August 3, 2018

Senate passes HUD and USDA funding bills with housing amendments

This week, the Senate passed a four-bill spending package that included HUD and USDA funding for fiscal year 2019. The legislative package, also called a “minibus,” maintains most of the funding increases secured in fiscal year 2018 for housing and community development programs, with some slight increases for FY19 to fund renewals. In addition, a limited number of housing-related amendments were attached to the minibus, which passed by a bipartisan vote of 92-6. For HUD programs, the Senate-passed bills would appropriate a four percent increase over FY18 enacted levels, including $11.7 billion to renew Project-Based Rental Assistance contracts (compared with $11.5 billion in FY18) and $22.8 billion for Housing Choice Vouchers (compared with $22 billion in FY18). The legislation also provides $678 million for Section 202 Housing for the Elderly (equal to FY 2018 funding), with $51 million set aside for new units and $10 million for home modification grants to help low-income seniors age in place, as well as $154 million for Section 811 Housing for Persons with Disabilities (compared with $230 million in FY18). Funding for the HOME and Community Development Block Grant (CDBG) programs was maintained at FY18 levels. For USDA Rural Housing programs, the spending package would maintain funding levels for Section 515 Rental Housing Direct Loans at $40 million and Section 538 Loan Guarantee at $230 million. The Section 521 Rental Assistance would see a 1% decrease compared with FY18, which would be enough to renew all existing rental assistance contracts, according to the Senate Appropriations Committee. Section 542 Rural Voucher Assistance and the Multifamily Revitalization Program would see slight increases under the legislation. Additionally, the following housing-related amendments were approved by the Senate:
  • An amendment introduced by Senator Jeanne Shaheen (D-NH) would direct HUD to ensure property owners cannot unlawfully evict or deny housing to survivors of domestic violence and sexual assault
  • An amendment introduced by Senator Gary Peters (D-MI) would require HUD and the Environmental Protection Agency to report on efforts related to the removal of lead-based paint
  • An amendment introduced by Senator Dean Heller (R-NV) would prohibit people charged with certain crimes from receiving federal housing assistance
  • An amendment introduced by Senator Tina Smith (D-MN) would direct USDA to report to Congress on the agency’s strategy and resources needed to preserve affordable rural rental housing
With the House in Recess through September 3, Congress will have limited time to approve and reconcile funding bills before the end of the fiscal year on September 30; in the meantime, Congress may temporarily extend funding through a Continuing Resolution (CR). NAHMA will keep members up-to-date on the appropriations process.

Congress enacts last-minute flood insurance extension

The Senate this week passed legislation to temporarily extend the National Flood Insurance Program (NFIP) just hours before the program was set to expire. The legislation extends the NFIP through November 30th – the last official day of hurricane season – buying lawmakers more time to debate a long-term reauthorization and any reforms to the NFIP. This week’s last-minute effort marks the seventh short-term extension of the program since its last longer-term reauthorization; the House last year passed a set of reforms to the program which have yet to pass the Senate. Without the 11th hour extension of the NFIP, companies that issue federal flood policies would likely have ceased issuing new policies and renewing existing ones; the real estate market could also have stalled in certain flood-prone areas, where a flood insurance policy is required before obtaining a new mortgage. NAHMA will continue to keep members up-to-date on any reforms to the program.

UP NEXT: What NAHMA is watching for next week

  • AHMA Advocacy Challenge is in full swing!
  • Members of the House are in their home districts for August Recess
  • NAHMAnalyses on recent housing developments
   

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