HUD Secretary Fudge Testifies at a Hearing on HUD and FHA Oversight
This week, the House Committee on Financial Services, held a congressional hearing on the Oversight of the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA). HUD Secretary Marcia Fudge testified and addressed several issues and concerns from both sides of the political aisle. Republicans and Democrats delved into various aspects of HUD’s operations, questioning HUD Secretary Marcia Fudge on a range of topics from housing affordability to policy implementation.
Majority (Rs) Concerns
The Majority (Rs), led by Chairman of the House Financial Services Committee, Patrick McHenry (R-NC), focused on several issues of interest to NAHMA members:
- Project-Based Rental Assistance: Representative Pete Sessions (R-Texas) discussed the role of nonprofit organizations in Texas administering HUD’s Section 8 program.
- Rent Control and Good Cause Eviction: Representative Mike Lawler (R-N.Y.) questioned HUD Secretary Marcia Fudge’s support for rent control and the concept of Good Cause Eviction.
- Prioritization Concerns: Representative Andy Ogles (R-Tenn.) asked about prioritizing illegal immigrants over Americans, which Secretary Fudge denied.
- Consumer Reporting Agencies: Representative Bill Huizenga (R-Mich.) inquired about the potential move from three consumer reporting agencies to two.
- Housing Supply and Environmental Review Process: Representative Young Kim (R-Calif.) raised concerns about the environmental review process in housing supply, particularly in California.
- VA Disability and Income Definitions: Representative Patrick McHenry (R-N.C.) highlighted the issues with varying income definitions affecting veterans.
- GSEs and Housing Market Impact: Representative Andy Ogles (R-Tenn.) inquired about the impact of GSEs on the housing market and privatization.
- Role of Private Corporations in Housing: Representative Mike Lawler (R-N.Y.) asked about the impact of private corporations owning properties on housing costs.
Minority (Ds) Concerns
The Minority (Ds), led by Ranking Member Maxine Waters (D-CA), focused on several issues of interest to NAHMA members:
Funding for HUD Programs: Concerns about the reduction of funding for HUD programs that assist American families.
- Slashing of Federal Housing Budget: Discussion on the consequences of a Republican funding bill that would have cut rental assistance and increased homelessness risk.
- Public Housing Replacement Policy: Representative Emanuel Cleaver (D-Mo.) expressed frustration over the one-for-one replacement policy in public housing.
- National Housing Shortage: Emphasis on the shortage of homes and the inability of minimum wage workers to afford modest homes.
- Funding Justification for HUD: Discussion on the necessity of robust funding for HUD despite existing challenges.
- Fairness in Housing Valuation: Representative Ayanna Pressley (D-Mass.) highlighted the issue of biased property valuation in black and brown communities.
- Veteran Support and Qualification Discrepancies: Representative Maxine Waters (D-Calif.) addressed the need to resolve qualification discrepancies for veterans.
- Biden-Harris Administration’s Efforts in Housing: Discussion on the administration’s approach to housing, homelessness, and home ownership expansion.
Secretary Marcia Fudge’s Testimony
Throughout the hearing, Secretary Fudge responded to these questions with a focus on the legal and practical limitations faced by HUD. Secretary Fudge also utilized her opening remarks to focus on HUD priorities for 2024, stating “I could not be prouder to serve an Administration and a Department that is expanding access to affordable housing like never before. Amid a tough housing market, the need has never been greater…. During my April 2023 budget hearing, I shared the following five priorities with Congress through the President’s Budget:
- Increase Supply of and Access to Affordable Housing;
- Promote Homeownership Opportunities and Wealth-Building;
- Advance Sustainable Communities, Climate Resilience, and Environmental Justice;
- Strengthen HUD’s Internal Capacity to Deliver Its Mission; and
- Support Underserved Communities and Equitable Community Development.
HUD’s mission is critical to achieving the President’s vision to build a better America—to ensure that every person has an opportunity to get ahead; to address longstanding systemic challenges, including racial injustice, rising inequality, and the climate crisis; to grow the economy from the bottom up and middle out; to expand on the historic progress our country has made over the last year. These priorities will continue to be our guide for 2024.”
Conclusion
The hearing was a display of the diverse concerns and complex perspectives on housing issues in the nation. Both Republicans and Democrats highlighted critical areas needing attention, ranging from funding and program management to policy implementation and legal adherence. Secretary Fudge’s responses pointed to the complexity of managing HUD’s broad mandate while adhering to legal and budgetary constraints. The hearing underscored the ongoing need for bipartisan dialogue and cooperation to address the nation’s pressing affordable housing challenges. A recording of the hearing is available here.
Congress Seeks to Avoid Government Shutdown
As the first deadline for a potential government shutdown approaches (Jan. 19th), Congress is busy with funding negotiations, disagreements, and uncertainty. Recently, House Speaker Mike Johnson struck a deal with Senate Majority Leader Chuck Schumer to fund spending for Fiscal Year 2024 (FY24) at Fiscal Responsibility Act levels and this seemed like a step toward averting a shutdown. However, the road to a final funding resolution is far from smooth.
The initial agreement included $16 billion in additional cuts to IRS funding and the recapturing of some leftover pandemic funding; a concession made by Democrats to give Speaker Johnson some victories to claim. This week, Speaker Johnson publicly touted these wins, emphasizing the need for Republicans to govern responsibly. Nevertheless, by the end of the week, he found himself in a tight spot as fiscal hardline House Republicans urged him to abandon the spending deal.
On Thursday, Johnson met with these conservative GOP lawmakers in his office. While he claimed that he had made “no commitment” to walk away from his agreement with Schumer, some Republicans believed he was open to alternative solutions. This led to a backlash from Democrats and a visible divide within the GOP, with moderates supporting the spending agreement.
During the meeting, Johnson also expressed his preference for passing a clean year-long Continuing Resolution (CR), effectively walking away from the deal. However, he faced the challenge of lacking the votes needed to pass such a CR, particularly from members of the House Armed Services Committee, who objected to freezing defense spending.
In response to these developments, over in the Senate, Sen. Schumer is moving a legislative vehicle for a short-term CR, lasting until early March. Next week, both the Senate and House will need to pass legislation to prevent a government shutdown. NAHMA has issued a grassroots alert to members. We hope to have better news to share during next week’s member call.