House Subcommittee Holds Hearing on Rent Reform
On April 25, the House Financial Services Committee, Housing and Insurance Subcommittee, held a hearing titled “HUD’s Role in Rental Assistance: An Oversight and Review of Legislative Proposals on Rent Reform.” The hearing was to discuss draft legislation,
“Promoting Resident Opportunity through Rent Reform Act,” sponsored by Rep. Dennis Ross (R-FL). The draft legislation provides public housing authorities (PHAs) the ability to select and establish alternative rent models, including tiered rents; design their own rent model; and make other rent reforms to reduce burden in HUD rental assistance programs. The witnesses for the hearing included:
- Mr. William O. Russell III, President and Chief Executive Officer, Sarasota, Florida Housing Authority, on behalf of the Florida Association of Housing and Redevelopment Officials
- Mr. Will Fischer, Senior Policy Analyst, Center on Budget and Policy Priorities
- Ms. Adrianne Todman, Chief Executive Officer, National Association of Housing and Redevelopment Officials
- Mr. Richard C. Gentry, President and Chief Executive Officer, San Diego, California Housing Commission
NAHMA’s takeaway from the hearing is that PHAs are generally supportive of rent reforms, specifically rent simplification and reducing administrative burden. The draft legislation from Rep. Ross provides a menu of options for PHAs, however it was unclear how HUD would regulate or provide oversight of over 4,000 PHAs. It is also unclear how these alternative rent models impact current and future tenants, particularly the elderly and disabled tenants on fixed incomes.
Regardless, Rent Reform is a hot topic at the moment. During the morning of the hearing, HUD Secretary Carson released his rent reform
proposal, “Making Affordable Housing Work Act”, which combines rent reforms and work requirements across all HUD’s rental assistance programs. NAHMA will provide an analysis for members on all the proposals and keep members updated as draft legislation is introduced for consideration. The hearing can be viewed
here.
House Appropriation Subcommittee Holds Hearing on FY19 Office of Housing Budget Request
On April 25, the House Appropriations Subcommittee on Transportation, Housing, and Urban Development (THUD) held a hearing on HUD’s FY19 Budget Request for the Office of Housing. The witness was Dana Wade, General Deputy Assistant Secretary for the Office of Housing and acting Director of the Federal Housing Administration (FHA). The hearing largely focused on FHA programs; however, some rental assistance programs were discussed. During the questioning, Wade thanked the Subcommittee for including language in the FY 2018 omnibus funding bill that would allow Section 202 project rental assistance contracts to convert under the Rental Assistance Demonstration (RAD) program and new construction funding for Section 202 and 811 programs. In response to questions on HUD’s rent reform proposal, Wade told the Subcommittee that HUD’s rental reform proposal would not harm elderly and disabled households currently served by HUD. However, new tenants would be subject to the rent reforms.
NAHMA’s takeaways are that we expect HUD to release the RAD for PRAC notice in the fall and NOFAs for Section 202/811 later this year. Lawmakers seem to be satisfied with the increased funding for the programs. The hearing can be viewed
here.
