The Senate Gets Back to Work
The Senate returned to work this week, more than five weeks after their last roll-call vote on March 25. Washington, D.C., Mayor Muriel Bowser noted recently that members of Congress are considered essential workers, and as a result, doesn’t have to adhere to her stay-at-home order and closure of nonessential businesses. As Congress prepares to consider what further emergency measures to take to deal with COVID-19, Republicans and Democrats have split over the need for more targeted emergency funding needed to help the unemployed and how best to stabilize the straining economy. Democrats have stated that state and local governments should be the priority, while Republicans are requesting new liability protections for small businesses. Members of the House of Representatives were scheduled to return to Washington as well on Monday, but Democratic leaders reversed course after consulting with Brain Monahan, the attending physician for Congress. House Majority Leader Steny Hoyer (D-MD), is seeking new advice from Dr. Monahan on how the House can soon return to the Capitol safely. Until then, members are meeting remotely.
Trump Administration Nominates Dana Wade as Next FHA Commissioner
The Trump Administration has nominated Dana Wade to become the next Assistant Secretary for Housing and Commissioner of the Federal Housing Administration (FHA). Wade previously served as the Acting Federal Housing Commissioner and Assistant Secretary for Housing from July 2017 to June 2018, and also worked in the Trump Administration as Program Associate Director for General Government at the Office of Management and Budget from December 2018 to December 2019. Earlier in her career, she held senior staff positions in Congress, serving as the Deputy Staff Director for the Senate Banking Committee and as the Republican Deputy Staff Director for the Senate Appropriations Committee under Senator Richard Shelby (R-AL). If confirmed by the Senate, Wade would replace Brian Montgomery, who has been nominated to be Deputy Secretary of HUD, as FHA Commissioner. Wade previously held the FHA Commissioner position, in an acting capacity, from July 2017 to June 2018. The Senate Banking Committee has yet to announce when a vote will be held on the nomination for Wade.
Emergency Rental Assistance and Rental Market Stabilization Act Introduced
Today, ranking member of the Senate Banking, Housing and Urban Affairs Committee Senator Sherrod Brown (D-OH), Chairwoman of the House Financial Service Committee Representative Maxine Waters (D-CA) and Representative Danny Heck (D-WA), introduced the Emergency Rental Assistance and Rental Market Stabilization Act. The legislation would provide $100 billion in emergency rental assistance. The rental assistance fund would utilize the framework of the Emergency Solutions Grant program, which is a federal homeless assistance program that provides temporary rental and utility payment assistance to households. The Department of Housing and Urban Development (HUD) would oversee the distribution of $100 billion to low-income households experiencing homelessness or at risk of homelessness during the COVID-19 emergency. Under the proposed law, HUD would have to allocate $50 billion to states and communities within a week of the bill being signed into law. The other half of the money is to be distributed within 45 days of the law’s enactment based on the needs of extremely low- and very low-income renters as well as the economic disruptions caused by the coronavirus.
Under the proposed legislation, rent assistance would be capped at 120% of fair market rents. Of the $100 billion provided in the current proposal, 40% of the funds must be used for households with only third of the median income for their respective areas. Incomes below half of the area’s median income would receive approximately 70% of the funds. The remaining funds, if any, would be used to serve households bearing up to 80% of median income. Additionally, 2 percent of the funding provided would be allocated for Native American and Native Hawaiian populations. Currently, the bill has 131 House cosponsors. While NAHMA shares the goal of additional rental assistance, NAHMA will continue to advocate and educate Congress on the merits of utilizing existing rent assistance programs as alternative vehicles for providing rent relief. A summary description of the bill provided by the House Financial Services Committee can be found HERE.
Senator Reed Introduces $75 Billion Housing Assistance Fund
Senator Jack Reed (D-RI) introduced S. 3620, legislation to establish a $75 billion Housing Assistance Fund at the Department of the Treasury. The fund would be used to help protect renters, homeowners, and communities by preventing avoidable foreclosures, evictions, and utility shut offs and includes a small state minimum, ensuring each state would receive no less than $250 million. The Housing Assistance Fund would build off of the success of the Hardest Hit Fund, championed by Senator Reed in 2010, which provided funds to state housing finance agencies to direct targeted foreclosure prevention assistance to households and neighborhoods in states hit hard by the economic and housing market downturn. Currently the bill has been referred to the Senate Committee on Banking, Housing, and Urban Affairs and is cosponsored by every Democratic member of that committee. The full bill text can be found HERE. A similar bill, H.R. 6729, has also been introduced in the House by Congressman David Scott(D-GA).