Congress In Recess
Congressional staff and stakeholder groups will continue negotiations on the next round of stimulus to combat the impacts of COVID-19 as Members of the House and Senate return to their home states and districts for Recess (District Work period) during the 4th of July holiday. The House will be in recess until July 13, and the Senate won’t return to Washington DC until July 20.
House and Senate Introduce Legislation Extending Eviction Moratorium
On June 29, the House passed the Emergency Housing Protections and Relief Act of 2020 (H.R. 7301). The bill extends the eviction moratorium currently in place under the CARES Act to March 27, 2021, and expands it to all renters, regardless if they receive federal assistance. The legislation provides additional funding for federal housing assistance programs, including:
- $2 billion for the Public Housing Operating Fund
- $750 million for Project-Based Rental Assistance
- $500 million for Section 202 Supportive Housing for the Elderly program
- $309 million for USDA’s Rental Assistance programs
- $200 million in funding for the HUD Section 811 Supportive Housing for Persons with Disabilities program
- $100 billion for an emergency rental assistance fund that would help renters cover their rent and utility bills (including any unpaid bills)
Many of the provisions in H.R. 7301 were included in the HEROES Act, which has yet to be voted on in the Senate. To view a section–by-section summary of the Emergency Housing Protections and Relief Act, click here.
In the Senate, Senator Elizabeth Warren (D-MA) introduced the Protecting Renters from Evictions and Fees Act. The moratorium that Congress included in the CARES Act covers an estimated 30% of renters and expires on July 24, 2020. Senator Warren’s bill extends the federal eviction moratorium to March 27, 2021, one year after the date of enactment of the CARES Act, and expands the moratorium to cover substantially all renters. The bill also prohibits fees, fines, and extra charges due to nonpayment of rent. To view a summary of the Protecting Renters from Evictions and Fees Act, click here.
Supreme Court Declares CFPB Structure Unconstitutional
On June 29, the Supreme Court declared the structure of the Consumer Financial Protection Bureau (CFPB) unconstitutional, but refrained from eliminating the agency altogether. The recent decision allows the president to fire the CFPB director at will, without having to prove inefficiency, neglect of duty, or malfeasance in office as outlined in the 2010 Dodd-Frank Law enacted in response to the 2008 financial recession. This ruling confirms an earlier ruling on the Federal Housing Finance Agency (FHFA) which concluded that the FHFA, which has a similar structure, would remain intact, but allows for the director to be removed at will. The CFPB ruling removes any chance that the earlier FHFA ruling will be overturned. As a result, the FHFA may be restricted in freeing Fannie Mae and Freddie Mac from government conservatorship if President Trump loses the November election. Should Joe Biden win the presidential election in November, it would mean he could remove Mark Calabria (who is an appointee of President Trump) before the current FHFA leadership releases Fannie Mae and Freddie Mac from 12 years of government conservatorship.
House Passes OCC Congressional Resolution of Disapproval
On June 29, the House passed H.J. Res 90, a Congressional Review Act resolution of disapproval to nullify the Office of the Comptroller of the Currency’s (OCC) new rule changing the Community Reinvestment Act (CRA). The rule sets new criteria for determining whether banks are meeting the credit needs of low- and moderate income borrowers in their communities under the CRA and reassess how banks comply with an anti-redlining law. Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, and Congressman Gregory Meeks (D-NY), Chairman of the Subcommittee on Consumer Protection and Financial Institutions introduced H. J. Res. 90 on June 11 and argued that the OCC’s final CRA ruling harms low-income communities and communities of color disproportionately affected in the pandemic. The OCC issued the final rule on May 20 without the support of the Federal Deposit Insurance Corporation and the Federal Reserve, despite publishing a joint notice for proposed rulemaking to modernize the CRA together in January. H.J. Res 90 is now expected to move swiftly to the Senate for a simple majority vote under a processes known as “fast track,” which automatically places the resolution on the Senates calendar of business and only requires a simple majority vote. To view Chairwoman Waters’ floor statement on the resolution, click here.
House Sends Infrastructure Bill to Senate
On July 1, the House passed H.R. 2, the $1.5 trillion infrastructure proposal known as the Moving Forward Act. The House proposal would strengthen and expand the Low-income Housing Tax Credit (Housing Credit) by enacting numerous provisions including but not limited to: establishing a permanent minimum 4 percent Housing Credit rate; expanding states’ Housing Credit allocations; reducing the “50 percent test” for bond-financing to 25 percent; and enacting basis boosts for properties serving extremely low-income households, those in rural communities and Indian lands, and bond-financed properties. The proposal would also increase the private activity bond cap ceiling, allowing states to issue more multifamily Housing Bonds, provides $100 billion for a number of affordable housing programs, and would also expand and make permanent the New Markets Tax Credit, and establish a new tax credit through the Neighborhood Homes Investment Act, to encourage the rehabilitation of vacant homes or construction of new homes in distressed areas.
Additional appropriations for other Housing Related Provisions in the Moving Forward Act include:
- $70 billion for Public Housing Capital Fund
- $10 billion for The Community Development Block Grant (CDBG) Program
- $5 billion for the Housing Trust Fund
- $5 billion for The HOME Program • $2.5 billion for the Capital Magnet Fund
- $2.5 billion for Housing for the Elderly-Section 202
- $2.5 billion for Housing for Persons with Disabilities-Section 811
- $1 billion for Rural Multifamily Preservation and Revitalization Demonstration Program
- $1 billion for Flood Mitigation Assistance Program
- $1 billion Native American Housing Block Grant Program
- $100 million for USDA Section 504 Single-Family Housing Repair Loans and Grants Program
The bill was sent to the Senate for consideration after the July recess. To view a section-by-section summary of the Moving Forward Act, click here.
Senate Democrats Introduce Unemployment Benefits Plan
On July 1, Senate Minority Leader Chuck Schumer (D-NY) and Senate Committee on Finance Ranking Member Ron Wyden (D-OR) introduced the American Workforce Rescue Act. The proposal would extend the $600 increase in weekly unemployment benefits, which Senate Democrats secured in the CARES Act, beyond July 31st, 2020 until a state’s three-month average total unemployment rate falls below 11 percent. The benefit amount then reduces by $100 for every percentage point decrease in the state’s unemployment rate, until the rate falls below 6 percent. The proposed legislation also extends the 13 weeks of extended benefits provided by the Pandemic Emergency Unemployment Compensation program in the CARES Act until March 27, 2021, and these benefits will remain available for as long as a state’s unemployment rate is above 5.5 percent, with the number of weeks of benefits available increasing by 13 for each percentage point the unemployment rate increases between 5.5 percent and 8.5 percent. Additionally, the bill extends other unemployment benefits included in the CARES Act, including the Pandemic Unemployment Assistance, which provides coverage to the self-employed, gig workers, and others who are not eligible for traditional unemployment insurance, through March 2021, after which the benefits are tied to states’ unemployment levels. To view a section-by-section summary of the American Workforce Rescue Act, click here.
Sen. Menendez Introduces COVID-19 Assistance and Protections for the Elderly
On July 2, senior member of the Senate Banking Committee and Ranking Member of the Subcommittee on Housing, Transportation, and Community Development, Senator Bob Menendez (D-NJ) introduced the Emergency Housing Assistance for Older Adults Act. The Emergency Housing Assistance for Older Americans Act would provide $1.2 billion to the Section 202 Supportive Housing for the Elderly and Section 8 Project-Based Rental Assistance programs, including $845 million for obtaining personal protective equipment, cleaning and disinfecting properties, hiring additional staff and providing rental assistance. To view the text of the full bill, click here.