Senate holds confirmation hearing for key HUD leadership positions
On October 26th, the Senate Committee on Banking, Housing and Urban Affairs held a hearing to consider President Trump’s nomination of Brian Montgomery to be Assistant Secretary for Housing – Federal Housing Commissioner; Hunter Kurtz to be Assistant Secretary for Public and Indian Housing; and Suzanne Tufts to be Assistant Secretary for Administration. Here are some quick takeaways from the panelists on key HUD programs and initiatives discussed during the hearing:
On Rental Assistance Demonstration (RAD) expansion…
Mr. Kurtz,” We’re only housing a quarter of the individuals that are eligible for affordable housing. And you know, anything we can do to expand the amount of affordable housing available is a good thing.”
Mr. Montgomery, “…But in terms of a tool, the Low-Income Housing Tax Credit has received broad bipartisan support. I understand there is a bill that will actually increase the Tax Credit 50 percent. It works very well with FHA programs, certainly with the Multifamily Programs, the Subsidy Layering requirements, and obviously with the Rental Assistance Demonstration Program. I agree, you should be able to stretch those dollars, and try to develop as much housing as possible.”
FHA’s role in addressing the housing supply crisis…
Mr. Montgomery, “Obviously you’ve heard me in my opening statement reference the worst-case housing need. 8.3 million families currently not receiving assistance pay more than half their income in rent. That number’s too high. There aren’t a lot of tools FHA currently has to develop new housing. As I referenced the tax credit, in my opinion, I think that program needs to be increased because it’s absolutely a great tool that works well, the FHA programs…. And we have to hold onto what we have. Preservation is a key tool. And when some of these use agreements expire, many owners in the case of project-based rental assistance have the opportunity to opt out. And I think we need to make sure we provide incentives so that they don’t do that. We already don’t have enough affordable rental housing and as the homeownership rate went down and the inventory obviously fell, that put pressure — rather, the market rate units that were being developed, no one was building much affordable housing during that time….And that’s what’s manifested itself in higher rents as well for everyone. So the two definitely go hand in hand.”
Continuing Multifamily for Tomorrow transformation effort…
Mr. Montgomery, “Yes, that’s my current plan….once I get in there, there’s obviously a lot of programs I’ll look at but I absolutely will do whatever I can to help increase the supply of affordable housing.”
The complete hearing can be viewed
here.
Budget resolution passes Congress, paves way for tax overhaul
This week, Congress passed a joint budget resolution that sets Fiscal Year 2018 spending and deficit limits for the congressional budget, a crucial step in both the appropriations and tax reform process. The measure passed only narrowly through the House on Thursday, signaling discord ahead as tax reform takes shape.
The final FY18 budget resolution increases the allowable net estimated revenue loss from a tax reform bill to $1.5 trillion; the measure also allows the bill to pass through the Senate on a simple majority, eliminating the need for bipartisan support. The budget resolution maintains caps on discretionary spending set in 2011, continuing to constrain overall appropriations levels available to Congress for housing programs, among others.
Joining every Democrat in voting against the resolution were twenty-one House and Senate Republicans, whose ‘no’ vote took aim at proposals in the GOP tax reform plan, such as the planned elimination of State and Local Tax deductions, as well as deficit growth resulting from tax cuts. While the Low-Income Housing Tax Credit (LIHTC) program was highlighted for preservation in the GOP’s most recent tax reform proposal, many reform details remain unclear – including how to offset a tax cut deficit exceeding the budget resolution’s new $1.5 trillion limit.
Immediately following the vote on Thursday, House Ways and Means Committee Chairman Kevin Brady (R-TX) announced a schedule that seeks to move tax reform through the House before Thanksgiving. The Senate Finance Committee is also expected to release a companion version of tax reform soon. NAHMA will keep members up-to-date on tax reform and appropriations developments in the coming months.
Congress approves disaster aid bill, focus shifts to additional assistance
On Oct. 24th, the Senate approved a $36.5 billion disaster relief package, which previously cleared the House and which the President signed into law. The bill includes $18.7 billion for FEMA’s Disaster Relief Fund and $576.5 million to help with recovery efforts from wildfires in some Western states. The bill also includes $16 billion in relief for the debts for the National Flood Insurance Program. This is second disaster relief bill to help communities recover from Hurricanes Harvey, Irma, and Maria and from the wildfires out West.
However, more disaster funding will be needed and another round is likely to come in November. Senators from states impacted the most were not satisfied with the funding and are demanding more resources. The bill does not include the additional $18 billion requested by Senate Majority Whip John Cornyn, R-Texas, whose state was hit hard by Hurricane Harvey.
Senator Bill Nelson added, “We heard the senator from California making a plea about the wildfires. You’ve heard this Senator make the plea for Florida, Puerto Rico and the Virgin Islands. You’ve heard the Texas delegation make the pleas for Texas,” he said. “We all have to come together in this time of need to pass a robust and comprehensive aid bill, and we hope the White House will be true to its promise that the additional aid, particularly for agriculture, will be put in the November emergency supplemental.”
NAHMA anticipates the next round of disaster funding be heavily focused on rebuilding communities and will likely provide additional disaster recovery funds to HUD’s Community Development Block Grant, which can be used for housing assistance.
NAHMA members advocate for affordable housing on Capitol Hill
Following our Fall 2017 Meeting on “the State of Affordable Housing in America,” NAHMA members took their message to the Hill: Fully fund affordable housing programs, and preserve the Housing credit throughout tax reform.
With over 40 meetings held in the House and Senate over the course of three days, NAHMA’s Fall Hill visit tally rivals the 50 meetings held by members in March. Eleven of the nineteen regional AHMAs were represented on the Hill; a special thanks to the teams from Washington AHMA, NEAHMA, MAHMA, Idaho AHMA, and AHMA of East Texas for reaching the most congressional offices this month.
Help us keep up the momentum! To make your voice heard during the crucial tax reform and appropriations process, contact your in-district Congressional delegations to schedule a meeting or a property tour. For materials and talking points, visit our
grassroots advocacy page or contact the NAHMA
Government Affairs team. You can also help us keep track of advocacy efforts across the country by sharing your experience
here.
Want us to highlight your advocacy efforts on social media? Email us the top take-aways of your experience – and include a photo if you have one!
