Next Tuesday, July 29, the Senate Banking Committee will hold a markup of comprehensive bipartisan housing legislation, many components of which impact the Housing Credit.
The markup will include a proposal the AHTCC has endorsed in order to support robust investment in the Housing Credit: the Community Investment and Prosperity Act, introduced yesterday by Senate Banking Committee Chairman Tim Scott (R-SC), Senators Lisa Blunt Rochester (D-DE), Bernie Moreno (R-OH), and Andy Kim (D-NJ), would lift the cap limiting banks’ ability to invest in public welfare investments (such as affordable housing) from 15 to 20 percent. With a number of banks that invest in the Housing Credit hitting their 15 percent cap, this cap increase would allow them to significantly increase their affordable housing investments. The AHTCC has endorsed the proposal and this legislation. Senators Kevin Cramer (R-ND), Angela Alsobrooks (D-MD), Dave McCormick (R-PA) and Raphael Warnock (D-GA) also signed on as original cosponsors.
The bill also:
- Includes elements of the HOME investment Partnerships Reauthorization and Improvement Act, permanently authorizing the HOME Investment Partnerships program, providing additional flexibility for use of funds by participating jurisdictions, streamlining property inspection requirements, and expanding eligibility to include a broader range of nonprofit organizations and Community Land Trusts. Note that while the House advanced legislation that would have zeroed out the HOME program, yesterday the Senate passed legislation that would fully restore HOME funding to $1.25 billion. (See more on the Senate THUD appropriations bill below.)
- Would eliminate the Rental Assistance Demonstration (RAD) cap and makes the program permanent, in addition to making a number of changes.
- Includes provisions from the Housing Supply Frameworks Act (H.R.2840/S.1299), bipartisan legislation led by Reps. Flood (R-NE) and Pettersen (D-CO) in the House and Sens. Crapo (R-ID), Blunt Rochester (D-DE), Tillis (R-NC), and Fetterman (D-PA) in the Senate. The provisions would direct HUD to establish best practices and guidelines for states and localities with respect to zoning and land use policies and procedures to support the production of adequate housing for individuals at every income level.
- Allows the HUD Secretary to prioritize HUD grants in Opportunity Zones.
- Streamline National Enviornmental Policy Act (NEPA) reviews for review of small and infill housing projects.
- Makes several changes to support development in rural areas, including requiring USDA and HUD to work together to combine environmental reviews and inspections.
- Allows units that are financed through other federal housing programs to automatically satisfy voucher inspection requirements if inspected within the past year, and permit new landlords to request pre-inspections to increase access to housing for voucher holders and encourage landlord participation.
See the section-by-section summary here and legislative text here.
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