March 25, 2024

Congress Passes FY24 Funding Bills

Over the weekend, Congress passed omnibus funding bill, providing $1.2 trillion for federal government operation for fiscal year 2024 (FY24). President Biden has signed into law. This funding bill follows the first funding bill, which Congress passed two weeks ago that included funding for both HUD and USDA. Funding levels for FY24 provide increases for the majority of HUD and RHS affordable housing, rental assistance, and community development programs. NAHMA welcomes the much-needed funding for Project-based Rental Assistance (PBRA) and other programs outlined below:

HUD Programs:

• Tenant-Based Rental Assistance (HCVs) – $32.4 billion, including $6 billion in emergency spending for renewals. This is a $2.1 billion increase over FY23 levels enacted ***(enacted = prior year running Oct. 1, 2022 – Sept. 30, 2023)***.
• Project-Based Rental Assistance (PBRA) – $16 billion, including $2 billion in emergency spending for renewals, which is a $1.1 billion increase from FY23. Of this amount, $468 million is for performance-based contract administrators (PBCAs). “The agreement prohibits HUD from issuing a solicitation or accepting bids on any solicitation that is substantially equivalent to the draft solicitation entitled “Housing Assistance Payments (HAP) Contract Support Services (HAPSS)” issued by HUD on July 27, 2022. The agreement directs HUD to ensure that any future funding arrangements for PBCAs do not impede housing finance agencies or PHAs from competing on a state-basis.”
• Section 202 Housing for the Elderly – $913 million, $162 million decrease from FY23. Includes, $112 million for service coordinators and the continuation of existing congregate service grants.
• Section 811 Housing for People with Disabilities – $208 million, a $152 million decrease from FY23. 
• Public Housing – $8.8 billion, a $379 million increase from FY23 enacted. This total includes $5.48 billion for the Operating Fund, a $366 million increase from FY23. The Capital Fund received $3.2 billion, same as FY23.
• Community Development Block Grant (CDBG) – $3.3 billion, same as FY23. Also $100 million was included for the Yes in My Backyard Grant (YIMBY) grant program, which is $15 million increase from FY23. 
• HOME program – $1.25 billion, $250 million decrease from FY23.
• Family Self-Sufficiency (FSS) – $140.5 million , a $15.5 million increase from FY23.

USDA-RHS Programs:

• Section 521 Rental Assistance – $1.608 billion, $120 million increase from FY23. The FY24 funding bill also includes language to provide USDA authority to allow mortgage decoupling, beginning with a pilot for 1,000 units. Specifically, it states, “The agreement accepts the Department’s proposal to decouple the Rental Assistance Program from Section 515 direct loans. This strategy should only be used when all other methods of preservation are exhausted and should prioritize properties that are near maturity. In implementing this policy, the agreement directs the Department to have strong stakeholder engagement and to provide the Committees with monthly updates on the implementation of this policy.”
• Section 515 Rural Rental Housing – $60 million, $10 million decrease from FY23. 
• Multi-family Housing Preservation and Revitalization (MPR) – $34 million, $2 million decrease from FY23.
• Section 538 – $400 million, same as FY23. 
• Rural Voucher Account – $48 million, same a FY23.

NAHMA has strongly advocated for program funding included in this bill. We look forward to continuing our advocacy efforts next year. A NAHMAnalysis with this FY24 funding bill and the President Budget Request for FY25 will be provided this week. Members can find full bill summaries and explanatory statements, provided by Congress, for each agency below (best to search or “find” by program name):

• Transportation, Housing and Urban Development, and Related Agencies (THUD)

Summary and Explanatory Statement

• Agriculture, Rural Development, FDA, and Related Agencies (Agriculture)

Summary and Explanatory Statement

Senate Banking Committee Holds Hearing on Housing Affordability

Early this month, the Senate Committee on Banking, Housing, and Urban Affairs convened a hearing, “Examining Proposals to Address Housing Affordability, Availability, and Other Community Needs”, to highlight the ongoing affordable housing crisis across the nation. Witnesses testifying included, Matt Josephs, Senior Vice President of Policy, Local Initiatives Support Corporation (LISC); Dr. E.J. Antoni, Research Fellow, Public Finance Economist, The Heritage Foundation; and Peggy Bailey, Vice President of Housing and Income Security, Center on Budget and Policy Priorities (CBPP).

During the hearing, Josephs underscored the severe housing shortage in the U.S., with nearly 3.8 million homes needed nationwide. Bailey emphasized that incomes have not kept pace with the rising cost of housing, leaving extremely low-income renters with an average of only $286 a month to spend on rent. She stressed the need for solutions that address both the supply shortage and the income gap to ensure housing affordability for all. Antoni raised concerns about discrepancies in measuring inflation and its impact on housing costs. He argued that the Consumer Price Index (CPI) underestimates the true increase in the cost of homeownership, which has risen significantly since January 2021.

In terms of recommendations in their respective testimonies, Josephs advocated for the LIHTC as a key tool in building more affordable housing, citing its success in producing millions of affordable homes and supporting millions of households and jobs. He also urged Congress to pass the Affordable Housing Credit Improvement Act (AHCIA) and the Neighborhood Homes Investment Act (NHIA) to further support affordable housing initiatives. He also voiced support several key affordable housing programs, including, the HOME program, Housing Trust Fund, HCV program, USDA Multifamily Section 515 Rural Housing, and other homebuying programs.

Bailey highlighted a lesson from the pandemic, noting that the Emergency Rental Assistance (ERA) program, implemented during COVID-19, reduced evictions to below historic rates while homelessness remained stable. She emphasized the need to expand voucher systems to move away from a mindset of scarcity in housing provision. Bailey argued that limited vouchers result in prioritizing certain individuals over others but expanding these programs could ensure housing for everyone. She emphasized rental assistance as the most direct and effective solution to the housing crisis, advocating for a comprehensive program to make housing affordable for all. Bailey also supported initiatives like the LIHTC, fair housing, and tenant protections, and called for better coordination between programs like LIHTC, HUD loans, and CDBG to improve affordability.

In contrast, Antoni criticized certain federal programs for what he sees as unnecessary spending. He urged Congress to restrain the Federal Reserve, blaming its policies for causing inflation and economic downturns that have made homeownership unattainable for many. Antoni expressed support for the Renewing Opportunity in the American Dream (ROAD) to Housing Act, a proposal by Sen. Tim Scott, which he believes would increase housing supply, unlike rental assistance, which he argued could lead landlords to raise rents.

In conclusion, the hearing highlighted the urgent need for comprehensive solutions to address the affordable housing crisis, including increased support for existing programs and the implementation of new initiatives to expand affordable housing options for all Americans.