New housing bills address inspections, investment, and veteran’s housing
More affordable housing legislation was introduced this week as the first month of the 115th Congress comes to a close. We will work with NAHMA committees to keep members informed as these bills move through Congress.
HUD Inspection Process and Enforcement Reform Act of 2017 (S. 160)
Recently, Senator Rubio (R-FL) re-introduced legislation aimed at reforming HUD’s inspection process. Originally introduced in the fall of 2016 in response to a well-publicized subsidized housing problem in Florida, the legislation “allows HUD to remove certain HUD employees from civil service or to reduce their grade or pay for misconduct or performance. HUD employees may challenge a removal or reduction in grade or pay by filing an appeal with the Merit Systems Protection Board.
This legislation also requires an entity receiving section 8 housing assistance payments under a payment contract to: (1) maintain decent, safe, and sanitary conditions for dwelling units covered under such payment contract; and (2) comply with any standards under applicable state or local laws, rules, ordinances, or regulations relating to the physical condition of the dwelling units. HUD must, under certain conditions, take enforcement actions for violations of dwelling-unit physical condition standards.
HUD may provide tenant-based assistance for dwelling units covered under a section 8 payment contract if: (1) the dwelling units’ owner has received a Notice of Default; or (2) the units pose an imminent health and safety risk to tenants. A Notice of Default cites deficiencies in the physical condition of a section 8 dwelling unit and provides a specified period of time for correction of such deficiencies.
HUD must issue a publicly available report on its website regarding Real Estate Assessment Center (REAC) inspections of all properties assisted, insured, or both, under a HUD program. The Government Accountability Office must issue a report on its website regarding such REAC inspection areas that should be reformed and improved.”
The bill has not yet gained any cosponsors and awaits action in the Senate Committee on Banking, Housing, and Urban Affairs. NAHMA will send to members of our Federal Affairs Committee to review for a policy position.
Investing in Opportunity Act (S. 293 & H.R. 828)
This week, a group of bipartisan Senators and Representatives re-introduced a set of bills aimed at increasing investments in economically distressed areas. Senators Scott (R-SC) and Booker (D-NJ) and Congressmen Tiberi (R-OH) and Kind (D-MI) introduced the legislation “to amend the Internal Revenue Code of 1986 to provide for the deferral of inclusion in gross income for capital gains reinvested in opportunity zones.”
Similar to companion bills introduced in 2016, the legislation incentivizes investments in areas defined by State Governors as “Opportunity Zones” by temporarily deferring recognition of capital gains that are reinvested in the zones. In addition, modest capital gains tax reductions or exemptions would be made available to long-term investments.
According to a factsheet published by Representative Tiberi, “the legislation is designed to be low cost and low risk to the taxpayer…There are no tax credits and no public sector financing is involved.”
The bills, which have been assigned to the Senate Committee on Finance and the House Ways and Means Committee, have already gained significant bipartisan support.
Veterans Affairs Supported Housing Tax Credit (H.R. 734)
On January 30th, Representative Brownley (D-CA) introduced legislation “to amend the Internal Revenue Code of 1986 to provide a refundable credit against tax for landlords of veterans receiving rental assistance under the Veterans Affairs Supported Housing program.”
The bill has been assigned to the House Ways and Means Committee, but so far has not earned any cosponsors.