- Increasing the maximum contract term for project-based vouchers from 15 to 20 years;
- Streamlining income reviews/determinations;
- Streamlining physical inspection protocols;
- Authorizing HUD to collect utility data; and
- Authorizing USDA’s Multifamily Housing Revitalization Program and provides authority for USDA to delegate guaranteed rural housing loan approval to preferred lenders.
December 11, 2015
Congress Passes Short-term Continuing Resolution
The continuing resolution (CR) passed on September 30, 2015 expires today, but lawmakers have yet to complete the necessary appropriations legislation for the remainder of fiscal year 2016. Without this legislation, Congress has chosen to pass another CR in order to avoid a government shutdown.
The new CR, the Further Continuing Appropriations Act (H.R. 2250), provides a temporary 5-day extension of funding at the FY 2015 level; this CR will expire on December 16, 2015. This extension is intended to provide lawmakers with additional time to finalize the appropriations legislation for FY 2016, which will likely come in the form of an omnibus. An omnibus bill typically combines all 12 of the necessary appropriations bills for all federal departments into one package.
In a recent grassroots action alert, NAHMA urged members to contact their elected officials to support full-funding for affordable housing programs. We continue to request your participation in this effort – if you need additional information or have issues in identifying your Representatives, please contact Scott McMillen at scott.mcmillen@nahma.org.
Tax Extenders Bill Language Released
On Monday, December 7, House Ways and Means Committee Chairman Kevin Brady (R-TX) announced that a deal had been reached between the House and the Senate on H.R. 34, the Tax Increase Prevention and Real Estate Investment Act of 2015.
This bill is a two-year tax extenders package which continues a number of tax relief provisions that expired at the end of calendar year 2014. Lawmakers have been consistently passing tax extenders legislation in lieu of tax reform in order to prevent tax increases on families and businesses.
While the bill contains a number of additional tax policy changes and reforms to the IRS, NAHMA’s main concern continues to be the minimum credit rates applied to the Low-Income Housing Tax Credit (LIHTC). The bill extends application of the temporary 9-percent minimum credit rate for non-Federally subsidized new buildings to allocations made before 2017, but it does not contain an establishment of the 4-percent minimum credit rate for property rehabilitation. NAHMA has long advocated for a permanent establishment of these minimum credit rates, but this change would likely occur under a tax reform bill rather than a tax extenders bill. Still, Congress must establish the 4 percent minimum credit rate so that other LIHTC acquisition and rehabilitation projects are not subjected to the unpredictable floating rate system wherein the credit rate continually fluctuates. The floating rate is not as appealing to private investors and may prevent projects from securing adequate funding due to the risk.
The tax extenders bill is slated to be voted on before Congress leaves from recess at the end of next week.
House Financial Services Committee Passes Housing Reform Legislation
This Wednesday, December 9, the House Financial Services Committee passed H.R. 3700, the Housing Opportunity Through Modernization Act of 2015; H.R. 3700 passed with a recorded vote of 44 to 10.
This bill was first introduced by committee member (and Chairman of the Housing & Insurance Subcommittee) Blaine Luetkemeyer (R-MO) in October of this year. H.R. 3700 incorporates many different housing reform bills introduced in the 114th Congress, specifically bills that shared bipartisan support. The legislation incorporates two bills that passed in the House earlier this year, including the Preservation Enhancement and Savings Opportunity Act of 2015 (R. 2482) and the Private Investment in Housing Act (R. 2997). It also incorporates several provisions from previously introduced bills, such as the Section Eight Voucher Reform Act of 2011 (SEVRA) (H.R. 1209), and a drafted bill which was not introduced, the Affordable Housing and Self-Sufficiency Improvement Act of 2012 (AHSSIA).
A few key provisions from these bills are intended to streamline the Section 8 Housing Choice Voucher (HCV) program, including:
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