House Passes Rental Assistance Reform Bill
On February 2, the House of Representatives passed H.R. 3700, the Housing Opportunity through Modernization Act. H.R. 3700 was passed with unprecedented bipartisan support with a final recorded vote of 427-0. This is a major victory for affordable housing providers as it shows that lawmakers are open to common sense reforms that improve rental assistance programs. NAHMA has supported H.R. 3700 since its introduction by Representative Blaine Luetkemeyer (R-MO) in October, 2015 and we recently signed on to an industry letter in support of the bill.
The bill will reform rental assistance programs through the following changes:
- HUD will closely examine what income deductions can be taken when determining a tenant’s rent responsibility, such as excluding a student’s earned income and tuition assistance, as well as the amounts in their educational savings accounts. The deduction for an elderly or disabled family would be increased to $525, from $400 and the deduction for dependents would be increased to $525 from $480. Dependents with disabilities would need to be certified as disabled and unable to work by the public housing agency (PHA). HUD will also be required to provide financial hardship exemptions for the requirements related to health care and child care expenses.
- Income reviews will be conducted when a family’s income or deductions result in a 10 percent increase in annual adjusted income. The family may request a review if their annual adjusted income is expected to decrease by 10 percent. A PHA or property owner would be directed to use estimates of family income for the upcoming year when determining eligibility for initial occupancy or housing assistance. For annual reviews, where applicable, income from the preceding year would be used. HUD’s Disaster Housing Assistance Program would be subject to income verification requirements
- For project-based vouchers, a PHA may use as much as 20 percent of its voucher allocation for project-based assistance, instead of 20 percent of the funding available for vouchers. An additional 10 percent would be allowed for units for individuals or families that are homeless, veterans, disabled or elderly. Project-based voucher assistance has an income-mixing requirement that restricts assistance to 25 percent of dwelling units in a project. The measure would allow it to be used for 25 percent of units or 25 units, whichever is greater. The allowable contract term for project-based vouchers will be increased to 20 years from 15 years.
- Additionally, the bill will allow the U.S. Department of Agriculture to delegate its authority to approve and execute loan guarantees under the single family housing loan guarantee program to certain preferred lenders, according to standards established by the department.
There were 13 amendments attached to H.R. 3700, and most were passed as part of the bill. These amendments include:
- Amdt. 910 – This amendment maintains that families receiving certain federal housing assistance are permitted to deduct all reasonable childcare expenses when calculating adjusted income. Introduced by Representative Maxine Waters (D-CA) and adopted by a voice vote.
- Amdt. 915 – Allows the property taxes paid on mobile homes, insurance payments, utilities and financing to be included as components of the housing costs eligible for Section 8 payments. Introduced by Representative Peter Welch (D-VT) and adopted by a voice vote.
- Amdt. 911 – Requires HUD to conduct a study on the impacts of the decreased deductions on rents paid by elderly and disabled individuals and families assisted under Section 8. Introduced by Representative Terri Sewelll (R-AL) and adopted by a voice vote.
- Amdt. 916 – Directs HUD to reopen for public comment the “Homeless Emergency Assistance and Rapid Transition to Housing: Continuum of Care Program” interim rule, which was originally published in July 2012. This amendment seeks to allow stakeholders the opportunity to provide input on how HUD’s resources can be most equitably used to end homelessness. Introduced by Representative Scott Peters (D-CA) and adopted by a voice vote.
- Amdt. 920 – Directs HUD to work with the Labor Department to produce an annual report on interagency strategies to strengthen family economic empowerment. Introduced by Representative Sheila Jackson Lee (D-TX) and adopted by a voice vote.
- Amdt. 918 – Provides housing providers who administer HUD funds with the authority to report on-time rental payment data for their tenants to credit reporting agencies without requiring and managing individual written consent agreements. This amendment also sought to direct HUD to retain tenant privacy so the furnished information would not specifically note that tenants receive HUD assistance. Introduced by Representative Keith Ellison (D-MN). H.Amdt. 918 did not pass and was not included in the final bill.
- Amdt. 913 – Requires HUD to publish model guidelines for minimum heating requirements for units operated by public housing agencies (PHAs) receiving federal assistance. Introduced by Representative Grace Meng (D-NY) and adopted by a voice vote.
H.R. 3700 has been referred to the Senate Banking, Housing and Urban Affairs Committee. It is unclear how quickly the bill will progress through the Senate, but considering the recorded vote of 427-0 in the House, hopefully H.R. 3700 will not face opposition.
House Republicans Create Poverty-Fighting Task Forces
On February 4, House Republican leaders announced the formation of six committee-led task forces charged with developing a pro-growth agenda in the United States. Republicans first announced the development of this initiative last month at an annual issues conference in Baltimore.
Of the six task forces, the Poverty, Opportunity, and Upward Mobility task force was created to identify options that will “strengthen our safety net and reform educational programs to make them more effective and accountable, help people move from welfare to work, and empower productive lives.” This task force is comprised of leaders from the following House committees:
- Agriculture Committee Chairman Mike Conaway (R-TX)
- Budget Committee Chairman Tom Price (R-GA)
- Education and the Workforce Committee Chairman John Kline (R-MN)
- Financial Services Committee Chairman Jeb Hensarling (R-TX)
- Ways & Means Committee Chairman Kevin Brady (R-TX)
This task force will attempt to advance ideas the “bring people back into the workforce, and restore the upward mobility” throughout 2016 and into 2017. Other task forces were created to focus on jobs, the broader economy and national security. NAHMA will monitor the progress of this task force and will submit any recommendations to combat poverty should the task force request public input.
President’s Budget Set to be Released Next Week
On February 9, the Obama Administration will release its budget request for fiscal year 2017. This will be President Obama’s last budget while in office. As with all other budget requests made to the legislative branch, the President’s budget does not become law and it does not require Congressional approval. Instead, the budget serves as a framework for Congress to compare and complete its own budget, and it demonstrates the political priorities of the administration.
