Secretary Fudge Testifies on Budget Requests for Fiscal Year 2023
This week, HUD Secretary Marcia Fudge testified before the House and Senate Appropriations Subcommittees on Transportation, Housing and Urban in support of President Biden’s 2023 budget for HUD. During her opening statement, the Secretary highlighted her support for the President’s proposed budget, which would provide 15 billion to fully fund renewals and amendments in Project Based Rental Assistance, Housing for Persons with Disabilities (Sec. 811), and Housing for the Elderly Programs (Sec. 202), along with $180 million for new development of approximately 2,000 new units of Sec. 202 and Sec. 811. She also discussed her support for requesting $35 billion for the Housing Supply Fund, a new mandatory program providing grants to State and local housing finance agencies and their partners to invest in strategies to increase the supply of affordable and accessible housing. She also highlighted the importance of climate resiliency and the President’s request of providing $1.1 billion for targeted climate resilience and energy efficiency improvements in public housing, multifamily-assisted housing, and other assisted housing.
During the House hearing, Rep. Mario Diaz-Balart (R-FL) questioned the Secretary about HOTMA, the Housing Opportunity Through Modernization Act, which is intended to streamline HUD’s tenant income certification and unit inspection process, and also makes other improvements, administrative improvements, asking “why the department has yet to issue a rule implementing the law and so it’d be helpful, can you give us a status on the implementation of this law and potential timeline for a final rulemaking?” Sec. Fudge responded that she expects HUD to issue the final regulations later this year or at the very latest, early 2023. Rep. John Rutherford (R-FL) discussed the need for additional funding to remove dangerous health hazards from homes, including mitigating threats from fire in residential buildings, lead, carbon monoxide, and radon, citing the recent tragic fires in New York and Philadelphia. Rep. Rutherford also requested the Secretary to provide the committee with an update regarding how HUD is utilizing the $65 million appropriated in FY 22 for fire safety initiatives and grants. Sec. Fudge testified that “our intention is to award these grants later this year or at the very beginning of next year…but I will suggest to you that out of that $65 million, we are able to do better inspections as it relates to all health hazards, but particularly fire safety.”
In the Senate, Senator Susan Collins (R-ME) highlighted the need for streamlining or eliminating burdensome and unnecessary building regulations to expedite the administration of grants and improve HUD programs. Within this context, Sen. Collins mentioned her concerns with HUD’s process regarding the determination of fair market rents, stating: “The Committee has heard from public housing authorities concerned that has fair market rent calculations do not reflect the increased rental prices they are experiencing in their communities that results in households being unable to afford the limited housing options said are available, even if they do have a voucher in hand.” When asked what HUD is doing to better align fair market rents with actual market conditions that renters and housing authorities are experiencing, Sec. Fudge replied that “HUD is really going to be required to issue a fifth Federal Register Notice we have to have public comment in order to change the formula the way it should be. We make little adjustments as you have suggested, but in order to do it, the way that it is that is needed is we’re going to have to do that. So in August, we’re going to be publishing a new fair market rate formula. So you’ll see that happening in August, because you’re right, and it’s happening across the country.”
To view the full House Appropriations Subcommittee hearing, click here.
To view the full Senate Appropriations Subcommittee hearing, click here.
Julia Gordon Confirmed as FHA Commissioner
On Wednesday, the U.S. Senate confirmed Julia Gordon to serve as commissioner of the Federal Housing Administration (FHA). Gordon, who most recently stepped down from her role as president of the National Community Stabilization Trust, was narrowly confirmed to be the FHA commissioner, a position had been vacant since the resignation of Dana Wade in March 2021. Vice President Kamala Harris cast the deciding vote, breaking a 50-50 tie. Gordon has more than 20 years of experience in housing and finance issues and policy and most recently served as president of the National Community Stabilization Trust, a nonprofit organization that collaborates with local partners and national stakeholders to return distressed properties to productive re-use. Gordon was also part of the Biden-Harris Transition Team, serving as a member of the group that reviewed HUD and the Federal Housing Finance Agency for the incoming administration.
Administration Secures Commitments from 20 Internet Providers to Cut Prices and Increase Speeds
This week, the Biden Administration announced they have secured private sector commitments that will lower high-speed internet costs for millions of low-income families. To ensure the most efficient use of those public dollars and to deliver maximum cost savings to families, the Administration stated it has secured commitments from 20 leading internet providers—covering more than 80% of the U.S. population across urban, suburban, and rural areas—to either increase speeds or cut prices. Specifically, this ensures they all offer Affordable Connectivity Program (ACP)-eligible households high-speed, high-quality internet plans for no more than $30/month. The Administration estimates that 48 million households—or nearly 40% of households in the country qualify for the ACP either because their income is at or below 200% of the Federal Poverty Level, or because a member of the household relies on one of several federal benefit programs. In a comprehensive effort to make sure as many ACP-eligible households as possible take advantage of this new program, the Administration also launched GetInternet.gov, a simple, easy-to-use website with details on how Americans can sign up for ACP and find participating internet providers in their area.
To view the White House Fact Sheet accompanying the announcement, click here.