Tag: HUD – Housing and Urban Development agency

Government Shutdown Stalemate Deepens, Raising CRE Concerns

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The federal government remains shut down for a second week as partisan gridlock over spending and health care continues in Washington. (Punchbowl News Oct. 15, 17 | Roll Call Oct. 14)

State of Play

  • Republicans and Democrats remain deadlocked, with no signs of progress toward reopening the government. The Senate on Thursday failed for the 10th time to advance a short-term funding bill passed by the House since the shutdown began Oct. 1. (NPR, Oct. 16)
  • In a 51–44 vote, senators again rejected a GOP-led continuing resolution (CR) that would have funded the government through Nov. 21. (CNBC, Oct. 15)
  • Democrats continue to insist that any funding measure must include an extension of enhanced Affordable Care Act (ACA) subsidies that are set to expire at the end of the year.
  • GOP leaders also remain at a standstill until the government reopens—Speaker Mike Johnson (R-LA) refusing to recall the House without a funding deal, and Senate Majority Leader John Thune (R-SD) said discussions on health care tax credits can begin only after the shutdown ends. (NPR, Oct. 9 | PoliticoPro, Oct. 6)
  • The Trump administration’s plan to lay off more than 10,000 federal employees during the shutdown has been temporarily blocked after a judge ruled the firings likely exceeded executive authority. (Roll Call, Oct. 15 | Bloomberg, Oct. 16)

Path Forward

  • As the shutdown enters its third week, lawmakers are weighing several potential exit paths, including a short-term CR, a handful of Democrats could defect to advance the GOP bill, a Trump–Schumer compromise, or a bipartisan “dual-vote” plan led by Sen. Jeanne Shaheen (D-NH) to reopen the government and extend ACA subsidies for one year. (Punchbowl News, Oct. 16 | Bloomberg, Oct. 14)
  • The White House appears prepared for a prolonged shutdown, redirecting funds to sustain key programs and betting that public pressure will eventually force Democrats to adjust strategy. (Punchbowl News, Oct. 16)
  • Lawmakers on both sides warn the economic fallout will deepen if the impasse stretches into November, threatening programs vital to housing, infrastructure, and financial markets.

CRE Impact

  • Economy: Each week the government remains shut down is projected to cost the U.S. economy roughly $7 billion, according to EY-Parthenon Chief Economist Gregory Daco. (BisNow, Oct. 12)
  • GDP: U.S. gross domestic product could fall by 15 to 20 basis points for each week the shutdown persists, according to Marcus & Millichap, which noted that the immediate impact on CRE remains limited for now. (Marcus & Millichap)
  • Housing: The U.S. Department of Housing and Urban Development (HUD) reportedly has confirmed federal funding for rental voucher assistance is available through the end of 2025, consistent with HUD’s contingency plan for certain programs to continue operations during the shutdown. (NAHRO, Oct. 16 | Roundtable Weekly, July 25)
  • Energy: EPA’s Portfolio Manager building energy benchmarking tool remains up and running. However, the agency’s website explains that ENERGY STAR resources “will not be updated regularly” during the lapse in appropriations and “many services may not be available.”
  • NFIP: The lapse of the National Flood Insurance Program (NFIP) continues to delay property closings and financing in flood-prone regions. While existing claims can still be paid, new policies and renewals cannot be issued, complicating sales and dampening confidence in affected markets. (Roundtable Weekly, Oct. 10)
  • Sen. John Kennedy (R-LA) is urging GOP leaders to hold a stand-alone vote to reopen the NFIP. Speaker Johnson and Majority Leader Steve Scalise (R-LA) have resisted, saying the program will be reauthorized once the government reopens. (PoliticoPro, Oct. 16)
  • RER supports a long-term, sustainable NFIP reauthorization to avoid recurring market disruptions. (Roundtable Weekly, Sept. 19)

RER continues to urge Congress to act responsibly to reopen the government and restore critical housing, insurance, and economic programs essential to real estate investment and growth.

