White House Hosts Summit on the Homebuilding Supply Chain
Last week, the Biden Administration hosted a virtual event with executives across the real estate industry to discuss supply chain disruptions in the homebuilding industry as well as the nation’s housing supply shortages. Senior leaders from the Administration included, Commerce Secretary Gina Raimondo, HUD Secretary Marcia Fudge, National Economic Council Director Brian Deese, and Council of Economic Advisers Chair Cecilia Rouse. Industry representatives included housing advocates and representatives from builders, lumber companies, retailers, realtors, loggers and labor unions, as well as other companies and organizations focused on homebuilding and affordable housing.
According to the White House’s statement, “Participants discussed core challenges across the housing supply chain, and helped Administration leaders collect additional input to inform the Administration’s near- and medium-term efforts to further strengthen housing supply. Participants also focused on the demand for housing and how the President’s necessary and historic investments in the Build Back Better agenda will expand housing supply and strengthen the country’s affordable housing stock.”
HUD Secretary Testifies on President’s Build Back Better Plan and Rental Assistance Delays
On Tuesday, HUD Secretary Marcia Fudge testified as the sole witness during the House Financial Services Committee ‘s hearing on President Biden’s Build Back Better plan. The hearing, Building Back a Better, More Equitable Housing Infrastructure for America: Oversight of the Department of Housing and Urban Development, focused on the Biden administration’s plans to preserve and expand affordable housing by providing HUD with $68.7 billion for fiscal year 2022 (representing an increase of $9 billion—or 15%—from the previous fiscal year). During the hearing, the HUD Secretary faced criticism on the slow distribution of rental relief through the Emergency Rental Assistance Program (ERAP), despite the program being under Dept. of Treasury. However, many members voiced their concerns with the fact that just $1.5 billion of the $46 billion in rental relief funds made it to tenants, landlords and utility companies as of May, and a total of over $3 billion reaching those in need since June.
Secretary Fudge explained that both HUD and Treasury were doing whatever they could to push through as much rental aid as possible before the eviction ban expires, but also said that many state and local grantees lack the logistical ability to disburse the aid and that her goal will be to work with local and state governments to make sure the number of resources disbursed increase exponentially every month. “The money was held up because they didn’t have the assistance or the capacity to get it out fast enough. So, what we have been doing — personally, I have been calling mayors and governors and others to say, ‘We’ve got to get the money through the system,’” said Secretary Fudge during her testimony. Several members defended Secretary Fudge’s work to shore up the rental assistance system and, instead, blamed the Trump administration for rushing through unclear administrative and programmatic guidelines that created massive distribution backlogs.
To view the full House Financial Services Committee hearing, click here.
Senate Banking Committee Convenes Hearing, “Safe at Home: Preserving and Improving Federally Assisted Housing”
This week, the Senate Banking, Housing and Urban Affairs Committee, Subcommittee on Housing, Transportation and Community Development, held a hearing titled, “Safe at Home: Preserving and Improving Federally Assisted Housing.” The hearing center on a 2019 accident at the Cedar High Apartments, a 25-story public housing building in Minneapolis, which led to the deaths of five residents on the upper levels. This public housing development did not have fire sprinklers. Subcommittee Chairwoman Tina Smith (D-MN), has introduced legislation, the Public Housing Fire Safety Act (S.265), to fund the installation of fire sprinklers in older public housing buildings in an effort to prevent similar tragedies from happening again. The hearing also focused on other health hazards, including lead and radon. Hearing witnesses included Dr. Dave Jacobs, Chief Scientist, National Center for Healthy Housing, Columbia, MD; Ms. Jennifer Keogh, Deputy Executive Director, Minneapolis Public Housing Authority, Minneapolis, MN; and Ms. Sharon Vogel, Executive Director, Cheyenne River Housing Authority, Eagle Butte, SD.
In her opening remarks, Sen. Smith stated, “Under federal law, high rise public housing buildings built before 1992, like 630 Cedar, are not required to have fire sprinklers. The HUD estimates there could be as many as 184,000 public housing units across the country that lack fire sprinklers, just like the apartments at 630 Cedar…[lead] Today more than 500,000 children in the United State live with elevated lead in their blood, according to the Centers for Disease Control. Children exposed to lead face significant health risks, including lower intelligence scores, behavioral problems, and hearing and speech issues. Black children and lower-income children are disproportionately victims of lead paint exposure…[radon] Another significant health risk at home is exposure to radon gas. Radon, which is colorless, odorless, and radioactive, is the leading cause of lung cancer among non-smokers – resulting in 21,000 deaths per year, according to the EPA. These health and safety risks are not limited to public housing and federally-assisted housing alone. But the federal government has a special obligation to make sure that homes supported by or funded by taxpayers are safe and free of known hazards. And I hope that this hearing will raise awareness for all Americans about these health and safety risks.” [Tribal lands] Ranking Member, Sen. Mike Rounds (R – SD), also highlighted the ongoing housing challenges on Tribal lands. He stated, “According to the National American Indian Housing Council, 40% of on reservation housing is inadequate, a fact that is unmistakable to me every time I drive through a reservation back home and see many of the homes boarded up and unfit for use.”
A recording of this hearing is available HERE.