House Passes Bill with Housing Amendments
Late on Thursday December 3, the Senate passed the Fixing America’s Surface Transportation Act (FAST) with a recorded vote of 83-16; the House of Representatives passed the bill earlier in the day with a recorded vote of 359 to 65. The FAST Act is a large, multifaceted transportation bill which includes an amendment containing several bipartisan housing bills that were previously approved in the House. These housing bills included as an amendment in the FAST Act are:
- R. 1047, the Housing Assistance Efficiency Act, introduced by Representative Scott Peters (D-CA). This bill amends the McKinney-Vento Homeless Assistance Act to allow (in addition to a state, local government, or public housing agency) a private nonprofit organization to administer permanent housing rental assistance provided through the Continuum of Care Program. H.R. 1047 originally passed the House in July of 2015.
- R. 2997, the Private Investment in Housing Act, introduced by Representative Dennis Ross (R-FL) on July 9, 2015. This bill provides HUD with the authority to establish a pay-for-success demonstration program and enter into budget-neutral, performance-based agreements that result in the reduction in energy or water costs for multifamily housing properties. H.R. 2997 was passed in House with a recorded vote of 395 – 28 on July 14, but it did not advance past the Senate Banking, Housing and Urban Affairs Committee.
- R. 233, the Tenant Income Verification Relief Act, introduced by Representative Earl Perlmutter (D-CO) on January 8, 2015. This bill seeks to allow tenants on a fixed income to have their income certified and/or verified once every three years rather than annually. H.R. 233 would help streamline and reduce the burdens placed on tenants for purposes of determining their eligibility for certain Federal assistance housing programs, including seniors and other individuals and families who consistently maintain a fixed income. The bill passed the House, but it did not advance past the Senate Banking, Housing and Urban Affairs Committee.
- R. 2482, the Preservation Enhancement and Savings Opportunity Act, introduced by Representative Erik Paulson (R-MN) on May 20, 2015. This bill would amend the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIPRHA) to allow owners (including nonprofits) of multifamily developments access to remaining profits after all operating expenses and maintenance costs. H.R. 2482 passed the House, but did not advance past the Senate Banking, Housing and Urban Affairs Committee.
There has been strong bipartisan support for these bills throughout the 114th Congress, and NAHMA also supports the provisions of these bills. We have advocated for their passage throughout their various incarnations and we are glad to see these provisions will be enacted. The president is now expected to sign the DRIVE Act into law.
Tax Extenders Legislation in the Works
Recently, lawmakers leading Congress’s tax writing committees, House Ways and Means Committee Chairman Kevin Brady (R-TX) and Senate Finance Committee Chairman Orrin Hatch (R-UT), have indicated that they think Congress could enact a tax extenders package by the end of 2015. A tax extenders bill is a piece of legislation that continues current and temporary tax breaks in lieu of comprehensive reform legislation.
NAHMA’s main concern for any tax extenders bill is the inclusion of provisions to permanently establish a 9 percent minimum credit rate for new construction and a 4 percent minimum credit rate for property rehabilitation under the Low-Income Housing Tax Credit (LIHTC). We have also advocated for this change throughout the recent tax reform discussions. Earlier this year, the Senate Finance Committee passed legislation that extended many expired provisions for two years, including the 9 percent Credit minimum rate, and also established the 4 percent minimum acquisition rate for two years. However, this bill was not passed by the entire Senate.
There remains strong bipartisan support for the LIHTC, but disagreements over extending/making permanent other tax provisions could hinder a tax extenders bill. Congress may resort to either a two-year extension of the temporary tax provisions, or potentially a one-year retroactive tax bill for 2015 only. No formal legislation has been introduced so far, but NAHMA will continue to advocate for permanent establishment of the 9 and 4 percent minimum credits rates under the LIHTC.
Appropriations Update
Lawmakers only have one week to finalize and pass the appropriations legislation necessary for fiscal year 2016. The current continuing resolution (CR) provides funding for the federal government at the FY 2015 levels, but with the expiration date (December 11) drawing close, members of Congress must agree on a funding package to avoid a government shutdown. The recently passed two-year budget deal lifted the spending cap for FY 2016, but disagreements liner over exact spending figures and new provisions.
This Wednesday, Democrats in the House rejected an initial spending package produced by Republicans due to controversial provisions. Though the text has not been publically released, many Democrats felt that the bill was a non-starter. Democrats have offered a counter-proposal, but there continues to be partisan gridlock over specific items. To pass legislation before the 11
th, members of the Appropriations committees realistically will have to produce a bill by early next week.
NAHMA continues to advocate for full-funding for affordable housing programs for FY 2016. A
grassroots action alert has been sent to members with information on the how you can get involved.
