Federal Policy Project

What Are the Current Issues?

Federal Policy Project Priorities for 2010

With the outcome of the Massachusetts Senate election still being debated and the November mid-term elections looming, it is hard to tell what housing legislation, if any, Congress will have the will to pass this year. Nonetheless, it is important for Californians to continue to weigh in with our elected officials on our priorities.  Click here to download a copy of the Federal legislative issues we suggest you keep at the top of your lists. 

FY 2011 HUD Budget

On February 1, 2010, HUD Secretary Shawn Donovan released The President's HUD budget proposal for FY2011. On March 3, the House Financial Services Committee held a markup hearing to discuss the details of the formal Views and Estimates submission to the Budget Committee. This report summarizes committee priorities for use by the Budget Committee in setting funding caps for FY2011. The Senate Appropriations subcommittee is scheduled to hold its FY2011 hearing on the President's budget on March 11at 9:30 am. Secretary Donovan is scheduled to address the subcommittee.

• Click here to access a summary chart outlining President Obama’s proposal for housing programs.

Click here to download CHPC's Budget Summary

Link to Secretary Donovan's press release:
http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_
advisories/2010/HUDNo.10-026

Link to HUD Budget documents:
http://www.hud.gov/offices/cfo/reports/cforept.cfm

IMPORTANT FEDERAL AFFORDABLE HOUSING LEGISLATION

Low Income Housing Tax Credit

Recently we released a survey of California LIHTC developers showing that with improvements to the Low Income Housing Tax Credit (LIHTC) program such as the ones advocated by a national coalition (Rental Housing A.C.T.I.O.N), as many as 155 LIHTC developments could move forward this year providing more than 16,000 jobs and nearly 13,000 affordable homes in our state alone.  Today, Congresswoman Linda Sanchez, representing California’s 39th Congressional District, introduced H.R.4687, the LIHTC Exchange Expansion and Job Creation Act of 2010.  Now it is up to all of us who care about the production and preservation of homes affordable to low income households and the jobs that come with them to ask our Representatives to support this critical bill.  Click here to read a summary of the bill.

BACKGROUND: Despite the partial success of innovative measures in the American Recovery and Reinvestment Act (ARRA) in providing states with tools to enable some stalled Low Income Housing Tax Credits (LIHTC) transactions to move forward, the writing on the wall is now clear for all to see. The LIHTC investor market will not be back to normal in 2010 and additional measures must be taken by Congress to insure that the production and preservation of affordable rental homes continues. In this context, a new group called Rental Housing A.C.T.I.O.N. (A Call To Invest In Our Neighborhoods), representing broad spectrum of LIHTC industry leaders and nonprofit housing advocates, agreed in July to endorse a package of LIHTC measures. The package includes not only an extension of the 9% Tax Credit Exchange Program (TCEP) but also its expansion to include unusable 4% Credits, in addition to adding incentives to attract investor capital back into the LIHTC market. 

Next Steps for the Bill: Because this bill is intended to be part of Jobs legislation that Congress is already considering, this bill will not go through the traditional steps for approval as a stand-alone bill.  Instead, it will be up to the leaders of the key Congressional Committees (Ways and Means as well as Financial Services and Appropriations in the House, Finance as well as Banking and Appropriations in the Senate) to make the case to the leaders of each house that these provisions should be included in the next Jobs legislation package.

Call and email your Representative’s Washington and District Offices urging him/her to co-sponsor this bill. Click here to download a sample letter to your representative.  Make sure to copy Speaker Pelosi and  Senators Feinstein and Boxer who are critical to the outcome.  

MORE INFORMATION:
If you would like more information about the LIHTC Proposals, visit Rental Housing A.C.T.I.O.N or contact Matt Schwartz at CHPC

National Housing Trust Fund & Jobs for Main Street Act of 2010

There are various options for funding the National Housing Trust Fund. The one we are watching now is the American Workers, State, and Business Relief Act of 2010 that is the Senate version of HR 4213, the tax Extenders Act of 2009.

Next Step:
Part II of the National Housing Trust Fund rulemaking process will propose the requirements and procedures governing operation of the Housing Trust Fund. At this point in time, we do not know when HUD plans to release the requirements and procedures for public comment.

Background:
Establishment of the National Housing Trust Fund was enacted as a provision of the Housing and Economic Recovery Act of 2008, signed into law by President George W. Bush. Initially, low income housing advocates praised this event as a triumph for low income Americans and their families. The National Housing Trust Fund needs to be capitalized so that it can channel the funding directly to projects that create, preserve, and revitalize affordable rental homes for low income families, seniors, and disabled renters. Last week, President Obama and Secretaries Donovan and Geithner threw their support behind measures to improve housing and the housing market for Americans, including securing subsidy for the Housing Trust Fund. The announcement was not specific about the exact source of funding for the Trust but promised to “actively work with Congress to identify a specific offset to assure ($1 billion) of financing for the Fund.”

