subcommittee on the FY 2010 USDA budget request.

For a copy of the summary table, please click here: http://appropriations.house.gov/pdf/FY2010_Ag_Summary_Table%20SubC-06-11-2009.pdf

Senate FY 2010 THUD Appropriations

Yesterday, the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development (THUD) received testimony by HUD Secretary Shaun Donovan on the FY 2010 HUD budget request.

Both Chairwoman Patty Murray (D-WA) and Ranking Member Kit Bond (R-MO) applauded HUD’s proposed budget as an innovative and substantial improvement over years past.  Ranking Member Bond said that in the past eight years, affordable rental housing had been short-changed and he appreciated HUD’s efforts to correct the course.

Secretary Donovan explained the budget request would provide rental assistance for 4.5 million households and expand low-income housing by 306,000 units.  It would also improve data systems, provide 12 month funding for Project-Based Section 8 assistance, increase voucher funding, and give $1 billion to the Affordable Housing Trust Fund.  He also discussed the $250 million Choice Neighborhoods program proposal that would replace HOPE VI.  It would build on the most successful parts of the HOPE VI program and expand them into privately owned properties and the surrounding neighborhoods while increasing access to jobs, transportation, and schools.

Ranking Member Bond highlighted that the Senate Appropriation Committee’s proposed FY 2010 funding allocation for the THUD bill would only be a $1.9 billion increase over FY 2009 levels and would not be enough to fulfill the complete budget request. 

Senator Frank Lautenberg (D-NJ) discussed his concerns with rehabilitating the remaining 80,000 distressed public housing units under the new Choice Neighborhoods program.  Secretary Donovan assured him that they would continue to focus on rehabilitating these properties in addition to their expanded efforts as the program develops.  He explained the ARRA funds for public housing would also help begin to meet the needs of the rest of the distressed public housing stock. 

Chairwoman Murray asked the Secretary if the Section 8 voucher funding request would fund all existing vouchers.  He said HUD has completed their evaluation of the program and they expect $17.8 billion will be able to fund all vouchers for FY 2010 and authorizing SEVRA would go a long way to make the program more efficient. 
 
Finally, both the Chairwoman and the Ranking Member of the Subcommittee aired concerns about the vague Transformation Initiative proposal included in the FY 2010 budget request, and asked for clarification on how much money would be used and for which programs.  

H.R. 2336: The GREEN Act of 2009

Yesterday, the House Financial Services Subcommittee on Housing and Community Opportunity held a hearing on H.R. 2336, the Green Resources for Energy Efficient Neighborhoods (GREEN) Act of 2009.  The bill would direct HUD to establish energy efficiency standards and would authorize a variety of resources, including funding and participation incentives for energy efficient HUD housing.  HUD would also provide incentives to lenders and financial institutions to provide lower interest loans and other benefits to consumers, who build, buy or remodel their homes and businesses to improve their energy efficiency.  A number of affordable housing stakeholders, as well as environmental and architectural groups, gave testimony.

Chairwoman Maxine Waters (D-CA) estimated that HUD could save $1 billion over 5 years from the reduction in energy consumption the GREEN Act proposed for HUD’s portfolios.  Congressman Ed Perlmutter (D-CO), the bill’s sponsor, discussed the importance of providing a pilot program to upgrade HUD multifamily units to demonstrate the cost effectiveness of energy efficiency and going “green” over time.  He stressed that the legislation would be incentive-based. 

Several panelists, including National Association of Home Builders CEO and President Jerry Howard, highlighted their concerns that elements of the climate change legislation, H.R. 2454, the American Clean Energy and Security Act of 2009, may supersede the standards of the GREEN Act, and asked the legislators to reconcile the differences between the two.

Congressman William Lacy Clay (D-MO) asked whether rehabbed buildings or new construction with energy efficiency and green standards were more cost effective.  U.S. Green Building Council’s VP of Market Development Doug Gatlin responded that rehabbing existing buildings gives the greater return on investment, but at the same time it is important to set benchmarks on new construction.

NAHMA will be providing more information on the GREEN Act through our legislative policy process in the coming weeks.

H.R. 2715: Taxpayer Protection and Anti-Fraud Act of 2009

Congresswoman Michelle Bachmann (R-MN) introduced a bill this week that would prohibit HUD from providing any assistance to any organization that has been indicted for or employs an individual that has committed a violation under Federal or State law relating to an election for Federal or State office.  The legislation appears to be targeted towards the ACORN organization.  It has been referred to the House Financial Services Committee.

Recovery Act includes $7.2 Billion to Bring High-Speed Internet to Underserved

As outlined in excerpts from the February 28, 2009 Washington Post article below, the Recovery Act includes funding to bring high-speed internet access to underserved communities. One of the main non-profit agencies working to facilitate access to the funding to help increase availability of Internet Services to affordable multifamily housing communities is OneEconomy.Com

Mr. Ramsey, and OneEconomy Board member Marvin Siflinger, Chairman of Housing Partners, Inc., will present more details on the Recovery Act funding opportunities, as well as an overview of OneEconomy’s programs and services, at the NAHMA Summer meeting, General Membership Breakfast, Monday June 29 at 8:15 am, at the Park Hyatt in Philadelphia.

In advance of the meeting, more details are also available at www.one-economy.com and www.thebeehive.org, as well as the attached documents.

One Step Off The Superhighway
Push to Expand Internet Access Leaves Behind the Urban Poor
By Cecilia Kang
Washington Post Staff Writer
Saturday, February 28, 2009; Page D01

“President Obama made his first major push for the Web this month when he signed off on the stimulus bill, which includes $7.2 billion to bring high-speed Internet to rural America. But some critics say the administration's plan largely overlooks the biggest group of disconnected people: the urban poor.

One provision in the stimulus plan could provide about $250 million for service and training in urban areas. Some of that money is likely to go toward boosting efforts at community centers, but interest groups say the amount is not enough to help an estimated 21 million low-income people get online.

Access isn't the issue for them. In many of the nation's cities, residents have more than one option for service providers. What many do not have is the money to hop on the information superhighway.”

“A survey last May by the Pew Internet and American Life Project showed that about one-third of people who do not have high-speed Internet or broadband service said it was because service was too expensive. In the District, 41 percent of all homes do not subscribe to dial-up or broadband Internet service, according to an October 2007 report from the Census Bureau.

There are several ideas for tackling this problem. One is grants to build local "hot spots" in public housing units where residents could get free wireless service. Another would be training programs where youngsters are given laptops and pay for offering computer and online training and trouble-shooting to low-income elderly consumers -- one of the biggest demographic groups not using the Web, according to Rey Ramsey, president of OneEconomy.com, a nonprofit group that provides technology to low-income communities.”

June 5, 2009

Subcommittee Hearing on Section 8 Voucher Reform Act of 2009

Yesterday, the House Financial Services Subcommittee on Housing and Community Opportunity held a hearing on the Section 8 Voucher Reform Act.  Karen Newsome, Vice President of WinnResidential and Chair of the Federal Affairs Committee, testified on behalf of NAHMA.  While most of the discussion surrounded a possible provision for the Moving to Work program expansion, panelists did discuss the LEP authorization language, background checks, and the cost effectiveness of the new formula changes to Section 8 vouchers. 

The first panel, made up of tenants and advocacy groups, discussed the Moving to Work program and how requiring credit and background checks might deny potential tenants vouchers because they had poor credit scores or criminal convictions that were several years old.  They also discussed the importance of administrative funding as an incentive to improve the management of the program and the ability to accurately certify tenant incomes.

The second panel, which included Ms. Newsome and public housing providers, focused on the public housing authorities and the Moving to Work program.  Ms. Newsome told the Subcommittee that NAHMA supported the draft bill’s streamlined inspections process, the LEP authorization language, and the increase in the number of project-based and enhanced vouchers.  She asked the Subcommittee to consider reducing rent contributions for zero-bedroom units and reported on the problems NAHMA members have encountered with negative rents, and EIV issues.  Ms. Newsome also commented to the Subcommittee that the economic stimulus package’s inclusion of $2 billion to fund the Project Based Section 8 program’s funding shortfall has already begun restoring faith and stability to the program.

S. 1160, H.R. 403: Homes for Heroes Act of 2009

Senator Chuck Schumer (D-NY) introduced S. 1160 this week, which would provide housing assistance and technical assistance grants for very low-income veterans and authorize the creation of a Special Assistant for Veterans Affairs within HUD. It would also offer additional housing vouchers for homeless veterans and include veterans’ interests in housing planning.

