House Passes $1.75 Trillion Build Back Better Plan

House Takes Steps Toward Historic Housing Investments

The largest single housing investment in American history took a monumental step forward this morning, passing the House by a narrow 220-213 margin. The Build Back Better Act now moves to the Senate for further consideration. 

NAHRO led the fight to fully fund the Public Housing Capital Fund backlog at $70 billion, strongly championed the expansion of the Low-Income Housing Tax Credit, and ardently supports the increase in Housing Choice Vouchers and Project-Based Rental Assistance contracts.  

NAHRO members – thank you for raising your voices in support of affordable housing! The more than 50,000 letters you sent to Congress and the White House this year, maintained the spotlight on housing as infrastructure and made sure the critical housing provisions remained in the Build Back Better bill. But the fight isn’t over yet! Be ready to speak out after Thanksgiving to preserve housing in the bill as it moves to the Senate.  

The vote was originally scheduled for Thursday night, but an extended floor speech by Minority Leader Kevin McCarthy (R-CA) delayed the final vote. Build Back Better passed along party lines, with a single Democrat opposing.  

The path forward is not clear in the Senate, as several Democratic Senators have issues with several provisions. Negotiations are expected to heat up after Thanksgiving, aiming for a final vote in the Senate by Christmas. Though there is widespread support for the housing provisions in Build Back Better, it is possible that changes to the bill could put the housing investments at risk. If the bill is approved by the Senate, it is likely to go back to the House for another vote. 

NAHRO member advocacy will be needed to ensure these critical housing resources remain in the Build Back Better bill as it is debated in the Senate. NAHRO will be reaching out to you through future Direct News emails and also follow NAHRO on social media (TwitterInstagramFacebookLinkedin) for the latest information. 

The bill currently proposes the largest one-time investment in housing and community development programs ever, including: 

  • $65 billion for Public Housing investments 
  • $24 billion for Housing Choice Vouchers 
  • Expanded Low-Income Housing Tax Credits 
  • $15 billion for the National Housing Trust Fund 
  • $10 billion for the HOME Investment Partnerships Program 
  • $3 billion for Community Development Block Grants 
  • $1 billion for Project-Based Rental Assistance 
  • $450 million for Section 811 Supportive Housing for People with Disabilities 
  • $450 million for Section 202 Supportive Housing for the Elderly 

Want more information? Check out NAHRO’s detailed breakdown of the bill’s housing provisions

Voucher Investments in the Build Back Better Framework

The Build Back Better framework, which was released yesterday, included $24 billion in housing choice vouchers and $1 billion in project-based rental assistance. Here’s some additional information on what specifically is included in the Section 8 components of the framework.

Housing Choice Vouchers

New Vouchers – The latest Build Back Better framework includes $15 billion for new vouchers for extremely low-income families (30% of area median income). This amount includes costs for renewals and the costs of administrative fees. Administrative fees may be used for “other eligible expenses,” which may include the cost of facilitating the use of vouchers.

Vouchers for Households Experiencing Homelessness, Survivors of Domestic Violence, and Certain Other Survivors – The framework provides $7.1 billion for new vouchers for people experiencing or at risk of homelessness, survivors of domestic violence, dating violence, sexual assault, stalking, and survivors of trafficking. The amount includes costs for renewals and the costs of administrative fees. Administrative fees may be used for “other eligible expenses,” which may include the cost of facilitating the use of vouchers.

Homelessness Waiver Authority – In administering vouchers targeted for homelessness, survivors of domestic violence, dating violence, sexual assault, and stalking, and survivors of trafficking, HUD may waive or specify alternative requirements for the following: preferences in the selection of families; documentation of citizenship, ineligibility for drug crimes, drug users, alcohol abusers, and other criminal offenders, and regulatory provisions related to verification of eligibility, eligibility requirements, and admissions process; lease lengths and regulatory provisions related to the initial lease term; residency requirements; and the regulatory provisions related to the establishment of payment standards.

Tenant Protection Vouchers – The framework provides $1 billion for tenant protection vouchers (TPVs) for relocation and replacement of public housing units that are demolished or disposed as part of a public housing repositioning transaction made available in this framework. The cost also includes renewals of these TPVs and administrative fees. Administrative fees may be used for “other eligible expenses,” which may include the cost of facilitating the use of vouchers.

