Confirmation Hearing Held for Treasury Secretary Nominee Janet Yellen
On January 19th, the Senate Finance Committee held a confirmation hearing for Treasury Secretary Nominee Janet Yellen. During the hearing, Yellen voiced her support for the LIHTC, including its expansion. Specifically, Sen. Catherine Cortez Masto (D-NV) asked about her plans on addressing our nation’s affordable housing crisis. Yellen stated, “It’s a huge problem Senator and we really need to devise effective ways to work on this and support affordable housing, things like the low income housing tax credit and I think have been very important and we need to come up with other innovative strategies because this — this Really is a crisis in many parts of the country.” In addition to this response, Yellen also provided some additional written responses to questions for the record and a few provide insight on her thinking about affordable housing:
- On the need for additional rental assistance (by Sen. Rob Portman, R-OH): “I am grateful to you for your leadership in developing effective and timely programs to support families who rent their homes and apartments, as well as housing providers, get through this difficult time. The relief that Congress provided is critical to supporting Americans in need. If confirmed, I would look forward to working with you and others in Congress to ensure that sufficient support is provided to help struggling families.”
- Utilizing the infrastructure package to incentivize states and localities to remove these barriers and regulation that discourage (affordable housing) development and renovation ( by Sen. Rob Portman, R-OH): “You raise important questions about the relationship between rental housing development and regulations at the federal, state, and local levels. Rental housing is a critically important part of assuring housing affordability. If confirmed, I would look forward to working on ways to partner with you on these critical issues.”
- Additional legislative measures to strengthen and improve LIHTC (by Sen. Todd Young, R-IN): “I am grateful for your leadership in expanding housing affordability through the Low-Income Housing Tax Credit and supportive of your work. The measure that Congress enacted through your leadership is a critically important initiative that will help to make the LIHTC more effective and to increase housing affordability across the country. If I am privileged to be confirmed as Treasury Secretary, I would be honored to work with you on additional measures to strengthen and improve the LIHTC.”
At the time of publication, the U.S. Senate Finance Committee unanimously approved Janet Yellen’s nomination and a final confirmation floor vote was the next step. Next week on Jan. 28th, the Senate Banking Committee will hold a hearing on the following nominations: The Honorable Marcia L. Fudge, of Ohio, to be Secretary, U.S. Department of Housing and Urban Development; and The Honorable Cecilia E. Rouse, of New Jersey, to be Chair, Council of Economic Advisers.
Senate Gridlocked on Filibuster, Power-sharing Agreements
With the swearing in of newly elected Senators Rev. Raphael Warnok (D-GA), Jon Ossoff (D-GA) and Alex Padilla (D-CA), the Senate is now comprised of a 50-50 tie between Republicans and Democrats. Senate Minority Leader Mitch McConnell (R-KY) and Senate Majority Leader Charles Schumer (D-NY) failed to reach a deal this week on organizing a 50-50 Senate, with both Senators negotiating how best to share power in an evenly split Senate. The talks have stalled over a dispute on the 60-vote legislative filibuster. The filibuster is the best weapon the minority party has to control the Senate and prevent legislation from reaching the floor for a vote and Senator McConnell is attempting to use the power-sharing agreement negotiations to protect the filibuster amid calls from some Democrat Senators to remove the 60-vote threshold. Without a power-sharing deal, the Senate is expected to be stuck in limbo until the two leaders work out a compromise. This means Republicans still have a majority on some committees even though Senator Schumer is the new Majority Leader of the Senate.
Once an eventual power sharing agreement is finalized it’s expected to resemble a 2001 power-sharing agreement where the party in the White House similarly held a technical Senate majority. That deal included equal party representation on all Senate committees; equal division of committee staffs between the parties; eligibility of Senators from both parties to preside over the Senate; and general provisions seeking to reiterate the equal interest of both parties in the scheduling of Senate chamber business. Using the 2001 power sharing deal as a template going forward, Democrats would chair the committees, but legislation and nominations that get a tie vote in committee would still be sent to the floor for a vote by the full Senate. Vice-president Harris would cast the tie breaking vote in case of a 50-50 tie vote.
Federal Eviction Moratorium Extended Through March, 2021
As part of President Biden’s Day One Executive Orders signed January 20, the Centers for Disease Control and Prevention (CDC) has extended the federal eviction moratorium until at least March 31, 2021 for nonpayment of rent. President Biden has also requested the Departments of Veterans Affairs and Housing and Urban Development, to consider extending foreclosure moratoriums for federally guaranteed mortgages and continuing applications for forbearance for federally guaranteed mortgages until at least March 31, 2021. Additionally, on January 19, the Federal Housing Finance Agency extended its foreclosure and eviction moratoriums until February 28, 2021. The President has requested the agency to consider extending the foreclosure moratorium further and continue forbearance applications for all loans guaranteed by Fannie Mae and Freddie Mac.
The USDA announced its moratoriums on foreclosure and eviction for homeowners with Section 502 single-family direct and guaranteed mortgages will last through March 31. It also set March 31 as the deadline for lenders making Section 502 guaranteed loans to offer forbearance of mortgage payments for up to 180 days, with a second 180-day period possible, and it will continue to provide the same opportunity for its Section 502 direct borrowers.
In addition to the Executive Order on evictions moratorium, President also signed Executive Orders to Advancing Racial Equity and Support for Underserved Communities Through the Federal Government; Regulatory Freeze and Review; and naming Acting Federal Agency Leadership.
Earlier this month, President Biden announced his American Rescue Plan, a $1.9 trillion Covid-19 recovery platform that would (among other things) extend the eviction and foreclosure moratoriums and continue applications for forbearance on federally guaranteed mortgages until September 30, 2021. The legislation would also provide direct relief checks for eligible individuals, $30 billion in rental and critical energy and water assistance; and $5 billion in emergency assistance to help secure housing for people experiencing or at risk of homelessness. However, with the Senate poised to start the second impeachment trial of former President Donald Trump in the following weeks, it remains unclear at this time when the Biden proposal will be introduced in the new Congress.