 

May 25, 2009

Big Buy Program Update

Yesterday, NAHMA and other industry partners met with HUD's Office of Healthy Home and Lead Hazard Control and Multifamily Asset Management staff to discuss the recent changes to the Big Buy program.  The list has been narrowed down to 309 properties.  Some properties are not required to do the risk assessment because they have been designated as elderly, receive under $5,000 in federal subsidies per unit per year, or are post-1978 properties.  HUD plans to notify owners who signed up for the Big Buy bust are not requires to perform the risk assessments that they have been removed from the list.

HUD has changed the Big Buy program from one in which HUD directly pays for the risk assessment to one in which the owner pays and is reimbursed by HUD at a maximum of $525 per unit.  HUD received $2 million in the FY 08 appropriations for the Big Buy.  This will not be enough to complete the risk assessments on all 309 properties.  At the current level of funding, 200 of the properties would not be reimbursed.  An additional $6.6 million would be necessary to complete the risk assessment reimbursements for these properties.  Priority is determined by age and REAC score of the property.

Two rounds of invitations have been sent to eligible owners.  The deadline for the second group to respond to HUD’s invitation is June 11.

There are still open questions surrounding the new method of risk assessments, including:

• Will owners who did not respond for the first round of invitations have the deadline for the response extended; and
• Will HUD request additional money for the Big Buy program?

NAHMA will advocate strongly for the appropriations necessary to complete the risk assessments under the Big Buy program.  For a copy of the meeting summary, please visit the NAHMA HUD webpage or click here: http://www.nahma.org/member/New%20HUD%20Docs/bigbuystatus52109.pdf

HFSC Holds Initial SEVRA Hearing

Yesterday, HUD Secretary Shaun Donovan testified at the House Financial Services Committee first hearing on the Section 8 Voucher Reform Act.  His comments were  based on draft legislation the Committee has been circulating.  Secretary Donovan testified that the changes in the SEVRA bill will improve the voucher program through cost savings and improved efficiency.  Donavan highlighted the increased ease of voucher portability under the new legislation and additional incentives to increase participation by both landlords and tenants in the program.  Some other sections of the draft bill he supported were: stabilizing the voucher funding formula, streamlining the inspection process, and rent and income changes.  However, he stressed the voucher program was not an alternative to the less expensive affordable housing programs and that both require adequate funding to work effectively.

Donovan also said that the number of vouchers and the possibility of expanding the program were dependent on the levels of funding Congress would provide in the FY 2010 appropriations.  He also discussed the need to simplify the mixed financing process and streamline the various federal, state, and local programs used to provide affordable housing to Americans.  Donovan emphasized there are too many rules that are preventing these programs from working effectively together, such as administrative fees.

Representative Judy Biggert (R-IL) questioned the Secretary on how he intends to update the outdated technology at HUD.  He replied that it was much needed.  In FY 2009 Appropriations, HUD has already received $4 million to do a comprehensive study on technology updating at HUD and the HUD FY 2010 budget request included funding requests to improve technology and increase integration.

An additional Subcommittee hearing on SEVRA is scheduled for June 4.  NAHMA is expected to testify at this hearing.

NAHMA Meets with RD on Improper Payments Audit

Last week, NAHMA met with Rural Development at USDA to discuss the findings on the RHS Improper Payments Audit.  The findings were very positive, with an audit error rate of 2.06% for 2008, the lowest in 6 years.  Common errors included:

• 30% - Income calculation difference on SSI (30%);
• Medical deductions did not match documentation (26%);
• No documentation in the file per the site manager (12%); and
• Income calculation difference on wages (12%).

In order to reduce the error rate further, RHS has proposed:

• Establishing a working group with the property management business partners and the Agency to providing education on IPIA process and errors;
• Implementing a new management agent performance assessment review to reward compliant management agents and reduce management fees paid to noncompliant management agents; and
• Trying to get access to EIV.

RHS has invited comments on its proposal to include incentives and penalties in the base management fee.  NAHMA’s Rural Housing Committee is finalizing its recommendations for NAHMA’s public policy position.

S. 896, H.R. 1106: Helping Families Save Their Homes Act of 2009

President Obama has signed S. 896, the Helping Families Save Their Homes Act of 2009, into law (P.L. 111-22) on May 20, 2009.  The law will help prevent foreclosures, enhance mortgage credit availability, and includes tenant protection provisions. 

The final tenant protection provisions allow renters whose landlords have lost their properties to foreclosure the right to stay in the home for 90 days after the foreclosure or through the term of their lease, unless the property is sold to someone who will occupy the home.  

The bill will also provide similar protections to housing voucher holders but requires purchasers of foreclosed buildings who receive Section 8 HAPs to honor the existing lease unless they plan to live in the building.  If they plan to use the building as primary residence they must give 90 days notice to the tenant.

The tenant protection requirements are effective immediately and will expire December 31, 2012.

H.R. 2336: The GREEN Act of 2009

Representative Ed Perlmutter (D-CO) has reintroduced the Green Resources for Energy Efficient Neighborhoods (GREEN) Act.  The bill would direct HUD to establish energy efficiency standards and would authorize a variety of resources, including funding, and participation incentives for energy efficient HUD housing.  HUD and RHS would be allowed to determine which of the Congressional approved standards to apply to federally subsidized housing.  HUD would also provide incentives to lenders and financial institutions to provide lower interest loans and other benefits to consumers, who build, buy or remodel their homes and businesses to improve their energy efficiency.

Provisions of the bill would require Fannie Mae and Freddie Mac to finance energy-efficient and "location efficient" mortgages as part of their goals to satisfy federal guidelines.  The legislation would also create and provide $2.5 billion for a Residential Energy Efficient Block Grant program under HUD, similar to the CDBG.  Additionally, the bill would create green banking centers to provide consumers information on obtaining a mortgage or loan which rewards energy efficient or “green” improvement as well as alter the Community Reinvestment Act by allowing financial institutions to consider energy efficiency improvements made by low-income, first time and other homebuyers when appraising and assessing the home or building.  It would also provide $50 million for an energy-efficiency and conservation demonstration program for HUD properties with project-based rental assistance.

NAHMA will continue to work with our Federal Affairs Committee to develop a recommended policy position.

RD and HUD Confirmations

The Senate has confirmed the appointments of Dallas P. Tonsager to be Under Secretary of Agriculture for Rural Development and Sandra Henriquez to be the Assistant Secretary for Public and Indian Housing.

 

May 8, 2009

FY 2010 Presidential Budget

Yesterday, HUD and USDA unveiled their FY 2010 Presidential Budgets.  The Obama Administration has requested full funding for the Project-Based Section 8 12-month contracts, in addition to a number of other program increases.  During a presentation of the FY 2010 budget details, Secretary Donovan strengthened HUD’s “rock-solid” commitment to ensuring full 12-month funding through a close to $1 billion increase in funding requests for Project Based Section 8 contracts.

Based on NAHMA’s conversations with Senate and House Appropriations staff this week, we feel very optimistic that they will provide full 12-month funding to the program for FY 2010.  Congress also plans to continue their oversight of the Project-Based program by requiring quarterly reports from HUD on the need and the distribution of funding to HAP contract holders.  Please find a brief summary of the HUD and RHS multifamily accounts funding below and links to their respective budgets.

Funding for Specific Multifamily Housing Programs

HUD:

• Tenant-Based Section 8: $17.84 billion total funding; $15.03 billion for contract renewals     
  -Increase over FY 2009 Appropriations: $1.77 billion

• Project-based Section 8: $8.1 billion total; $7.398 billion for contract renewals; $400 million in advanced appropriations for FY 2011
  -Increase over FY 2009 Appropriations: $1 billion

• Section 202:  $765 million total; $522 million for expansion, $153 million for contract renewals; $90 million for service coordinators  
  -Increase over FY 2009 Appropriations: $0
  -Expansion includes new construction and new rental assistance and is done through a separate appropriation.
  -Budget consolidation of the line items “planning grants” and “conversion to assisted living grants” to the main program.
  -Elderly leverage financing demonstration has been consolidated to the main account.

• Section 811:  $250 million total; $114 million for expansion; $129 million for contract renewals
  -Increase over FY 2009 Appropriations: $0
  -Expansion includes new construction and new rental assistance and is done through a separate appropriation.
  -Disabled leverage financing demonstration has been consolidated to the main account.

• HOME: $1.825 billion  
  -Increase over FY 2009 Appropriations: $0
  -Some consolidation of line-items within HOME.  Those activities will now be eligible under the main program.

