Weekly update from the National Housing Conference

Dear Friend,

As the partial shutdown of the federal government continues to drag on, housers across the country are feeling its impact and consumers are increasingly concerned that this unprecedented crisis of governing could literally impact them where they live. While the National Housing Conference (NHC) is not aware of anyone who has lost their home as a result of the shutdown yet, anxiety is high and multifamily property managers and owners are under increasing pressure as their reserves shrink. If the shutdown continues into February, the situation will deteriorate due to non-payments to owners of federally subsidized properties, as was noted in a comprehensive legal analysis written by the National Housing Law Project (NHLP) staff. 

 

As part of our ongoing efforts to provide succinct and nonpartisan information to our members and the general public we have issued a new press release on the impact of the shutdown on residents of federally subsidized housing. I will also be appearing on WUSA’s Off Script at 7 p.m. EST to discuss how federal employees and contractors should prepare to deal with their February housing payment. WUSA is the CBS affiliate in Washington, D.C. and a great platform to begin informing those who have not been paid in January and are likely to miss their next paycheck on Friday how to communicate with the mortgage servicer or landlord, most of whom may not know they are federal workers. Our staff is also preparing detailed FAQs for federal workers and contractors on these issues with the help of several of our members. As this crisis continues, NHC is committed to being a practical resource for all those impacted.

 

As noted by the NHLP, “most residents should see little to no disruption in housing services at this time because rental assistance payments are expected to continue through February. HOWEVER, if the shutdown continues past the end of February, the situation dramatically deteriorates due to non-payments to almost all owners.” A recent article in the Huffington Post stated that “some renters in Arkansas are already facing eviction, thanks to the partial government shutdown.” The fact checking website Snopes.com quoted Representative Colling Peterson (D-Minn.), the ranking member of the House Agriculture Committee, which oversees the USDA, who said, “there is no way they can evict anybody.” That is true now, but not forever. In the meantime, fear and confusion – by landlords and tenants, serves no one. While Arkansas law allows for a three-day eviction notice, followed by removal without cause at the end of the lease term (in the case of month-to-month tenants, that would be Feb. 28), USDA regulations supersede state law according to the office of the Arkansas Attorney General. Last week, NHC contacted senior federal officials who intervened in these cases.

 

This tragic failure of government and governance can’t go on forever, but it is already significantly longer than any in history. As a nation, we are so much better than this. To whatever extent NHC can model an alternative to this zero sum game, we will continue to do so. 

 

Sincerely,

David M. Dworkin

President and CEO

National Housing Conference

Member Highlight

NHC member receives recognition for leadership in affordable housing

by Andrea Nesby

On Jan. 15, John O’Callaghan, president and CEO of NHC member the Atlanta Neighborhood Development Partnership (ANDP), Inc. was presented the Beverly Faull Affordable Housing Leadership Award by Down Payment Resource. The award, which is named after successful real estate veteran Beverly Faull, recognizes an individual who has demonstrated leadership in providing more access to homeownership and affordable housing finance solutions. O’Callaghan is the first recipient.

“It is an honor to receive an award in Beverly Faull’s memory. She was of a pioneer in the housing sector. Her commitment to homeownership leaves a legacy that will continue to touch countless families. We share her commitment to increasing homeownership and treasure the work of Down Payment Resource,” said O’Callaghan in a news release by Down Payment Resource.

O’Callaghan was previously recognized by NHC at our Annual Housing Visionary Awards Gala in 2015 for leading ANDP's role in the Piece by Piece Regional Foreclosure Response Initiative in Atlanta, Ga. This initiative coordinated strategies to reduce metro Atlanta's underwater rate to pre-Recession levels so that hard-hit neighborhoods could finally begin to recover and thrive. He currently co-chairs NHC’s Policy Committee.