Not much has changed on Capitol Hill since last week’s report except that the Senate is expected to begin debating a resolution authorizing the use of force in Iraq next week.
The legislative process is still stalled. Not one of the 13 individual appropriations bills has been sent to the President or signed into law.
On a positive note, the government is not going to shut down next week when the fiscal year ends on September 30. Both the House and Senate approved a “continuing resolution” which will fund the government at this year’s spending levels through October 4. The President is expected to sign this measure. After October 4, another temporary measure is likely to be debated. It does not appear that a decision has been made by Congressional leaders regarding how to fund the government in the long-term.
Even low income housing tax credit legislation is stalled. Senate Finance Committee Chairman Max Baucus has cancelled two “mark-ups” at which a small business tax relief bill would have been considered and amended. NAHMA joined with other industry groups in urging Committee members to use this bill as the vehicle to pass legislation to clarify the eligible basis in Low Income Housing Tax Credit deals (S 2006) and to allow states to use the higher of state or area median income in determining qualifying income and rent levels for tax credit properties ( S 677). Sen. Bob Graham was prepared to offer the text of S 2006 as an amendment to the tax bill. Likewise, Senators John Breaux and Orrin Hatch were expected to offer S 677 as an amendment.
While it is increasingly unlikely that major housing legislation will be passed by the time Congress adjourns for the year, the issue of resuming affordable multi-family housing production remains a hot topic. On Wednesday, the Senate Banking Subcommittee on Housing and Transportation held a hearing on “Affordable Housing Production and Working Families.” Two senators testified at this hearing. Senator Kit Bond discussed his new bill, the Affordable Housing Expansion Act (S 2967). See last week’s update for a summary of S 2967. Sen. John Edwards testified in support of his Rural Rental Housing Act ( S 652). Other witnesses included Boston’s Mayor Thomas Menino, Richard Godrey, Jr., Secretary of NCSHA, and William Picotte, President of the Housing Assistance Council. The prepared testimony of all the witnesses can be found on the Senate Banking Committee’s homepage at: https://banking.senate.gov/02_09hrg/092502/index.htm