On June 9, the Senate Committee on Banking, Housing, and Urban Affairs held a committee hearing on the oversight of housing regulators. The two witnesses at the hearing were Secretary Ben Carson of the Department of Housing and Urban Development (HUD) and Director Mark Calabria of the Federal Housing Finance Agency (FHFA).
Secretary Carson shared that HUD is working to meet all statutory requirements related to the distribution of CARES Act funds. Of the $12.4 billion that HUD received from the CARES Act, $9.1 billion has already been allocated. The remaining CDBG funds will be allocated by October 1st and the remaining ESG fund allocations were announced on the same day as the hearing. Regarding rent payments, Secretary Carson urged HUD-assisted renters to recertify their incomes with their local PHAs if they need lower rent payments due to COVID-19.
A few Senators expressed their opinion that Americans need expanded rental assistance and unemployment benefits. Secretary Carson did not comment on any plans for future housing-related COVID-19 funding, other than to express that HUD will closely monitor the situation.
This hearing was followed by a June 10 hearing held by the House Subcommittee on Housing, Community Development, and Insurance which featured four witnesses speaking about the impact COVID-19 will have on evictions and rental assistance.
Cashuana Hill, the Executive Director of the Louisiana Fair Housing Action Center, spoke of the role systemic racism plays in housing segregation, as well as the pandemic’s disproportionate impact on black and Latino workers. She called for rental assistance programs to consider equity concerns and reduce housing discrimination.
Mike Kringsella, the Executive Director of Up for Growth, claimed that the COVID-19 pandemic has exacerbated a pre-existing housing shortage of roughly 7.3 million units, and urged Congress to provide additional renter assistance.
Ann Oliva, a Visiting Senior Fellow from the Center on Budget and Policy Priorities, linked housing availability to public health and spoke of the importance a stable housing situation can play in helping people protect themselves from COVID-19.
Jennty Schuetz, a Fellow from the Brookings Institute, noted that the federal government plays a smaller role in rental housing regulation than in the mortgage market – rental housing oversight is instead left to states, resulting in a patchwork of regulations. She added that an eviction moratorium is not a long-term solution, as owed rent builds up over time and small-scale landlords forgo revenue.
The Subcommittee’s questions centered around possible funding mechanisms to disburse rental assistance, how to best promote racial equity in the disaster response, and how to help small landlords navigate loss of income and maintenance demand during the pandemic.
NAHRO continues to advocate for affordable housing funding and effective, community-based policy solutions. Learn about NAHRO’s 2020 Legislative and Regulatory Agenda and more about NAHRO advocacy at www.nahro.org/advocacy.