New research from CLPHA and Econsult Solutions shows that PHAs generate and induce multiple streams of economic activity benefitting those who reside in public housing, as well as local employers, governments, and industries. "The Economic Impact of Public Housing: Ongoing Investment with Wide Reaching Returns," highlights four key findings:
Public Housing is an Economic Driver
Housing authorities generate economic impacts that ripple through the community, city, and region. PHAs own and manage large property portfolios as well as directly support real estate markets through Housing Choice Vouchers and other housing assistance payments.
- Every $1 million PHAs spend on capital investments generates $1.89 million in economic activity and supports 11 full-time jobs
- From FY13-17, PHAs in Akron, Charlotte, Kansas City, Los Angeles, New York, and Oklahoma spent $4.5 billion on capital needs and generated an estimated $7.6 billion in economic activity, supporting 7,600 full-time jobs
Public Housing is Workforce Housing
While the majority of public housing residents are elderly and/or disabled, among work-able households, most are either working, subject to work requirements, or have worked recently.
Public Housing is a Long-Term Investment
The 1.1 million public housing units around the country are a significant investment by the federal government, with a replacement cost of $183 billion.
Public Housing is a Tax Revenue Generator
Public housing is a critical element of regional and local infrastructure due to its proximity to transportation, business centers, educational opportunities, other housing, and community centers, as well as its multiple economic intersections and influence on the economic growth of their cities.
- 6 PHAs generate $69 million in city tax revenue and $215 million in state tax revenue each year.
On Wednesday, March 25, CLPHA's counsel Reno & Cavanaugh PLLC prepared a memo for CLPHA summarizing The Families First Coronavirus Response Act (the “Families First Act”), H.R. 6201, which was signed into law on March 18, 2020.
Click below for Reno & Cavanaugh's summary of the Families First Act, with a focus on the sections related to family, medical, and emergency leave.
On Thursday, March 26, CLPHA participated in a call with other industry groups and senior HUD staff, led by PIH Assistant Secretary Hunter Kurtz. During the call, HUD staff shared some updates of interest to CLPHA members:
- Forthcoming guidance. FAQ documents from REAC and the RECAP office should be available shortly. HUD will also be releasing guidance to PHAs on procedures to help residents experiencing a loss in income recertify quickly, and PIH will release a second set of FAQs for PHAs. You can view PIH's first set of FAQs here.
- Forthcoming notices. HUD will be releasing three notices related to the stimulus package that has passed the Senate and is expected to pass the House shortly. The first notice will address the blanket waiver authority granted to HUD in the stimulus package and will contain guidance for PHAs on what statutory and regulatory waivers HUD will provide. A second and third notice will focus on public housing and vouchers respectively and address eligible uses for the stimulus funds and describe how the funds will be allocated.
During the call, CLPHA also raised the issue of various communications that our members have received from their field office, including requests to report on the number of employees and residents who have tested positive for COVID-19. PIH has instructed field offices to gather this information from PHAs, and they agreed to reconsider this information request in light of the concerns raised by CLPHA, primarily around privacy issues. We have also encouraged HUD to direct field offices to refrain from contacting PHAs regarding routine monitoring and reviews at this time and we ask that members notify CLPHA staff if they continue to receive burdensome requests from their field office.
CLPHA staff will discuss this call and the stimulus package on Monday’s COVID-19 member call. Members with other questions about these issues can contact Senior Research & Policy Analyst Emily Warren at [email protected].
Late in the night of March 25, the U.S. Senate passed by a vote of 96-0 the third emergency supplemental relief and funding legislative package to help Americans combat the coronavirus crisis. Senate passage sends the bill to the U.S. House of Representatives where it is expected to be considered on Friday, March 27.
On the more than $2.2 trillion bill, HR 748, The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), Majority Leader Mitch McConnell (R-KY) said of the Senate, “Our members put forward bold plans to send cash to households. Stand up historic emergency loans for Main Street. Stabilize key sectors. And put the full might of Congress behind our doctors, nurses, hospitals, healthcare providers, and the race for treatments and vaccines…Our nation needed us to go big, and go fast, and they did.”
Referring to the almost $340 billion appropriations portion of the Senate’s bipartisan coronavirus aid and economic relief agreement, Senator Patrick Leahy (D-VT), Vice Chairman of the Senate Appropriations Committee, said the bill “provides new resources to help strained state, local, and tribal governments as they combat this pandemic; support for hospitals and health care workers on the front lines of this public health crisis; funding to purchase personal protective equipment and much needed medical equipment; support for law enforcement, firefighters, and first responders; funding for scientists researching treatments and vaccines; support for small businesses; support for local schools and universities; and funding for affordable housing and homelessness assistance programs.”
The appropriations portion of the bill, Division B - Emergency Appropriations for Coronavirus Health Response and Agency Operations, contains new supplemental funding for the U.S. Department of Housing and Urban Development (“HUD”) under Title XII. Highlights from the HUD provisions include:
Public Housing Operating Fund – $685 million.