Senate Passes Bipartisan ROAD to Housing Act

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The U.S. Senate passed the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025 (S. 2651) on Oct. 9, as part of its version of the National Defense Authorization Act (NDAA)—marking the first bipartisan, comprehensive housing package advanced in more than a decade. (MultiFamily Dive, Oct. 15)

ROAD to Housing Act

  • Introduced by Senate Banking Committee Chair Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA), the bipartisan bill passed the committee 24–0 in July before its inclusion in the NDAA. (CRE Daily, Oct. 14)
  • The legislation builds on years of bipartisan committee work, stakeholder engagement, and multiple hearings. It focuses on streamlining regulations, incentivizing construction, modernizing housing finance and disaster-recovery programs, and supporting vulnerable populations such as veterans and the homeless. (HousingWire, Oct. 10)
  • The bill incentivizes states and cities to boost housing supply by cutting red tape, streamlining federal inspections, and eliminating duplicative regulations. (The Hill, July 29)
  • Key pillars of the bill focus on expanding and preserving supply, improving affordability and access, enhancing accountability and fiscal responsibility, and strengthening oversight of federal housing programs. (Press Release, Oct. 9 | Roundtable Weekly, Aug. 1)
  • The legislation contains more than 40 provisions contributed by every committee member and reflects a coordinated effort to modernize housing policy at the federal level. (Politico, July 29 )
  • Sen. Warren said, “This landmark legislation—the first of its kind in more than a decade—takes important steps to boost the nation’s housing supply, improve housing affordability, and increase oversight and efficiency of federal regulators and housing programs. I look forward to working with my colleagues in the House to get the bill to the President’s desk.” (Press Release, Oct. 9)

What’s Next

  • The bill now heads to the House of Representatives for consideration before going to the President’s desk to be signed into law.

Roundtable on the Road

  • This week, RER President and CEO Jeffrey D. DeBoer was a featured speaker at NYU Stern’s Chen Institute National Apartment Finance & Investment Summit, where he was interviewed by Gregg Gerken (Former Head of Commercial Real Estate and Executive Vice President, TD Bank) on national policy outlook, housing affordability, housing finance reform and agency privatization, and capital availability.
  • “Safe, affordable housing is essential to strong communities and a healthy economy,” said DeBoer. “The nation’s chronic underbuilding has created an affordability crisis that demands coordinated action. The ROAD to Housing Act that recently passed reflects the kind of public-private collaboration needed to address the housing shortage by aligning federal incentives with local action to unlock private capital, expand supply, and strengthen communities nationwide.”

RER will continue engaging with policymakers and industry leaders to promote bipartisan solutions and regulatory reforms that expand housing supply, improve affordability, and strengthen economic stability.

HUD Innovative Housing Showcase Highlights Affordability and Need for Reform

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Housing affordability remained a central issue in Washington this week, with congressional hearings, a special Housing Showcase event, fireside chats, and the introduction of new housing legislation all contributing to the increasing momentum for reform.

HUD Innovative Housing Showcase Highlights Market Solutions

  • This week also marked the return of the Department of Housing and Urban Development’s (HUD) Innovative Housing Showcase on the National Mall in Washington, D.C., which ran from Sept. 6-10.

  • The event featured model homes, manufactured and 3D-printed structures, and new building technologies aimed at reducing construction costs, expanding supply, boosting efficiency, and spotlighting public-private partnerships. (HousingWire, Sept. 5)

  • Coinciding with the event, Rep. Mike Flood (R-NE), chairman of the House Financial Services Subcommittee on Housing and Insurance, and Rep. Emanuel Cleaver (D-MO) introduced the Streamlining Manufactured Housing Standards Act. (HousingWire, Sept. 10)

  • The bipartisan bill seeks to remove regulatory uncertainty, preserve affordability, and promote manufactured housing as a scalable solution to the nation’s housing shortage.

Fireside Chat with Chairman Scott and Secretary Turner

  • On Sept. 9, as part of the Housing Showcase, Senate Banking Committee Chairman Tim Scott (R-SC) joined HUD Secretary Scott Turner for a fireside chat to discuss housing priorities and the Renewing Opportunity in the American Dream (ROAD) to Housing Act. (Press release)

  • Sec. Turner underscored the importance of working in coordination with the private sector. “Public-private partnerships are key to overcoming the housing issue we have in our country,” said Sec. Turner. “We want to do the best job we can from a HUD standpoint to work with our private-sector partners to bring about solutions for the American people.” (Watch Discussion)

  • Meanwhile, Sen. Scott highlighted the ROAD to Housing Act as proof that Republicans and Democrats can come together on housing policy. “It started off as my bill, but it became our bill… We got every member on the left and every member on the right to have a piece of the pie.”

  • The ROAD to Housing Act was unanimously approved by the Senate Banking Committee in July, and now awaits a vote in the Senate.

