Tag: Affordable Housing

Senate Banking Committee Considers Legislation to Promote Affordable Housing; White House Hosts Housing Roundtable

Posted on by Trey Jackson

The Senate Banking, Housing, and Urban Affairs Committee on Thursday held a hearing, “Examining Bipartisan Bills to Promote Affordable Housing Access and Safety,” to discuss bipartisan legislation aimed at expanding access to affordable housing generally and improving safety conditions in federally-assisted housing specifically.

  • Among the bills considered at the hearing were:
    • the HUD Manufactured Housing Modernization Act (S.1804).  This bill would confirm for state and local recipients of funding from the Department of Housing and Urban Development (HUD) (such as Community Development Block Grants), that manufactured housing is eligible for public dollars for construction and repair; and
    • the Fostering Stable Housing Opportunities Act (H.R. 4300), which advanced unanimously by the House of Representatives’ Financial Services Committee in September.  This bill would authorize HUD to allocate Section 8 housing choice vouchers directly to any public housing agency that aims to assist youths aging out of foster care and at risk of losing their housing safety net.
  • Mark Yost (CEO, Skyline Champion Corp.) testified on behalf of the Manufactured Housing Institute (“MHI”) in support of S. 1804.  He stated that increased construction costs combined with labor shortages render manufactured housing a logical solution to help increase affordable housing options.  (Mark Yost Testimony)
  • The Roundtable advocates that safe, decent and affordable housing is essential to the well-being of America’s families, communities and businesses.  The Roundtable is developing a multi-faceted strategy and is assessing policies such as those that encourage:
    • State and local governments to adopt and implement Yes in My Backyard (“YIMBY”) land-use policies to entitle affordable housing projects, such as high-density zoning and expanding by-right multifamily zoned areas;
    • Development of low-income and workforce housing units as a priority when the U.S. government disposes under-utilized and surplus federal properties;
    • Construction of manufactured housing – the only form of housing regulated by a Federal building code that includes standards for health, safety, and energy efficiency – as a gateway that opens the door for homeownership for millions of families;
    • Increased support for HUD’s Section 8 voucher program to assist very low-income, elderly, and disabled Americans to afford housing in the private market; and
    • Modernizing the role of Fannie Mae and Freddie Mac through GSE reform, to focus their mission on providing liquidity in mortgage markets geared toward low-income and middle-class home ownership.
  • On November 1, Roundtable President and CEO, Jeffrey D. DeBoer, raised these priorities in a housing affordability summit at the White House with HUD Secretary Ben Carson and other industry leaders.  DeBoer’s comments followed on the heels of Secretary Carson’s remarks to The Roundtable several days prior at its 2019 Fall Meeting.  (Roundtable Weekly, November 1, 2019).    

The Roundtable will continue to work with our industry partners, the Administration, and Congress to implement a multifaceted strategy that addresses the nation’s housing affordability crisis.

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California Law Reflects National Affordable Housing Trend in Rent Regulations

Posted on by Trey Jackson

California lawmakers passed legislation (AB 1482) September 11 that imposes a statewide cap limiting annual rent increases to 5% after inflation – the latest measure from a growing list of jurisdictions seeking to address housing affordability though rent regulations.  California Governor Gavin Newsom (D) has said he will sign the bill. (New York Times, Sept. 11 and NMHC, Sept. 12)

  • In a state of nearly 40 million people, California’s rent control measure could affect an estimated 8 million residents of rental homes and apartments. (Realtor Magazine, Sept. 12).  The 5% rent increase cap would not apply to housing built within the last 15 years or to single-family homes that are not corporate-owned. 
  • National Multifamily Housing Council (NMHC) President Doug Bibby responded, “After Californians overwhelmingly rejected the rent control ballot initiative less than a year ago, lawmakers today went against their constituents by passing a measure that will discourage investment, shrink the availability of affordable housing that already exists and squeeze even more people struggling in the housing market. This makes the problem worse. The housing affordability crisis is real, real Americans are being harmed by it every day and we need real solutions – not restrictive policies that we know don’t work.” (NMHC news release, Sept. 12)
  • An interactive national map, above, by the NMHC details the trend in state capitals addressing rent control measures.   In New York, a rent control law signed by Governor Andrew Cuomo on June 14 directly impacts about 40 percent of New York City’s apartment stock; freezes “stabilized” NYC apartments from moving to market rental rates; and discourages owners from modernizing aging housing.  (Wall Street Journal, June 14 and Roundtable Weekly, June 21).
  • Meanwhile, candidates on the 2020 campaign trail are offering plans to address the nation’s affordable housing needs. (NPR, June 18)  
  • Affordable housing proposals in Congress include an expansion of the low-income housing tax credit program (e.g., S. 1703,  H.R. 3077), and a similar tax credit geared to moderate-income, workforce housing (S. 3365, 115th Cong.).

Housing and Urban Development Secretary Ben Carson recently offered a strategy to boost affordable housing by encouraging localities to ease their own building restrictions. (Politico, June 14).  Secretary Carson is scheduled to discuss housing policy issues with Roundtable members during the organization’s Fall Meeting on October 30 in Washington.

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SCOTUS: Federal Courts Now Open to Property Takings Claims Against Local Governments

Posted on by Trey Jackson

The Supreme Court of the United States (SCOTUS) issued a landmark property rights decision on June 21, ruling that the federal courts are open to decide landowners’ claims for a Fifth Amendment “taking” of property by local regulatory agencies. 

T he Supreme Court of the United States issued a landmark property rights decision on June 21, ruling that the federal courts are open to decide landowners’ claims for a Fifth Amendment “taking” of property by local regulatory agencies.
  • In Knick v. Township of Scott , the nation’s highest court  reversed a 1985 precedent that had forced property owners to first bring takings lawsuits in state courts, which acted as “gatekeepers” to block the claims from ultimately getting to federal court.
  • The 5-4 ruling in Knick holds that suits arising under the Takings Clause can be brought as an initial matter in U.S. trial courts, and then appealed as of right in U.S. circuit courts – just like any other alleged grievance to vindicate protections in the Constitution’s Bill of Rights.  Such matters are no longer relegated to state judges for resolution.  Federal courts are now proper venues to test the constitutionality of aggressive land-use decisions by local regulators, and can decide whether landowners are owed “just compensation” for a property taking.  (SCOTUSblog Opinion Analysis, June 22.) 
  • Chief Justice Roberts’s majority opinion corrected the litigation dilemma for property owners trapped between the state and federal judiciaries.  “The takings plaintiff thus finds himself in a Catch-22:  He cannot go to federal court without going to state court first; but if he goes to state court and loses, his claim will be barred in federal court,” Roberts wrote. “The federal claim dies aborning.”
  • Roberts added, “Takings claims against local governments should be handled the same as other claims under the Bill of Rights.  We now conclude that the state litigation requirement imposes an unjustifiable burden on takings plaintiffs, conflicts with the rest of our takings jurisprudence, and must be overruled.” 
  • In an amicus brief supporting the property owners, AARP advocated the “state court first” rule imposed “costly and needless litigation burdens” which “pose a threat to the economic security of older Americans of modest means especially, given their higher vulnerability to property tax foreclosure and lack of resources.”  (Forbes, June 22).     

The attorney representing the property owners before SCOTUS remarked that Knick “reject[s] barriers that unfairly deny property owners their day in court [and] sends a message that property rights are just as sacred as all other rights.”  (Pacific Legal Foundation, June 21.)