New Markets Tax Credits (NMTC) help localities build stronger neighborhoods by investing in housing, schools, and other vital projects that are targeted at helping low-income communities. Between 2003 and 2015, $42 billion in direct NMTC authority has generated almost $80 billion in capital for local businesses and revitalization projects. NMTC investment has resulted in the creation or retention of over 750,000 jobs, and the financing of over 178 million square feet (sq. ft.) of commercial real estate and almost 14,000 affordable housing units. NMTCs are a proven and effective tool for generating private-sector investments in communities in need. This is one in a series of articles that show how public housing authorities (PHAs) and community development agencies have successfully used federal tax credits and tax-exempt bonds to build and/or preserve public housing and affordable housing and to increase the sustainability of communities. Continue reading
Legislation
Tell Your Senators to Support LIHTC!
In 2015, supporters of the Low-Income Housing Tax Credit (LIHTC) achieved a major victory with the permanent authorization of the 9 percent LIHTC rate, but a 4 percent housing credit rate remains unauthorized. Senators Maria Cantwell (D-WA) and Orrin Hatch (R-UT) have introduced S.548, The Affordable Housing Credit Improvement Act, to permanently authorize the 4 percent rate and expand the program’s overall allocation authority by 50 percent, allowing more public housing agencies (PHAs) and local redevelopment authorities (LRAs) to access the credit.
Affordable housing stakeholders should take action today and support Sen. Cantwell and Sen. Hatch’s critical legislation by asking your senators to join the bill as co-sponsors and urging them to include this bill in any tax reform agreement that is reached. Help NAHRO achieve its goal of sending 2,500 letters to members of Congress in August. Continue reading
Senate Appropriations Approves Transportation, HUD Bill
In other news from the Senate yesterday, the Appropriations Committee voted unanimously to approve its FY 2018 Transportation, Housing and Urban Development (THUD) bill. The bill provides $60.058 billion in funding overall, $2.407 billion higher than current funding levels and $3.5 billion higher than the House. Considering the constraints of the FY 2018 budget cap, the increased THUD allocation is a huge win and allowed appropriators to avoid making the same types of cuts seen in the House THUD bill. The House Appropriations Committee approved its bill on July 17.
NAHRO will provide a detailed analysis of the bill next week.
The future of THUD in both the House and the Senate is unclear, though it is unlikely either chamber moves its THUD bill to the floor. Yesterday, the House approved a four-bill minibus package of spending bills, dubbed the “security-bus” because of its composition of defense and security-related bills. The House will likely adjourn for August recess this afternoon without passing any additional spending bills. The Senate, shifting its focus away from health care this morning, delayed August recess by two weeks to work on nominations and the debt ceiling. It may also choose to move appropriations bills to the floor during that time, assuming Majority Leader Mitch McConnell does not adjourn the Senate earlier than expected.
Housing and Community Development Highlights
- Rental Assistance Demonstration- cap eliminated, sunset date removed
- Public Housing Capital Fund- $1.945 billion, $4 million higher than FY 2017
- Jobs Plus- $15 million, level funded
- Public Housing Operating Fund- $4.5 billion, $100 million higher than FY 2017
- Choice Neighborhoods Initiative- $50 million, $87 less than FY 2017
- Section 8 Housing Assistance Payment Renewals- $19.37 billion, $1.015 billion more than FY 2017
- Administrative Fees- $1.725 billion, $75 million higher than FY 2017
- Ongoing Administrative Fees- $1.715 billion, $75 million higher than FY 2017
- Additional Administrative Fees- $10 million, level funded
- Family Self-Sufficiency- $75 million, level funded
- Section 8 Project-Based Rental Assistance- $11.507 billion, $691 million higher than FY 2017
- Community Development Block Grant- $3 billion, level funded
- HOME Investment Partnerships- $950 million, level funded
- Homeless Assistance Grants- $2.456 billion, $73 million higher than FY 2017
Suspension of HOME 24-Month Commitment Requirement
On June 2, HUD published a message on HUD Exchange addressing the FY 2017 Consolidated Appropriations Act’s (Public Law No. 115-31) suspension of the HOME Investment Partnerships Program (HOME) 24-month commitment requirement for deadlines occurring in 2016, 2017, 2018, and 2019. Due to this suspension, HUD will not be enforcing the program’s 24-month commitment requirement for deadlines occurring this year or in 2018 and 2019. For deadlines that occurred in 2016, HUD intends to return deobligated funds to participating jurisdictions (PJs). HUD further clarifies that this suspension does not apply to a PJ’s Community Housing Development Organization (CHDO) set-aside funds and does not apply to the 5-year expenditure deadline for FY 2014 and earlier grants. The recent HOME interim rule implementing grant-specific commitment requirements remains in effect, except HUD will not enforce the 24-month commitment deadlines discussed above. Additional HUD guidance on the effects of this suspension is forthcoming.