Industry Urges Cost-Effective Energy Policies at Hearing on Housing

  • On Wednesday, the House Energy and Commerce Subcommittee on Energy held a hearing titled “Building the American Dream: Examining Affordability, Choice, and Security in Appliance and Buildings Policies,” to assess the impact of federal energy regulations on housing costs. (Watch hearing)

  • National Association of Home Builders (NAHB) Chairman Buddy Hughes testified that restrictions on energy choice, appliance standards, and mandates on energy codes are making new homes less affordable for most buyers.
  • “Our members are on the front lines of an affordability crisis. Seventy-five percent of households can’t afford a median-priced new home, and half the renters in this country spend over 30 percent of their income on housing costs. New Washington mandates will only make this crisis worse,” said Hughes. (NAHB Testimony)

Looking Ahead

  • The Federal Reserve will decide next week whether to reduce interest rates, which could bring much-awaited relief from elevated home borrowing costs. (Realtor.com, Sept. 11)
  • Meanwhile, reports suggest that President Trump may declare a national housing emergency this fall. Treasury Secretary Scott Bessent confirmed that “everything is on the table.” (Fox News, Sept. 10 | Realtor.com, Sept. 10)

RER will continue to engage with policymakers and industry leaders to promote bipartisan legislation and regulatory reforms that expand the housing supply and improve affordability.

Roundtable CEO Discusses Measures to Boost Housing Supply at Capitol Hill Summit

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Congress returned from recess this week with housing affordability at the forefront, as lawmakers, industry leaders, and advocates launched new legislation, coalition efforts, and regulatory proposals aimed at expanding supply and lowering barriers to residential development.

Summit on Housing Affordability

  • The National Summit on the Housing Affordability Crisis convened Sept. 3 on Capitol Hill and featured House Democratic Leader Hakeem Jeffries (D-NY), Sen. Ruben Gallego (D-AZ), and other lawmakers calling for bold action to expand and improve the affordability of housing nationwide. Rep. Jimmy Gomez (D-CA) hosted the summit. (Watch Panel)
  • RER President & CEO Jeffrey DeBoer joined Rep. Gomez, Emily Cadik (Affordable Housing Tax Credit Coalition), and Will Fischer (Center on Budget and Policy Priorities) on the summit’s opening panel “Making the Housing Puzzle Work.” (Watch DeBoer’s Remarks, Sept. 3)
  • DeBoer commented, “Housing affordability is at its core a supply problem—and supply is constrained by costs, labor, and capital. We need policies that continue to expand the Low-Income Housing Tax Credit, advance the bipartisan Revitalizing Downtowns and Main Streets Act to encourage the conversion of obsolete buildings, and ensure we have the skilled workforce to build. That’s why it’s so important to bring together lawmakers and stakeholders from every sector, because housing is an essential facet of American life, and solving this crisis requires public and private partners working together to expand supply, modernize rules, and deliver homes—both owned and rental single-family and multifamily—that meet the needs of Americans.”
  • Rep. Gomez highlighted the RER-backed Revitalizing Downtowns and Main Streets Act, which would create a federal tax credit to convert underutilized and obsolete commercial properties into affordable housing.
  • Rep. Gomez framed the affordability crisis as a test of confidence in U.S. institutions, saying America “needs a housing boom” prioritizing fairness and accessibility. (Rep. Gomez Press Release, Sept. 4)

Bipartisan Housing Legislation

  • On Sept. 2, RER joined more than 20 real estate and housing groups in a Housing Affordability Coalition letter to Congress urging action on several bipartisan bills, including the HOME Investment Partnerships Reauthorization and Improvement Act, the Workforce Housing Tax Credit Act, and more. (Letter, Sept. 2)
  • The letter emphasized that housing affordability requires public–private partnerships and the removal of regulatory barriers.
  • Rep. Mike Flood (R-NE), chair of the Housing and Insurance Subcommittee, said he aims for an October markup of a bipartisan HOME program reauthorization with Ranking Member Emanuel Cleaver (D-MO). (PoliticoPro, Sept. 3)
  • Their plan would expand uses of HOME funds, reduce regulatory burdens associated with Davis-Bacon, NEPA, and Buy America compliance, and speed affordable housing development.
  • The House agenda complements the Senate’s ROAD to Housing Act, advanced in July, and includes veteran housing and land-use reform bills. (Roundtable Weekly, Aug. 1)
  • Earlier this week, Treasury Secretary Scott Bessent said the Trump administration is weighing whether to declare a national housing emergency this fall, citing zoning and building codes as barriers to new supply. (Bloomberg, Sept. 1)

