Congress Votes to Avoid Government Shutdown
The Senate on Thursday passed a short-term funding bill that will temporarily allow the government to remain funded at the current spending levels through December 16, 2022. The House is expected to pass the bill today, giving Congressional leaders and negotiators more time to work out a larger agreement over how to fund the government for fiscal year 2023 (FY23). The short-term funding bill passed by the Senate contained several housing related provisions, including:
- Extending the Mark-to-Market program for the duration of the short term funding bill.
- Ensuring HUD can continue to process loans to fully meet the demand for critically needed affordable housing.
- Providing $2 billion through Community Development Block Grant Disaster Relief to help address unmet recovery needs in communities experiencing major disasters in calendar years 2021 and 2022.
- Addressing interest reduction payments program, the bill authorizes HUD to transfer existing balances from the Project Based Rental Assistance account to the Rental Housing Assistance Account.
- Providing funding for housing and supportive services for homeless, low-income veterans and their families.
Acknowledging the need for Congress to pass a full year funding bill, Chairman of the Senate Appropriations Committee, Senator Patrick Leahy (D-VT), made the following statement: “As Chairman, I remain committed to completing the work of the Appropriations Committee before the end of this Congress. Kicking the can further down the road will only delay funding for programs the American people rely on while costing them more in the long run. Congress can and should do its job and complete the appropriations process before the end of the year. I look forward to working with Vice Chairman Shelby, Chair DeLauro and Ranking Member Granger to get this done.” Looking forward, Democrats and Republicans continue to remain sharply divided on the top-line funding levels for government agencies for FY23, with both chambers not scheduled to return to the Capitol until after the November elections.
To view a section-by-section summary, click here. To view the full bill text, click here.
FHFA Release Report on Low-Income Housing and Community Development Lending
The Federal Housing Finance Agency (FHFA) released its annual report, Low-Income Housing and Community Development Activities of the Federal Home Loan Banks (FHLBanks). The report highlights the FHLBanks’ activities and performance in 2021 through the Affordable Housing Program, the Community Investment Program, and the Community Investment Cash Advance Program. The report also covers Community Development Financial Institution (CDFI) membership in the FHLBank System, the FHLBanks’ affordable housing goals, and their purchases of Acquired Member Assets. The FHLBanks provide loans and grants to their members or housing associates under these programs and these funds are then used to assist very low-, low-, and moderate-income households and communities. “The Federal Home Loan Banks provided more than $2.7 billion in 2021 for targeted economic development and housing advances,” said FHFA Director Sandra L. Thompson. “As FHFA begins its comprehensive review of the Federal Home Loan Bank System, we recognize its long-term importance in providing liquidity in the housing finance market and funding for community investment projects.”
Key takeaways of the report include:
- The FHLBanks awarded approximately $352.4 million in total contributions to the Affordable Housing Program in 2021, which assisted more than 32,000 low- and moderate-income households, more than 17,000 of which were very low-income households.
- The FHLBanks funded approximately $1.7 billion in targeted housing and economic development advances through the Community investment Program in 2021. These housing advances assisted approximately 8,000 households in 2021.
- In 2021, targeted economic development advances from the Community Investment Cash Advance Program were approximately $1 billion.
- Ten FHLBanks purchased Acquired Member Assets mortgages in 2021, and each met the mortgage purchase and community-based user goals.
The FHLBanks also support the financing of low-income housing and community development through other activities, including advances to their non-depository CDFI members. CDFIs assist underserved communities by promoting economic investment and affordable housing opportunities and providing community development financial services and other banking services.
To view the full report, click here.