Senate Banking Committee Holds Oversight Hearing with HUD and FHFA Leaders
Last week, the Senate Committee on Banking, Housing, and Urban Affairs hearing, Oversight of Federal Regulators, covered the several issues impacting housing affordability across the nation. Here is a summary of the hearing:
Senator Sherrod Brown (D-OH), Committee Chair, opened the hearing by discussing the dire state of housing affordability, emphasizing the lack of supply and rising costs that have kept homeownership out of reach for many. At the conclusion of the hearing, Sen. Brown also discussed the challenges facing HUD-assisted properties in Toledo and Northwest Ohio. He highlighted significant issues with housing conditions, including problems such as persistent maintenance failures and safety concerns that adversely affect residents’ quality of life. Sen. Brown emphasized the need for better oversight and improvements in the management of these properties to ensure that residents have safe and decent living conditions.
Senator Tim Scott (R-SC), Committee Ranking Member, expressed concerns about the effectiveness of current housing policies and the impact of high mortgage rates and housing costs on American families. He criticized the Biden Administration for not adequately addressing these issues and proposed more frequent regulatory updates and legislative efforts to improve housing affordability.
Adrianne Todman, Acting Secretary of HUD, provided an overview of HUD’s actions under the Biden administration, noting significant strides in providing rental assistance and promoting affordable housing development. She discussed the historic levels of funding and new initiatives to support housing for vulnerable populations and efforts to streamline and improve the efficiency of HUD’s programs.
Sandra Thompson, Director of the Federal Housing Finance Agency (FHFA), spoke about the challenges faced by renters and homebuyers due to insufficient housing supply and high costs. She outlined the FHFA’s efforts to support housing finance and affordability through regulatory measures and initiatives aimed at reducing mortgage costs and increasing housing supply.
Senator Tim Scott (R-SC) expressed concerns about the effectiveness of current housing policies and the impact of high mortgage rates and housing costs on American families. He criticized the Biden Administration for not adequately addressing these issues and proposed more frequent regulatory updates and legislative efforts to improve housing affordability.
Various Senators from both parties shared their regional concerns and the impacts of federal housing policies on their constituencies. They discussed local issues of supply shortages, high rental costs, and the specific challenges faced by rural and underserved communities:
Senator Jon Tester (D-MT) raised specific concerns about the Fair Market Rents (FMRs) system managed by HUD. He pointed out that FMRs do not adequately reflect the rapidly rising housing costs in Montana, which is creating difficulties for voucher programs. Adrianne Todman acknowledged the issue and expressed a willingness to work with Tester to adjust FMR methodologies to better reflect local realities. Tester also highlighted challenges with HUD’s handling of voucher allocations and expressed frustration over housing authorities being left with insufficient resources to meet local demands.
Senator Elizabeth Warren (D-MA) focused her questions on the Federal Home Loan Banks (FHLBs). She criticized the FHLBs for not adequately fulfilling their mission to support affordable housing, noting that a significant portion of their resources went to dividends for members rather than housing. Warren also questioned Sandra Thompson about the need to clarify the FHLBs’ mission and ensure that they focus more on housing and community development. She advocated for rule changes to require FHLB members to maintain a consistent commitment to housing finance to remain eligible for benefits.
Senator Raphael Warnock (D-GA) addressed issues related to housing affordability in his state. He highlighted the challenges faced by low-income families and the need for enhanced federal support for affordable housing initiatives. Warnock asked about measures to improve housing conditions and accessibility for underserved populations, emphasizing the importance of federal leadership in expanding access to affordable housing, through LIHTC, and supporting community development efforts.
Senator Katie Britt (R-Alabama) expressed concerns about the affordability and availability of housing in Alabama. She discussed the impact of federal regulations and policies on local housing markets, highlighting the need for more flexible and effective federal support to address specific local challenges, such as rural housing needs. Senator Britt emphasized the importance of ensuring that federal housing programs are adaptable enough to meet diverse local requirements without imposing undue burdens.
Senator Catherine Cortez Masto (D-Nevada) focused on the housing crisis in Nevada, particularly in urban areas like Las Vegas, where rapid population growth has exacerbated housing shortages and affordability issues. She questioned the witnesses about measures to increase housing supply and affordability, and she advocated for specific policy interventions, like the HOME program, to support urban development and reduce homelessness. Senator Cortez Masto also highlighted the importance of protecting renters and promoting homeownership as critical elements of economic stability for Nevadans.
Insurance Costs
The hearing briefly touched upon insurance costs in the context of housing affordability. The challenges around insurance, especially due to increased natural disasters and their impact on housing stability and costs, were recognized as significant factors contributing to the broader housing affordability crisis. Members can view the entire hearing here.
Senate Banking Subcommittee Hearing on Preserving the Nation’s Housing Stock
Last week, the Senate Committee on Banking, Housing, and Urban Development’s Subcommittee on Housing, Transportation, and Community Development held a hearing titled “Challenges in Preserving the U.S. Housing Stock“. The hearing witnesses included: Mr. Jesse Ergott, President and CEO, NeighborWorks Northeastern Pennsylvania; Ms. Robin Davey Wolff, Senior Director, Rural Communities, Enterprise Community Partners; and Mr. Christopher Volzke, Deputy Executive Director, Wyoming Community Development Authority. Here’s a summary of key points raised by each Senator and Witness:
Senator Tina Smith (D-Minnesota), Chairwoman
Senator Smith emphasized the importance of maintaining safe, affordable, and accessible housing as foundational to all other aspects of life. She highlighted the bipartisan Rural Housing Service bill aimed at preserving affordable housing units, particularly in rural areas.