Coalition Seeks Flexibility on Davis-Bacon

  • On Sept. 3, RER and a group of multifamily trade associations sent a comment letter to HUD Secretary Scott Turner urging the use of Project Labor Agreements (PLAs) to determine prevailing wages on HUD projects. (Letter, Sept. 3)
  • The letter states that PLAs would provide more accurate, local, and timely wage determinations than the Department of Labor’s (DOL) survey method, which often delays projects and raises costs.  
  • The coalition said voluntary PLAs could reduce administrative burdens, speed delivery of HUD-backed housing, and serve as a test case for future Davis-Bacon reforms.

What’s Next

With Congress back in session, housing advocates are pressing for quick action on bipartisan bills and regulatory reforms. RER will continue to push for policies that expand supply, modernize outdated rules, and foster partnerships to address the nation’s affordability crisis.

Senate Advances FY’26 Spending Bills Preserving Key Transportation, Housing and EPA Programs

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The Senate Appropriations Committee on Thursday advanced bills to fund rental assistance, transit-oriented development loans, ENERGY STAR, and other key programs important to real estate, for the federal fiscal year that starts Oct. 1. The measures come as congressional leaders rush to complete appropriations work ahead of the Sept. 30 funding deadline to avoid a government shutdown.

HUD Programs        

  • The full Senate Appropriations committee passed the “T-HUD” bill to fund the Departments of Transportation and Housing and Urban Development, on a strong bipartisan vote (27-1). (Senate Press Release, July 24) (PoliticoPro, July 24)
  • The bill allocates $73.3 billion overall to HUD—maintaining or increasing funding for rental assistance, homelessness services, and economic development. (Bill Summary | Text )
  • Project-based rental assistance would receive $17.8 billion, a roughly $900 million increase above FY25 enacted levels. This funding provides a full renewal of housing contracts serving about 1.2 million households.
  • Tenant-based rental assistance would receive $33.9 billion to renew Section 8 vouchers. (THUD bill report, p. 115) The Senate’s funding levels contrast with the Trump Administration’s May 2 proposal to significantly cut both tenant- and project-based assistance.
  • The Community Development Block Grant (CDBG) program would receive $3.1 billion, with $1.2 billion allocated for the HOME Investment Partnership program.
  • Last week, the House Appropriations Committee passed its version of T-HUD funding (Bill Text | Summary). The full House of Representatives has yet to vote on it. (Roundtable Weekly, July 18)

DOT Programs

  • The U.S. Department of Transportation (DOT) would receive $26.5 billion under the Senate T-HUD bill. (Senate press release, July 24).
  • This includes a modest increase (over current FY levels) for the Build America Bureau (BAB), which oversees the TIFIA/RRIF federal loan programs. These programs can provide favorable, long-term, low-interest federal loans for transit-oriented developments, including housing and property conversions near mass transit. (FAQs)
  • The funding bill’s underlying report (p. 22) explains that DOT and HUD shall establish a “task force” to improve the TIFIA/RRIF loan process, with a report due back to the House and Senate on ideas for removing “administrative and statutory barriers” to access financing.

EPA – ENERGY STAR

  • The Senate’s bill text specifies $36 million next fiscal year, for the popular ENERGY STAR program, recognizing leadership in energy-efficient buildings, homes, and products.
  • The underlying report language for the Senate bill states that the Appropriations Committee “recognizes the value of and continues to support ENERGY STAR” – with a directive for EPA to “report back” on its plans for the program’s future implementation.
  • On the House side on Tuesday, the Appropriations Committee likewise showed support for ENERGY STAR. It passed a “manager’s amendment” on voice vote, instructing EPA to fund ENERGY STAR in FY’26. (PoliticoPro, July 22)
  • RER has long urged the “business case” to support the ENERGY STAR program. It is working with multi-industry partners in the real estate, manufacturing, consumer tech, and retail sectors to explain to Congress and the Administration why ENERGY STAR is critical to the national “energy dominance” agenda. (Roundtable Weekly, June 6; May 23).  