- to remain available until September 30, 2021, to prevent, prepare for, and respond to coronavirus, including to provide additional funds for public housing agencies to maintain normal operations and take other necessary actions during the period that the program is impacted by coronavirus.
- allows amounts combined with the Capital Fund, including from prior fiscal years, and for other expenses related to preventing, preparing for, and responding to coronavirus, including activities to support or maintain the health and safety of assisted individuals and families, and activities to support education and child care for impacted families.
- allows amounts combined with the Capital Fund, except for any set-asides,…shall be available to all public housing agencies through December 31, 2020, except that HUD may extend the period under which such flexibilities shall be available in additional 12 month increments upon a finding that individuals and families assisted by the public housing program continue to require expanded services due to coronavirus.
- except for requirements related to fair housing, nondiscrimination, labor standards, and the environment, allows HUD to waive, or specify alternative requirements for any provision of any statute or regulation that HUD administers in connection with combined funds under the Operating Fund and Capital Fund that any such waivers or alternative requirements are necessary for the safe and effective administration of these funds to prevent, prepare for, and respond to coronavirus.
- any such waivers or alternative requirements shall remain in effect for the time and duration specified by HUD and may be extended if necessary, upon additional notice by HUD.
Tenant-Based Rental Assistance – $1.25 billion.
- to remain available until expended, to prevent, prepare for, and respond to coronavirus, including to provide additional funds for public housing agencies to maintain normal operations and take other necessary actions during the period that the program is impacted by coronavirus.
- $850 million made available for administrative fees and other expenses of public housing agencies for their section 8 programs, including Mainstream vouchers.
- $400 million made available for adjustments in the calendar year 2020 Section 8 renewal funding allocations for public housing agencies that experience a significant increase in voucher per-unit costs due to extraordinary circumstances or that, despite taking reasonable cost savings measures, would otherwise be required to terminate rental assistance for families as a result of insufficient funding.
- except for requirements related to fair housing, nondiscrimination, labor standards, and the environment, allows HUD to waive, or specify alternative requirements for any provision of any statute or regulation that HUD administers in connection with the amounts made available that any such waivers or alternative requirements are necessary for the safe and effective administration of these funds to prevent, prepare for, and respond to coronavirus.
- allows HUD to award any remaining unobligated balances appropriated under this, or prior Acts for incremental Mainstream vouchers to prevent, prepare for, and respond to coronavirus.
- no less than 25 percent of Mainstream vouchers shall be allocated proportionally to public housing agencies who received awards in the 2017 and 2019 competitions for such purposes within 60 days of enactment of this Act.
Project-Based Rental Assistance – $1 billion.
- to remain available until expended, to prevent, prepare for, and respond to coronavirus, including to provide additional funds to maintain normal operations and take other necessary actions during the period that the program is impacted by coronavirus, for assistance to owners or sponsors of properties receiving project-based assistance pursuant to section 8 of the United States Housing Act of 1937…
- except for requirements related to fair housing, nondiscrimination, labor standards, and the environment, HUD may waive, or specify alternative requirements for, any provision of any statute or regulation that HUD administers in connection with the use of amounts made available, upon a finding by HUD that any such waivers or alternative requirements are necessary to expedite or facilitate the use of such amounts to prevent, prepare for, and respond to coronavirus, and such waiver or alternative requirement is consistent with the purposes described in this Act.
According to Senate appropriators, “this additional funding will make up for reduced tenant payments as a result of coronavirus. Preserving this critical housing assistance will prevent low-income families and individuals from being at risk of homelessness.”
Community Development Block Grant (CDBG) - $5 billion.
- $2 billion made available for CDBG distributed by allocation formula.
- $1 billion made available for CDBG allocated directly to States and insular areas to prevent, prepare for, and respond to coronavirus including activities within entitlement and nonentitlement communities, based on public health needs, risk of transmission of coronavirus, number of coronavirus cases compared to the national average, and economic and housing market disruptions, and other factors determined HUD, using best available data with allocations made within 45 days of enactment.
- $2 billion of remaining amounts distributed directly to States or units of general local government, at HUD’s discretion and according to a formula based on factors to be determined by HUD, prioritizing risk of transmission of coronavirus, number of coronavirus cases compared to the national average, and economic and housing market disruptions resulting from coronavirus.
According to Senate appropriators, “In order to ensure resources are quickly deployed and meet the unique response needs to COVID-19, the bill eliminates the cap on the amount of funds a grantee can spend on public services, removes the requirement to hold in-person public hearings in order to comply with national and local social gathering requirements, and allows grantees to be reimbursed for COVID-19 response activities regardless of the date the costs were incurred. This funding builds on $6.7 billion provided in fiscal years 2019 and 2020 by allowing grantees to combine prior year funds with new funding in order to prevent, prepare for, and respond to COVID-19.”
Homeless Assistance Grants – $4 billion.
- to remain available until September 30, 2022, to prevent, prepare for, and respond to coronavirus, among individuals and families who are homeless or receiving homeless assistance and to support additional homeless assistance and homelessness prevention activities to mitigate the impacts created by coronavirus under the Emergency Solutions Grants program.
