| (Figures in million) | FY 2017 Senate Bill | FY 2017 Request | FY 2016 Enacted |
| Tenant-Based Rental Assistance | $20,432 | $20,854 | $19,628 |
| Contract Renewals | [18,335] | [18,447] | [17,682] |
| Project-Based Rental Assistance | $10,901 | $10,816 | $10,622 |
| Contract Renewals | [10,501] | [10,581] | [10,407] |
| Contract Administrators | [235] | [235] | [215] |
| Housing for the Elderly (Sec. 202) | $505 | $505 | $432 |
| Service Coordinators | [75] | [75] | [77] |
| Supportive Housing for Persons with Disabilities (Sec. 811) | $154 | $154 | $150 |
| Community Development Grant | $3,000 | $2,800 | $3,000 |
| HOME | $950 | $950 | $950 |
April 22, 2016
Full Senate Markup of T-HUD Appropriations Bill
On Thursday, April 21, the Senate Appropriations Committee held a markup hearing for the Transportation, Housing and Urban Development (T-HUD) Appropriations bill for fiscal year 2017; the bill was subsequently passed through a voice vote. The bill can now move to a floor vote in the full Senate.
The funding figures for the Senate T-HUD Appropriations bill for FY 2017 is listed below in comparison to the FY 2016 enacted level and the Administration’s budget request.
Overall, the funding levels as included in the Senate T-HUD Appropriations bill are strong foundation, and NAHMA supports the increases that have been made to nearly all affordable housing programs. These funding increases are essential as rents across the country continue to rise as well as the demand for affordable housing. Most notably, full funding will be provided for essential rental assistance programs.
In her opening remarks, the Appropriations Committee Ranking Member Barbara Mikulski (D-MD) highlighted the bipartisan effort that culminated in the T-HUD bill and noted that it makes a strong investment in affordable housing rental assistance. She also praised the bill for not containing any “poison-pill” riders, or controversial provisions that could derail its passage. The bill would also initiate some new policies that are essential to affordable housing preservation.
Under the bill, the number of public housing units that can convert under the Rental Assistance Demonstration (RAD) program is increased from 185,000 to 250,000; the demonstration sunset date is removed; and additional language is included to protect a tenants’ right to continue to live in their apartment unit after a RAD conversion. Additionally, Section 202 properties with Project Rental Assistance Contracts (PRACs) may convert to Project-Based Section 8 through the Rental Assistance Demonstration (RAD) Program. A total of $4 million is provided in the bill to assist properties with this conversion. This provision was first requested in the Administration’s budget request, and NAHMA supports this effort.
During the markup hearing, much of the discussion focused on commerce and justice issues, and no amendments were proposed for the T-HUD bill. NAHMA looks forward to seeing the House of Representative’s T-HUD appropriations bill and will keep members updated.
Senator Shelby Requests Reports on the GSEs and FHFA
In a press release issued on April 18, Senator Richard Shelby (R-AL), Chairman of the Senate Banking, Housing and Urban Affairs Committee, requested that both the Government Accountability Office (GAO) and the Congressional Budget Office (CBO) compose reports on the Federal Housing Finance Agency (FHFA) and the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac.
Through his request, the Senator is seeking information on the goals of the government’s conservatorship of the FHFA and whether its ultimate purpose has changed. In his view, the FHFA has taken a more active, rather than a reduced, role in the mortgage market for the GSEs. He has the GAO and CBO to examine much of the GSEs single-family mortgage activity, but he also wanted attention paid to affordable housing lending.
Senator Shelby has requested an analysis of how some form or forms of risk-sharing could be brought to the FHA program to introduce private sector participation, as well as whether a residual income test might be valuable in protecting taxpayers and borrowers within the Federal Housing Administration (FHA) program as it relates to underwriting for affordable housing. The press release cites research on Veteran’s Affairs (VA) loan program’s credit performance relative to the FHA’s loan performance.
In the 113th Congress, more attention was paid to the GSEs and several bills were introduced in an effort to either abolish them or significantly reduce the federal government’s involvement. In comparison, the Senate Banking Committee has not focused as much of their time on the GSEs under Senator Shelby’s leadership. Still, Senator Shelby is committed to GSE reform and these reports could spur future hearings and legislation. NAHMA will watch for the release of these reports and forthcoming committee activity on the GSEs.
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