• HOPE VI: $0      
  - Decrease over FY 2009 Appropriations: $130 million

• Choice Neighborhoods Initiative: $250 million
  - Increase over FY 2009 Appropriations: $250 million
  - The replacement program for HOPE VI.
  - Increases the types of properties funds can be used for, including assisted and private housing and offers funding to community programs.
  - Increases pool of eligible applicants to local governments, non-profits, and private firms.

• LEP: $0  
  - Decrease over FY 2009 Appropriations: $500,000
  - HUD has consolidated this account into another program that has yet to be announced.

• Community Development Block Grant (CDBG): $4.45 billion    
  - Increase over FY 2009 Appropriations: $550 million
  - Administration also plans to update the formula for better funding allocation.
  - Some consolidation of line-items within CDBG.  Those activities will now be eligible under the main program.

• Affordable Housing Trust Fund: $1 billion    
  - Increase over FY 2009 Appropriations: $1 billion

• Energy Innovation Fund: $75 million; $25 million for Multi-family pilot    
  - Increase over FY 2009 Appropriations: $75 million
  - Provides financial incentives for borrowers in the several FHA Multifamily programs to provide energy efficiency improvements in multifamily rehabilitation projects.

HUD budget information is available here: http://www.whitehouse.gov/omb/budget/fy2010/assets/hud.pdf
Or
http://www.hud.gov/budgetsummary2010/fy10budget.pdf

USDA-RHS:

• Multi-Family Housing Revitalization Program: $27 million total; $2 million as a direct subsidy; $25 million as grants   
  - Increase over FY 2009 Appropriations: $0

• Section 515 Multi-Family Housing Direct Loans:  $69.5 million   
  - Increase over FY 2009 Appropriations: $0

• Section 521 Rural Rental Assistance:  $1.09 billion
  - Increase over FY 2009 Appropriations: $106 million

• Section 538 Multi-Family Housing Loan Guarantees:  $129 million    
  - Increase over FY 2009 Appropriations: $0

USDA budget is available here: http://www.whitehouse.gov/omb/budget/fy2010/assets/agr.pdf

NAHMA plans to release a NAHMAnalysis with additional details on the FY 2010 Budget next week. 

FY 2010 Appropriations

This week, the Senate and House appropriators committed to passing the FY 2010 Appropriations bills by the end of FY 2009.  They plan to pass each individually, unlike the omnibus process, where multiple bills are passed at once, that they have used in recent years.

House Passes H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act

Yesterday, the House passed H.R. 1728, the Mortgage Reform and Anti-Predatory Lending Act.  The bill contains tenant protection language that would require owners to give any tenants living in the property 30 days notice to vacate when a foreclosure occurs when a new owner plans to use the property as their primary residence.  However, if the new owner does not plan to use the property as their primary residence, the legislation would require them to complete the terms of the existing lease.  The Frank Amendment, added on the floor, requires property owners to promptly give notice to tenants residing in a property when foreclosure or default occurs.  Additionally, the law includes additional protections for Section 8 voucher tenants, requiring the contracts to be transferred to new owners to assure that tenants can remain in place for the remainder of their leases with their assistance intact.  Both of these pieces of legislation apply to all residential property foreclosures and do not have any ties to the Trouble Asset Relief Program.  They affect anyone who holds with a residential mortgage loan or has their property contracted with Section 8 under the US Housing Act of 1937.

HUD Nominations Update

The Senate confirmed the following HUD nominations this week: Ronald Sims, HUD Deputy Secretary; Helen R. Kanovsky , HUD, General Counsel; Peter Kovar, HUD Assistant Secretary for Congressional and Intergovernmental Affairs; and John D. Trasviña, HUD Assistant Secretary-Designate for Fair Housing and Equal Opportunity.

The Obama Administration has formally submitted their nomination of Mercedes Marquez to be the Assistant Secretary for Community Planning and Development for HUD to the Senate.

H.R. 2198

This week, Rep. Melissa Bean (D-IL), introduced bill to amend the Internal Revenue Code of 1986 to provide a shorter recovery period for the depreciation of certain systems installed in nonresidential real property or residential rental property.  The legislations would provide a 20-year recovery period for highly efficient HVAC&R equipment, and a 25-year recovery period for all other HVAC&R equipment.

 

May 1, 2009

Congress Passes FY 2010 Budget Resolution

This week, members of Congress passed the joint FY 2010 Budget Resolution, which acts as a blueprint for FY 2010 appropriations spending and does not need to be approved by President Obama.  The reserve funds specifically call for additional appropriations for housing assistance and for the Affordable Housing Trust Fund, which both can be used to provide funding to the low-income rental assistance programs.  The Budget Resolution also allows for advanced appropriations for both the Project-Based and Tenant-Based rental assistance programs for FY 2010 and FY 2011.

With the framework in place, the House and Senate Appropriations Committees will discuss and decide actual funding levels for FY 2010 appropriations over the next few months.

HUD Nominations Update

The Senate Banking Committee reported favorably on all the HUD nominations it has received, which include: Ronald Sims, HUD Deputy Secretary-Designate; Helen R. Kanovsky , HUD, General Counsel-Designate; David H. Stevens, HUD Assistant Secretary for Housing-Federal Housing Commissioner-Designate; Peter Kovar, HUD Assistant Secretary-Designate for Congressional and Intergovernmental Affairs; and John D. Trasviña, HUD Assistant Secretary-Designate for Fair Housing and Equal Opportunity.

These nominations will now go to the Senate floor for final consideration and a vote.  Once approved by the full Senate, the nominees will officially take over their designated positions.

HFSC to Hold SEVRA Hearing May 13, 2009

The House Financial Services Committee announced this week they will be holding a hearing on May 13, 2009 at 10 am to consider the Section 8 Voucher Reform Act.  NAHMA plans to attend the hearing.

The draft SEVRA bill includes many industry-supported elements of H.R. 1851 from the previous 110th Congress, including the LEP guidance language.  NAHMA is currently analyzing the draft legislation and will provide you with more information as it becomes available.

NAHMA Signs Industry Letter Concerning Renter Protections in H.R. 1247, H.R. 1728

Last week, NAHMA signed on to an industry letter voicing the industry’s concerns over the tenant protections in the case of foreclosure within H.R. 1247, the Protecting Tenants at Foreclosure Act, and H.R.1728, the Mortgage Reform and Anti-Predatory Lending Act. 

The language concerning the protections for tenants in foreclosed rental properties creates more problems than it attempts to solve and may make it difficult to sell foreclosed rental properties.  A copy of the letter may be found at NAHMA’s legislative news website or by clicking here.

 

April 24, 2009

FY 2010 Budget Conference

This week, the House and Senate both announced their FY 2010 budget conferees who will negotiate to resolve the difference between the House and Senate budget resolutions, which are the general spending blueprints for Congressional appropriations that do not require the President’s signature.  Senate conferees are Budget Chairman Kent Conrad (D-ND), Sen. Patty Murray (D-WA), and Budget Ranking Member Judd Gregg (R-NH).  The House conferees are House Budget Chairman John Spratt (D-SC), Rep. Rosa DeLauro (D-CT)., Rep. Allen Boyd (D-FL), Budget Ranking Member Paul Ryan (R-WI) and Rep. Jeb Hensarling (R-TX).

If you are represented by these members, please ask them to support full funding of the 12-month terms of HAP contracts in the final budget resolution, full funding of all affordable housing programs, and funding for the Affordable Housing Trust Fund.

Sen. Kent Conrad, North Dakota (202) 224-2043 http://www.conrad.senate.gov	Sen. Patty Murray, Washington (202) 224-2621 www.murray.senate.gov
Sen. Judd Gregg, New Hampshire (202) 224-3324 www.gregg.senate.gov	Rep. John Spratt, South Carolina (202) 225-5501 http://www.house.gov/spratt/
Rep. Rosa DeLauro, Connecticut (202) 225-3661 http://delauro.house.gov/	Rep. Allen Boyd, Florida (202) 225-5235 http://www.house.gov/boyd/
Rep. Paul Ryan, Wisconsin (202) 225-3031 http://www.house.gov/ryan/	Rep. Jeb Hensarling, Texas (202) 225-3484 http://www.house.gov/hensarling/

 Provisions supporting full 12 month funding for Project Based Section 8 and providing appropriations for the Affordable Housing Trust fund are likely to be retained in the final resolution.

