Bipartisan bill introduced to improve and expand HUD’s Family Self-Sufficiency Program
This week, a group of bipartisan Senators introduced legislation to streamline and expand the Family Self-Sufficiency (FSS) program. The legislation was introduced on the 25
th anniversary of HUD’s FSS program, which uses financial incentives and coaching to help residents increase earnings, build savings, and achieve self-sufficiency.
Titled the “Family Self Sufficiency Act” (
S. 1344), the legislation consolidates duplicative programs, broadens services, and extends the program to Project-Based Section 8 tenants. If enacted, the bill would streamline the FSS program, which is currently divided between the Housing Choice Voucher (HCV) program and Public Housing, into one program, while also authorizing PBRA tenants to access the program. In addition, broadened services available through FSS would help tenants earn various levels of education, training, and housing stability.
A
press release by Senators Roy (R-MO), Reed (D-RI), Scott (R-SC), and Menendez (D-NJ), all of whom serve on the Transportation, Housing, and Urban Development Subcommittee, called the bill “a common-sense step we can take to improve the FSS program and enhance support for people…across the country who are working hard to create a better future for themselves and their families.”
USDA names Rural Development leadership amidst reorganization efforts
Secretary Sonny Perdue this week named Anne Hazlett to run Rural Development at USDA. An attorney by trade, Hazlett most recently served as Republican Chief Counsel for the Senate Committee on Agriculture, and previously held the position of Director of Agriculture for her home state of Indiana.
Because USDA’s recent reorganization efforts seek to eliminate the position of Undersecretary for Rural Development, Hazlett’s title is ‘Assistant to the Secretary for Rural Development,’ a position that oversees the Rural Housing Service (RHS), as well as the Rural Utilities Service and the Rural Business Service, and is not required to be confirmed by the Senate.
“I know there has been more conversation and more concern regarding our efforts in Rural Development. I have done what I believe in by elevating the rural development mission area and [creating a] position that reports directly to the Secretary,” Secretary Perdue assured Agriculture Subcommittee members in a
Senate Appropriations hearing this week. During the hearing, the Secretary also said the President’s proposed 21% cut to USDA’s budget would not “diminish” rural housing, but conceded that the budget request “would benefit from some guidance from the Committee.”
Although the restructuring theoretically removes a bureaucratic layer between the Secretary of the Department and the head of Rural Development, it could also lend heightened vulnerability to the RD portfolio. A
letter expressing concern over the fate of RD throughout the reorganization efforts, signed by 29 Senators, was sent to leadership at USDA, Treasury, and the White House last week.
Treasury Department releases details on proposed housing finance reform
In the first of four analyses required by an Executive Order signed in April, the Treasury Department this week released a
detailed proposal for reforming housing finance regulations. The finance regulations, put in place in the aftermath of the 2008 financial crisis by the Dodd-Frank Wall Street Reform and Consumer Protection Act, have been criticized as slowing economic growth.
The report recommendations mainly focus on stability requirements for federal banks, but also propose an overhaul of the Consumer Financial Protection Bureau (CFPB). The Bureau, which was established under Dodd-Frank to protect consumers from predatory bank and mortgage lending, would see more oversight and weakened enforcement authority, as well as adjustments to the CFPB’s funding and leadership structures.
The report also calls for delayed implementation of the new reporting requirements under the Home Mortgage Disclosure Act (HMDA). Separately, an extensive review of the Community Reinvestment Act (CRA) is recommended based on “outdated” regulations.
The report release comes just a week after legislation to reform Dodd-Frank was advanced through the House. The
Financial CHOICE Act, sponsored by Financial Services Chairman Jeb Hensarling (R-TX), shares similarities with the Treasury Department’s report and has seen support from the White House. The bill currently awaits action in the Senate.
Native American housing shortfalls come under scrutiny in Senate
The Senate Indian Affairs Committee heard testimony this week on efforts to improve affordable housing access for Native Americans. Among the items considered was the Tribal HUD-VASH Act (
S. 1333), introduced by Senators Tester (D-MT), Hoeven (R-ND), Udall (D-NM), and Isakson (R-GA), which seeks to combat homelessness and improve support services for Native American veterans.
Despite high numbers of Native American veterans, less than 5% of federally-recognized tribes have received Veterans Affairs Supportive Housing during HUD’s current Tribal HUD-VASH demonstration. According to the Committee’s
press release, the legislation would authorize a joint tribal housing initiative between HUD and the VASH program. The bill also fosters collaboration between HUD, Veterans Affairs, and the Indian Health Service in implementing housing initiatives.
The
hearing also considered the Building Useful Initiatives for Indian Land Development (BUILD) Act (
S. 1275). Introduced by Senator Hoeven (R-ND) the bill seeks to empower tribes to address homelessness and housing instabilities on Native Reservations. Specifically, S. 1275 streamlines the federal process for developing affordable housing on Native lands and gives more control over the developments to the tribes. Additionally, the bill reauthorizes and improves the Native American Housing Assistance and Self-Determination Act (NAHASDA) of 1996, which expired in 2013.
Nominees announced for HUD General Counsel and Treasury Deputy Secretary
The process to nominate and confirm politically-appointed leadership at HUD continues this week with the announcement of J. Paul Compton, Jr., to serve in the department’s senior legal position. Mr. Compton, nominated as HUD’s General Counsel, currently heads the Affordable Housing and Community Development practice at an Alabama law firm. Meanwhile, a congressional committee this week postponed its vote on the nomination of Pamela Patenaude to serve as HUD’s Deputy Secretary.
The Trump Administration is also expected to formally nominate Brian Brooks to serve as Deputy Secretary of Treasury. Brooks has held executive positions at Fannie Mae since 2014 and is a former colleague of the Treasury Department’s Secretary, Steve Mnuchin.
