As efforts to reconcile two overwhelmingly bipartisan housing bills in the House and Senate proceed, some Washington housing policymakers have a bad case of the yips. It’s as understandable as it is debilitating. Just when we are so close to passing the first meaningful housing legislation in more than a decade, the ghosts of so many past failures loom large. More than ever, we need to focus on our objective and work together as a team to support each other and achieve victory.
Every player on the housing team has a role to play, and each of us is responsible for the energy we bring to the process. We can do this if we remain focused on the outcome we all share—enacting housing legislation that makes a difference. Like any team sport, belief is the foundation of victory. To quote my favorite coach, “I believe in hope. I believe in believe.” It’s not supposed to be easy. As Ted Lasso says, it’s a “lot like riding a horse. If you’re comfortable while you’re doing it, you’re probably doing it wrong.”
Getting this bill passed and enacted into law won’t solve the housing affordability crisis. Nothing will. But it will make a material difference and lay a foundation on which we can continue to build. To pass the bill, we must knit together two overlapping pieces of legislation, each of which passed with historic bipartisan margins in the House and the Senate.
“If we could get [Chairmen French Hill (R-La.) and Tim Scott (R-S.C.) and Ranking Members Elizabeth Warren (D-Mass.) and Maxine Waters (D-Calif.)] in the room, around a table, we could navigate these issues, and that’s what I’m an advocate for,” House Financial Services Housing and Insurance Subcommittee Chairman Mike Flood (R-Neb.) said at POLITICO’s Economy Summit last month.
There are many common features we all support, and a few in one bill that are not in the other that also have solid support. There are also provisions that are controversial and risk undercutting the broad coalition that has been built. There’s no good reason why these differences cannot be worked out.
Common features that unite both bills include 15 important housing bills:
- Reforms to housing counseling and financial literacy programs that clarify HUD’s authority to evaluate performance of housing counseling agencies and counselors, require additional training, and revoke certifications where necessary.
- The Community Investment and Prosperity Act, which raises the cap on bank public welfare investments, such as affordable housing and community development projects, from 15 percent to 20 percent.
- The Better Use of Intergovernmental and Local Development (BUILD) Housing Act, which simplifies compliance with the National Environmental Policy Act (NEPA) and expands HUD’s authority to delegate certain environmental review responsibilities to states, local governments, and tribes.
- Creation of a $200 million Innovation Fund that would support efforts by local governments and tribes to increase housing supply through streamlined permitting, density bonuses, zoning changes, and other innovations.
- The Housing Affordability Act, which would increase the statutory maximum loan limits for Federal Housing Administration (FHA) multifamily mortgages (though this provision needs technical correction to ensure it does what it is intended).
- The Housing Supply Expansion Act, which eliminates the permanent chassis requirement for manufactured homes, modernizing regulations that govern new manufactured housing construction.
- Reauthorization of the Preservation and Reinvestment for Community Enhancement (PRICE) grant program to fund the repair, preservation, and improvement of existing manufactured homes and manufactured home communities.
- A requirement that the Consumer Financial Protection Bureau (CFPB) evaluate the impact of current points and fees thresholds on small dollar mortgage lending and authorizes the agency to adjust these limits regulatorily to encourage more small dollar mortgage loans.
- The Helping More Families Save Act, which authorizes a demonstration project to improve the Family Self-Sufficiency (FSS) program.
- The Choice in Affordable Housing Act, which would make major improvements to the Housing Choice Voucher (HCV) program, allowing units financed through the Low-Income Housing Tax Credit (LIHTC), HOME Program, and Department of Agriculture Rural Housing Service (USDA-RHS) to automatically meet HCV inspections requirements, if they passed an inspection within the past year. It also allows new landlords to request advance inspections, helping to expand housing options for voucher holders and incentivizing greater landlord participation in the HCV program.
- The HOME Investment Partnerships Reauthorization and Reform Act, which would significantly improve the HOME program. This bill was written by Chairman Flood and Ranking Member Emanuel Cleaver II (D-Mo.), with support from NHC and many of our members.
- The Rural Housing Service (RHS) Reform Act, which improves RHS programs by decoupling rental assistance from maturing mortgages, permanently establishing the Housing Preservation and Revitalization program for multifamily rental housing, and authorizes technology improvements and increased staffing.
- The Veterans Affairs Loan Informed Disclosure (VALID) Act, which enhances FHA mortgage disclosures to help borrowers compare VA loan options alongside conventional and FHA loans.
- The Housing Unhoused Disabled Veterans Act, which excludes disability benefits received by veterans for the purpose of determining income eligibility for the HUD-VASH program.
- And other more technical legislation.
Even if only these bills were included in a final bill, the effort would be well worth it. However, there are other provisions that NHC supports and that have strong bipartisan support that would further improve a final package. These include, but are not limited to:
- The Reforming Disaster Recovery Act, which improves and permanently reauthorizes the CDBG-Disaster Relief Program.
- Begin addressing appraisal bias.
- Expansion of the Rental Assistance Demonstration (RAD) Program.
- Creation of a Whole-Home Repairs Pilot Program.
- And more…
As we have discussed before, there are provisions like the Build-to-Rent (BTR) restrictions that undercut consensus. The BTR language undercuts hard-won agreement on restrictions on the purchase of single-family homes by large institutional investors. Those who support this approach should consider setting it aside for now while addressing the concerns raised by so many stakeholders.
Let’s work together on the highest common denominator of agreement. This will build momentum for future housing legislation, and provide time to study more complicated and controversial proposals. Because if we pass this one, there will be another.
“Nothing succeeds like success,” and the path to success has a track record. Speaker Mike Johnson (R-La.) and Majority Leader Hakeem Jeffries (D-N.Y.) can appoint conferees to meet with Senators appointed by Majority Leader John Thune (R-S.D.) and Minority Leader Chuck Schumer (D-N.Y.), where both chambers can negotiate a final bill. Whatever they decide, the National Housing Conference will support 100 percent and urge all of our members to do the same.
As the above list demonstrates, all housing stakeholders have a vested interest in moving this legislation forward and seeing it signed into law. To accomplish this, we need to believe in ourselves, and the importance of winning together.