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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

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