Secretary Castro Testifies on FY 2016 HUD Budget Request
On Wednesday, February 25, HUD Secretary Julian Castro appeared before the House T-HUD Appropriations Subcommittee to deliver testimony and answer questions on the Administration’s budget request for FY 2016.
During his oral testimony, Secretary Castro did not address the request for Project-Based Section 8, and none of the members of the subcommittee asked questions on this program. Similarly, the Secretary’s written testimony contains very little information on the request for PBS8, and it also rounds the figures that were requested in the President’s budget:
“through a $10.8 billion request in funding for the PBRA program, the Department will provide rental assistance funding to privately-owned multifamily rental housing projects to serve over 1.2 million families nationwide.” However, in the actual budget request the Department requested $10.76 billion for the program with $10.545 billion of that amount intended for contract renewals.
Secretary Castro was asked several questions about the request for Tenant-Based Section 8 (Housing Choice Vouchers-HCV). The Ranking Member of the subcommittee, David Price (D-NC), supported the funding increase found in the budget request and noted that the request would restore the vouchers lost due to sequestration cuts in 2013. Ranking Member Price also asked about the targeting of vouchers and what populations the Administration hopes to capture. Secretary Castro replied that the targeting of vouchers creates collaborations between various federal departments (such as the Department of Veterans Affairs) to identify the neediest populations, such as seniors or persons with disabilities. He continued that the balance of the 67,000 new vouchers created under the Administration’s budget will be targeted to specific needs populations.
The Rental Assistance Demonstration (RAD) Program was discussed, and members from both parties plugged their support for the program. Secretary Castro discussed the Administration’s request to eliminate the cap for RAD, noting that demand for the program continues to increase. Castro noted for every $1 dollar in federal funds provided under RAD, $19 dollars from private investors is also leveraged. He stated that every day, 10,000 public housing units fall into disrepair, but that RAD helps the federal government repurpose these assets.
While this hearing did not feature a discussion of PBS8, Secretary Castro will still testify before the Senate T-HUD Subcommittee. NAHMA will submit questions for lawmakers to ask the Secretary during this hearing.
Please click here to view the Secretary’s testimony
Grassroots Action Alert on PBS8 Funding
This Thursday, NAHMA released a Grassroots Action Alert to members as part of a strategy to advocate for increased funding for Project-Based Section 8 (PBS8) contracts in fiscal year 2016. We are asking members to contact their Senators/Representatives and request that they send their colleagues on the Appropriations Committees a request to increase the funding for PBS8 in FY 2016.
NAHMA sent a comprehensive overview of our request to members, which provides facts on the program’s funding history, our concerns with the calendar year funding cycle, and information for your Senator and Representative on how they can support our efforts. We encourage you to send this to your lawmaker and his or her staff for them to review the challenges facing the program and why our request for the program exceeds the Administration’s request. With this fact sheet, your lawmaker can make a stronger appeal to their colleagues on the Appropriations Committees. Please click here to view the fact sheet.
Additionally, NAHMA sent a formal request summary which is intended to fulfill your lawmaker’s information needs for them to complete their requests to the Appropriations Committees. Please click here to view this request summary.
NAHMA will continue to urge members to send these documents to lawmakers. If you have any questions about these documents or this advocacy effort, please contact Scott McMillen at scott.mcmillen@nahma.org. Thank you in advance for your participation.
Legislation to Permanently Establish Minimum Credit Rates in LIHTC Reintroduced
On Thursday, February 26, Representatives Pat Tiberi (R-OH) and Richard Neal (D-MA) reintroduced a bill from the 113th Congress which would make permanent and expand the minimum credit rates for the low-income housing tax credit (LIHTC) program.
The Tiberi-Neal bill (H.R. 1142) would permanently establish a fixed nine percent minimum credit rate for new rental construction and a four percent minimum credit rate for existing property rehabilitation. In a press release, Representative Tiberi stated: “I’ve seen first-hand the benefits of the Low-Income Housing Tax Credit during my visits to low-income housing developments in my district,” said Congressman Tiberi. “It’s an effective, successful program and by making a permanent floor on the credit rate, we’re creating certainty for developers to create construction and renovation jobs while increasing housing availability for more low-income families, veterans, seniors and individuals living with disabilities.”
NAHMA strongly supports this legislation as we did when it was first release in the 113th Congress. H.R. 1142 currently has 17 cosponsors and has been referred to the House Committee on Ways and Means, the main tax writing committee in the chamber. Congress is still wrestling with tax reform, so NAHMA will continue to advocate its passage to lawmakers.
Please click here to view Representative Tiberi’s press release regarding this bill