House Passes $3 Trillion in Additional Emergency Funding
Today, the House is expected to approve H.R. 6800, known as the Heroes Act, which would provide $3 trillion in emergency funding to federal agencies, state and local governments, small businesses, and individuals impacted by COVID-19. H.R. 6800 is predicted to pass out of the House with only a handful House Republicans supporting the bill, and represents a starting point in bi-partisan negotiations for a fifth COVID-19 response package with the Republican-controlled Senate. The legislation is focused on measures to stabilize the economy and provides additional resources and specific policy provisions related to housing, including:
- An extension and expansion of the eviction moratorium for 12 months
- $100 billion for a new Emergency Rental Assistance program, based off of the Emergency Solutions Grant framework, to assist renters who are unable to attain or maintain housing stability
- $75 billion to create a Homeowners Assistance Fund at the state, local, and tribal level to help homeowners with mortgage payments, insurance, property taxes, and other costs
- $750 million in Project-Based Rental Assistance
- $700 million for rural rental assistance
- $200 million for housing for persons with disabilities
- $11.5 billion in Homeless Assistance Grants
- $10 billion for Housing Choice Vouchers for people experience or at risk of homelessness and survivors of domestic violence
- $5 billion in Community Development Block Grants
- $4 billion in Tenant Based Rental Assistance
- $2 billion in Public Housing Operating funding
- $1.2 billion to provide staffing, services and other resources for Section 202 properties, plus $500 million in additional funding for elderly housing
- $1 billion for Community Development Financial Institutions to respond to the COVID-19 impact in distressed communities
- An expansion of CARES Act federally-backed mortgage forbearance to include all multifamily mortgages, regardless of federal backing
- Bankruptcy protections for homeowners
The legislation also includes an extension of unemployment compensation, additional state and local funding, expansion of the employer retention credit, expansion of the Small Business Administration Paycheck Protection Program, pension and retirement relief, additional direct payments and tax credits to individuals and families as well as other tax relief for teachers, first responders and COVID-19 front-line workers (the full bill text can be read HERE and a section-by-section summary provided by the House Financial Services Committee can be read HERE).
The full Senate is not expected to pass the Heroes Act until at least June. The legislation is not expected to go far in the Senate without approval from Majority Leader Mitch McConnell (R-KY). To gain momentum in the Senate, the next package is expected to shift focus towards more industry-specific measures, including broader infrastructure and tax provisions. But it’s still unclear how the Senate Majority Leader will move forward on negotiations at this point. His top priority of ensuring business liability protection in the next relief package was quickly met with opposition by Senate Democrats.
Surprisingly, it may be Senate Republicans who ultimately tip Majority Leader McConnell’s hand in favor of supporting a compromise bill. States are being equally damaged by the nation’s economic contraction and many cities funded mostly by income and sales taxes are experiencing huge drops in revenue as a result of the COVID-19 crisis. Several Republican Senators have already expressed support for proposals that provide additional emergency funding for state and local governments including Senators Rob Portman (Ohio), Susan Collins (Maine), Joni Ernst (Iowa), Chuck Grassley (Iowa), Lisa Murkowski (Alaska), Kevin Cramer (North Dakota), Josh Hawley (Missouri) and John Boozman (Arkansas).
Senate Confirms Brain Montgomery as Deputy Secretary of HUD
On May 12, the Senate confirmed the nomination of Brian D. Montgomery as deputy secretary of HUD. Montgomery had recently served as HUD’s acting deputy secretary, assistant secretary for housing and federal housing commissioner. As Federal Housing Commissioner since June 2018, Brian Montgomery has managed FHA’s $1.4 trillion mortgage insurance portfolio, which includes its Single Family, Multifamily, and Health Care programs. While serving as Assistant Secretary for Housing, he has overseen HUD’s Project-based Section 8 rental assistance housing program, the Office of Housing Counseling, and HUD’s Manufactured Housing Program. Becoming the second most senior official at HUD, Montgomery will manage the day-to-day operations of the agency and will advise and assist Secretary Ben Carson in leading the Department’s nearly 8,000 employees. NAHMA has extended its sincere congratulations to HUD Deputy Secretary Brian Montgomery on his confirmation by the U.S. Senate.