Agency Reorganizations

  • It is not yet clear how any FY’26 funds appropriated by Congress may interact with particular internal plans from federal agencies to reorganize and eliminate programs.
  • An 8-1 decision in July by the U.S. Supreme Court allows the Trump administration to move forward with large-scale staff reductions and structural overhauls across 19 federal departments. (Politico, July 8)
  • As part of government-wide efforts triggered by the DOGE Executive Order, restructuring plans and layoffs are under consideration at the EPA. (Politico, July 17)

What’s Next

  • Senate Majority Leader John Thune (R-SD) has indicated that he wants to sign as many spending bills into law as possible, then use a short-term stopgap measure to cover the remaining agencies and avert a shutdown before the Sept. 30 deadline. (PoliticoPro, July 23)
  • Any specific agency reorganization and staff layoff plans may be released in the coming weeks.

RER will continue to monitor all developments on matters of appropriations and federal agency reorganizations relevant to real estate.

Appropriations Season Underway on Capitol Hill; Agency Reorganization Plans Expected

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With the One Big Beautiful Bill Act (OBBBA) now enacted, attention in Washington has turned to appropriations for fiscal year 2026. Programs important to real estate—like HUD’s rental assistance program, and EPA’s ENERGY STAR program—are navigating the annual federal spending process, as Congress must pass legislation by September 30 to avoid a government shutdown.  (Roll Call, July 18)

HUD Programs

  • The House Appropriations Committee passed a bill on Tuesday to fund HUD in FY’26. (Bill text | Summary). The measure will next proceed to the full House of Representatives for a vote. (Press Release, July 17)
  • Under the bill, HUD would get about $67.8 billion in discretionary funds, a $939 million decrease compared to FY 2025.
  • Section 8 project-based rental assistance would receive a $237 million increase over FY 2025 levels, totaling $17.127 billion. According to the committee, the funding would support full renewal of contracts for roughly 1.2 million households.
  • Despite the funding gains for rental assistance, the bill includes a 26% cut to HUD staffing—raising concerns about the agency’s capacity to manage and deliver programs efficiently. (PoliticoPro, July 9)

EPA Programs

  • A separate House appropriations subcommittee also passed a bill on Tuesday to fund EPA for FY’26. (Bill text | Summary). The bill proposes no specific cuts to ENERGY STAR. The program receives strong support from RER in partnership with a broad coalition of national real estate, manufacturing, retail, and technology industry groups. (Roundtable Weekly, June 6).
  • The measure proposes $2.27 billion for EPA’s environmental programs in FY’26, representing a 29% cut compared to current fiscal year funding. (Summary)

Supreme Court Ruling Upholds Agency Reorganizations

  • Ultimate FY’26 spending levels will be impacted by agencies’ internal plans to reorganize and eliminate programs. An 8-1 decision by the U.S. Supreme Court last week allows the Trump administration to move forward with large-scale staff reductions and structural overhauls across 19 federal departments. (Reuters, July 9)
  • The high Court’s ruling states that any specific reorganization effort could be deemed illegal, while confirming the President’s general authority to direct agencies to develop “RIF and Reorganization Plans” by September 30 in accord with a “DOGE” Executive Order and White House memo both issued in February.
  • Moving forward with EPA’s planned restructuring, Administrator Lee Zeldin on Thursday announced further reorganization by consolidating finance and administrative offices, changing enforcement and Superfund offices, and continued workforce reductions through early retirements and layoffs. (PoliticoPro, July 17)
  • Reports thus far of Zeldin’s plans do not identify any planned cuts to ENERGY STAR or the larger division in which it is housed at the agency.
  • Advocacy by RER and coalition partners to the administration and Congress explains that ENERGY STAR’s continued success as a non-regulatory, public-private partnership depends on sufficient staff and budget resources to implement the program.

