Federal Policy Project

Issues In Focus

• Low Income Housing Tax Credit
• National Housing Trust
• Housing Preservation
• 2011 Appropriations
• Section 8 Voucher Reform
• Climate Change
• PETRA

LOW INCOME HOUSING TAX CREDIT

4% Exchange:
We are sorry to report that it appears that the 4% Exchange is not going anywhere in this legislative session. It may be a victim of both the improving tax credit investor market and the industry's focus on getting the 5-year carryback instead, something that has yet to be achieved.

We thank Senator Cantwell for her tireless efforts in sponsoring S. 3326, the Job Creation and Housing Act of 2010, that would have which would have authorized the temporary exchange of 4% Tax Credits in addition to allowing a five-year carryback of Credits against prior year profits.

9% Exchange:
The extension of the 9% exchange is still expected to be passed but is far from a sure thing as its fate is tied to how the Senate resolves the impasse over $125 billion in tax extender provisions. The latest hope is that allies in the Senate will attempt to attach various tax extender provisions, including the 9% LIHTC exchange and $1.065 billion for the National Housing Trust Fund, to a Tax Extenders bill that may be put forth when the Senate returns from the August recess the second week in September. Any new tax bill that clears the Senate will also need to pass in the House. It is also possible that action on the 9% exchange will be delayed until after the elections, causing significant implementation challenges for state programs.

NATIONAL HOUSING TRUST

The National Housing Trust Fund was stripped out of the recently passed H.R. 4213, extending unemployment benefits and currently is not included as a provision in any bill that is certain to move to the floor before Congress adjourns in October. We hope that House and Senate leaders are successful in crafting a viable vehicle to carry the Trust Fund and that it is introduced and fast tracked through Congress as soon as the August recess is concluded.

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

HOUSING PRESERVATION

H.R. 4868 Housing Preservation and Tenant Protection Act of 2010

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 may pass by the end of the year so it is worth paying attention to this bill.

STATUS: Full Financial Services Committee mark up completed July 27, 2010.
• Click here to access a copy of the bill.

• Click here for a list of amendments.

• Click here to download our brief bill summary. 

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

H.R. 5814 Public Housing Reinvestment and Tenant Protection Act of 2010

This bill is a combination of the Choice Neighborhoods Initiative, a Public Housing Disposition bill that only appeared as a discussion draft, and the Together We care Act that reains public housing residents for in home care employment.

STATUS: Full Financial Services Committee mark up completed July 27, 2010.
• Click here to access a copy of the bill.
• Click here for a list of amendments.

2011 APPROPRIATIONS

HUD: H.R. 5850

Appropriations for the Department of Housing and Urban Development for October 1, 2010 through September 30, 2011. The House passed the FY 2011 Appropriations bill on July 20 and it remains for the Seante to consider. It is not likely that the Senate will take action in the two week session before they recess again in October, therefore, we expect to see discussion about a Continuing Resolution that will maintain 2010 spending levels for the immediate future.

• Click here to access a copy of H.R. 5850.

• Click here to download CHPC's HUD Appropriations Chart.

USDA (Rural Housing): S. 3606

STATUS: Full Senate Banking Committee report completed July 20, 2010, pending full Senate vote.

• Click here to access a copy of S. 3606.

SECTION 8 VOUCHER REFORM

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

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

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

 
CLEAN ENERGY

Housing advocates have been watching the climate change debate as it moves through this highly charged political phase. We had hoped that a portion of a comprehensive clean energy bill would include provisions to allow a portion of emission allowance revenues to improve energy efficiency in assisted housing. In late July, Senate Majority Leader Reid put off plans for anything but a very basic package of measures. The details are unclear at this point in time. We may see a broader bill in September but its passage is considered to be unlikely.

PETRA

The Preservation, Enhancement, and Transformation of Public Housing Act (PETRA) is HUD's long term solution to finance the preservation of our nation's supply of public housing. The provisions in PETRA are designed to provide a sustainable funding stream to address the public housing capital needs backlog, provide mobility to residents, and streamline HUD programs.

Listen to a recent event series on PETRA, “Preserving Public Housing: Issues and Options,” sponsored by The Center on Budget and Policy Priorities, Abt Associates Inc., and the Urban Institute.

July 13, Session I: Resident’s Rights and Participation:
Panelists:
• Rhae Parkes, Partner, EJP Consulting Group, LLC
• David Rammler, Staff Attorney and Director of Government Relations, National Housing Law Project
• Jennifer Turnham, Senior Associate, Social and Economic Policy, Abt Associates, Inc.
• Margery Austin Turner, Vice President for Research, The Urban Institute (moderator)
http://www.urban.org/events/public-housing-residents-rights.cfm

July 26, Session II: Housing Choice and Mobility:
Panelists:
• Mary Cunningham, Senior Research Associate, The Urban Institute
• Mary-Anne Morrison, Director, Bureau of Rental Assistance Programs, Massachusetts Department of Housing and Community Development
• Margery Austin Turner, Vice President for Research, The Urban Institute
• Douglas Rice, Senior Policy Analyst, Center on Budget and Policy Priorities (moderator)
http://www.urban.org/events/Housing-Choice-and-Tenant-Mobility.cfm

July 28, Session III: Financing Public Housing Option:
Panelists:
Stephen I. Holmquist, Attorney, Reno & Cavanaugh PLLC
Jill Khadduri, Ph.D., Principal Associate, Housing and Community Revitalization, Abt Associates, Inc.
Matt Schwartz, President and CEO, California Housing Partnership
Will Fischer, Senior Policy Analyst, Center on Budget and Policy Priorities (moderator)
Rolf Pendall, Director, Center on Metropolitan Housing and Communities, The Urban Institute (moderator)
http://www.urban.org/events/Financing-Public-Housing-Preservation.cfm

Visit the National Low Income Housing Coalition's comprehensive PETRA resources page.

Visit HUD's PETRA page.

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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