HUD Nominees Confirmation Hearing

This week, the Senate Banking Committee held a hearing to consider several HUD nominations, including: Ronald Sims, HUD Deputy Secretary-Designate; Helen R. Kanovsky , HUD, General Counsel-Designate; David H. Stevens, HUD Assistant Secretary for Housing-Federal Housing Commissioner-Designate; Peter Kovar, HUD Assistant Secretary-Designate for Congressional and Intergovernmental Affairs; and John D. Trasviña, HUD Assistant Secretary-Designate for Fair Housing and Equal Opportunity.

Stevens took the opportunity in his testimony to stress his commitment to ensuring the solvency of FHA and avoiding the need for additional tax payer assistance, restoring FHA to a leadership position in the market, and focusing on long term solutions to solve the crisis in the mortgage market.

In Kovar’s testimony, he promised to uphold three HUD initiatives.  First, he would uphold Secretary Donovan’s promise to communicate more with Congress, especially with the foreclosure crisis, and the effectiveness of energy efficiency and low income housing tax credit provisions from H.R. 1, the American Recovery and Reinvestment Act, and general HUD programs and contract payments.  Second, he would provide Congress with detailed information about the HUD budget, which will be released in about two weeks.  The Budget, he said, would focus on affordable rental housing, green communities, and additional money for vouchers and programs like CDBG.  Finally, he placed a high priority on the communication of data, specifically that from disaster areas, the need to preserve multifamily housing, and urban development.

Secretary Donovan Plans to Shift HUD Spending Focus

In a speech to housing advocates given this week, HUD Secretary Shaun Donovan announced the Obama Administration’s plans to overturn the Bush administration housing policies and refocus the federal government's spending on people too poor to buy their own homes and those having trouble making payments on homes they've already bought.  Donovan mentioned that the Obama Budget would provide $14 billion in new spending on housing programs, including funding for renters forced from their homes after the owners defaulted on their mortgages

Donovan said that the administration has already increased housing assistance to victims of 2005's Hurricane Katrina and Section 8 renters who have had trouble holding onto privately owned rental properties because their 12-month vouchers were being funded for only 90 days at a time.  In addition to greater spending on Section 8 housing vouchers, Donovan pledged $1 billion for the National Affordable Housing Trust Fund, which funds the construction and preservation of low-income housing.

Donovan also said that HUD would begin auditing its programs to determine what is working, what is not and how effectively it is spending the money Congress provides.

H.R. 2034: Refinancing Rural Housing Loans

This week, Rep. William Lacy Clay (D-MO) introduced H.R. 2034, a bill to permit refinancing of certain loans under the Rural Housing Service program for guaranteed loans for rural housing.  Text and further details regarding the legislation were unavailable at press time.  NAHMA will provide more information on the legislation as it becomes available.

 

April 3, 2009

Congress Approves FY 2010 Budget Resolutions

Yesterday, the House and the Senate both approved their FY 2010 Budget Resolutions.  The Budget Resolutions act as general spending blueprints for Congressional appropriations and they do not require the President’s signature.  The measures will now move to a conference committee where negotiators must resolve differences between the two chambers.  House Budget Committee Chairman John Spratt said that House and Senate staffers will confer over the recess.

The Senate FY 2010 Budget Resolution, S. Con. Res. 13, aims to preserve major priorities of the Obama budget.  The resolution includes a deficit-neutral reserve fund that would allow for additional investments in housing assistance and continues to support funding for the Hope VI Distressed Housing Program, Housing for the Disabled, Housing for the Elderly, and the Section 8 tenant-based Housing Choice Voucher program, and the project-based Section 8 program.  Project-Based Rental Assistance is also identified as an account eligible for FY 2011 advanced appropriations. 

The Resolution was amended to include:

• The Casey Amendment No. 783, to establish a reserve fund to fully fund the Long-Term Stability/Housing for Victims Program under the Violence Against Women Act which builds collaborations between domestic violence service providers and housing providers and developers to leverage existing resources and create housing solutions that meet victims' need for long-term housing.
• The Menendez Amendment No. 921, to establish a deficit-neutral reserve fund to provide resources for programs administered through the Violence Against Women Act and the Family Violence Prevention and Services Act, and other related programs.

A copy of the Senate Budget Resolution for FY 2010 is available by clicking here.

The House’s FY 2010 budget resolution, H. Con. Res. 85, embraces several of President Obama’s budget goals as well.  Specifically, it seeks to provide deficit-neutral reserve funding for the Affordable Housing Trust Fund.  It also provides Income Security (Function 600), which includes HUD funding, $536 billion in new budget authority and $540 billion in outlays in FY 2010 and $511 billion in new budget authority and $513 billion in outlays for FY 2011.  No amendments were made on the Floor to the resolution.  A copy of the House Budget Resolution for FY 2010 is available by clicking here.

HUD and RD Announce New Nominations

This week, HUD and USDA made several announcements regarding nominations to key positions within their respective agencies.

Helen R. Kanovsky has been nominated for the post of General Counsel within HUD.  Kanovsky is currently the chief Operating Officer of the AFL-CIO Housing Investment Trust.  For the past three years she has been the Chair of the National Housing Conference and she is a member of the Boards of the Center for Housing Policy.

John Trasvina, who currently serves as president and general counsel of the Mexican American Legal Defense and Education Fund, has been nominated for the Assistant Secretary for Fair Housing and Equal Opportunity position within HUD.

Last week, Dr. Raphael Bostic was nominated as the Assistant Secretary for Policy Development and Research for HUD.  Bostic is a Professor in USC’s School of Policy, Planning, and Development and is an expert on housing and homeownership, and has extensively studied the roles that credit markets, financing, and policy play in enhancing household access to economic and social amenities. 

Two weeks ago, the President nominated Dallas P. Tonsager to be the Under Secretary of Agriculture for Rural Development within USDA.  Tonsager currently serves as a board member of the Farm Credit Administration. He also is a member of the Board of Directors of the Farm Credit System Insurance Corporation.

Congress Adjourns for Easter Recess

Congress has adjourned for Easter Recess and will resume legislative activities the week of April 20, 2009.

 

March 27, 2009

House and Senate Budget Committees Pass FY 2010 Budget Resolutions

This week, the House and Senate Budget committees passed their respective budget resolutions and will send them to the floor for voting next week.  Both resolutions contain some key provisions for affordable housing.  Budget resolutions are general spending blueprints for Congressional appropriations that do not require the President’s signature.

The Senate Chairman’s mark for FY 2010 budget, i.e. the Senate budget resolution for FY 2010, aims to preserve major priorities of the Obama budget.  It recognizes that continued funding of significant long-term infrastructure projects, like affordable housing, is needed to continue the progress that began with enactment of the economic recovery package and provides a reserve fund for infrastructure investment to that end.  The Mark includes a deficit-neutral reserve fund that would allow for additional investments in housing assistance and continues to support funding for the Hope VI Distressed Housing Program, Housing for the Disabled, Housing for the Elderly, and the Section 8 tenant-based Housing Choice Voucher program, and the project-based Section 8 program.  Project-Based Rental Assistance is also identified as an account eligible for FY 2011 advanced appropriations.  A copy of the Senate Budget Committee Chairman’s mark is available by clicking here.

The House Budget Committee’s FY 2010 budget resolution embraces several of President Obama’s budget goals as well.  Specifically, it seeks to provide deficit-neutral reserve funding for the Affordable Housing Trust Fund.  Specific numbers were not given. A copy of the House Budget Committee Chairman’s mark is available by clicking here.

H.R.1675: Frank Melville Supportive Housing Investment Act of 2009

This week, Rep. Christopher Murphy reintroduced the Frank Melville Supportive Housing Investment Act, H.R. 1675 (H.R. 5772, S. 3593 in the 110th Congress).  The act seeks to increase the amount of affordable, supportive housing available for people with disabilities.  The act would provide assistance to private nonprofit organizations to expand the supply of housing for persons with disabilities through capital advances and contracts for project rental assistance and provides incremental vouchers to the Section 811 properties through Tenant Based Section 8. The bill would also modernize the capital advance program and the tenant selection process and increase tenant protections. The legislation would authorize a new demo program to expand the supply of disabled housing through project rental assistance. Furthermore, the act would make technical corrections to Section 811 to increase project flexibility, authorizes appropriations for the new programs, conduct a GAO study to determine the adequacy and effectiveness of Section 811 programs, and calls for HUD to issue new regulations and guidelines for the program within 180 days.  NAHMA continues to support this legislation.