What’s Next

  • Rescissions: Congress may consider further efforts to rescind unspent prior-year funding, similar to the bill passed this week and now heading to the President’s desk clawing-back $9 billion in previous funds for foreign aid and public media. (POLITICO, July 18). 
  • More Tax Legislation?: According to the House speaker’s top tax aide, Congress may pursue a bipartisan tax package, additional retirement policy changes, and a follow-up reconciliation bill informally dubbed “2 Big 2 Beautiful.” (Tax Notes, July 17)
  • Section 899: Republican tax leaders Rep. Jason Smith (R-MO) and Sen. Mike Crapo (R-ID) have signaled they may reintroduce the Section 899 retaliatory tax if negotiations to exempt U.S. companies from OECD Pillar 2 taxes fail, potentially in a second reconciliation bill (Tax Notes, July 17). However, Germany’s Finance Minister Lars Klingbeil reaffirmed his country’s commitment to implementing Pillar 2 of the global minimum tax, despite widespread uncertainty following recent U.S. tariff announcements and the G7 carveout exempting American companies. (PoliticoPro, July 18)
  • FY’26 Appropriations: Senate Majority Leader John Thune has not yet decided whether to bring a government funding bill to the floor next week but aims to pass at least one funding package before the Senate’s August recess. (PoliticoPro, July 17) If congress does not pass FY’26 spending legislation by September 30, it could default to a stop gap “continuing resolution” and extend FY’25 levels to keep the government running.
  • Agency Restructurings: Reorganizations plans prompted by DOGE efforts will continue to be unveiled before and after Labor Day.

RER will continue to monitor all developments on matters of tax, appropriations, and federal agency reorganizations relevant to real estate.

Congressional Hearing Highlights Policy Reforms to Boost Affordable Housing Supply

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Bipartisan lawmakers this week discussed reforms aimed at reducing barriers to housing development and increasing supply during a congressional hearing on the nation’s housing shortage.

Key Takeaways

  • The House Financial Services Subcommittee on Housing and Insurance’s hearing, titled “HOME 2.0: Modern Solutions to the Housing Shortage,” highlighted the crucial need to expand the supply of affordable housing. (Committee Memo)

  • “This is a basic supply and demand issue,” said Rep. Mike Lawler (R-NY). “We are seven and a half million units underbuilt nationwide. We need to build more housing. Period.”

  • Modernizing the HOME Investment Partnership (HOME) Program, administered by the U.S. Department of Housing and Urban Development (HUD), was also a prominent focus of the hearing. HOME is a flexible and effective federal tool that empowers states and localities to build, buy, and rehabilitate affordable housing.

  • Subcommittee Chairman Mike Flood (R-NE) cited four major cost drivers—lengthy environmental reviews, “Build America, Buy America” rules, Davis-Bacon wages, and Section 3 mandates—as the “four horsemen of the housing apocalypse” hindering the HOME Program.
  • Ranking Member Emanuel Cleaver (D-MO) similarly called for modernizing the HOME Program, highlighting the inefficiencies created by the “massive number of rules” placed on developers building safe, decent, and affordable housing.

  • Eric Oberdorfer, Director of Policy and Legislative Affairs at the National Association of Housing and Redevelopment Officials (NAHRO), also noted the importance of the low-income housing tax credit (LIHTC), which is often used in conjunction with the HOME program to finance affordable housing.

RER Advocacy

  • The Real Estate Roundtable (RER) has consistently emphasized that America’s affordability crisis is driven by chronically low housing production. Tackling this shortfall requires a national transformation in housing policy that makes it easier to build housing of all types.

  • Changes made by the One Big Beautiful Bill (OBBB) Act signed this month, including expansions to the LIHTC, are projected to support the development of up to 1.2 million affordable rental units over the next decade. (Roundtable Weekly, July 11)

  • RER strongly supports key reforms discussed at this week’s hearing, including easing Davis-Bacon prevailing wage requirements, which place inordinately high costs on construction projects and inhibit access to federal loan and other housing construction incentives, and the HOME Program (Roundtable Weekly, April 2024, May 2023).
  • In May, RER joined a coalition of 15 national real estate organizations urging the Labor Department to repeal and revise its 2023 Davis-Bacon rule, citing outdated wage classifications that inflate project costs by up to 20% and discourage participation in federally funded housing. (Roundtable Weekly, May 23)

RER will continue to champion policies to bolster the availability of safe and affordable housing. See our fact sheet on the topic for more information.

Momentum Builds for Housing Reform in Washington

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The nation’s housing policy landscape is shifting rapidly as the Trump administration and Congress push forward on multiple fronts—spanning GSE reform, regulatory rollback, and bipartisan legislative efforts to expand affordable housing tools. The Real Estate Roundtable (RER) remains engaged on these developments, reinforcing its priorities through direct advocacy and coalition efforts.