FY 2018 President’s Proposed Budget: Some HCV Thoughts
The following post is meant to offer a few thoughts on the treatment of the Housing Choice Voucher (HCV) Program in the FY 2018 President’s proposed budget. For a deeper analysis, please read NAHRO’s article, “FY 2018 President’s Budget Request: Section 8 Programs” (NAHRO members only). The proposed budget has the potential to affect the HCV Program in two important ways: by cutting funding and by making many policy changes.
Click on the link to read more.
FY 2018 Proposed Budget: Process and In-Depth Analysis
The Administration’s budget proposal, released on May 23, is the first step in a months-long journey. Now that the Administration has released its recommendations, this Direct News will provide in-depth coverage of how it would affect the Community Development, Section 8 and Public Housing programs administered by HUD.
The budget proposal requests cuts, which if implemented, would be devastating for communities. NAHRO strongly opposes the President’s budget proposal and will work to provide necessary and responsible funding for critical housing and community development programs. NAHRO will also fight for long-overdue program and regulatory reforms that can reduce costly administrative burdens.
Members should note that the President’s request is the beginning and not the end of the budget and appropriations process. The Administration’s budget request has over the years become a political document that reflects the fiscal goals and priorities of the Administration for the upcoming fiscal year. It does not carry the force of law. Congress, who controls the nation’s purse strings, can choose to accept the request wholesale, pick and choose parts of it, or reject it outright, which they frequently do. NAHRO will fight to ensure that work undertaken by our members to address critical housing needs for vulnerable families can be sustained.
NAHRO’s initial review can be found in The NAHRO Blog’s post, “President Officially Releases FY 18 Budget Proposal, Slashes Housing and CD Spending.” NAHRO members click on the links below to review the in-depth FY 2018 budget request analysis for Community Development, Section 8, and Public Housing:
Community Development (NAHRO Login Required)
Section 8 (NAHRO Login Required)
Public Housing (NAHRO Login Required)
President Signs FY 2017 HUD Spending Bill
After seven months and three continuing resolutions, Congress on Thursday finally approved, and the President on Friday signed, an omnibus spending bill of all 11 remaining appropriations bills, including Transportation, Housing and Urban Development.
The $1.07 trillion deal provides funding for federal departments and agencies until the end of the fiscal year on September 30, 2017. The bill contains level funding or a slight increase to most housing and community development programs, with few exceptions.
The bill was passed on a bipartisan basis easily in both the House and the Senate. On Wednesday, the House approved the bill by 309 to 118 and on Thursday the Senate approved it by 79-18, sending the omnibus to the President for his signature. President Trump signed the bill this afternoon.
The final passage of the omnibus ends more than seven months of delays in finalizing spending for the current fiscal year. Initially opting to postpone making final spending decisions until after the election, Congress approved a short-term spending bill that ran out in mid-December, with the intention of wrapping up work on the fiscal year during the lame duck. However, the then President-elect signaled to Congress that he would like to have input on spending in the current fiscal year, so legislators passed a short-term bill until April 28. Congressional leadership, close to wrapping up negotiations, signaled last week that they needed an additional week of time, requiring the passage of yet another week-long continuing resolution.
The path to a deal was bumpy, but far less rocky than it could have been. Controversial policy riders and requests from the President to fund a border wall with Mexico and an increase defense spending were omitted, likely delaying a larger battle for later in the year. Critically, the parity between defense and non-defense spending was also maintained, a huge victory in a difficult political environment.