Mobility-related Services – The framework allocates $300 million for competitive grants for PHAs for mobility-related services for voucher families, including families with children, and service coordination.

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US Supreme Court Overturns CDC Eviction Moratorium

On Thursday, August 26, the United States Supreme Court vacated the stay that has allowed the current CDC eviction moratorium to continue. The order vacating the stay and dissent arguing to keep the stay can be found here. It confirms lower court decisions that the CDC did not have statutory authority to impose a nationwide eviction moratorium and states, “If a federally imposed eviction moratorium is to continue, Congress must specifically authorize it. The application to vacate stay presented to THE CHIEF JUSTICE and by him referred to the Court is granted.”

The Court order placed considerable responsibility on Congress to act on a federal eviction moratorium, “It is up to Congress, not the CDC, to decide whether the public interest merits further action here. And Congress was on notice that a further extension would almost surely require new legislation, yet it failed to act in the several weeks leading up to the moratorium’s expiration.”

NAHRO continues to meet and work with HUD to develop solutions that will provide housing authorities the flexibility to minimize local evictions and will provide additional information when it becomes available. NAHRO encourages housing authorities, landlords, and tenants to work together to avoid COVID related evictions and to review HUD’s Eviction Prevention and Stability Toolkit for information and best practices. A White House Fact Sheet has also been released that provides additional actions that are being taken to prevent eviction and increase access to emergency rental assistance funds.

CDC Extends Modified Eviction Moratorium

On August 3, 2021, Dr. Rochelle Walensky, Director of the Centers for Disease Control and Prevention (CDC), signed an order halting evictions between August 3, 2021 and October 3, 2021 in areas rapidly increasing COVID cases. The order is very similar to the previous CDC eviction moratorium that was in place from September 4, 2020 through July 31, 2021 as definitions of “covered persons” and “eviction” remain the same. Additionally tenants that have already signed a Declaration Form do not need to sign a new one and new declaration must be accepted in applicable areas.

The major change is where the August 3rd eviction moratorium applies, “This Order applies in U.S. counties experiencing substantial and high levels of community transmission levels of SARS-CoV-2 [COVID] as defined by the CDC, as of August 3, 2021.” During comments at the White House today, President Biden said that the new CDC eviction moratorium would cover about 90% of renters. On CDC COVID Data Tracker, the community transmission rate for individual counties can be found. The new eviction order allows for the applicable counties to change. The order will apply to counties that enter substantial or high community transmission levels after August 3, 2021, on the date the county enters substantial or high level. Counties that are no longer experiencing high or substantial levels of community transmission for 14 consecutive days will no longer have the order apply to them unless they again experience substantial or high levels of community transmissions while the order is in effect.

NAHRO supports the CDC putting in place a modified eviction moratorium until October 3 which will allow for continued and additional emergency rental assistance program (ERAP) funds to reach eligible tenants and landlords. NAHRO encourages the Administration, Congress, ERAP grantees, landlords, and tenants to work together to simplify and streamline the distribution of ERAP funds to eligible tenants and landlords so the eviction moratorium is not needed after October 3, 2021. NAHRO also encourages the Treasury Department and ERAP grantees to engage HUD and the thousands of local Public Housing Authorities to maximize the outreach and communication to eligible landlords and tenants.

Eviction Moratorium to Expire Saturday; NAHRO Urges Extension

Despite efforts from House Democratic leaders to extend the federal eviction moratorium, which expires Saturday, July 31, no vote was issued to extend the order as of Friday afternoon. Earlier this week, House Speaker Nancy Pelosi (D-Calif.) publicly advocated for the Biden administration to act unilaterally to protect renters at risk of eviction due to the ongoing coronavirus pandemic.

About 11 months ago, the Centers for Disease Control and Prevention (CDC) enacted the federal eviction moratorium to prevent the spread of the deadly virus among families and individuals that could be at high risk if made homeless through eviction. The public health measure has been extended on several instances, with the last extension made in June. The moratorium offered uniform protections to renters across the nation.

With the COVID-19 delta variant surging across the nation, now is not the time to put vulnerable families at risk by ending the eviction moratorium. NAHRO calls on Congress and the Administration to extend the moratorium through at least the end of September 2021.