 

March 13, 2009

Housing Roundtable with Senate Democratic Leaders

Last month, NAHMA received an invitation from Senate Majority Leader Harry Reid and Senator Debbie Stabenow to participate in a Senator-level discussion on strengthening the nation’s housing market. This Senate Housing Steering Meeting took place on March 11 at the U.S. Capitol. Executive Director Kris Cook represented NAHMA.

Various organizations representing the single family, multifamily, financial services and tenant or homeowner advocacy communities were present. Most of the discussion centered around stabilizing the single family market. However, Kris took the opportunity to stress the importance of providing quality rental communities to low income families. She informed Senators that the LIHTC is the largest federal program for construction and preservation of affordable housing, but that the financial turmoil has thrown the program into chaos. She thanked Senator Maria Cantwell for her dedication to the Low Income Housing Tax Credit Program, and also acknowledged the two gap financing programs included in the stimulus bill to help shovel-ready projects move forward. However, Kris strongly cautioned Senators that much more legislative work lies ahead to stimulate the demand for Credits (in the absence of the GSEs and large banks) and to return the program to health.

Senators who attended the roundtable included:

• Senator Harry Reid (D-NV)
• Senator Debbie Stabenow (D-MI)
• Senator Daniel Akaka (D-HI)
• Senator Mark Begich (D-AK)
• Senator Roland Burris (D-IL)
• Senator Maria Cantwell (D-WA)
• Senator Benjamin Cardin (D-MD)
• Senator Frank Lautenberg (D-NJ)
• Senator Jeff Merkley (D-OR)
• Senator Bill Nelson (D-FL)
• Senator Jack Reed (D-RI)
• Senator Jeanne Shaheen (D-NH)
• Senator Tom Udall (D-NM)

H.R. 1105: FY 09 Appropriations Act

After passing the Senate, the FY 2009 Omnibus Appropriations bill (HR 1105) has been signed into law by President Obama as P.L. 111-8.  The bill remained unchanged from the version approved by the House of Representatives. (See the February 27 Washington Update summary of key line items for housing programs at http://www.nahma.org/executive/insider1.html.) A more detailed NAHMAnalysis on the final FY 09 appropriations for HUD and RHS multifamily housing programs is forthcoming.

FY 2010 Budget

This week, the House Committee Chairmen reported their “Views and Estimates” on the FY 2010 Budget to House Budget Committee Chairman John Spratt (D-SC). Views and Estimates from House Financial Services Committee and the House Ways and Means Committee can be viewed at:

• Views and Estimates of the Committee on Financial Services on Matters to be Set Forth in the Concurrent Resolution on the Budget for Fiscal Year 2010; &
• http://waysandmeans.house.gov/legis.asp?formmode=item&number=662

Highlights of the Financial Services Committee document calls for legislation to reform and modernize the Section 202, Section 811 and Section 8 Housing Choice Voucher Program (SEVRA bill). With respect to the project-based Section 8, the letter states,

“The recently approved funding of $2 billion in the ARRA [stimulus bill] for contract renewals for project-based Section 8 units will enable HUD to return to a practice of funding full year renewals of contracts for project-based Section 8 units…This funding will permit Congress and HUD to return to a focus on authorizing and regulatory changes which, when combined with needed additional resources, can address rehabilitation and preservation needs for this important stock of affordable housing.”

Noting that RHS multifamily housing programs were not mentioned in the Obama Administration’s FY 10 budget outline, the Financial Services Committee wrote, “…we hope that the budget, when released, will place an emphasis on preserving Section 515 multifamily properties, which help to house low and very-low income families.”  Finally, the Committee noted that the Administration’s proposed budget called for $1 billion to fund the Affordable Housing Trust Fund.

Among the Ways and Means Committee priorities legislative issues with budgetary impact are changes to the tax laws. Committee Chairman Charles Rangel explained,

“The Committee will consider issues such as the growing burden of the Alternative Minimum Tax in a broad context, proposals to address climate change, the tax gap and Internal Revenue Service (IRS) administration of the tax laws, transportation financing, and retirement security. The Committee will examine the effects of the current tax structure on the economy in terms of both individual and corporate taxpayers, and continue its efforts to examine possible reforms. The Committee’s Oversight Subcommittee will continue its activities to monitor IRS operations, including enforcement, collection, taxpayer services, returns processing, information systems, and programs to assist taxpayers experiencing difficulties.” [Italics added.]

NAHMA will seek opportunities to advance additional LIHTC legislation when the Committee considers tax reform or other appropriate legislation, if an earlier opportunity presents itself.

 

March 6, 2009

H.R. 1105: FY 2009 Omnibus Appropriations Act

The House voted today to extend the continuing resolution temporarily for an additional 5 days for FY 2009 funding.  The Senate is expected to follow suit.  This will give the Senate more time to debate and possibly add amendments to the $410 billion FY 2009 omnibus appropriations act, which the House passed last week. 

The Omnibus would provide funding for many government programs, including affordable rental housing.  The legislation currently includes significant increases to most federally subsidized affordable housing programs.

H.R. 1247: The Protecting Tenants at Foreclosure Act of 2009

Representative Keith Ellison (D-MN) introduced legislation this week that would protect tenants in the case of foreclosure.  Under the act, a tenant must be given 90 days notice to vacate when a foreclosure on a single or multifamily property occurs.

H.R. 1270: Affordable Housing and Community Development Act of 2009

Representative Yvette Clarke (D-NY) introduced legislation this week that would reauthorize community development block grants (CDBG).  The act would reauthorize the CDBG program and provide additional funding to the program, including $8 billion for FY 2011 and require HUD to determine what actual funding levels needed are, specifically in terms of inflation.  An additional $5 million in FY 2011 would be allocated for technical assistance and grant recipient training.  All fair housing activities would be deemed direct program costs under the legislation.

 

February 27, 2009

H.R. 1105: FY 2009 Omnibus Appropriations

The House approved H.R. 1105, the FY 2009 Omnibus Appropriations Act, this week.  It will be considered in the Senate. Almost all HUD programs have received significant increased in comparison to the FY 2008 Appropriations and the FY 2009 Presidential Budget.  Unfortunately, it seems Rural Housing will receive cuts in comparison to the FY 2008 Appropriations and the previous Administration’s FY 2009 budget request, which will be discussed more in-depth in a NAHMAnalysis on the FY 09 Omnibus Appropriations, to be released after the Senate’s approval.  The key affordable housing appropriations are listed below.  For a copy and section summaries of H.R. 1105, please click here. 

Key HUD FY 2009 Appropriations Accounts from H.R. 1105

• Tenant-Based Rental Assistance Appropriation: $16.8 billion (total), $15 billion (contract renewals); Budget Request:  $16.04 billion
• Project-Based Rental Assistance Appropriation:  $7.1 billion (total), $6.87 billion (renewal), $400 FY 2010 Advanced Appropriation; Budget Request: $7.4 billion (total), $6.76 billion (renewals)
• Project-Based Section 8 funding also received a major boost from H.R. 1, the American Reinvestment and Recovery Act, i.e. the Economic Stimulus. 
• H.R. 1, now P.L. 111-5, gives over $2 billion to the Section 8 program to help alleviate the past funding shortfalls that have put stress on the program.
• Limited English Proficiency (LEP) Funding: $500,000; Budget Request: $0
• Section 202 Housing for the Elderly:  $765 million; Budget Request: $550 million
• Section 811 Housing for the Disabled Appropriation:  $250 million; Budget Request: $160 million
• HOME Appropriation: $1.825 billion; Budget Request:  $1.97 billion
• FY 2009 CDBG Appropriation: $3.9 billion (formula grant); Budget Request: $3 billion (formula grant)
• Hope VI Appropriation: $120 million; Budget Request: $0

Key RHS Accounts in the Agriculture Appropriations Bill

• Section 515 Appropriation: $65.9 million; Budget Request: $0
• Section 521 Rental Assistance Appropriation:  $902.5 million- through FY 2010; Budget Request: $567 million
• Section 538 Loan Guarantee Program Appropriation: $129 million (Budget Request: $200 million)
• Multifamily Housing Revitalization Program Account: $27.7 million (Budget Request: $0)

President Announces Outline for FY 2010 Budget

This week President Obama announced his plans for the FY 2010 budget.  It seems the President seeks to increase funding for HUD’s affordable housing portfolio.  There was no information available for Rural Housing in the outline.  For the full budget outline, click here.  A more detailed budget is scheduled to be submitted in April.