NAHRO Acting CEO John Bohm called upon Congress to begin work immediately on a responsible 2018 federal spending bill and expressed concern regarding the year-over-year need to approve continuing resolutions. “Despite promises to return to regular order with regard to the appropriations process,” Bohm said, “NAHRO members continue to struggle to meet local needs given the uncertainties and delays inherent in the approval of continuing resolutions. With the 2018 fiscal year to begin in a mere four months (including the annual August recess) there is at this point every assurance that we will be operating under yet another CR come October. We can do better than this to help those in need.”
Below is a summary of the FY 2017 housing and community development funding levels. The NAHRO Policy Staff has conducted a detailed analysis of the Public Housing, Section 8 and Community Development provisions and funding levels. NAHRO Members can read each of these deep-dive analysis documents on the NAHRO website:
Housing and Community Development Funding Levels
- Public Housing Programs
- Public Housing Capital Fund – $1.9415 billion, $41.5 million higher than FY 2016
- Competitive Lead-Based Paint Grants – $25 million, new program
- ROSS – $35 million, level funding
- Emergency Capital Needs – $21.5 million, $500,000 less than FY 2016
- Jobs Plus – $15 million, level funding
- PH Financial Physical Assessment – $10 million, $7 million higher than FY 2016
- Public Housing Operating Fund – $4.4 billion, $100 million less than FY 2016
- Choice Neighborhoods Initiative – $137.5 million, $12.5 million higher than FY 2016
- Family Self-Sufficiency – $75 million, level funding
- RAD – expanded to 225,000 units
- Public Housing Capital Fund – $1.9415 billion, $41.5 million higher than FY 2016
- Section 8 Programs
- Tenant-Based Rental Assistance – $20.292 billion
- Section 8 Housing Assistance Payment Renewals – $18.355 billion, $663 million higher than FY 2016
- Ongoing Administrative Fees – $1.64 billion, level funding
- Section 8 Project-Based Rental Assistance – $10.816 billion, $196 million higher than FY 2016
- Tenant-Based Rental Assistance – $20.292 billion
- Community Development Programs
- Community Development Block Grant – $3 billion, level funding
- HOME Investment Partnerships – $950 million, level funding
- Housing Opportunities for Persons with AIDS – $356 million, $21 million higher than FY 2016
- Homeless Assistance Grants – $2.383 billion, $133 million higher than FY 2016
Updated HAP Proration for FY 2017 Budget
NAHRO received word from HUD that its latest Housing Assistance Payment (HAP) proration forecast for the Housing Choice Voucher (HCV) Program FY 2017 budget is 97.277 percent. This number has been entered into HUD’s forecasting tool as the default proration for FY 2017. NAHRO was previously reporting a HAP proration of 97.5 percent for the FY 2017 budget.
[5/5/17 1:37 pm ET edit – We have learned from HUD that their current estimate of the administrative fee proration for the FY 2017 budget is 75.7 percent. NAHRO has been reporting a 75 percent proration.]
NAHRO members can find a more detailed analysis of the budget here.
FY2017 Omnibus Spending Bill Agreement
On Monday, May 1st, an agreed to fiscal year 2017 omnibus appropriations bill was released. The spending deal would fund the Federal government through September 30, 2017. This omnibus must still be voted on in the House and Senate and then be signed by the President but there is optimism and agreement among the parties involved.
The omnibus provides the Department of Housing and Urban Development (HUD) with $38.8 billion for fiscal year 2017, which is a 1 percent increase over fiscal year 2016 levels. Below is a brief breakdown of a few of the HUD program areas. The NAHRO Policy Team will continue to analyze the omnibus and will provide a deep dive analysis once the omnibus becomes law.
Public Housing (PH)
The omnibus funds the PH Operating Fund at $4.4 billion, which is $100 million less than fiscal year 2016.
The PH Capital Fund is funded at $1.9415 billion, an increase of $41.5 million from fiscal year 2016. This capital funding includes set-asides of $35 million for Resident Opportunities and Self-Sufficiency (ROSS), $25 million for new Competitive Lead-Based Paint Hazard Grants, $21.5 million for Emergency Capital Needs, $15 million for Jobs Plus Pilot, and $10 million for PH Financial and Physical Assessment Activities.