GSE Reform

  • This week, President Trump said he’s “giving very serious consideration” to taking government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac public—reigniting debate over the future of the mortgage giants. (WSJ, May 21)
  • “I am giving very serious consideration to bringing Fannie Mae and Freddie Mac public,” Trump posted Wednesday on Truth Social. Trump also said he would consult with Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, as well as the GSEs’ chief regulator, Federal Housing Finance Agency head William Pulte. (Politico, May 21)
  • The GSEs have been in federal conservatorship since 2008, and Congressional action would likely be required to change their legal status.
  • While no active legislative proposals exist, some GOP lawmakers are discussing the sale of the government’s stakes in the GSEs as a potential offset for extending tax cuts. (Politico, May 21)
  • RER supports sensible GSE reform that balances taxpayer protection with ensuring financial stability and continued liquidity for ownership, rental housing, and underserved markets.

Roundtable Advocacy

  • This week, RER joined a coalition of 15 national real estate organizations urging the Department of Labor to repeal and revise its 2023 Davis-Bacon rule. (Letter, May 20)
  • In the letter sent to Department of Housing and Urban Development (HUD) Secretary Scott Turner and Labor Secretary Lori Chavez-DeRemer, the coalition applauded the administration’s focus on affordability and supply, and called for an end to outdated wage classifications that drive up project costs.
  • The current rule increases housing construction costs by up to 20% and deters developer participation in federally funded projects.
  • The letter recommends suspending enforcement and launching a formal rulemaking to streamline compliance and reduce regulatory risk.
  • In a separate letter, RER voiced strong support for the bipartisan Housing Affordability Act introduced (S.1527) by Senators Ruben Gallego (D-AZ) and Dave McCormick (R-PA) to modernize the FHA multifamily insurance program. (Letter, May 13)
  • Outdated statutory limits, unchanged since 2003, are suppressing the number of insurable housing units and acting as a barrier to middle-income housing development.
  • Updating the limits would unlock private capital, free up federal resources, and bring the program in line with modern construction costs.

LIHTC Expansion Clears the House

  • The reconciliation bill that passed in the House this week includes major provisions from the Affordable Housing Credit Improvement Act (AHCIA), marking the most significant increase in Low-Income Housing Tax Credit (LIHTC) resources in 25 years. (Affordable Housing Finance, May 22)
  • Although the entire bill was not incorporated into the package, the elements that were included still amount to a significant expansion of the program.
  • The elements included in the bill—increase the 9% credit volume cap, lower the bond financing threshold to 25% for 4% housing credit projects, and authorize up to a 30% basis boost for rural and tribal developments.

Federal Land Sales to Expand Housing Supply

  • HUD Secretary Scott Turner and Interior Secretary Doug Burgum are advancing the administration’s plan to sell underutilized federal land for new housing construction. (Bloomberg, May 22)
  • Their coordinated effort aims to unleash more of the government’s 640 million acres for development—particularly affordable and workforce housing. (PoliticoPro, May 20)

RER will continue to advocate for smart, market-based solutions that expand housing supply, reduce regulatory barriers, and support investment across the full spectrum of the nation’s housing needs.

Scott Turner Confirmed as HUD Secretary, Eyes Major Housing Policy Shifts

Posted on by Trey Jackson

Scott Turner was confirmed Wednesday as Secretary of Housing and Urban Development (HUD) and outlined his top priorities, including privatizing Fannie Mae and Freddie Mac, streamlining HUD operations, reducing regulatory barriers to lower housing costs, and expanding opportunity zones to drive investment in underserved communities.

A HUD Overhaul

  • Privatizing Fannie and Freddie: Turner has identified the privatization of Fannie Mae and Freddie Mac, the government-sponsored entities that guarantee most U.S. mortgages, as a top priority. (WSJ, Feb. 5)
  • His department will collaborate with the Treasury Department and Congress on the process, though a clear timeline and level of commitment from the White House remain uncertain.
  • While privatization could encourage more market competition, skeptics warn of potential disruptions in the $12 trillion mortgage market, including the risk of higher borrowing costs.
  • Supply-side housing solutions: Turner has signaled a shift towards increasing housing supply to address affordability concerns, stating in his confirmation hearing that the U.S. “needs millions of homes” across all types of housing, including multifamily, single-family, and manufactured homes.
  • The administration is expected to ease regulations that developers say have inflated construction costs, potentially rolling back Biden-era policies and implementing new incentives for affordable housing development. (Bisnow, Feb.6)

