Debate on Iraq dominated this week’s session of Congress. If you’ve seen today’s newspaper, you are already aware that Congress authorized the use of force against Saddam Hussein.
Unfortunately, Congress and the Administration could not come to an agreement on spending bills. The government is still being funded at 2002 levels by temporary “continuing resolutions.” It is becoming highly unlikely that the annual VA-HUD or the USDA bills will be sent to the President, or even passed, before Election Day.
On at note, the House Appropriations Committee approved its VA-HUD bill (HR 5605) Wednesday. The text can be found at https://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=107_cong_bills&docid=f:h5605rh.txt.pdf
A quick and dirty comparison of some highlights from the House bill against the Senate and Administration proposals and last year’s funding follows:
Section 8
2002 funding level: $15.6 billion
President’s 2003 Request: $17.5 billion
Senate 2003 VA-HUD bill: $17.4 billion
House 2003 VA-HUD bill: $16.6 billion
Section 202 Elderly Housing
2002 funding: $783 million
President’s 2003 proposal: $783 million
Senate’s 2003 VA-HUD bill:$ 783 million
House’s 2003 VA-HUD bill: $ 841 million
Section 811 Housing for the Disabled
2002 funding: $241 million
President’s 2003 proposal: $250.5 million
Senate’s 2003 VA-HUD proposal: $250.5 million
House’s 2003 VA-HUD proposal: $259 million
The Senate Banking Subcommittee on Housing and Transportation held a hearing on “Affordable Housing Preservation.” FHA Commissioner John Weicher testified. To view Dr. Weicher’s prepared testimony, see https://banking.senate.gov/02_10hrg/100902/weicher.htm
Briefly, Weicher noted that HUD is increasing the inventory of affordable housing. He cited the FHA 221(d)(4) program as an example, and noted that the program is now operating on a self-sustaining basis due to the insurance premium increase, an increase in the statutory loan limits for the program, and multifamily accelerated processing program. Other ways in which the Administration supports production is through the Low Income Housing Tax Credit, an increase in the HOME program, and the Section 202 and 811 programs.
With respect to preservation, the Commissioner stated, “The Department is committed to preserving the existing stock of affordable rental housing.” He cited preservation through Mark-to-Market and Mark-up-to-Market as examples. Other issues he touched upon include: the status of HUD’s Interpretation of Section 8 HAP in a pre 1980 state HFA financed project contractual provisions; HUD will be submitting a regulation to OMB in “the near future” regarding for-profit limited partnerships in the Section 202 program; when an owner wishes to opt-out of Section 8, HUD will not allow tenants’ rents to be raised if the owner has not complied with the 12 month advanced notice requirement; and it is not likely HUD will implement a program using recaptured Section 236 funds for modernization.
Normally, this column is exclusively legislative. However, I feel it is important also include the information from the HUD Industry Stakeholders meeting that you should have received via e-mail earlier today.
DISCLAIMER: The information you are about to receive is general, as that is how it was presented to us. I suspect that in many instances, additional info will not be available until HUD issues the actual notices. In the meantime, NAHMA is working to get further clarification on these matters. Major highlights of the briefing follow.
4350.3 Occupancy Handbook: HUD’s goal is to have it on the street in January, 2003.
REAC definitions: Changes are expected to be out “soon.” However, please be advised that visible mold of 4 square inches will result in point deductions on your REAC scores. HUD believes this is a way to catch the mold problem before it becomes a disaster. (I, personally, would advise members to take a look at NAHMA’s “toxic mold library” on our website to get an overview of the mold issue.)
REAC scores below 60: As part of the President’s Management Agenda, HUD will become less tolerant of substandard properties. Most REAC scores are good; HUD officials noted that 60% of the portfolio is above 80 on REAC scores. Properties which regularly score below 60 on inspections will face a referral to the enforcement center if the score does not come up following a re-inspection. Re-inspections are to occur within 60 days. HUD believes 1200 properties, or 0.3% of the portfolio, will be affected. NAHMA IS ACTIVELY SEEKING FURTHER DETAILS AND CLARIFICATION ON THIS POLICY CHANGE.
HUD / INS immigrant status verification: INS plans to phase out its touch-tone telephone system for verification of immigration status (the SAVE program) approximately January 15, 2003. INS will be moving to a personal computer based system, the SAVE System 2 Automated Status Verification System (ASVS). INS will mail the software directly to owners and issue the passwords. Equipment purchases are an eligible project expense. If you don’t have a computer, you will have to use the paper based process (form G-845).
As previously indicated, NAHMA is working to get further clarification on these issues. Please stay tuned.