NCSHA’s 2015 Legislative Priorities Briefing 5/03/2016 NCSHA’s 2015 Legislative Priorities Briefing

NCSHA Legislative and Regulatory Priorities Legislative Priorities NCSHA Legislative and Regulatory Priorities Preserve, strengthen, and expand the Housing Credit Support tax-exempt Housing Bonds Maximize funding for HOME, rental assistance, rural housing, and the Housing Trust Fund Support a strong housing finance system committed to affordable housing through HFAs 5/03/2016

Legislative Priorities NCSHA Legislative and Regulatory Priorities Support affordable housing preservation Preserve and expand HFAs’ ability to provide down payment assistance on FHA-insured mortgages Allow Ginnie Mae securitization of FHA-HFA Risk-Sharing multifamily mortgages Advance HFA interests in Dodd-Frank financial reform law implementation 5/03/2016

Tax Outlook Tax Legislation Congress is using 2016 to lay the groundwork for tax reform efforts in 2017. House Speaker Paul Ryan (R-WI) has established task forces to develop “pro-growth” agenda – Ways and Means Chairman Kevin Brady (R-TX) to play leadership role in the Tax Reform and Poverty, Opportunity, & Upward Mobility task forces. Senate Finance Committee may offer limited new tax plans and hold hearings on outcomes of the 2015 tax policy working groups. 5/03/2016

Tax Legislation Tax Outlook Congress working on narrow tax bills related to IRS, tariffs, and other non-housing issues GAO to issue second report soon Third report likely in early 2017 5/03/2016

Tax Legislation Tax Outlook Senator Maria Cantwell (D-WA) plans to introduce a bill to: Expand Housing Credit authority by at least 50 percent, and Provide new flexibility to states to maximize current resources. 5/03/2016

Tax Outlook Cantwell bill will also: Allow income-averaging; Tax Legislation Tax Outlook Cantwell bill will also: Allow income-averaging; Expand basis boost authority to 4 percent bond-financed deals; Provide basis boost for properties targeted to ELI and homeless; and Make other changes. 5/03/2016

Tax Legislation Municipal Bonds Representatives Randy Hultgren (R-IL) and Dutch Ruppersberger (D-MD) established a new Municipal Bond Caucus. The Caucus currently has 17 members. 5/03/2016

Senate Committee HUD Appropriations Bill HOME - $950M, equal to FY 2016 Section 8 PBRA - $10.9B, up 3% Contract administration fees up 9% Vouchers - $20.4B, up 4% Admin fees up 7% CDBG - $3B, equal to FY 2016 Homeless Assistance - $2.3B, up 4% 5/03/2016

House Committee Agriculture Appropriations Bill Section 502 Direct - $1B, up 11% Section 502 Guar. - $24B, equal to FY 2016 Section 521 R.A. - $1.4B, up 1% Section 538 MF Guar - $200M, up 33% Section 515 MF Direct - $35M, up 25% Section 542 Vouchers - $18M, up 20% MF Preservation - $22M, equal to FY 2016 5/03/2016

Housing Trust Fund Housing Trust Fund The Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to begin setting aside funding for the Housing Trust Fund (HTF) in CY 2015. HUD has said it plans to allocate $174 million this summer. HUD plans to issue allocation plan guidance soon. 5/03/2016

Housing Finance Reform Outlook Housing finance reform not likely soon No major legislation introduced this session Principal policy-makers disagree about federal role in the mortgage market 5/03/2016

Housing Finance Reform Outlook Congressional activity on GSE reform likely to resume under new Administration Crapo likely to become top GOP member of Banking Committee Presidential candidates have been mostly silent on GSE reform Experts have released new plans 5/03/2016

Performance-Based Contract Administration PBCA Outlook In April, 2015 US Supreme Court refused to review PBCA litigation; HUD has since determined it must establish a procurement process for PBCA program. HUD hosted an “Industry Day” on Feb. 26 to obtain input on its procurement plans to award new PBCA contracts by the end of 2017. PBCAs to resume Management & Occupancy Reviews in 2016. 5/03/2016

Multifamily Risk-Sharing Program FHA-HFA Multifamily Risk-Sharing The Administration established the HUD-Treasury-Federal Financing Bank (FFB) Risk-Sharing Initiative in 2015 as interim measure. The Administration’s FY 2017 Budget again proposes legislation allowing Ginnie Mae to securitize Risk-Sharing loans. HUD proposed regulatory changes in March; NCSHA submitted comments in April.   5/03/2016

Housing Opportunities Through Modernization Act (H.R. 3700) Introduced by House Housing Chairman Blaine Luetkemeyer (R-MO) and Ranking Member Emanuel Cleaver (D-MO) Unanimously passed House on February 2; currently no Senate companion legislation 5/03/2016

Housing Opportunities Through Modernization Act (H.R. 3700) Modest, “common sense” reforms to federal housing programs Streamlines Housing Choice Voucher program inspections Simplifies requirements for project-basing vouchers Includes provisions designed to make it easier for condominium mortgages to be insured by FHA 5/03/2016

Rural Housing Preservation Rural Housing Preservation Act of 2016 H.R. 4908, S. 2783 Provides relief to USDA MF developments that will lose rental assistance in the future due to pre-paid or maturing mortgages 11,576 properties with maturing or prepayable mortgages over the next ten years, affecting over 215,000 units and 344,000 individuals 5/03/2016

Rural Housing Preservation Rural Housing Preservation Act of 2016 H.R. 4908, S. 2783 Authorizes USDA to provide vouchers to eligible residents Provides enhanced vouchers in high cost areas Decouples USDA rental assistance contracts and Section 515 mortgages Makes permanent the Multi-Family Preservation and Revitalization Restructuring Program (MPR) 5/03/2016

Other Issues FHA down payment assistance rules TRID disclosure Affirmatively Furthering Fair Housing regulations FHFA Duty to Serve proposed rule Rental Assistance Demonstration 5/03/2016

5/03/2016