HUD Secretary Testifies During Senate Infrastructure Hearing
HUD Secretary Marcia Fudge and Department of Transportation Secretary Pete Buttigieg testified this week in a joint hearing on the American Jobs Plan for the Senate Committee on Banking, Housing, and Urban Affairs. Titled “21st Century Communities: Expanding Opportunity Through Infrastructure Investments,” the joint hearing focused on how housing and transit work together to support communities and jobs, and the importance of housing as infrastructure. During her testimony, Secretary Fudge stated that lack of investments is the prime factor driving the affordable housing crisis, due to a lack of supply of housing units and the state of disrepair of existing housing units. Secretary Fudge emphasized the different ways President Biden’s infrastructure bill, the American Jobs Plan, seeks to addresses these two issues including providing $213 million to build 2 million new homes and $40 billion to repair existing public housing infrastructure. Members also discussed the lack of available senior housing, and how that might be a growing problem as the number of aging Americans significantly increases in the next decade. Secretary Fudge responded that many people forget a large percentage of public housing residents are seniors and need to be able to age in place, and that requires greater congressional investments in Section 202.
To view the full Senate hearing on the American Jobs Plan, click here.
To view Secretary Fudge’s opening statement, click here.
Congressional Hearings Highlight Importance of the Housing Credit
This week, the House Ways and Means Committee held a hearing on Leveraging the Tax Code for Investments in Infrastructure, in which witnesses discussed expanding and strengthening the Housing Credit as part of the current infrastructure legislation proposal. Members questioned witnesses, including Rep. Suzan DelBene (D-WA), who asked about the need to lower the 50 percent test and enact the basis boost for extremely low-income tenants, and Rep. Jackie Walorski (R-IN), who asked about the need to provide a basis boost for rural housing. Chairman of the Ways and Means Committee, Rep. Richard Neal (D-MA) noted the Housing Credit has led to the development of millions of affordable rental units, with several other members of the committee voicing their support for the Housing Credit and the need for affordable housing.
To view the full House committee hearing on Leveraging the Tax Code for Investments in Infrastructure, click here.
In the Senate, the Senate Finance Committee held a hearing on Funding and Financing Options to Bolster American Infrastructure. Senator Maria Cantwell (D-WA) discussed the importance of increasing Housing Credit resources including the 50 percent allocation increase and lowering the 50 percent bond-financing test. Chairman of the Finance Committee, Ron Wyden (D-OR) and committee member Todd Young (R-IN) both referenced the importance of the Housing Credit as well.
To view the full Senate committee hearing on Funding and Financing Options to Bolster American Infrastructure, click here.
Senate Committee Votes to Approve Todman Nomination for HUD Deputy Secretary
The Senate Committee on Banking, Housing, and Urban Affairs voted this week to approve Adrianne Todman’s nomination to be deputy secretary of the Department of Housing and Urban Development (HUD), advancing her nomination to the full Senate. As the CEO of the National Association of Housing and Redevelopment Officials (NAHRO), Ms. Todman has held several positions at HUD in the past, including as a policy aide in the Office of the Secretary and in the Office of Public and Indian Housing. She was also executive director of the District of Columbia Housing Authority. Her nomination will now go to the full Senate for consideration. NAHMA supports Ms. Todman’s nomination to be HUD deputy secretary and we encourage the Senate to move quickly to confirm her nomination.
Bill Introduced to Increase Landlord Participation in the HCV Program
Senators Chris Coons (D-DL), a member of the Appropriations subcommittee that funds housing initiatives, and Kevin Cramer (R-ND), a member of the Banking, Housing, and Urban Affairs Committee, introduced the Choice in Affordable Housing Act to improve the Housing Choice Voucher program. The bill would seek to increase funding for and remove programmatic barriers in the Housing Choice Voucher program that will help attract and retain landlords. As a result, low-income families that use vouchers would have increased housing choices and improved access to high-opportunity neighborhoods. Because the number of participating landlords has declined in recent years, voucher holders experience a difficult housing search process and fewer options of where to live. To help reach the goal of increasing voucher holders’ housing choices and improving access to high-opportunity areas, the Choice in Affordable Housing Act would:
- Provide $500 million for:
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- PHAs to offer a signing bonus to a landlord with a unit in an area with less than 20% poverty;
- PHAs to provide security deposit assistance, so that tenants can better afford to meet required deposits and landlords are assured greater protection against damages;
- HUD to provide a bonus to PHAs that retain a dedicated landlord liaison on staff; and
- Other uses as determined by the PHA and approved by the Secretary to recruit and retain landlords.
- Increase funding to the Tribal HUD-VASH program. To help renters on tribal land, the bill supports the Tribal HUD-VASH program for Native American Veterans who are homeless or at risk of homelessness.
- Use neighborhood-specific data to set rents fairly. The bill would require HUD to expand its 2016 rule requiring the use of Small Area Fair Market Rents to calculate fair rents in certain metro areas.
- Reduce inspection delays. Units in buildings financed by other federal housing programs would meet the voucher inspection if the unit has been inspected in the past year. New landlords could also request a pre-inspection from a PHA prior to selecting a voucher-holding tenant that would be good for 60 days.
- Refocus HUD’s evaluation of housing agencies. The bill would encourage HUD to reform its annual evaluation of PHAs to promote an increase in the diversity of neighborhoods where vouchers are used. The bill also requires HUD to report to Congress annually on the effects of the bill.
To view a factsheet on the Choice in Affordable Housing Act, click here.
To view the full bill text of the Choice in Affordable Housing Act, click here.