September 20, 2019

Congress considers short-term measure to prevent funding lapse

The House of Representatives this week approved a Continuing Resolution (CR), or stop-gap funding measure, that would continue fiscal year 2019 spending levels into November. The move would buy lawmakers more time to reach a funding deal as the current fiscal year expires on October 1, 2019. The CR passed the House by a vote of 301-123 and was supported by the leadership of both parties.

With time running out before the fiscal deadline, the Senate is expected to take-up the Continuing Resolution next week. While short-term funding is preferable to lapses in funding, NAHMA supports timely full-year funding bills that help provide certainty to our industry and to residents. NAHMA will keep members up-to-date and urge congressional advocacy for strong investments in affordable housing programs.

Senate advances funding bills with bipartisan support

This week, the Senate Appropriations Committee advanced fiscal year 2020 funding bills for both HUD and USDA. While other funding bills have stalled in Committee, contributing to the need for the stop-gap measure, the HUD and USDA appropriations processes remain non-controversial and bipartisan in nature. However, because the Senate bills were written after the recent budget deal allocations, the Senate Committees had lower numbers to work with than the House bills; the differences will need to be conferenced before Congress can enact full-year funding bills.

Senate Committee – HUD Appropriations for Fiscal Year 2020

The HUD bill includes sufficient funding for contract renewals and incorporates support for additional service coordinators, home modification grants to help the elderly age in place, and a pilot program for people recovering from substance abuse. During the Subcommittee mark-up of the bill, a motion to consider a reauthorizing amendment for Native American housing was narrowly defeated and the amendment was not incorporated into the bill.

The Senate version of the HUD funding bill also does not include language to block implementation of HUD’s recent “mixed-status” immigration verification rule, which was included in the previously-enacted House version. The Senate bill emphasizes the importance of Project-Based Contract Administrators (PBCAs) and expresses concern about reducing the scope of their work. The bill does not include the Administration’s proposed rent reforms or mandatory work requirements.

“This legislation will support job creation and economic development, allow us to make critical improvements to our infrastructure, provide housing assistance for low-income seniors and other vulnerable populations, and enhance oversight of the FAA’s aviation safety and aircraft certification programs,” said U.S. Senator Susan Collins (R-Maine), chairman of the Senate Transportation, Housing and Urban Development Appropriations Subcommittee.

Senate Committee – Rural Development Appropriations for Fiscal Year 2020

The Senate Appropriations Committee also unanimously advanced the FY 2020 Agriculture, Rural Development, Food and Drug Administration appropriations bill, which funds the Rural Housing Service. The bill maintains or slightly increases funding levels for key housing programs, including rural housing loans and rental assistance. The bill also provides incentives for rural housing preservation by allowing non-profit entities to earn a Return on Investment and by continuing the per-property $7,500 asset management fee.

NAHMA supports the funding levels for Rural Development, but we emphasize the rural maturing mortgage crisis and call for increased investment in the Multifamily Preservation and Revitalization (MPR) program, as well as funding for the development of new rural units.

USDA welcomes former REAC leader DJ LaVoy as Deputy Undersecretary for Rural Development

This week, U.S. Secretary of Agriculture Sonny Perdue administered the oath of office to swear in Donald “DJ” LaVoy to serve as the USDA Rural Development Deputy Undersecretary. Until this week, LaVoy headed HUD’s physical inspection team and spearheaded the recent changes to overhaul REAC. LaVoy, who was expected to address NAHMA’s membership at the October Meeting in his capacity at REAC, is succeeded by new REAC Deputy Assistance Secretary David Vargas.

“DJ LaVoy brings decades of leadership in economic development and affordable housing to this role and we are excited to welcome him to our USDA team,” Secretary Perdue said. “DJ has effectively led large-scale IT innovation, interagency relationships, and public-private partnerships to improve government customer service and the quality of life for Americans across the country.”

White House releases report on Nation’s Homelessness

This week, the White House Council of Economic Advisers (CEA)  released a report on homelessness in the U.S., titled “The State of Homelessness in America.” The report describes how homelessness varies across States and communities in the U.S.; analyzes major factors that drive this variation; discusses the shortcomings of previous Federal policies to reduce homeless populations; and describes how the Trump Administration is improving Federal efforts to reduce homelessness. The report has been met with pushback for perceived “political” analysis and recommendations, including targeting certain cities and using local law enforcement to combat homelessness.