Senate Committee Highlights Lack of Affordable Housing
This week, the Senate Banking, Housing and Urban Development Committee held a hearing on “‘The Rent Eats First’: How Renters and Communities are Impacted by Today’s Housing Market.” The witnesses who provided testimony included Professor Matthew Desmond, Maurice P. During Professor of Sociology and Director of The Eviction Lab, Princeton University; Ms. Laura Brunner, President and CEO, Port of Greater Cincinnati Development Authority; Ms. Rosanna Morey, Small Property Owner; Mr. Darion Dunn, Managing Partner, Atlantica Properties; and Ms. Diane Yentel, President and CEO, National Low Income Housing Coalition.
The hearing focused on the underlying causes of the affordable housing crisis, the current state of the housing market, and both the immediate and long-term federal policy solutions needed to ensure that renters with the lowest incomes have an affordable place to call home. Witnesses warned that emergency rental assistance funds are almost depleted and pandemic-era renter protections are expiring. Many renters are faced with soaring inflation, skyrocketing rents, increased evictions, and in many communities, more homelessness. The hearing also highlighted the threat of real estate investors purchasing low-cost homes at an unprecedented rate, which in turn results in further increases in rental prices. Members discussed addressing the roots of the housing affordability problem and acknowledged that it would require a sustained commitment to bridge the gap between incomes and rent. This included providing increased rental assistance, investing in new affordable housing, and preserving affordable rental homes, providing emergency assistance to stabilize renters when they experience financial shocks. Testifying before the committee, Ms. Morey provided the starkest concern facing many landlords. “With too many restrictions, affordable housing providers like myself will reconsider renting going forward. Some will just sell and leave, some will put more stringent requirements and tenant screening criteria in place, and some will just raise the rents to cover themselves ‘just in case’. We are already starting to see the impact as social media videos have begun to circulate teaching prospective tenants how to create fake W2’s and bank statements, etc. because so many chose not to pay rent that now they cannot provide the documents required for a new apartment. This cannot continue.”
Senator Brown, Chairman of the Committee, underscored the need for Congress to continue to help renters find and remain in homes they can afford with financial or emergency assistance and highlighted the bipartisan Eviction Crisis Act. The bill, if approved, would create a new permanent Emergency Assistance Program to provide financial assistance and housing stability-related services to eviction-vulnerable tenants. As states wind down their COVID-related Emergency Rental Assistance programs, states and local jurisdictions will be able to transition seamlessly to this new program.
Senator Bob Menendez (D-NJ) noted the current affordability crisis facing low-income renters and offered the Livable Communities Act, legislation to incentivize the development of new affordable housing near existing mass transit. “We need to develop bold, innovative solutions that reflect their unique character, while leveraging existing assets, including access to transit to help revitalize neighborhoods, spur economic development, create jobs, and address their affordable housing need,” said Senator Menendez.
To view the full hearing, click here.
White House Summit on Building Lasting Eviction Prevention Reform
On Wednesday, the White House and Department of Treasury hosted a White House Summit on Building Lasting Eviction Prevention Reform. The Summit focused on the need for an all-out effort to build lasting reform – including through the use of remaining American Rescue Plan funds from ERA and State and Local Fiscal Recovery Fund assistance.
To view the White House Fact Sheet, click here.
To view the Summit Recording, visit: White House Summit on Building Lasting Eviction Prevention Reform – YouTube
Sec. Fudge Addresses Racial Wealth Gaps and Economic Justice
Secretary Fudge participated in a virtual event, hosted by Axios, on affordable and fair housing. The discussion focused on segregation, redlining and other discriminatory practices have led to disparities in access to homeownership and widened the racial wealth gap between Black and white people. The Secretary also discussed the agenda for economic justice that describes actions the department will take to help low-income renters build assets. The agenda, Bridging the Wealth Gap: An Agenda for Economic Justice and Asset Building for Renters, focuses on asset building through increased savings, access to mainstream banking, and credit score improvement.
To view Secretary Fudge’s conversation with Axios, click here. HUD’s press release on the agenda, click here.