Housing Opportunity through Modernization Act of 2015 introduced
On October 7, Representative Blaine Luetkemeyer (R-MO), Chairman for House Financial Services Subcommittee on Housing and Insurance, introduced
H.R. 3700, the Housing Opportunity through Modernization Act of 2015. The bill combines numerous previously proposed changes to improve rental assistance programs.
In releasing the bill, Rep. Luetkemeyer stated “I have worked with my colleagues to develop legislation that seeks to take the first steps to reform the programs and processes at HUD and RHS [Rural Housing Service]. These reforms will help to put our nation’s housing programs on a path to maximize effectiveness and deliver more opportunity for both people in need and the organizations that serve them.”
H.R. 3700 incorporates many different housing reform bills introduced in the 114
th Congress, specifically bills that shared bipartisan support. The legislation incorporates two bills that passed in the House earlier this year, including:
- The Preservation Enhancement and Savings Opportunity Act of 2015 (R. 2482). This bill would amend the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) to allow owners of properties preserved under LIHPRA to access the equity in their properties; and
- The Private Investment in Housing Act (R. 2997). This bill would authorize a pay-for-success demonstration program to improve water and energy efficiency in HUD-assisted multifamily developments. HUD also proposed this demonstration in their Fiscal Year (FY) 2016 budget request and a similar demonstration is included in the Senate Appropriations Committee FY 2016 HUD appropriations bill and the Energy Policy Modernization Act of 2015.
H.R. 3700 also incorporates several provisions from previously introduced bills, such as the Section Eight Voucher Reform Act of 2011 (SEVRA) (H.R. 1209), and a drafted bill which was not introduced, the Affordable Housing and Self-Sufficiency Improvement Act of 2012 (AHSSIA).
A few key provisions from these bills are intended to streamline the Section 8 Housing Choice Voucher (HCV) program. This includes:
- Increasing the maximum contract term for project-based vouchers from 15 to 20 years;
- Streamlining income reviews/determinations;
- Streamlining physical inspection protocols;
- Authorizing HUD to collect utility data; and
- Authorizing USDA’s Multifamily Housing Revitalization Program and provides authority for USDA to delegate guaranteed rural housing loan approval to preferred lenders.
H.R. 3700 was sent to the House Financial Services Committee for review and mark-up. The Housing and Insurance Subcommittee has scheduled a
hearing on the bill for October 21, 2015. NAHMA will continue to review all provisions of this bill in consultation with our Federal and Regulatory Affairs Committees.
Section 3 Modernization and Improvement Act of 2015
On October 7, Representative Nydia Velázquez (D-NY) introduced the Section 3 Modernization and Improvement Act of 2015 (H.R. 3697). This bill aims to increase enforcement and Congressional oversight of Section 3 of the Housing and Urban Development Act of 1968.
Section 3 of the Housing and Urban Development Act of 1968, titled “Economic Opportunities for Low and Very Low Income Persons,” requires recipients of HUD housing and community development funding to provide “to the greatest extent feasible” job training, employment, and contracting opportunities for low and very low income residents and eligible businesses. Representative Velázquez has stated that Section 3 has been inadequately enforced and never reached its full potential and that this bill would help expand job opportunities for residents of public and assisted housing.
To accomplish this, H.R. 3697 would require that recipients of funding subject to Section 3 report annually to HUD on their compliance with the employment and contracting requirements and on their contractors and subcontractors performance. For any period during which a recipient, or their contractor or subcontractor, did not meet their employment or contracting requirement, the report must describe actions that were taken to meet the requirement, including actions taken or that will be taken in future funding opportunities to address the deficiencies to meet employment and contracting requirements. These reports would then be delivered to Congress.
Additionally through H.R. 3697, HUD would develop and implement policies and procedures for administrative sanctions to be applied to recipients and their contractors and subcontractors that are determined do not comply with Section 3 requirements, which include:
- A recapture of amounts provided to the recipient;
- A reduction of future funds from the Department, including any discretionary funds available under the Choice Neighborhoods Initiative and the rental assistance demonstration (RAD) program;
- Debarment, suspension, or limited denial of participation in other HUD programs.
Under this bill, HUD will require that public housing agencies (PHAs), owners, contractors and subcontractors of multifamily properties assisted under RAD make their best effort to give to low- and very low-income persons all the training and employment opportunities available. These efforts must be directed in the following order of priority:
- To residents of the housing developments;
- To residents of other developments managed by the PHA;
- To participants in YouthBuild programs receiving assistance under section 171 of the Workforce Innovation and Opportunity Act; and
- To other low- and very low-income persons residing within the metropolitan area who receive Section 3 assistance.
“Federal housing funding is one of our most powerful tools for creating economic opportunity in traditionally underserved communities,” Velázquez said in a press release. “We must ensure that we fully leverage these resources to maximize job creation for families…”
Velázquez’s bill was referred to the House Committee on Financial Services. It currently does not have any cosponsors. NAHMA will review this bill in consultation with our Federal and Regulatory Affairs Committees.
To learn more about the Section 3 Modernization and Improvement Act of 2015, please
click here
