Debate Continues Over Additional Emergency Stimulus Legislation
This week, the Senate failed to add $250 billion into the small business loan program created under the CARES Act. In the House, Majority Leader Steny Hoyer said that the House will not be back in session until May 4–unless it needs to pass emergency measures to respond to the COVID-19 crisis. While Congress appears to be at a stand-off, negotiations between Congressional staff and stakeholder groups on the next round of stimulus to combat the impacts of COVID-19 continue. Last week, NAHMA sent a Grassroots Alert focused on providing additional industry COVID-19 relief. As Congress considers what the next round of economic stimulus will entail, we request that members continue to reach out–if they have not done so yet–via digital channels (email and social media) to lawmakers and ask for additional housing assistance. We also continue to ask members to educate lawmakers about the impacts of COVID-19 in their districts or states. For all the latest regulatory guidance on COVID-19, please visit Coronavirus Information and Resources.
Members of Congress ask for $100 Billion for Emergency Rental Assistance
Fifty-one members of Congress sent a letter to House and Senate leadership requesting $100 billion for emergency rental assistance as negotiations for the next emergency stimulus package continue. The funding would assist renters who continue to experience income loss due to COVID-19, seeking to resolve issues such as accrued rent due. A similar provision was considered but not included in the final CARES Act. The letter can be found HERE.
The Opportunity Zone Extension Act (H.R. 6513)
The Opportunity Zone Extension Act, introduced this week by Rep. Denver Riggleman (R-Va-5), would change the date for investment gains in Opportunity Zones to be realized from December 31, 2026 to December 31, 2030. This change would allow investors additional time to invest in qualifying communities and access the incentives that were signed into law with the Tax Cuts and Jobs Act. However, this change would only apply for investments made in taxable years beginning after the enactment of the legislation. The Opportunity Zones program designates economically-distressed communities and encourages private investment and economic growth in those areas. H.R. 6513 has been referred to the House Committee on Ways and Means for further consideration. The full text of the bill can be read HERE. In the meantime, the Internal Revenue Service has taken steps to extend the deadlines for Opportunity Zones by issuing Notice 2020-23, which can be found HERE.
Congress Prepares to Considers Rent and Mortgage Moratorium
Rep. Ilhan Omar (D-MN-5) is preparing to introduce legislation that would create a payment cancellation plan for all rent payments and primary residence mortgage payments for the duration of the COVID-19 national emergency declaration. The moratorium would be made retroactive to cover April 2020 payments and would constitute full payment forgiveness, with no accumulation of debt for renters or homeowners. The federal government would provide relief funds to landlords and lenders, allowing them to recoup their losses, so long as they agree to abide by a set of fair renting and lending practices for a period of five years. Additionally, Congress would create an optional buyout fund to fully finance the purchase of private rental properties by non-profits, public housing authorities, cooperatives, community land trusts, and states or local governments. This fund would be designed to mitigate the loss of viable homes in the wake of an economic downturn, to mitigate the risk of real estate speculation, and to increase the availability of affordable and low-income units in the market.
The bill is cosponsored by Reps. Alexandria Ocasio-Cortez (D-NY), Rashida Tlaib (D-MI), Pramila Jayapal (D-WA), Mark Pocan (D-WI), Ayanna Pressley (D-MA), Veronica Escobar (D-TX), Jesús “Chuy” García (D-IL), and Grace Meng (D-NY). A press release for the bill is available here.
Members can catch-up on all past Washington Updates HERE.