Senator Cynthia Lummis (R-Wyoming), Ranking Member
Senator Lummis focused on the unique challenges of maintaining and improving housing in rural areas, such as Wyoming, where the population density is low and the cost of maintaining infrastructure like water drainage systems can be prohibitively high. She stressed the economic unfeasibility of repairing certain old properties, despite their historical value.
Jesse Ergott (NeighborWorks Northeastern Pennsylvania)
Jesse Ergott discussed the role of his organization in supporting housing through various programs like homeownership assistance, foreclosure prevention, and critical home repairs. He highlighted the importance of preserving the existing housing stock, which is often more economical than building new homes, and discussed the positive impacts of the Whole Home Repairs program in Pennsylvania.
Robin Davey Wolff (Enterprise Community Partners)
Robin Davey Wolff emphasized the challenges of preserving affordable housing in rural communities, where economies of scale are hard to achieve. She noted the critical need for targeted resources and policies to maintain the affordability of multifamily properties, highlighting the importance of the Low Income Housing Tax Credit and other funding sources.
Christopher Volzke (Wyoming Community Development Authority)
Christopher Volzke shared insights into the challenges of aging housing stock in rural Wyoming, emphasizing the need for accessible financing for home repairs. He discussed the role of programs like the Home Investment Partnerships Program in rehabilitating and creating rental housing in areas where the private market fails to do so.
Each participant underscored the complex interplay of federal, state, and local resources necessary to address the ongoing challenges of housing preservation, particularly in underserved and rural areas, reflecting a broad consensus on the need for strategic, well-funded efforts to sustain and improve the U.S. housing stock.
Senator Jon Tester (D-MT)
Senator Tester emphasized the pressing housing challenges in Montana, particularly in rural areas where many homes are unfit for habitation without significant rehabilitation. He highlighted the critical need for workforce housing to support local businesses and economic development. Tester strongly advocated for the passage of the Rural Housing Service Reform Act to address these issues, stressing its importance for enabling community growth and preserving housing in rural areas.
Senator John Fetterman (D-PA)
Senator Fetterman discussed the universal challenges of housing maintenance, such as leaky roofs and failing furnaces, which affect both rural and urban areas across the political spectrum. He highlighted the bipartisan support in Pennsylvania for housing repair initiatives and stressed the importance of flexible federal programs that can address specific local needs, like the Whole Home Repairs Act. Fetterman’s remarks underscored the non-partisan nature of housing issues and the critical need for legislative action to help residents maintain their homes and live with dignity.
Senator Catherine Cortez Masto (D-NV)
Senator Cortez Masto focused on the importance of the Home Investment Partnerships Program (HOME) and its role in financing affordable housing development and preservation. She discussed her legislation aimed at reauthorizing and improving the HOME program to better serve community needs. Cortez Masto also highlighted the need for increased funding for mortgage revenue bonds and the importance of adjusting loan limits to reflect current economic realities, emphasizing the role of these tools in improving middle-class families’ ability to buy homes and invest in home improvements.
In conclusion, each senator brought attention to specific housing challenges in their respective states, advocating for federal action and legislative support to address the critical need for housing preservation and improvement across the United States. The hearing can be view here.
Senators Lead Roundtable Discussion On Housing Supply and YIMBY Policies
On April 18th, U.S. Senators Brian Schatz (D-HI) and Todd Young (R-IN) led a virtual roundtable discussion focused on the ongoing national housing crisis and explored potential solutions through “Yes In My Backyard” (YIMBY) policies. This discussion highlighted the urgent need for more housing and the role of various levels of government in addressing this challenge.
Senator Schatz, Chair of the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, emphasized that the housing shortage is the result of long-standing, flawed policies that have historically promoted segregation by race and class. These policies include restrictive zoning laws, covenants, and land use regulations. Senator Schatz advocated for the removal of unnecessary barriers to construction and called for legal reforms to allow more and varied types of housing. He stressed that while much of the necessary reform would happen at state and local levels, there is a significant role for the federal government to encourage and facilitate these changes.
Senator Young highlighted the YIMBY Act, which he supports as a means to encourage localities to adopt pro-growth zoning practices that reduce bureaucratic red tape and lower construction costs. He framed the housing supply shortage as a nationwide issue transcending political and geographical lines, affecting Americans of all income levels.
Julie Fahey, Speaker of the Oregon House of Representatives, pointed out the acute shortage of homes driving up housing costs and advocated for collaboration across all levels of government to implement smart, equitable housing policies. These policies would facilitate the building of more homes, thus making housing more accessible and affordable for everyone.
Arica Young, Associate Director at the Lincoln Institute of Land Policy, and Sonja Trauss, Executive Director of YIMBY Law, also contributed to the discussion. Young discussed the severe impacts of decades of under-building which have resulted in a significant shortage of affordable homes. This shortage, he noted, hampers economic development and negatively affects health and educational outcomes. Trauss expressed enthusiasm about the federal push to ease zoning restrictions and promote housing construction, praising the grassroots efforts of the YIMBY movement to support such changes.
The roundtable showcased a collective agreement on the need for comprehensive and innovative solutions to address the housing crisis effectively. By advocating for YIMBY policies, the participants underscored the importance of collaborative efforts and federal support in overcoming the barriers to sufficient, affordable housing in the United States. Members can find a press release with video recording of the roundtable here.