Section 8
Tenant-Based Rental Assistance is funded in the omnibus at $20.292 billion, which is an increase of $663 million more than fiscal year 2016. This amount includes set-asides for Section 8 Housing Assistance Payment Renewals funded at $18.355 billion, Ongoing Administrative Fees at $1.640 billion, Special and Ongoing Administrative Fees at $10 million, Tenant Protection Vouchers at $110 million, and new Incremental Vouchers at $57 million. The Mobility Demonstration program is not funded in the FY2017 omnibus appropriation bill.
Community Development
The Community Development Block Grant (CDBG) and the HOME Investments Partnerships Program (HOME) have flat funding at $3 billion and $950 million respectively.
The Housing Opportunities for Persons with AIDS (HOPWA) is funded at $356 million, an increase of $21 million from FY2016 and the Homeless Assistance Grants are funded at $2.383 billion, an increase of $133 million over FY2016 levels.
Other Rental and Service Programs
The Family Self-Sufficiency (FSS) program is funded at the same level as FY2016, $75 million.
Section 8 Project-Based Rental Assistance increased $196 million from FY 2016 levels to $10.816 billion.
The Rental Assistance Demonstration (RAD) program did not receive any additional funding but the cap on the number of units eligible for the program was increased from 185,000 to 225,000 and the RAD program was extended from 2018 to 2020.
The Neighborhood Reinvestment Corporation (NeighborWorks) was funded at $140 million with $5 million to be used for a multi-family rental housing program.
The United States Interagency Council on Homelessness is funded at $3.6 million and is extended to October 1, 2018.
Certain HOTMA Voucher Provisions Become Effective Today
Today, April 18, 2017, some of The Housing Opportunity Through Modernization Act of 2016‘s (HOTMA’s) voucher provisions take effect.[1] Here is a list of the HOTMA provisions–and a very brief summary of each provision–that you can use, as of today.[2] [3] Implementing some of these provisions may require changes to your administrative plan or HUD notification.
- HOTMA: Implementation of Various Section 8 Provisions (Effective Date: April 18, 2017);
- Inspections of Dwelling Units;
- Occupancy Prior to Meeting HQS – PHAs may approve a unit and commence HAP, even if the unit fails a HQS inspection (with only non-life-threatening HQS deficiencies);
- Alternative Initial Inspections – PHAs may authorize occupancy of a unit before a PHA’s HQS inspection, if in the previous 2 years, the unit passed a LIHTC, HOME, or other qualified alternative inspection;
- Units Owned by a PHA;
- Units Owned by a PHA – a unit is owned by a PHA if it is (1) owned by a PHA; (2) owned by an entity wholly controlled by the PHA; or (3) owned by a LLC or limited partnership in which the PHA holds a controlling interest in the managing member or general partner; and the PHA has a ownership interest in the building itself;
- Project-based Vouchers (PBVs);
- PBV General Cap;
- The PBV general cap of 20 percent may be calculated by unit allocation or funding allocation;
- The PBV general cap limit is increased by an additional 10 percent for units serving homeless families; families with veterans; supportive housing for the elderly or people with disabilities; or in areas where vouchers are hard to use;
- Certain other projects are excluded from this cap;
- PBV Income-Mixing Cap;
- The income-mixing cap is now the greater of 25 units in a project or 25 percent of the units in a project;
- Certain other projects are exempted from this cap;
- Contract Terms – PBV contracts may now extend to 20 years and be extended for an additional 20 years;
- Selection Preferences – PHAs may establish a selection preference for families who qualify for voluntary services offered in conjunction with assisted units, provided that the preference is consistent with the PHA plan;
- Attaching Assistance – PHAs may attach assistance to structures in which the PHA has an ownership interest without following a competitive process; Ownership interest is more loosely defined than “units owned by a PHA” for the purposes of this provision;
- HUD-VASH and FUP Vouchers – PHAs may project-base HUD-VASH and FUP vouchers;
- PBV General Cap;
- Vouchers in Manufactured Housing;
- Manufactured Home Owner Rent Definition Expanded – the definition of rent for PHAs making voucher assistance available to manufactured home owners has been expanded; The definition of rent now includes, among other things, monthly payments made by a household to amortize the cost of purchasing the manufactured home.
- Inspections of Dwelling Units;
Additionally, you may want to read our previous post on HOTMA’s self-implementing provisions.
The NAHRO Blog: Legislative & Policy Updates from Washington, DC 