FY 2010 HUD Budget Highlights:

• $4.5 billion in CDBG funding with formula reforms to better target economically distressed communities.
• $1 billion to capitalize and launch an Affordable Housing Trust Fund.
• Increased funding and legislative reform for the Housing Choice Voucher program.  A specific funding amount is not mentioned.
• Funding to preserve approximately 1.3 million affordable rental units in multifamily properties by increased funding for Project Based Section 8 contracts.  A specific funding amount is not mentioned.
• Creating a new Energy Innovation Fund to catalyze private sector investment in the energy efficiency of HUD’s portfolio. A specific funding amount is not mentioned.
• Creating a new Choice Neighborhoods Initiative to make a range of transformative investments in high-poverty neighborhoods with concentrated public and assisted housing.
• Eliminating funding for ineffective and duplicative programs, including the Section 108 Community Development Loan Guarantees program and the American Dream Downpayment Initiative.

Senate Finance Committee Membership Updates

The Senate Finance Committee has finalized its Subcommittee on Taxation, IRS Oversight, and Long-Term Growth membership list.  Senators on the Subcommittee include Subcommittee Chairman Conrad, Senator Baucus, Senator Rockefeller, Senator Wyden, Senator Schumer, Senator Stabenow, Senator Cantwell, Senator Menendez, Senator Carper, Subcommittee Ranking Member Kyl, Senator Hatch, Senator Snowe, Senator Roberts, Senator Ensign, Senator Enzi, and Senator Cornyn.

 

February 13, 2009

H.R. 1: The American Recovery and Reinvestment Act

House and Senate negotiators have agreed to a final conference bill for H.R. 1, which Congress will consider and vote on before it can be signed into law.  NAHMA is pleased to report the legislation includes $2.25 billion for LIHTC gap financing through HOME, $2 billion to help fund the Project-Based Section 8 shortfall, $1 billion in CDBG, $2 billion for the redevelopment of abandoned and foreclosed homes, and $250 million for energy retrofitting and green investments in HUD-assisted housing projects.  The bill does include a provision from the House bill where states could exchange up to 40% of their 2009 LIHTC authority for cash at 85 cents for each dollar of LIHTC.  The House approved H.R. 1 this afternoon, 246-183, and the Senate vote is scheduled for this evening.

The bill does not include the LIHTC accelerator amendment from the Senate version of the bill nor does it include a 5-year carry-back for LIHTC, which could be used to offset the alternative minimum tax.

The full summary of spending provisions is available on the Senate Appropriations Committee’s website. The tax measures are available on the Senate Finance Committee website at: Baucus, Rangel Detail Proposals To Create Jobs, Cut Taxes In Final American Recovery And Reinvestment Act The conference bill is the final legislation which resolves differences between the versions of HR 1 passed by the House and Senate.  The final NAHMAnalysis on the legislation is available at the NAHMA website, or by clicking here.

House Financial Services Committee Oversight Plan Mark-Up

Yesterday, the House Financial Services Committee approved their oversight plans for the 111th Congress.  Several NAHMA initiatives have been included in the 2009-2010 plan.  Please find a brief synopsis of the report below and a full copy of the un-amended consensus report by clicking here.  For copies of the approved, rejected, and withdrawn proposals for the 111th Congress House Financial Services Committee’s Oversight Plan, please click here.

Financial Institutions

Representative Biggert (R-IL) successfully added a section detailing the need for oversight of the operation and the distribution of funds through the Troubled Assets Relief Program (TARP), i.e. the bailout.  The provision calls for greater industry regulation by Treasury and requires Treasury to keep detailed information on the transactions with frequent reports to Congress on the progress of the program.

Government Sponsored Enterprises

The plan details the need for charter and regulatory restructuring for Government Sponsored Enterprises (GSEs). The Committee will also examine the implementation of the Home Valuation Code of Conduct by Fannie Mae and Freddie Mac and how it affects the appraisal industry.

Housing

Under the oversight plan, the Committee will consider proposals for:

• Federally assisted housing preservation, including the challenge of maintaining affordability for properties whose mortgages will mature in the next decade.
  
  

• This includes reviewing HUD’s policies and performance in approving preservation and rehabilitation proposals and exploring related topics like:

• Prepayment policies;
• Troubled projects; and
• Renewal of expiring project-based voucher contracts and transfer of project-based section 8 contracts;
  
  

• Conducting hearings on HUD’s FY 2010 budget proposals and examine HUD’s efforts to be responsive to current market challenges as well as ensuring decent affordable housing;
  
  

• Reviewing the HOPE VI program and the need for reauthorization;
  
  

• Holding hearings the National Housing Trust Fund in order to construct and preserve affordable housing;
  
  

• Conducting hearings on legislative and administrative proposals to address the recent dislocations in the funding of the LIHTC program.
  
  

• This includes one of NAHMA’s top ten priorities for 2009 to streamline the regulatory provisions between agencies by holding hearings to review the implementation Public Law 110-289, the Housing and Economic Recovery Act, where agencies work together to improve the functioning of LIHTCs in conjunction with HUD and Rural Housing Service programs;
  
  
• Completing comprehensive reform of the Section 8 voucher program by enacting the Section 8 Voucher Reform Act (SEVRA);
  
  

• Creating a revitalization plan to preserve and rehabilitate RHS affordable housing;
  
  

• Preserving and constructing Section 202 and 811 units;
  
  

• Reviewing the efficiency and effectiveness of the Neighborhood Stabilization Program;
  
  

• Holding oversight hearings on CDBG;
  
  

• Reviewing the progress of housing reconstruction in natural disaster areas;
  
  

• Reviewing the mission, organization, human resources and information technology capabilities of HUD to determine whether the Department is meeting and addressing housing issues in the most efficient manner;
  
  

• Tracking the transparency, accountability and oversight protocols for all HUD grant and loan recipients, including non-profit organizations;
  
  

• Reviewing the timeliness of HAPs for project-based Section 8;
  
  

• Monitoring proposals to promote green development in federally assisted housing, including Perlmutter’s GREEN Act of 2008; and
  
  

• Holding oversight hearings on other Federal housing programs run by HUD and the Rural Housing Service.

The Committee has approved the inclusion of an amendment from Representative Shelly Moore Capito (R-WV) that gives Committee oversight to organizations receiving federal funding from HUD and RHS.

Finally, Representative Posey (FL) successfully added his amendment for the Committee to oversee the impact of the bankruptcy market on the mortgage meltdown, specifically in regards to FHA and RHS.

 

February 6, 2009

H.R. 1: The American Recovery and Investment Act of 2009 (The Economic Stimulus Bill)

The Senate has included Senate Amendment 161, the Bond Amendment, to the economic stimulus legislation (H.R. 1).  Senator Bond’s amendment provides $2 billion in gap funding for LIHTC properties through the HOME program in response to the equity shortfall threatening tax-credit properties as a result of the broader financial crisis.  NAHMA has been requesting a LIHTC gap financing provision for the stimulus since December. Please click here for the text of the amendment. 

Additionally, Senator Maria Cantwell has introduced Senate Amendment 276, the Cantwell Amendment, which would provide for an acceleration of the LIHTC with 20% being taken in each of the first three years and the remainder pro rata over the last 7 years.  This amendment has not been voted on at the time of publication. 

The underlying bill could be voted on by the Senate as early as this evening and go to conference next week.

FY 2010 Presidential Budget

The federal budget for FY10 is expected to be released in March. OMB Director Peter Orszag said during his confirmation hearing that the budget outline could come as early as mid-February.

FY 2009 Appropriations

The omnibus package comprising the nine remaining FY09 appropriations bills that Congress has yet to enact will not come to the House floor this week in order to focus on finishing the economic stimulus package before the February recess.  My expectation is that we will complete the omnibus prior to the 6th [of March] and in the two weeks after we come back," House Majority Leader Steny Hoyer said.  The CR expires March 6.

HUD Announced Deputy Secretary Nomination

President Obama announced his intention this week to nominate Ron Sims, Executive of King County, Washington, to become the Deputy Secretary at the HUD. As the Deputy Secretary, Sims will be charged with managing HUD's day-to-day operations, a nearly $39 billion annual operating budget and the agency's 8,500 employees.

"Ron's track record as an innovative leader with an exciting vision for the future of our nation's communities make him the perfect Deputy Secretary candidate as we tackle the nation's housing crisis amidst the biggest economic downturn in decades," said HUD Secretary, Shaun Donovan. "His experience at the helm of a large urban government provides a critical perspective and his collaborative approach to problem-solving has prepared him to effectively lead HUD's operations as the agency charts a new aggressive course."