Opportunity Zones Revival

  • Turner previously led the White House Opportunity and Revitalization Council (WHORC), and played a key role in driving the Opportunity Zones Initiative, and has committed to continuing this work. (AP News, Feb.5)
  • The Roundtable has long championed Opportunity Zones (OZs) as a transformative tool to stimulate economic growth and increase the supply of affordable housing in low-income areas. By creating tax incentives for investments in designated low-income census tracts, OZs have channeled investment into areas most in need.
  • RER has called on Congress to improve and extend the program, which is set to expire along with other key provisions of the TCJA at the end of this year.
  • Sen. John Barrasso, (R-WY) highlighted Turner’s work on opportunity zones, saying he had helped bring $50 billion to 8,700 distressed neighborhoods. “These investments helped to revitalize many forgotten communities,” Barrasso said on the floor before the confirmation vote. (Roll Call, Feb. 5)
  • Turner’s confirmation signals a significant shift in federal housing policy, emphasizing market-driven solutions, regulatory rollbacks, and public-private partnerships.

The Roundtable continues to encourage policymakers to enact measures that will expand America’s housing infrastructure.  We also remain engaged in potential reforms to the GSEs to ensure that they continue to meet America’s housing finance needs. 

HUD Nominee Scott Turner Outlines Housing Policy Priorities in Senate Hearing

Posted on by Trey Jackson

Scott Turner, President-elect Donald Trump’s nominee for Secretary of Housing and Urban Development (HUD), emphasized the transformative potential of Opportunity Zones (OZs) and collaboration with the private sector during his Senate nomination hearing on Thursday. (The Hill, Jan. 16)

Senate Hearing Recap

  • At the hearing, members of the Senate Committee on Banking, Housing, and Urban Affairs asked HUD nominee Scott Turner how he would address pressing housing challenges, including the affordable housing crisis, the rising rate of homelessness, and HUD reform. (Turner Testimony)

  • There is an estimated shortage of 5.5 million housing units, resulting in high rents and home prices in many parts of the country. Additionally, HUD released its 2024 Annual Homelessness Assessment Report, which found an 18 percent increase in the estimated point-in-time count of homeless individuals from 2023 to 2024.

  • Speaking on the housing challenges facing the country, Turner said, “We have a housing crisis in our country. We have the American people and families that are struggling every day…HUD, if you will, is failing at its most basic mission, and that has to come to an end.”

  • Turner continued, “As a country, we’re not building enough housing. We need millions of homes, all kinds of homes, multifamily, single-family, duplex, condo, manufacturing housing, you name it…I believe that we need to bring HUD staff back to the office to do the job and empower them to serve the American people.”

HUD Nominee’s Policy Priorities

  • Turner, who previously ran the White House Opportunity and Revitalization Council during Trump’s first term, highlighted Opportunity Zones, public-private partnerships, and tailored local solutions as key elements of his plan to address the housing crisis.

  • As executive director of the Council, Turner was responsible for carrying out the implementation of Opportunity Zones, which were passed as part of the Tax Cuts and Jobs Act of 2017 (TCJA).

  • The Roundtable—along with 22 other real estate organizations—urged the Senate to approve Turner’s nomination, writing in a Jan. 14 letter to the Senate committee that Turner is well-equipped to lead as Secretary of HUD.

The Power of Opportunity Zones

  • RER has long championed Opportunity Zones (OZs) as a transformative tool to stimulate economic growth and increase the supply of affordable housing in low-income areas. By creating tax incentives for investments in designated low-income census tracts, OZs have channeled investment into areas most in need.

  • Since its inception, the Opportunity Zones program has raised nearly $100 billion in private capital, catalyzed the creation of more than 500,000 jobs, and spurred multifamily housing developments in underserved areas. 20% of multifamily units under construction were located in OZs as of early 2024. (The New Localism, Jan. 9)

  • Given the program’s success, prominent experts, including Bruce Katz (Founding Director of the Nowak Metro Finance Lab at Drexel University) and Steven G. Glickman (co-founder and former CEO of the Economic Innovation Group, former senior economic adviser in the Obama White House) have advocated for making OZs a permanent part of the tax code to ensure its long-term benefits. (Governing, Jan. 2)

  • RER has called on Congress to improve and extend the program, which is set to expire along with other key provisions of the TCJA at the end of this year.

RER will continue to work with policymakers in Congress and officials at HUD to build on the success of programs like Opportunity Zones. Through bipartisan policies that harness the power of the private sector to significantly increase the supply of affordable housing, the U.S. can make meaningful progress toward ending the housing crisis.