Federal Policy Project

What Are the Current Issues?

NEWS UPDATE

Low Income Housing Tax Credit

WHAT IS NEW?

HOUSE:

House has just approved its version of the Jobs/Extenders bill (H.R. 4213) and while funding for the NHTF and an extension of the 9% LIHTC Exchange are included, the 4% LIHTC Exchange is not. We appreciate the House's inclusion of the funding for the NHTF and the inclusion of the 9% LIHTC, yet we still believe that the biggest source of jobs in our state and others will actually come from the passage of the 4% Exchange, which would enable the creation of thousands of jobs in California by making possible the renovation of thousands of older HUD-assisted buildings.

SENATE:

As of June 25, 2010, the Senate has failed three attempts to garner the full 60 votes, needed to pass H.R. 4213. We do not expect any further in the Senate on this bill until after the July 4 recess. At that time, we sincerely hope that any new versions will include the Low Income Housing Tax Credit and the National Housing Trust Fund provisions.

After several weeks of intensive efforts by California housing developers, Senator Feinstein's office told us late in May that she agreed to become a co-sponsor of Senator Cantwell's Job Creation and Housing Act of 2010 (S. 3326) making temporary improvements to the Low Income Housing Tax Credit (LIHTC) program. With Senator Feinstein joining Senator Boxer in support, there are now seven co-sponsors of Cantwell's bill, which would authorize the exchange of 4% Tax Credits in addition to allowing a five-year carryback of Credits against prior year profits.  (The 4% exchange provision was borrowed from a House bill sponsored by California Congresswoman Linda Sanchez in March, (H.R. 4687)  The key to obtaining Feinstein's support was providing specific examples of the number of and location of the housing jobs that would be created and we owe special thanks to the housing agencies that provided this information to us and to her staff in time to help her reach this decision.   

WHAT IS IN THE CANTWELL SENATE LIHTC BILL?

• Authorizes each state to allow LIHTC developers not only to exchange 4% Credits after demonstrating they have made a bona-fide effort to sell, but also to give back the allocation of private activity mortgage revenue bonds and to use taxable financing instead if they can demonstrate that the bonds can't be sold on reasonable terms or that replacing the bonds with taxable financing would likely lead to the creation of more affordable housing. Bond authority can be re-allocated to other residential projects but would not be eligible to trigger a new allocation of Credits.

• Allows for a five-year carryback of tax credits against prior year profits.

WHAT'S NEXT?

The reason the jobs information is so critical is that the most likely vehicle for the passage of these measures will be the Small Business Jobs Act of 2010 that is currently under consideration in the Senate and that has previously passed the House in the form of H.R. 4849 (Section 204).  There is no set timeline for the passage of this legislation in the Senate but the guessing is that it will happen in the next few weeks if it happens at all this year.  The fate of the Cantwell legislation and the 4% LIHTC Exchange Proposal will likely rest on the willingness of a Senator to offer an amendment with this language to the Small Business Jobs bill and that Senator's ability to attract broad support.  

At the same time, efforts continue to push House Ways and Means staff to improve the 4% LIHTC refund provision included in H.R. 4849 so that it is workable.  The leadership of the National Council of State Housing Agencies will be critical in this effort.     


WHAT YOU CAN DO

HOUSE:

We recommend making a direct request to the Speaker to say that if it is no longer possible to include the 4% LIHTC Exchange in the Jobs/Extenders Bill, then we urge her to push for its inclusion in H.R. 4849, where it currently exists in flawed form in Section 204, or any other Jobs/Housing vehicle that could move in the next few weeks.

SENATE:

1. Thank Senators Feinstein and Boxer for co-sponsoring Senator Cantwell's LIHTC Bill (S. 3326) and ask them to push Senate leaders to include it in the final Small Business Jobs Act of 2010.  Click here for a sample letter you can email or fax.  
2. Continue compiling lists of older low income rental properties you may own or have loans or investments in that could benefit from a rehabilitation paid for in large part by the 4% exchange.  Once you have this data, including a rough estimate of the rehab cost, please email it to us at mwacks@chpc.net so that we may incorporate it into a larger database that we will send to members of Congress.
 

WHERE ARE CALIFORNIA’S SENATORS ON THE LIHTC BILL?

Senator Boxer and Senator Feinstein are cosponsors of S. 3326. 

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.

Housing Preservation and Tenant Protection Act of 2009

On March 17, the House Committee on Financial Services Chairman Barney Frank introduced H.R. 4868, the Housing Preservation & Tenant Protection Act of 2010. Affordable housing advocates across the country have worked hard over the past three years to shape this bill. The chances of Congress approving this bill as written in an election year are slim to none.  However, there is a good chance that some of the provisions may be included in the HUD appropriations bill that Congress will likely pass by the end of the year so it is worth paying attention to this bill.

STATUS: Full Financial Services Committee mark up scheduled for July 27, 2010. Click here for Committee information.

Click here to download our brief bill summary.

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

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

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.

On July 1, 2010, the House Budget Committee filed a Budget Enforcement Resolution for FY 2011. The resolution takes the place of a fomal budget resolution and sets spending levels for the fiscal year. The resolution provides for lower budget levels than requested by the President. The next step in the budget/appropriations process is for the House Appropriations Committee to allocate the $1.121 trillion budget among the twelve subcommittees.

The THUD Appropriations bill is scheduled for markup in the THUD Appropriations Subcommittee on July 1, 2010.

• 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

Budget Primers:

Congressional Research Service Report: Appropriations (pdf)

CBPP Policy Basics: Introduction to the Federal Budget Process (pdf)

IMPORTANT FEDERAL AFFORDABLE HOUSING LEGISLATION

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. 5814: Public Housing Reinvestment and Tenant Protection Act of 2010
BACKGROUND: H.R. 5814 is comprised of portions from the Choice Neighborhoods Initiative, the Public Housing One-for-One Replacement and Tenant Protection Act, Maxine Waters’ original Public Housing Preservation and Rehabilitation Act, and the Together We Care Act.

TITLE: To transform neighborhoods of extreme poverty by revitalizing distressed housing, to reform public housing demolition and disposition rules to require one for one replacement and tenant protections, to provide public housing agencies with additional resources and flexibility to preserve public housing units, and to create a pilot program to train public housing residents to provide home-based health services.

STATUS: Full Financial Services Committee mark up scheduled for July 27, 2010.

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

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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