Whether or not the eviction moratorium expires, NAHRO’s housing agency members remain committed to using every available resource to keep as many people in their homes as possible. Nationwide, NAHRO members continue to work with their residents and with local and national partners to provide support and aid – especially to those who have been most impacted by the pandemic. We are continually looking for new and better ways to help.

The Emergency Rental Assistance Program is a vital and cost-effective tool to help people stay in their homes. As Treasury, HUD, and state and local entities work to distribute these much-needed funds as quickly as possible, we also look forward to the passage of a robust FY 2022 HUD budget and additional housing resources that will further help to provide the safety and stability of a home to all who need it.

NAHRO Interim CEO Mike Gerber statement on extending the eviction moratorium and quickly distributing Emergency Rental Assistance Program funds.

As more information is released on the status of the eviction moratorium, NAHRO will continue to provide updates.

Join Us!! NAHRO Summer Symposium is Tomorrow!

Please join National Association of Housing and Redevelopment Officials (NAHRO) for our 2021 Summer Symposium on universal vouchers and expansion of the housing voucher program tomorrow, July 13, 2021. There is no cost to attend the NAHRO Summer Symposium! Register at https://www.nahro.org/events/summer-symposium/registration/.

The NAHRO Summer Symposium is a day-long event on the present and future of the Housing Choice Voucher program. The event will bring thought leaders from across the country along with housing industry professional together to discuss the expansion of the housing voucher program. There is no registration fee to attend the Summer Symposium. Anyone interested can register at https://www.nahro.org/events/summer-symposium/registration/ for the July 13, 2021 NAHRO Summer Symposium.

White House Summit on Eviction Prevention Best Practices

At a White House summit on eviction prevention, researchers and experts in the field shared resources and best practices from around the country.

After outlining documented long-term health and economic impacts of evictions, Matthew Desmond, director of the Eviction Lab at Princeton, focused on the problems present in eviction courts. Since so few municipalities guarantee families facing an eviction the right to counsel, many families simply don’t show up because they don’t think they can win. Labeling eviction courts those without “justice or fairness,” Desmond called for advocates to focus three alternate approaches:

  1. Advocacy – including the right to counsel, with either a lawyer or a caseworker
  2. Assistance – wraparound social services
  3. Alternative Processes – eviction diversion  

Desmond urged advocates to focus as much as possible on early stage interventions, because a third of families move between notice and filing, court records can follow families and make it harder to move into a good home, and because families can still end up moving or being harmed by court proceedings without an official eviction. Associate Attorney General Vanita Gupta also recommended that state courts consider issuing orders requiring landlords to apply for emergency rental assistance before filing, and alerting litigants about availability of rental assistance.  

To help stand up new eviction diversion programs that include these three pieces, the National Center for State Courts has developed an eviction diversion program that offers models, resources, and technical assistance here. Multiple administration officials repeated in today’s summit that Treasury made it clear that the $350 billion from the American Rescue Plan can be used for court-supported eviction diversion programs.

Best Practices

Experts from the field then shared their knowledge about how to make these programs work in practice. Rasheedah Phillips, Managing Attorney of Community Legal Services of Philadelphia, and Michigan Supreme Court Justice Bridget Mary McCormack both recommended that diversion programs need a right to counsel or other tenant representation. Philadelphia passed a right to counsel law in 2019, and uses trained mediators, housing counselors, and legal representation depending on tenant need. However, Michigan has only included a right to counsel in its emergency diversion program for COVID, and it has made a significant difference in both application rates and successful cases. Prior to this program, only 4% of tenants in Detroit had representation in eviction cases.

Philadelphia has also recently passed the Renters Access Act, which prohibits landlords from rejecting potential tenants solely because of evictions or low credit scores, prohibits rejections based on failure to pay rent or utility bills during the pandemic, and requires landlords to inform potential tenants why they were rejected.

From the landlord perspective, Gilbert Winn of WinnCompanies, which houses over 45,000 tenants in more than 15 states, spoke about the program his company launched to prevent evictions, which WinnCompanies believes can serve as a blueprint for other landlords going forward. This included:

  • Long-term, sustainable payment agreements to have backpay addressed
  • Pre-court checklist before any staff can file for eviction
  • Incentives to property staff and property legal counsel to lower eviction filings

With zero evictions in the last 15 months with all 15,000 participating families, the program has been extremely successful, and WinnCompanies intends to use it into the post-pandemic period.

