Congress Avoids Govt. Shutdown; Set to Release Draft Funding Bills
To prevent a government shutdown, Congress passed the Extension of Continuing Appropriations and Other Matters Act 2024, a temporary funding bill on Thursday evening and President Biden signed it into law today. This bill delays two critical deadlines for finalizing government funding packages until later in March. The temporary funding bill, known as a continuing resolution (CR), will extend current funding levels until March 8th for some government agencies, including HUD and USDA, while delaying final appropriations decisions on others until March 22nd.
This two-step approach allows lawmakers more time to negotiate and finalize the remaining spending bills for the fiscal year. Congressional leaders are aiming to release the specifics of their first fiscal 2024 funding package this weekend. This package will outline funding levels and policy details for several agencies, including Agriculture, Energy, HUD, Transportation, Veteran Affairs, Commerce, and Interior Department(s).
Once this initial package is finalized, attention will shift entirely to the remaining six spending bills. These bills are expected to be significantly more challenging to negotiate, as they involve sensitive issues such as border security funding and immigration policy. Once released, NAHMA hope to provide an analysis of the bills to share during next week’s conference and will continue advocating for their final passage.
Administration Announces New Actions to Boost Housing Supply and Lower Housing Costs
This week, the Biden administration announced new initiatives to address the nation’s housing shortage. As mentioned in this Fact Sheet, these actions aim to increase supply through various programs:
- The Treasury Dept. and HUD are extending the Federal Financing Bank Risk-Sharing (FFB) program offering discounted FHA loans for affordable multifamily housing construction and preservation. This new extension will create an estimated 38,000 additional units over ten years, as well as bolster HFA participation in the program.
- HUD expects to publish a proposed rule to streamline and modernize the regulations for the HOME Investment Partnerships Program (HOME program)
- $225 million for a new Preservation and Reinvestment Initiative for Community Enhancement (PRICE) grant program that will focus on improving existing manufactured housing communities.
These actions come amidst a national shortage estimated at nearly 4 million units and record-high home prices. The administration recognizes further efforts are needed and plans to keep housing a top priority.
FHFA Announces $301 Million for Affordable Housing Programs
The Federal Housing Finance Agency (FHFA) announced $301 million in funding for affordable housing programs. This money comes from Fannie Mae and Freddie Mac, who contribute a portion of their mortgage purchases to these initiatives.
- Housing Trust Fund: HTF receives $196 million and is overseen by the Department of Housing and Urban Development. It distributes funds to states for projects that create or preserve affordable housing units.
- Capital Magnet Fund: CMF receives $105 million and is overseen by the Department of Treasury. It awards competitive grants to support affordable housing projects, along with related economic development and community services.
The amount allocated is lower than last year’s $545 million allocation due to reduced mortgage activity by Fannie Mae and Freddie Mac in 2023, likely caused by higher interest rates.