King County Executive Sims oversees the 13th most populous county in the nation, a metropolitan area with 1.8 million residents and 39 cities including the cities of Seattle, Bellevue and Redmond. He is a graduate of Central Washington University. In addition, he is a Board Member for Reconnecting America Center for Transit Oriented Development, advisory board member of the Brookings Center on Urban and Metropolitan Policy, board member and former chair of Sound Transit, board member of the Puget Sound Clean Air Agency, the National Committee of Quality Assurance and Rainier Scholars. He is Co-Chair of the Committee to End Homelessness in King County and founding chairman of the board of the Puget Sound Health Alliance.

Please click here for the full HUD announcement.

 

January 30, 2009

FY 09 Appropriations Update

The House is planning on taking up the remaining FY 2009 Appropriations bills (including Transportation and Housing and Urban Development) next week as part of an omnibus package.  Federal government programs, including Project Based Section 8, are being funded through a continuing resolution Congress approved in September, which expires March 6.

However, House Transportation-HUD Appropriations Subcommittee Chairman John Olver said the omnibus is unlikely to move forward unless the Senate appeared to be able to pass the stimulus quickly.

H.R. 1 (formerly H.R. 598), S.  336: The American Recovery and Reinvestment Act of 2009

The House passed H.R. 1 this week, making supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and State and fiscal stabilization. The House bill includes: $2.5 billion for federally assisted housing energy retrofits; $1.5 billion in HOME funding for rehabilitation, new construction, and gap financing for low income housing; $5 billion in CDBG grants; and a provision under which states could exchange up to 40% of their 2009 LIHTC authority for cash at 85 cents for each dollar of LIHTC.  No additional amendments for housing were included before the Floor vote.

Both the Senate Appropriations and Finance Committees pass their mark ups on the funding and tax credit portions of the bill.  While the Appropriations language remains relatively the same, no LIHTC provisions were included in the Finance Committee’s mark up.

The Senate Appropriations Stimulus language includes:

• $2.25 billion for the HOME Investment Partnerships Program block grant to acquire, construct, and rehabilitate affordable housing;
• $2.1 billion for full-year payments to owners receiving Section 8 project-based rental assistance;
• $2.25 billion for the redevelopment of abandoned and foreclosed homes under the Neighborhood Stabilization Program; and
• $1.3 billion for grants or loans to owners for energy and green retrofit investments.

NAHMA has learned there is a possibility that Sen. Christopher Bond and Sen. Herb Kohl will offer an amendment to the bill on the Senate Floor requesting that $2 billion in transportation funding be changed into gap financing for the LIHTC program.  No additional details are available at this time.  NAHMA will continue to keep you updated as the situation develops.

While the Finance Committee offered no specific LIHTC provisions, Sen. Maria Cantwell plans to offer an bi-partisan supported amendment to the legislation on the Floor to make LIHTC more attractive to investors.  The proposal would accelerate the credit so that 20 percent could be claimed in each of the first three years, and the remaining 40 percent claimed over the rest of the period.  Investors claiming the accelerated credit would have to commit to a legally binding contract between Jan. 1, 2009, and Dec. 31, 2010, for properties placed in service after the bill's enactment.  The Senate bill does contains an $11 billion proposal to extended five-year carry-back period for business tax credits, including the low-income housing credit, so companies can use prior-year tax liability to benefit.  The House bill does not contain a credit carry-back provision.  NAHMA will continue to keep you updated as information becomes available.

"The proposal we offered will be helpful as we try to replace the equity role that Fannie and Freddie played in this critically important program. Most importantly, it will also ensure the public-private partnership structure, that is key to the integrity and success of the low-income tax credit program, will be maintained for the long-term," Cantwell said in a colloquy with Sen. Baucus.

The Senate plans to vote on the legislation next week.  Senate Majority Leader Reid plans to allow all Senators to offer Floor amendments to the bill.

Senate Banking Committee Membership Update

Freshman Sen. Michael Bennet (D-CO) has been appointed to the Banking, Agriculture, Homeland Security and Governmental Affairs, and Aging committees.

January 23, 2009

HUD Secretary Confirmed

Yesterday the Senate confirmed Shaun L.S. Donovan as the new Secretary of Housing and Urban Development.  NAHMA applauds the quick confirmation of Donovan and will work closely with the new Secretary and Administration to further multifamily affordable housing goals.

H.R. 598: The American Recovery and Investment Act of 2009 (The Economic Stimulus Bill)

Both the House Committee on Appropriations and the House Ways and Means Committee approved portions of H.R. 598 over which they have jurisdiction.  Appropriations marked up and approved the spending portion of the legislation, while Ways and Means marked up and approved the tax provisions.

The legislation approved by the Appropriations Committee includes:

• $2.5 billion in funding to retrofit Section 202, Section 811, and Section 8 assisted housing to reduce energy costs and carbon waste;
• $1.5 billion in HOME recovery funding to rehabilitate and construct housing and help fill financing gaps in the LIHTC program caused by the credit freeze. 
• Up to $5 billion in CDBG grants.  

The bill approved by the Ways and Means Committee still includes a provision under which states could exchange up to 40% of their 2009 LIHTC authority for cash at 85 cents for each dollar of LIHTC.  No additional changes were made to the LIHTC language by the Committee. 

"This legislation will provide critical benefits and incentives to middle-America, poor-America, and businesses, large and small, who are struggling during this economic downturn," said Ways and Means Chairman Charles Rangel.

NAHMA has sent a position letter to the Hill and industry colleagues detailing our request for bridge financing to help stabilize the program and our support for the House Ways and Means Committee’s LIHTC provisions mentioned above, but calling for stronger language to ensure greater accountability in how cash exchange grants are awarded and used.  A copy of that letter can be found by clicking here.

The two portions of the bill will now be combined and could be brought up for a vote in the House as early as Wednesday.

The Senate Finance Committee has released their Chairman’s Mark for H.R. 598’s tax provisions.  There are no provisions for the LIHTC program.  The Finance Committee mark up is scheduled for Tuesday, Jan. 27.

H.R. 384: TARP Reform and Accountability Act of 2009

The House passed H.R. 384, the Troubled Assets Relief Program Reform and Accountability Act, this week.  In addition to the accountability and oversight provisions for those disbursing and receiving TARP funds, the legislation would require: between $40 to $100 billion for foreclosure relief for residential properties, including affordable housing and multifamily tax credit properties; retroactively placing more severe executive compensation requirements on firms participating in the program; and loosening restrictions on a Federal Housing Administration program to refinance at-risk mortgages.  The legislation has been reported in the Senate Finance Committee for their consideration.

Senate Committee Membership

Sen. Susan Collins (R-ME), Sen. Lisa Murkowski (R-AK), and retiring Sen. George Voinovich (R-OH) received seats on the Appropriations Committee.

Sen. John Cornyn (R-TX) and Sen. Michael Enzi (R-WY) will receive seats on the Finance Committee.

Sen. Jim DeMint (R-SC), Sen. David Vitter (R-LA), Sen. Kay Bailey Hutchison (R-TX), and freshman Sen. Mike Johanns (R-NE) will join the Banking Committee, replacing three outgoing senators and Enzi.

January 16, 2009

H.R. 598: The American Recovery and Reinvestment Act of 2009

Last night, the House announced the details of the second economic stimulus, or “The American Recovery and Reinvestment Act of 2009.”  While the act contains no additional federal funding or incentives for the LIHTC program, it contains one LIHTC provision under which states could exchange up to 40% of their 2009 LIHTC authority for cash at 85 cents for each dollar of LIHTC.  This could potentially be used by the HFA as gap financing for tax credit deals or to fund rental housing without tax credits.  The original proposal, however, was two fold.  The portion of the proposal that was left out of the legislation would have worked in conjunction with the first and provided an additional $5 billion in gap financing for the LIHTC program.  NAHMA’s Tax Credit Task Force is currently evaluating these proposals.  NAHMA has received confirmation from Financial Services staff that Chairman Frank remains committed to getting $5 billion in gap financing as the process moves forward.

The House Appropriations Committee has released information on its website, which includes draft legislation and report language to describe the provisions.  The legislation provides $2.5 billion in funding to retrofit Section 202, Section 811, and Section 8 assisted housing to reduce energy costs and carbon waste as well as create new jobs and development. 