For information about the national Housing Trust Fund, go to: http://www.nhtf.org/template/page.cfm?id=40

H.R.3045: Section 8 Voucher Reform Act of 2009 (SEVRA)

• TITLE: To reform the housing choice voucher program under section 8 of the United States Housing Act of 1937

• STATUS: Approved by Committee on Financial Services 7/23. Pending House floor vote, expected the week of October 19, 2009.

• Advocacy Talking Points

• BILL TEXT: Click here to access a copy of the draft version.

H.R.3766/S.1731: TARP for Main Street

• TITLE: To use amounts made available under the Troubled Assets Relief Program of the Secretary of the Treasury for relief for homeowners and neighborhoods.

• STATUS: Pending committee markup.

• NLIHC Comparison of House & Senate versions
• Advocacy Talking Points

• BILL TEXT: Click here to access a copy of the bill text.

H.R.2454: American Clean Energy and Security Act of 2009

• TITLE: To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy.

• STATUS: Passed House, read in Senate 7/7.

• Advocacy Talking Points

• BILL TEXT: Click here to access a copy of the House bill text.

S.1733: Clean Energy Jobs and America Power Act

• TITLE: To create clean energy jobs, promote energy independence, reduce global warming pollution, and transition to a clean energy economy.

• STATUS: Introduced 9/20/09

• BILL TEXT: not yet available

Housing Preservation and Tenant Protection Act of 2009

• TITLE: To prevent the loss of affordable housing dwelling units in the United States.

• STATUS: Financial Services Committee hearing 7/15.

• BILL TEXT: Click here to access a copy of the draft version.

• SUMMARY: Click here to access a copy of the LISC Summary.

PENDING LEGISLATION FOR REFERENCE:

Public Housing Dispostion

• TITLE: To amend section 18 of the United States Housing Act of 1937 to revise the requirements relating to demolition and disposition of public housing, and for other purposes.

• STATUS: Pending introduction, expected after the August recess.

• BILL TEXT: Click here to access a copy of the draft version.

• FACT SHEET: Click here to access a legislative summary prepared by the National Housing Law Project

ECONOMIC RECOVERY
Acting with impressive speed, HUD announced the release of more than $10 billion of the $13.6 billion in affordable housing stimulus funds from the $787 billion American Recovery and Reinvestment Act of 2009 signed into law by President Obama.

The $10 billion includes:

• $2.25 in HOME Tax Credit Assistance Program Funds, of which California will receive $325 million (14.5% of the total) to assist Low Income Housing Tax Credit properties (9% and 4%) which have not been able to find adequate private investment.

• $3 billion in Public Housing Capital Funding, of which $118 million (3.95% of the total) will go to California Public Housing Authorities for immediate improvements to public housing.

• $1.5 million in Homeless Prevention Funds (through the Emergency Shelter Grant program), of which California will receive $189 million or 12.67%.

• $1 billion in CDBG Funds, of which California entitlement jurisdictions will receive $123 million (12.58%) to use for a variety of purposes including but not limited to investments in the creation and preservation of affordable homes.

• $2 billion for Renewing Section 8 Contracts to stabilize the renewal funding process and re-assure private owners of the federal governments continuing commitment to this program, which supports the operation of 130,000 affordable homes in California alone. 

• STIMULUS FUNDING FOR CALIFORNIA:

ARRA Weatherization Funding Announcement (pdf)

Tax Credit Assistance Program (HOME) Funds (pdf)

Public Housing Capitol Funding (pdf)

Homeless Prevention Activities Funds (pdf)

Community Development Block Grant Funds (pdf)

• RESOURCES TO TRACK THE SPENDING:

HUD information related to the American Recovery and Reinvestment Act of 2009 (Recovery Act)

White House Website for current information, data, and tracking information for the American Recovery and Reinvestment Act of 2009 (Recovery Act)

• TEXT OF ECONOMIC RECOVERY LEGISLATION: (as signed by President Obama on February 18, 2009)  

American Recovery & Reinvestment Act of 2009 (pdf)

How Do I Get Involved?

• Sign up for the FPP email newsletter, Federal Policy Project Update.
• Attend the next Federal Housing Policy Summit.

To learn more, contact CHPC Housing Policy Manager, Marilyn Wacks, at mwacks@chpc.net or 415-433-6804 x13.

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