Senators Introduce Companion Bill to H.R. 3700
On Wednesday, June 22, Chairman Tim Scott (R-SC) and Ranking Member Robert Menendez (D-NJ) of the Senate Banking, Housing and Urban Affairs Subcommittee on Housing, Transportation, and Community Development introduced S. 3083, the Housing Opportunity Through Modernization Act (HOTMA).
This bill is nearly identical to H.R. 3700, which is also titled the Housing Opportunity Through Modernization Act. On February 2, the House of Representatives passed H.R. 3700 with unprecedented bipartisan support after a final recorded vote of 427-0. NAHMA has supported H.R. 3700 since its introduction by Representative Blaine Luetkemeyer (R-MO) in October, 2015 and we have signed on to several industry letters in support of the bill.
Additionally, NAHMA previously met with several Senate offices to plug support for H.R. 3700. During these meetings, NAHMA advocated that lawmakers pursue an alternative path to enacting the legislation known as ‘unanimous consent’ wherein the bill could bypass the usual committee approval stage and advance directly to the Senate floor for votes as long as no senator opposed the bill. Now, with the introduction of S.3083, the argument to enact this housing reform bill gains strength.
H.R.3700 and S.3083 seek to streamline the Section 8 Housing Choice Voucher (HCV) program through the following:
- Increasing the maximum contract term for project-based vouchers from 15 to 20 years;
- Streamlining income reviews/determinations;
- Streamlining physical inspection protocols;
- Authorizing HUD to collect utility data; and
- Authorizing USDA’s Multifamily Housing Revitalization Program and providing authority for USDA to delegate guaranteed rural housing loan approval to preferred lenders.
Senators Roy Blunt (R-MO) and Christopher Coons (D-DE) are current cosponsors of the bill. Senators Scott and Menendez have indicated that they will soon reach out to other lawmakers to gain additional cosponsors for S.3038. The bill has been referred to the Senate Banking, Housing, and Urban Affairs Committee.
NAHMA remains committed to seeing this legislation enacted. In the coming weeks, NAHMA staff will be sending a grassroots action alert to members to support this legislation.
Additional information on H.R.3700 may be found in this previous
Washington Update from February 5, 2016.
Senate Bill Seeks to Block Grant All Housing Programs
On June 9, 2016, Senator Mike Lee (R-UT) introduced S.3047, the Welfare Reform and Upward Mobility Act. This bill is identical to a bill of the same name introduced on May 26 by Representative Jim Jordan (R-OH); both of these bills would radically change the administration of all federal housing assistance programs if enacted. Under the Welfare Reform and Upward Mobility Act, all federal housing programs would be replaced with a single state block grant for all housing activities.
The annual federal appropriations for the block grant would be capped from fiscal year 2017 through FY 2022 at FY 2016 appropriations levels. An additional 10 percent cut would be imposed annually from 2023 until 2028, culminating in a 50 percent reduction in housing program funding from their total FY 2016 level. This would affect all HUD programs as well as all rental assistance programs provided through the U.S. Department of Agriculture’s Rural Development.
Also required under the Welfare Reform and Upward Mobility Act is a provision that states would be required to submit an annual application to HUD that includes the amount they received for the previous year’s means-tested housing programs in order to receive new grants. HUD would then allocate a proportional share of the total funding available that year to each state. States would be required to match up to 20 percent of the federal grant money with their own resources. They would also be required to publish an annual report containing budget and utilization data as well as a self-assessment on progress; a study on states’ best practices four years after the block grant’s enactment would be produced by the federal government.
Generally, sponsors assert that the bill seeks to give states increased flexibility. States could also use funds from the block grants to establish a portable voucher system that would allow low-income parents to use a portion of their voucher’s value to send their children to a private pre-kindergarten education program (other education activities are not specified).
Although there is little chance of this bill being enacted, NAHMA would be strictly opposed to this bill. NAHMA has long-standing public policy positions opposed to block granting federal housing assistance to states or other entities. Block granting would essentially dismantle the entire framework of U.S. federal housing policy and would require states to rebuild an entire affordable housing network from scratch. Additionally, these seems to be little emphasis on federal oversight, so tenants and owners could be subject to poor standards or practices.
House Republicans Release Tax Reform Blueprint; Does not Mention LIHTC
Today, members of the House Tax Reform Task Force, led by House Ways and Means Chairman Kevin Brady (R-TX), released a tax reform blueprint titled “A Pro-Growth Tax Code for All Americans.” This tax reform blueprint does not contain a comprehensive legislative package to reform taxes, and instead promotes broad agenda items being pursued as part of House Speaker Paul Ryan’s (R-WI) “A Better Way” agenda to reform the tax system of the United States.
The blueprint promotes the elimination of many corporate tax expenditures, but it is unfortunately silent as to what would happen to the Low-Income Housing Tax Credit (LIHTC). The LIHTC is currently the premiere tool for developing and preserving affordable housing since 85 percent of HUD’s budget is dedicated to fulfilling current rental assistance obligations. While omission of the LIHTC from the blueprint does not necessary mean that lawmakers seek to end the program, it is discouraging that such a broadly-supported tax expenditure like the LIHTC is not mentioned.
With the blueprint released to the public, members of the Ways and Means Committee will now begin the process of drafting the actual legislation to enact the Tax Reform Task Force’s proposals. This will be a lengthy process, and it is most likely that no sweeping changes to the U.S. Tax Code will occur in 2016 since it is an election year.
However, NAHMA will continue to closely monitor the progress of the Ways and Means Committee’s efforts to reform the tax code, and we will be advocating for the retention of the LIHTC. This program is undeniably crucial to low-income Americans, especially at a time when more than 11 million Americans pay more than half of their income on rent and the general unaffordability of housing continues to grow across the country. As progress is made, NAHMA will reach out to its membership through Grassroots Action Alerts to promote the LIHTC.
The blueprint “A Pro-Growth Tax Code for All Americans” can be viewed in its entirety
