Congress Tag Archives

Bipartisan Legislation Introduced to Enhance the Historic Tax Credit, Support Needed

NH&RA encourages its members to support this important legislation. Sponsors anticipate there is an opportunity to attach the basis adjustment language to a larger legislative package that is likely to move through Congress toward the end of the year. Support for the legislation needs to come from both sides of the aisle to improve its chances of enactment.

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Senate Committee Passes FY-19 THUD Spending Bill, Significant Increase for HUD

The US Senate Appropriations Committee has approved its FY-2019 Transportation, Housing, and Urban Development spending measure (S. 3023). The Senate committee proposes an additional $4.3 billion in Tenant Based Vouchers and an additional $400 million in Project Based Rental Assistance over the House’s T-HUD funding language (which was approved by the full House Appropriations Committee on May 23). While the House would provide level funding for The Choice Neighborhoods Initiative and CDBG, the Senate proposal cuts funding by $50 million and $65 million, respectively. Both measures would increase overall HUD funding, rejecting the White House request to cut funding by almost $11 billion. Neither of the bills are currently scheduled for a floor vote.

Funding Highlights include:

House Delays Action on White House Rescissions Affecting Prior HUD and RD Appropriations

The House has put off a vote on President Trump’s proposed rescission request, which recently passed legal muster under a Government Accountability Office study (only $134 million, all from the Transportation Department, was decided as improper to impound of the total $15.2 billion).

House Majority Leader Kevin McCarthy (R-CA) stated the reason is simply an already full docket of for the House to consider between now and the Memorial Day recess. Some have speculated that a delay may also be in place to allow the White House to remove some more politically sensitive issues from the document to better ensure passage in the House, where members are fully aware of elections in less than 6 months.

The effects of such rescissions would be detrimental to affordable housing and community development, clawing back millions of dollars from HUD, Rural Development, the CDFI Fund, and Capital Magnet Fund.

–May 16, 2018– The Trump Administration sent a proposal to Congress on May 8 that calls for the rescission of over $15 billion in prior appropriated federal funds. The following affordable housing and community development related programs would be affected:

  • Over $41 million – HUD’s Public Housing Capital Fund
  • $40 million – Rural Housing Service Rental Assistance Program (Dept. of Agriculture)
  • $2 million – Rural Community Facilities (Dept. of Agriculture)
  • $22.7 million – CDFI Fund (Treasury)
  • $151.2 million – Capital Magnet Fund (Treasury)

NH&RA strongly opposes this proposal and is coordinating with industry partners on a formal response, which will be released shortly.  The plan remains a proposal and has not been put into law.

Bell Op Ed Calls on Senate to Confirm FHA Commissioner Nominee

In his 5/2/18 column for National Mortgage News, “Vote to confirm Trump’s FHA commissioner has been delayed too long,” NH&RA President and CEO Peter Bell says that despite having a qualified candidate ready to serve, Senate leadership on both sides of the aisle have ignored their responsibility to vote on Brian Montgomery’s nomination as Federal Housing Administration commissioner.

Read the full opinion editorial on National Mortgage News:

President Signs Omnibus Legislation into Law, 10% Increase for HUD, LIHTC Improvements

On March 23, President Trump signed into law the 2018 omnibus spending bill (HR 1625). Bill language was released late Wednesday night and the House of Representatives and Senate subsequently passed the bill on Thursday. The news of passage comes shortly after President Trump threatened via Twitter to veto the bill on Friday morning. The bill will fund the Federal Government for the remainder of the 2018 fiscal year and comes after several stopgap funding measures.

What’s In the Bill:

Low Income Housing Tax Credit
The LIHTC received some improvements adopted from the Cantwell-Hatch Affordable Housing Credit Improvement Act:

  • Allocation Increase: A 12.5 percent increase in Housing Credit allocation for four years (2018-2021)
  • Income Averaging: The income averaging option allows projects to accept tenants with higher average median incomes as long as the overall average of tenants in the project does not exceed 60% AMI. This will allow for LIHTC projects to serve a greater range of incomes.

Unfortunately, a provision creating a fixed 4% floor for tax-exempt bond financed projects was not included.

At $42.7 billion, HUD sees a 10% funding increase over Fiscal Year 2017. That’s in stark contrast to President Trump’s proposed 19% cut to the Department and exceeds proposals from both the House and Senate sub-committee markups (a 4% increase in the Senate and a 1% cut in the House). The increased numbers stem from last month’s bipartisan budget agreement.

The Rental Assistance Demonstration (RAD) program sees an increased cap from 225,000 units to 455,000 units as well as extended authority to cover PRAC. Detailed funding numbers for specific HUD programs can be found in the chart below.

HUD / RD PROGRAMS Enacted Funding FY 2017 (in Millions) Omnibus Proposed FY 2018 (in Millions) Difference Between 2017 Enacted and 2018 Omnibus
Project-Based Rental Assistance  $     10,816.00  $     11,515.00  $          699.00
Tenant-Based Rental Assistance  $     20,292.00  $     22,015.00  $       1,723.00
Public Housing Capital Fund  $       1,941.50  $       2,750.00  $          808.50
Homeless Assistance Grants  $       2,383.00  $       2,513.00  $          130.00
Choice Neighborhoods Initiative  $          138.00  $           150.00  $            12.00
Housing for the Elderly Program  $          502.40  $           678.00  $          175.60
HOME Investment Partnerships  $          950.00  $       1,362.00  $          412.00
Community Development Block Grants  $       3,060.00  $       3,300.00  $          240.00
Public Housing Operating Fund  $       4,400.00  $       4,550.00  $          150.00
Housing for Persons with Disabilities Program  $          146.20  $           229.60  $            83.40
Section 515 Rental Housing  $             35.00  $             10.52  $           (24.48)
Section 521 Rental Assistance  $       1,405.00  $       1,345.29  $           (59.71)
RD Multi-Family Housing Revitalization  $             41.00  $             47.00  $               6.00
Family Self-Sufficiency Program (FSS)  $             75.00  $             75.00  $                   –
Native American Housing Block Grant  $          654.00  $           655.00  $               1.00
RAD  $                   –  $                    –  $                   –
Native Hawaiian Housing Block Grants  $               2.00  $               2.00  $                   –
HOPWA  $          356.00  $           375.00  $            19.00
FHA MMI Fund Account  $          130.00  $           130.00  $                   –
FHA — General and Special Risk Insurance Fund  $                   –  $                   –
Fair Housing Programs  $             65.90  $             65.30  $             (0.60)