Senate Debates Next COVID-19 Relief Package
On July 27, Senate Republicans outlined their Covid-19 economic relief draft legislation in a series of proposals, officially beginning negotiations that could last for several weeks. Senate Majority Leader Mitch McConnell’s (R-KY) outline of the Republican relief proposals, referred to as the Health, Economic Assistance, Liability Protection and Schools (HEALS) Act, does not include an eviction moratorium nor does it propose additional funding for rental assistance.
The proposed legislation contains emergency appropriations to support critical affordable housing programs and includes $2.2 billion for Tenant-Based Rental Assistance to maintain current Section 8 vouchers for low-income families who have experienced a loss of income due to the coronavirus, $1 billion for the Public Housing Operating Fund and $113.4 million for USDA’s rental assistance program. The legislation also directs HUD to renew all projects with existing Continuum of Care grants expiring during calendar year 2021. The draft proposal also includes a second round of stimulus payments, with a $1,200 direct payment to adults making less than $75,000 (those making between $75,000 and $99,000 will receive a scaled back amount that will be reduced by $5 for every $100 of income, zeroing out at income of $99,000). The proposal also includes additional funds for the Small Business Administration’s Paycheck Protection Program; and a five-year moratorium on coronavirus-related lawsuits against businesses, health care centers and schools. The proposal also includes supplemental federal unemployment benefits but reduces them in two stages, first to $200 instead of $600, and then to a cap of 70% of a recipient’s prior income.
Key fiscal hawks like Senator Rand Paul (R-KY) and Senator Ted Cruz (R-TX) have announced their opposition to a package that exceeds $1 trillion, and they strongly oppose many of the key elements in the HEALS Act, like continuing enhanced unemployment benefits and providing more state and local funding. Meanwhile, House Speaker Nancy Pelosi (D-CA) and Senate Minority Leader Chuck Schumer (D-NY) continue to negotiate with Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows on the proposal, hoping to craft a bipartisan agreement prior to the August 7 recess. Some Republicans have suggested the idea of moving forward on a narrow set of issues, most notably an extension of the federal unemployment benefit which expire on July 31, while saving the broader issues for future legislation, possibly after the November election.
NAHMA Grassroots Alert: As the Senate continues negotiations for the next Covid-19 relief package, many Americans still continue to suffer from a loss of income as a result of the COVID-19 outbreak, including current residents, property staff and management personnel. The Senate is currently considering providing additional relief needed to address the urgent health and economic needs in our communities. We urge you to contact your Senators and request that adequate relief be provided, including fully funding all rental assistance and vital affordable housing programs. The Senate must meet the need for robust assistance as they consider additional economic stimulus packages. (July 30, 2020)
House Committee Chairs Oppose Termination of AFFH Rule
On July 27, Chairwoman of the House Financial Services Committee, Maxine Waters (D-CA), Chairman of the House Committee on the Judiciary, Jerrold Nadler (D-NY), and Chairman of the Subcommittee on Housing, Community Development and Insurance, William Lacy Clay (D-MO) issued a statement of opposition in response to the Department of Housing and Urban Development’s announcement that it is terminating the 2015 Affirmatively Furthering Fair Housing (AFFH) rule. The AFFH rule, which was repealed last week, was written under the Fair Housing Act and required local governments to prove that federal subsidies for housing projects would not go to developments with zoning laws or other regulations that were discriminatory to minorities. Under the new final rule, AFFH certifications provided by grantees will be deemed sufficient provided they took any action during the relevant period rationally related to promoting fair housing, such as helping eliminate housing discrimination. The statement by the three Committee Chairs can be viewed here.
FED Extends Deadline for Lending Facilities
On July 28, The Federal Reserve Board on Tuesday announced an extension of its lending facilities that were scheduled to expire on or around September 30, through December 31, 2020. The three-month extension is intended to help facilitate planning and provide certainty that the facilities will continue to be available to help the economy recover from the COVID-19 pandemic. This extension applies to the Paycheck Protection Program Liquidity Facility, and the Main Street Lending Program, with the intent to stabilize, improve and enhance the flow of credit to households, businesses, and state and local governments. For more information, click here.
House Holds Hearing on Vulnerable Populations and Disaster Recovery Inequities
On July 28, the House Transportation and Infrastructure’s Economic Development, Public Buildings, and Emergency Management Subcommittee held a hearing on the experiences of vulnerable populations during disasters. The hearing focused on how disasters have affected historically marginalized populations such as low-income households, communities of color, and individuals living with disabilities and the steps that are needed to ensure that disaster response and recovery is equitable. Witnesses testified that minority communities are more vulnerable to the effects of climate change and suffer disproportionately from intensifying hurricanes, flooding, wildfires and heat waves. The vulnerability results both from where the communities are located and social factors such as high poverty rates that impede disaster preparation and recovery. Curtis Brown, the emergency management coordinator for Virginia, called for broad changes in emergency management policy and personnel to make minority and other disadvantaged communities a priority. Diane Yentel, President of the National Low Income Housing Coalition, discussed the current disaster housing recovery framework and how it increases and reinforces racial, income, and accessibility inequities during each stage of disaster response and recovery. To view the full hearing, click here.
Senate Confirms New FHA Commissioner, Dana Wade
On July 28, the Senate confirmed Dana Wade as Commissioner of the Federal Housing Administration in a 57-40 vote. Commissioner Wade is succeeding acting FHA Commissioner Len Wolfson, who took over when former Commissioner Brian Montgomery was confirmed as deputy secretary of the Department of Housing and Urban Development. She served as the acting FHA commissioner from July 2017 until June 2018 and then worked as the general deputy assistant secretary in HUD’s Office of Housing before joining the Office of Management and Budget, where she worked as a program associate director for general government until December 2019. She’s also served as the deputy staff director of the Senate Banking Committee and the Republican deputy staff director of the Senate Appropriations Committee.