More resources on eviction prevention can be found here.

Senate Hearing on Bipartisan Bills to Increase Access to Housing

On Thursday June 24th, the Senate Committee on Banking, Housing, and Urban Affairs held a full committee hearing, “Examining Bipartisan Bills to Increase Access to Housing,” to consider the following legislation:

Witnesses included Lisa Mensah, CEO of the Opportunity Finance Network, and Nan Roman, CEO and President of the National Alliance to End Homelessness, who both testified about the need to rehabilitate existing housing and build more housing in order to address the current crisis in affordable housing and homelessness. American Enterprise Institute witness Howard Husock argued against expanding Housing Choice Vouchers without making sure that emergency rental assistance was being disbursed more efficiently. Mr. Husock also testified in favor of the Moving to Work approach to voucher rental contracts for new tenants that use flat rent for a fixed-period, independent of tenant income, so that tenants can avoid an income cliff and put any additional income into an escrow account.

In his questions, ranking member Sen. Pat Toomey (R-PA) was very interested in this MTW model and the possibility that the current model might discourage increased work, following up on his opening statement criticizing elevated unemployment benefits. Both Sen. Sherrod Brown (D-OH) and Sen. Chris Van Hollen (D-MD) asked about bills that would collect more data on different aspects of the housing crisis, and ways that agencies could collaborate on high-needs populations, including work to prevent evictions and services for vouchers to high-opportunity areas. Sen. Tina Smith (D-MN) and Sen. Cortez Masto (D-NV) both asked questions in support of the Native American Homeownership Act. Sen. Tim Scott (R-SC) argued that none of the bills under discussion addressed the current address “the failed state of our housing finance system,” focusing on the lack of diversity and competition in the mortgage market. To make credit more available for mortgages, Sen. Scott argued that the committee also needed to look for serious, bipartisan approaches to comprehensive mortgage finance reform.

Sen. Elizabeth Warren (D-MA) asked about the overall disrepair in the nation’s housing stock, the $70 billion backlog in repairs in public housing, and the estimated 10,000 units of public housing lost per year as a result of these deferred costs. She reiterated her belief that housing is infrastructure, and the importance of making public housing safe for families who are there now. Commenting on the current infrastructure talks, she argued that the current state of housing puts families at risk and that Congress must go further than the President has proposed in order to meet the needs of families.

HUD Briefing Gives New Details on American Jobs Plan

Secretary Fudge and HUD Senior Advisors led a briefing on Monday June 21st to update housing advocates on details of the American Jobs Plan (AJP), and urge continued support across advocacy networks. In the briefing, she called the AJP a “once in a lifetime opportunity” to address decades of disinvestment in moderate and low-income housing, and its $40 billion Capital Fund investment “the biggest down payment we will make,” while simultaneously acknowledging that the $40 billion did not go far enough. The HUD team emphasized the importance of redeveloping and preserving public housing units to the administration’s dual goals of racial equity and reducing the environmental footprint of public housing.

HUD Senior Advisor Peggy Bailey also gave a more detailed breakdown of the proposed $40 billion for the Capital Fund:  

$27 billion: Major Rehabilitation, Modernization, and Redevelopment

  • Leveraging capital through Capital Fund, mixed finance, and RAD
  • Build new units up to Faircloth
  • Includes RAD rent boost ($1 billion),  tenant-protection vouchers ($500 million), expanding the scale of Choice Neighborhoods ($2 billion)

$13 billion: Immediate Health/Safety Needs and Environmental Impact of Public Housing

  • $6 billion to Public Housing Authorities with public housing for immediate needs and renovations – capital grants by formula
  • $7 billion for health, safety, and climate needs – competitive grants
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NAHRO and Industry Partners Release Joint Statement Supporting Universal Housing Vouchers

On June 17, 2021, NAHRO along with its industry partners—CLPHA, PHADA, and the MTW Collaborative—jointly issued a statement on universal housing vouchers. Only one in five low-income households that are eligible to receive housing assistance can be served by existing programs due to limited funding. The statement discusses the need for additional rental assistance to address housing instability and prevent homelessness. The statement also discusses the strengths of the voucher program in providing scalable assistance that is proven and effective.

The full statement is can be view here.