The act also provides $1.5 billion in HOME recovery funding to rehabilitate and construct housing and help fill financing gaps in the LIHTC program caused by the credit freeze.  Fund would be distributed according to the same funding formula for the HOME program used in FY 2008.  Projects that can award contracts based on bids within 120 days from the date that funds are available to them will be given priority. 

Up to $5 billion will be provided for CDBG grants.  Of that amount $1 billion will available according to FY 2008 distribution formulas and over $4 billion would be available for purchasing and rehabilitating foreclosed housing according to guidelines set forth last summer in H.R. 3221, the Housing and Economic Recovery Act of 2008.

Please see http://appropriations.house.gov/ for more information about The American Recovery and Reinvestment Act of 2009.

FY 2009 Appropriations Update

Yesterday, House Appropriations Committee Chairman Obey said he expects the House to take up an omnibus package including the nine remaining FY09 appropriations bills as early as the first week in February, with the package being sent for Presidential approval some time next month. Congress is funding federal programs through a continuing resolution approved in September that expires on March 6.

H.R. 384: TARP Reform and Accountability Act of 2009

The House is set to vote on the TARP Reform and Accountability Act this week.  H.R. 384 would force the Treasury to provide better oversight in regards to spending and to detail the spending by firms participating in the program in order to release the remaining $350 billion in the program.  The funding was designed to help stabilize credit markets that have been rattled over the collapse of the housing industry and Wall Street, causing an economic recession.  Congress has been very critical of the lack of oversight and monitoring of the implementation of TARP by Treasury so far. 
The legislation would require between $40 to $100 billion for foreclosure relief for residential properties, including affordable housing and multifamily tax credit properties; retroactively placing more severe executive compensation requirements on firms participating in the program; and loosening restrictions on a Federal Housing Administration program to refinance at-risk mortgages.

HUD Secretary Confirmation Hearing

Last Tuesday, the Senate Banking Committee held a confirmation hearing on Shaun Donovan’s nomination to the position of HUD Secretary for the incoming Obama administration.  The Committee reacted positively to the nomination with Chairman Dodd committing to a vote on the nomination by the end of this week with a floor vote as early as Wednesday. 

At the hearing, Donovan emphasized the critical importance of rental housing as part of a national housing policy, especially in the current economic climate America is facing.  He pledged to make the Section 8 rental subsidy program more cost effective and efficient and modernize the housing agency's outdated tools and practices for managing and monitoring its wide-ranging programs.  Donovan wants to increase the flexibility of the Department and use the LIHTC program more efficiently, as well as the Affordable Housing Trust Fund, in conjunction with local efforts to provide and preserve affordable housing.  He also commented on HUD’s history of not being a good partner to Congress by not providing accurate budgetary information and promised to make that a top priority in the new Administration.

House Committee Assignments

Congressman Scott Garrett (R-NJ) will be the new ranking member on the House Financial Services Capital Markets Subcommittee, which has oversight of Wall Street, Fannie Mae and Freddie Mac and insurance.

Senate Committee Assignments

Sen. Mark Pryor (D-AR) and Sen. Jon Tester (D-MT) will be joining the Senate Appropriations Committee.

Sen. Bill Nelson (D-FL), Sen. Robert Menendez (D-NJ), and Sen. Thomas Carper (D-DE) will be joining the Senate Finance Committee.

Sen. Mark Warner (D-VA) will be joining the Banking Committee, while Sen. Carper and Sen. Robert Casey (D-PA) will be giving up their seats on the Senate Banking Committee. 

H.R. 403: Homes for Heroes Act of 2009

Congressman Al Green introduced H.R. 403 this week, which would provide housing assistance and technical assistance grants for very low-income veterans and authorize the creation of a Special Assistant for Veterans Affairs within HUD.  It would also offer additional housing vouchers for homeless veterans and include veterans’ interests in housing planning.

H.R. 475: Permitting Formerly Homeless Youth to Qualify for the IRS Student Exemption in the LIHTC program

Congressman Ellison introduced legislation this week that would amend the Internal Revenue Code to qualify formerly homeless youth who are students for purposes of low income housing tax credit.

H.R. 476: Housing Fairness Act of 2009

This week, Congressman Al Green introduced legislation that would authorize funds to create a nationwide testing program to ensure there is no discrimination in the renting, refinancing, or selling of residences and to increase funds for the Fair Housing Initiatives Program.

H.R. 582 and H.R. 583

Congresswoman Lee introduced two bills that would affect affordable housing this week.  H.R. 582 would reauthorize the public and assisted housing drug elimination program for HUD, while H.R. 583 would provide additional assistance to teachers and public safety officers in obtaining affordable housing.  No additional information is available on the bills at this time.

 

January 9, 2009

Economic Stimulus Legislation

H.R. 384: Trouble Assets Relief Program Reform and Accountability Act of 2009

Both House and Senate members are debating on how to release the remaining $350 billion from the Troubled Assets Relief Program, the financial bailout enacted in October 2008 to combat the deepening financial crisis.  Democrats are attempting to construct additional legislation to impose new conditions on the distribution of the $350 billion in emergency funding to improve oversight and accountability in the use of these funds.  Republicans have voiced their hesitance to support additional funding for the program.

Second Stimulus

The House Ways and Means Committee may mark up a second economic stimulus as early as Inauguration Week.  Key Ways and Means members will continue meeting with Obama economic officials next week and are planning to hold a hearing before formally drafting the bill.

NAHMA continues to work closely with industry partners and key Financial Services and Ways and Means Committee staff to make the case for including provisions to help restart and stabilize the low-income housing tax credit program.  Congressional aids have confirmed that the stimulus package will include roughly $300 billion in tax cuts over the next two years.  The have also confirmed the House is discussing including net operating loss carry-back provisions for companies with losses in 2008 and 2009 to carry back their losses for up to 5 years when they were profitable, granting refunds on previous taxes paid.  The provisions could apply to companies who ordinarily claim low-income housing or renewable energy production tax credits, but have been unable to do so because of current losses.  NAHMA supports this idea and others to stimulate the market for LIHTCs.  However, our immediate priority is to secure bridge financing for LIHTC projects in the pipeline.

Speaker Nancy Pelosi has announced she will keep lawmakers working through the February President’s Day Recess if Congress has not passed the legislation.

Confirmation Hearings

Senate Committees began confirmation hearings today for President-elect Obama's Cabinet nominees.  HUD Secretary Designate Shaun Donovan’s confirmation hearing with the Senate Banking Committee has been scheduled for Tuesday, January 13 at 10 a.m. EST.

House Committee Membership Changes

On Tuesday, the House Democrats approved rules Tuesday for the 111th Congress that repeal six-year term limits for committee Chairmen.
House Democrats have added Rep. Lincoln Davis (TN) and Rep. John Salazar (CO) to the Appropriations Committee.  House Republicans have proposed adding the following members to the Appropriations Committee: Rep. Tom Cole (OK), and Rep. Steven LaTourette (OH).

House Democrats have added the following Congressional Members to the Financial Services Committee: Rep. Gary Peters (MI), Rep. Walt Minnick (ID), Rep. Alan Grayson (FL), Rep. Suzanne Kosmas (FL), Rep. John Adler (NJ),  Rep. Steve Driehaus (OH), Rep. Mary Jo Kilroy (OH), Rep. Dan Maffei (NY), and Rep. Jim Himes (CT).

House Democrats have added Rep. Linda Sanchez (CA) to the Ways and Means Committee, while new House Republicans include: Rep. Ginny Brown-Waite (FL), Rep. Geoff Davis (KY), Rep. Dave Reichert (WA), Rep. Charles Boustany (LA), Rep. Dean Heller (NV), and Rep. Peter Roskam (IL).

S. 118: The Section 202 Supportive Housing for the Elderly Act

Senator Kohl (WI) has reintroduced the Section 202 Supportive Housing for the Elderly Act (formerly S. 2736, H.R. 2930).  This legislation simplifies development and facilitates preservation of affordable, supportive, senior housing.  It allows Section 202 properties to pre-pay their debt and use excess proceeds to further the non-profits’ housing and services mission.  The properties may also use residual receipts and requires HUD to provide project-based rental assistance for the project under a senior preservation rental assistance contract in the case of refinancing, rehabilitation, and other preservation efforts.  HUD would be required to create a mortgage sale demonstration program for Section 202 properties.  The legislation also authorizes the creation of a National Senior Housing Clearinghouse that to serve as a national repository to receive, collect, process, assemble, and disseminate information regarding the availability and quality of multifamily developments for elderly tenants.

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