House Approves FY23 Funding for HUD, USDA
On July 20, the House passed a bill that included FY23 increased funding levels for HUD and USDA. The bill proposes $62.7 billion for HUD’s affordable housing, homelessness, and community development programs – a $9 billion (or 17%) increase over FY22-enacted levels. The bill also provides funding of $27.2 billion for USDA– a critical increase of $2.075 billion (or 8 percent) above 2022. Meanwhile, the Senate has yet to begin deliberations on FY23 appropriations. Congress will need to pass a bill to prevent a government shutdown and keep operating past October 1, 2022, when current FY22 funding is set to expire. NAHMA will continue to keep members up to date as the FY23 appropriations process continues.
Senate Hearing Addresses Homelessness
This week, the Senate Banking, Housing and Urban Development Subcommittee on Housing Transportation and Urban Development held a hearing on homelessness and opportunities to support those who face challenges with finding affordable housing. The purpose of this hearing was to address the general state of housing and homelessness and highlight effective responses and ways that the federal government can help local providers. The hearing also examined the impact of the COVID-19 pandemic on homelessness with a particular focus on rural communities, veterans and Native communities. Discussing the need to address the affordable housing crisis that drives homelessness, witnesses testified that it was imperative that Congress invest in four key areas: keeping the current stock through affordable housing preservation; increasing affordable housing supply through investments in targeted programs like HOME, LIHTC and the Housing Trust Fund; increasing affordability through an expansion of the Voucher Program; and helping individuals and families maintain housing by increasing access to health and behavioral health services and employment.
The Chairwoman of Subcommittee, Sen. Tina Smith (D-MN), underscored her support for the Housing First program, citing it as an evidence-based approach to ending homelessness for individuals and families that prioritizes safe, permanent, affordable housing. Ann Oliva, CEO of the National Alliance to End Homelessness, also highlighted the need for Congress to continue supporting the Housing First program during her testimony. “By providing rental assistance, Housing First directly addresses the primary driver of homelessness — the lack of affordable housing. There is a large and growing evidence base demonstrating that Housing First is an effective solution to homelessness,” she said. Ranking Member of the Subcommittee, Mike Rounds (R-SD) disagreed and stated that the Housing First Model often ignores the underlying causes of homelessness and has only proven to be effective at curbing homelessness at the individual level rather than at the broader community level. “HUD now allocates roughly 75 percent of all competitive grants to permanent supportive housing projects, even though these projects were originally intended to serve just a portion of the total homeless population who are chronically homeless. This sole reliance on Housing First has prevented federal assistance for any alternative approaches by housing providers that may better address local housing needs,” he said.
To view the full subcommittee hearing, click here.
Finance Committee Highlights Importance of LIHTC
Citing data released last week showing that rents increased in June at the fastest rate since 1986, the Senate Committee on Finance held a hearing on Wednesday examining ways to use the tax code to preserve and expand the nation’s affordable housing supply. Witnesses included Andrea Bell, Executive director of Oregon Housing & Community Services, Dana Wade, Chief production officer for real estate finance at Walker & Dunlop,. Jerry Konter, Founder and president of Konter Quality Homes and chairman of the board at the National Association of Homebuilders, Lee E. Ohanian Ph.D., Senior Fellow at the Stanford University Hoover Institute and economics professor at the University of California, and Benson “Buzz” Roberts, President and CEO of the National Association of Affordable Housing Lenders.
During the hearing, Committee Chairman Ron Wyden (D-OR) discussed the importance of Low-Income Housing Tax Credit and highlighted bipartisan Congressional efforts that could ensure access to more opportunities for affordable housing. The DASH Act, if approved, would provide over 3 million newly constructed homes over a period of 10-years. Similarly, the Affordable Housing Credit Improvement Act (AHCIA), includes efforts to create and preserve affordable housing through LIHTC, and would finance nearly 300,000 additional rental homes over a 9-year period if approved by Congress. The LIFELINE Act, well championed during the hearing by members of both parties, would allow the use of state and local fiscal recovery funds (provided by the Affordable Care Act) to finance additional LIHTC developments. Senator Sherrod Brown (D-OH), Chairman of the Banking, Housing, and Urban Affairs Committee, highlighted the need to pass the Neighborhood Homes Investment Act, which would create a federal tax credit that covers the cost between building or renovating a home in a distressed neighborhood and the price at which it can be sold. The bill, if approved, would also help existing homeowners seeking to renovate. NAHMA supports the LIFELINE Act, the AHCIA, and several elements of the DASH Act and will continue to monitor these bills closely.
To view the full committee hearing, click here.