Major Changes at HUD
HUD Secretary Mel Martinez resigned last week, presumably to run for the U.S. Senate seat in Florida being vacated by retiring Senator Bob Graham.
On December 12, President Bush announced he would nominate Deputy Secretary Alphonso Jackson to replace Martinez. Jackson is currently the Department’s Acting Secretary.
Adjournment
Congress adjourned for the year on December 9. They will return to Washington to begin the Second Session of the 108th Congress on January 20, 2004.
Appropriations
Unfortunately, Congress left town before finishing their work on the 2004 spending bills. So, 11 of 15 federal agencies will continue to be funded by the continuing resolution, which runs through January 31, 2004.
The House of Representatives passed the $328 billion consolidated appropriations bill (HR 2673, a.k.a “omnibus bill”) on December 8 by a vote of 242-176.
Objections from Senate Democrat prevented the Senate from considering the bill. As articulated by Senate Democratic Leader Tom Daschle, there are several objectionable legislative items in this bill:
- The final bill removed Senate language to prohibit the Administration’s new overtime regulations at the Department of Labor;
- It removed a Senate-passed provision on an FCC media ownership rule;
- It blocked implementation of mandatory agricultural country-of-origin labeling;
- It included a provision that weakens gun-control background check record-keeping requirements;
- It created a school voucher program for the District of Columbia;
- It allowed outsourcing of more than 400,000 Federal jobs; and
- It imposes “arbitrary across-the-board cuts to education, Head Start, veterans health care, highway construction, and other needed programs.”
The bill includes an across-the-board reduction of .59% for all programs, except defense and military construction. Savings generated from this cut combined with rescissions from last year’s bills are redirected to increase funds for the Millennium Challenge Corporation, election reform efforts, veteran’s medical care, certain education programs and security expenses at the national political party conventions.
Senator Robert Byrd (D-WV), Ranking Member of the Senate Appropriations Committee, had previously announced his intention to block passage of this bill if it were call up on a voice vote. Senator Byrd demanded a roll call vote, citing the size, cost, and controversial policy implications of this bill.
The Senate will turn its attention back to the omnibus when it returns on January 20. Since conference bills cannot be amended, the fate of HR 2673 is uncertain. If the Senate does not approve the bill in its current form, it is not clear whether Congress will rewrite and reconsider a new omnibus, reconsider individual bills, or simply adopt a long-term continuing resolution that lasts through the remainder of FY 2004. If Congress does produce a new bill or bills, it is unlikely that there would be significant change on the parts of the bill that fund HUD and RHS.
Highlights of the housing-related parts of HR 2673 follow:
HUD
Section 8 Housing Certificate Fund
- The HCF received nearly $19.4 billion
- An increase of nearly $2.3 billion over the FY03 enacted level
- Conferees rejected the President’s proposed Section 8 HANF block grant.
Section 202
- $778 million is provided for Section 202 (plus recaptures & cancelled commitments)
- Roughly $5 million over the President’s FY 04 request and the FY 03 level.
- $30 million of the total funding is designated for service coordinators
- $25 million is for assisted living conversion and emergency capital repairs
- $20 million is designated for predevelopment of 202 projects (site control, architectural and engineering work, etc.)
Section 811
- about $250.6 million is available for Section 811 (plus recaptures & cancelled commitments
- Very slight increase above the President’s request and the FY 03 level
- Up to 25% of this funding may be designated for tenant-based assistance
HOME
- HOME is funded at approximately $2 billion
- $87.5 million is set-aside for the American Dream Downpayment fund
- Total funding is increased $30.5 million above ‘03
- Total funding is almost $180 million below the President’s request
There were several noteworthy Legislative Riders on this bill. For instance, it requires greater scrutiny of HUD’s financial commitments. It includes a quarterly reporting requirement for HUD to inform the Appropriations Committees of “all uncommitted, unobligated, recaptured and excess funds in each program and activity within the jurisdiction of the Department…” It also establishes an annual reporting requirement for HUD to inform the Appropriations Committees of “The number of Federally assisted units under lease and the per unit cost of these units to [HUD].”
Likewise, HR 2673 includes NAHMA-endorsed language requiring HUD to conduct income and employment matching with the National Directory of New Hires for HUD tenants. The bill permits HUD to disclose information to PHAs, the HUD IG, and the Attorney General. HUD and HHS would be required to make a determination on whether to permit disclosures to private owners, management agents, and contract administrators based based on the costs & benefits of the required disclosures and adequacy of privacy safeguards.
Furthermore, the omnibus provides protections for tenants living in HUD-held or HUD-owned multifamily property which receives project-based Section 8 and is occupied primarily by elderly or disabled families when HUD is disposing of the property or believes continued rental assistance on the property is no longer feasible.
RHS
Section 515
- $116.5 million is provided for Section 515
- $740 thousand more than the FY 03 level
- nearly $46 million above the President’s request for FY 04.
Rural Rental Assistance
- Total Rural Rental Assistance was funded at $584 million
- $137 million below the FY 03 level,
- $156 million below the President’s request for this year
- New and renewed contracts in FY 04 would be reduced in length from 5 to 4 years
Section 538 Loan Guarantees
- $100 million is provided for Section 538 multi-family housing guaranteed loans
- Same figure as FY 03 and the President’s request.
American Dream Downpayment Act
President Bush signed the American Dream Downpayment Act into law (P.L. 108-186) on December 16. This legislation represents the President’s proposal to set aside $200 million in the HOME program for downpayment assistance for first-time, low-income homebuyers.
The final bill retained NAHMA-endorsed measures to increase the FHA multifamily loan limits in high cost areas.
This legislation was also a vehicle for HOPE VI reauthorization language.
The LEGACY Act was also attached to this bill. This measure creates small demonstration programs in the Section 202 program to better meet the housing needs of “intergenerational families” which are headed by an elderly person who is raising a minor child.
FHA Multifamily Mortgage Loan Guarantees
Help is on the way for those waiting on FHA multifamily loan commitments. President Bush signed legislation on December 16 (P.L.108-185) which provides additional funds for the FHA multifamily loan guarantee programs. The program had to shut down earlier this month when FHA exceeded the limitation specified in the previous continuing resolution.
