House advances fiscal year 2019 funding bills for HUD, USDA
This week, appropriators in the House voted to advance funding bills for both HUD and USDA’s Rural Development programs, maintaining the increases provided in FY18, but providing no significant increases for the fiscal year beginning in October. The House Appropriations Subcommittee on Transportation, Housing, and Urban Development approved funding legislation that rejects the President’s proposed budget cuts and rent reforms for FY19. Subcommittee lawmakers have said that the newly proposed funding levels for Project-Based Rental Assistance ($11.7 billion, compared with $11.5 billion in FY18) and the Housing Choice Voucher program ($22.5 billion, compared with $22 billion in FY18) will be sufficient to renew contracts; however, the levels fall short of NAHMA’s full funding numbers and leave room under the overall budget caps for additional FY19 funding. In addition, the HUD funding bill proposes no new construction funding for Section 202 Senior Housing or Section 811 Housing for Persons with Disabilities, and cuts the HOME Investment Partnership program back by $162 million compared with FY18. Full Committee action in the House is expected next week, with action in the Senate likely to follow in early June. “This is another down payment towards rebuilding our nation’s roads, bridges and rail systems, while also providing critical housing improvements for our most vulnerable populations,” Subcommittee Chairman Mario Diaz-Balart (R-FL) said. His democratic counterpart on the Committee, Ranking Member David Price from North Carolina, said, “I hope we can improve these numbers because the need is acute among both our elderly and disabled population, and these programs have proved their worth in addressing this need. Their revival cannot be a mere one-year blip in funding.” Ranking Member Price also recommended revising both the rental assistance and HOME funding levels to meet demand. Separately, the full House Appropriations Committee, which had approved USDA’s funding bill at the Subcommittee-level last week, also advanced FY19 Rural Development funding legislation in a mark-up focused mainly on agriculture and trade. The Senate Committee is set to consider agriculture and rural development funding levels next week. NAHMA sees both bills as a “floor” for fiscal negotiations, and is pushing for higher funding levels to be proposed by the Senate.Joint Economic Committee considers new “Opportunity Zones” program
This week, the Joint Economic Committee heard testimony about the newly-created “Opportunity Zones” program, which was enacted within tax reform legislation at the end of 2017. By offering tax-preferred treatment of capital gains that are reinvested in designated tracts, the program aims to spur new equity investments targeted at historically underperforming areas. As the program enters the implementation phase, Members of the Joint Economic Committee questioned the following witnesses about the potential positive and negative impacts of the new investment initiative: John Lettieri of the Economic Innovation Group (EIG); Terri Ludwig of Enterprise Community Partners; and Maurice Jones of the Local Initiatives Support Corporation (LISC); Also testifying as a witness was original champion of the program, South Carolina Senator Tim Scott. The program is seen as another “tool in the tool belt” for meeting the demands of inequitable economic growth across the country; investments can be made individually or as part of a larger “opportunity fund,” and could potentially be applied in conjunction with the Low-Income Housing Tax Credit (LIHTC), the New Markets Tax Credit (NMTC), and other programs designed to spur private investment for both financial and social return. A key component of the program is its flexibility (minimal restrictions on what type of investment qualifies), as well as its local control (qualifying investment areas are nominated at the state level, and deals would likely be brokered locally) and longevity (zones are maintained for 10 years once selected). However, the hearing exposed bipartisan concern about preserving the program’s flexibility while establishing accountability and transparency in the absence of statutory reporting requirements; in addition, witnesses and lawmakers alike explored the type of “guardrails” necessary for creating an impactful investment program while avoiding displacement in rapidly-changing neighborhoods. NAHMA will keep members up-to-date on the Opportunity Zones program as the IRS releases clarifying guidance. A NAHMAnalysis is forthcoming on the program’s implementation as it relates to affordable housing. Separately, the House Financial Services Committee held two important housing-related hearings, including “An Overview of Homelessness in America” and “Community Development Block Grant – Disaster Recovery Program – Stakeholder Perspectives.”Legislation introduced to create voucher mobility demonstration
Following a hearing in April on voucher mobility, Chairman Duffy (R-WI) and Ranking Member Cleaver (D-MO) of the House Financial Services Subcommittee introduced the “Housing Choice Voucher Mobility Demonstration Act of 2018 (H.R. 5793).” The bill would authorize the Secretary of HUD to carry out a housing choice voucher mobility demonstration to encourage families receiving such voucher assistance to move to lower-poverty areas and expand access to opportunity areas; PHA participation would be based on PHA-submitted “Regional Mobility Plans” and other criteria. Although there is no funding attached to the bill, PHAs could use administrative fees and reserves, as well as private funding, to pay for mobility-related expenses, including security deposits for more expensive neighborhoods. Additionally, $50 million for a mobility demonstration was included in the fiscal year 2019 HUD funding bill advanced by the House Subcommittee this week. H.R. 5793 is scheduled for a mark-up in the Subcommittee next week.UP NEXT: What NAHMA is watching for next week
- Senate’s version of Dodd-Frank Overhaul to move forward after key compromise with Financial Service Committee
- Brian Montgomery nomination as FHA Commissioner to move forward as Senator’s hold is released
- Senate Subcommittee to consider fiscal year 2019 Rural Development funding bill
- House Subcommittee to consider voucher mobility demonstration bill
- May 20-22: NAHMA speaking at AHMA-PSW Seminar in Los Angeles