Federal Housing Policy Update

From the National Housing Conference:

Update from Capitol Hill

Senate Approves Transportation-HUD Spending Bill
On Wednesday, September 12, the Senate approved its FY 2008 Transportation, HUD and Related Agencies Appropriations Bill. Approved by a 88-7 vote, the Senate accepted a $104.6 billion measure that will now go to conference with the House bill, which provides $104.4 billion in funding.

In the spending bill, HUD is funded at $38.7 billion, $2.1 billion over the FY 2007 enacted spending level and $3.1 billion above the President’s request. Due to the bill’s level of spending, it is unclear whether the President will veto the measure. According to some reports, it is also possible that the spending may ultimately be folded into an omnibus measure.

During debate on the bill, a number of amendments were also offered, including a manager’s package of amendments that involved housing-related items. Among them was an amendment that would set aside $100 million for HUD educational grants to help individuals with subprime loans avoid foreclosure. The amendment would also require HUD to create a listing of foreclosure mitigation centers.

Details of the Senate-passed bill include:

--$2.5 billion for the Public Housing Capital fund. This amount is $61 million above the FY 2007 enacted funding level and $200 million above the President’s request.
--$4.2 billion for the Public Housing Operating fund. This amount is $336 million above the FY 2007 enacted funding and $200 million above the President’s request.
--$16.6 billion for Section 8 Tenant Based Vouchers. This amount is $679 million above the FY 2007 enacted funding level and $599 million above the President’s request.
--$5.8 billion for Section 8 Project Based Assistance. This amount is $163 million below the FY 2007 enacted funding level and is equal to the President’s request;
--$3.7 billion for CDBG. This amount is $3 million under the FY 2007 enacted funding level and $733 million more than the President’s request;
--$1.97 billion for the HOME (Home Investment Partnership Program). This amount is $237 million more than the FY 2007 enacted funding level and 3 million above the President’s request:
--$100 million for HOPE VI. This amount is $1 million above the FY 2007 enacted funding level and rejects the President’s request to eliminate the program;
--$735 million for the Section 202 elderly housing program. This amount is equal to the FY 2007 enacted funding level and is $160 million above the President’s request; and
--$237 million for the Section 811 disabled housing. This amount is equal to the FY 2007 enacted funding level and is $112 million above the President’s request.

Section 202 Bill Mark Up Scheduled in House Committee
On September 18, the House Financial Services Committee will mark up the Section 202 Supportive Housing for the Elderly Act of 2007, legislation to amend section 202 of the Housing Act of 1959 to improve project rental assistance for supportive housing for the elderly.

Among the improvements to the bill include, changing the authority of the Secretary of HUD from discretionary to mandatory to adjust the annual amount of a contract for project rental assistance to provide for reasonable project costs; directing the Secretary to delegate review and processing of selected capital advance projects to a state or local housing agency meeting specified criteria and amending the American Homeownership and Economic Opportunity Act of 2000 to revise requirements governing: (1) prepayment of debt for project-based rental housing assistance programs; (2) use of unexpended amounts; and (3) use of project residual receipts.

The markup is scheduled for 10:00 a.m. in room 2128 of the Rayburn Building.

Housing and Homelessness Bills Scheduled for Markup in the Senate
On September 19, the Senate Banking, Housing and Urban Affairs Committee will mark up the The Federal Housing Administration Modernization Act of 2007 along with the Community Partnership to End Homelessness Act (S. 1518), legislation that reauthorizes the McKinney-Vento Homeless Assistance Act of 1987 by providing more flexibility to McKinney-Vento.

Markup of both bills is scheduled for 10:00 a.m. in room 538 of the Dirksen Senate Building.

Hearing on Economic Impact of Subprime Market Scheduled
On September 19, the Joint Economic Committee will hold a hearing on the threat of the subprime lending market to the broader economy. Witnesses at the hearing include Peter Orszag, Director of the Congressional Budget Office; Martin Eakes, CEO of the Center for Responsible Lending and Alex J. Pollock, Resident Fellow at the American Enterprise Institute.

The hearing is scheduled for 9:30 a.m. in room 216 of the Hart Senate Building.

Mortgage Foreclosures Hearing Scheduled
On September 20, The House Financial Services Committee will hold a hearing titled, “Legislative and Regulator Options for Minimizing and Mitigating Foreclosures.” Witnesses at the hearing will include HUD Secretary Alphonso Jackson, Treasury Secretary Henry Paulson and Federal Reserve System Chairman Ben Bernanke.

The hearing is scheduled for 10:00 a.m. in room 2128 of the Rayburn Building.

HOPE VI Bill Reintroduced in the House
On September 11, Representative Maxine Waters (D-CA) along with Representatives Steve Cohen (D-TN), Barney Frank (D-MA), Christopher Shays (R-CT) and Mel Watt (D-NC) introduced the HOPE VI Improvement and Reauthorization Act of 2007 (H.R. 3524). A replacement bill for the July 23 introduced-HOPE VI measure (H.R. 3126), the bill reauthorizes the HOPE VI program through FY 2015 for $800 million annually.

Among the modifications to the bill from its previous version are the requirements that all units must be: demolished or removed by the date of the application; rebuilt by acquisition, development or contracting with project-based vouchers; and built on the site of the original public housing or within the agency’s jurisdiction.

The measure has been referred to the Referred to the House Committee on Financial Services

Bill to Raise GSE Loan Limits Introduced in the Senate
On September 10, Senator Charles Schumer (D-NY) introduced the Protecting Access to Safe Mortgages Act, legislation that will temporarily raise the conforming loan limits in high cost areas and the portfolio caps of Fannie Mae and Freddie Mae in an effort to provide the necessary financing to curb foreclosures. The bill (S. 2036) would raise the portfolio cap by 10% so the GSEs could purchase $145 billion in new mortgages and increase the GSE conforming loan limit from $417,000 to $625,000 in high-cost areas.

The measure has been referred to the Committee on Banking, Housing, and Urban Affairs.

NHC Legislative Watch
***UPDATE*** Senator Hillary Clinton reintroduced the Housing America's Workforce Act (HAWA) (S. 1078) in the Senate on April 10.  Representative Nydia Velazquez reintroduced the House bill (H.R.1850) on March 29.