According to Senate appropriators, these grants, “in combination with additional waiver authority, will provide effective, targeted assistance to contain the spread of coronavirus among homeless individuals. These grants will also provide state and local governments with homelessness prevention funding for individuals and families who would otherwise become homeless due to coronavirus.”
Native American Programs – $300 million.
- no less than $200 million made available for the Native American Housing Block Grants program, distributed according to the same funding formula used in fiscal year 2020…such amounts shall be used by recipients to prevent, prepare for, and respond to coronavirus, including to maintain normal operations and fund eligible affordable housing activities.
- up to $100 million shall be available for grants to Indian tribes under the Indian Community Development Block Grant program to prevent, prepare for, and respond to coronavirus, for emergencies that constitute imminent threats to health and safety.
Section 202 Housing for the Elderly – $50 million.
- to remain available until September 30, 2023, to prevent, prepare for, and respond to coronavirus, including to provide additional funds to maintain normal operations and take other necessary actions during the period that the program is impacted by coronavirus, for assistance to owners or sponsors of properties receiving project-based assistance pursuant to section 202 of the Housing Act of 1959.
- up to $10 million for service coordinators and the continuation of existing congregate service grants for residents of assisted housing projects.
- except for requirements related to fair housing, nondiscrimination, labor standards, and the environment, HUD may waive, or specify alternative requirements for, any provision of any statute or regulation that HUD administers in connection with the use of amounts made available in this Act.
Section 811 Housing for Persons with Disabilities – $15 million.
- to remain available until September 30, 2023, to prevent, prepare for, and respond to coronavirus, including to provide additional funds to maintain normal operations and take other necessary actions during the period that the program is impacted by coronavirus.
Housing Opportunities for Persons with AIDS (HOPWA) - $65 million.
- to provide additional funds to maintain operations and for rental assistance, supportive services, and other necessary actions, in order to prevent, prepare for, and respond to coronavirus.
Fair Housing – $2.5 million.
- to remain available until September 30, 2021, for contracts, grants, and other assistance to prevent, prepare for, and respond to coronavirus,
- $1.5 million for the Fair Housing Assistance Program Partnership for Special Enforcement grants to address fair housing issues relating to coronavirus, and
- $1 million for the Fair Housing Initiatives Program for education and outreach activities
HUD Administrative Expenses – $50 million.
- $35 million for Administrative Support Offices to remain available until September 30, 2021, to prevent, prepare for, and respond to coronavirus, for Department-wide salaries and expenses, Information Technology purposes, and to support the Department workforce in a telework environment
- $15 million for Program Offices to remain available until September 30, 2021, to prevent, prepare for, and respond to coronavirus, with $5 million for the Office of Public and Indian Housing; and $10 million for the Office of Community Planning and Development. These amounts are designated by the Congress as being for an emergency requirement.
HUD Inspector General – $5 million.
- funding to remain available until expended shall be used for conducting audits and investigations of projects and activities carried out with funds made available to HUD to prevent, prepare for, and respond to coronavirus. This amount is designated by the Congress as being for an emergency requirement.
Other Highlighted Provisions in the CARES Act
SEC. 4023. FORBEARANCE OF RESIDENTIAL MORTGAGE LOAN PAYMENTS FOR MULTIFAMILY PROPERTIES WITH FEDERALLY BACKED LOANS.
Under the bill, multifamily housing borrowers with a federally-backed mortgage made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, with a housing or urban development program administered by HUD, or is purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association and current on their payments as of February 1, 2020, may submit an oral or written request for forbearance to the borrower’s servicer affirming that the multifamily borrower is experiencing a financial hardship during the COVID–19 emergency.
The servicer shall (A) document the financial hardship; (B) provide the forbearance for up to 30 days; and (C) extend the forbearance for up to 2 additional 30 day periods upon the request of the borrower provided that, the borrower’s request for an extension is made during the covered period, and, at least 15 days prior to the end of the forbearance period.
A multifamily borrower that receives a forbearance may not, for the duration of the forbearance (1) evict or initiate the eviction of a tenant from a dwelling unit located in or on the applicable property solely for nonpayment of rent or other fees or charges; or (2) charge any late fees, penalties, or other charges to a tenant for late payment of rent. A multifamily borrower that receives a forbearance (1) may not require a tenant to vacate a dwelling unit located in or on the applicable property before the date that is 30 days after the date on which the borrower provides the tenant with a notice to vacate; and (2) may not issue a notice to vacate under until after the expiration of the forbearance.
SEC. 4024. TEMPORARY MORATORIUM ON EVICTION FILINGS.
For 120-day beginning on the date of enactment, landlords federally assisted housing may not make, or cause to be made, any filing initiate a legal action to recover possession of the dwelling from the tenant for nonpayment of rent or other fees or charges; or charge fees, penalties, or other charges to the tenant related to such nonpayment of rent. Also, a landlord may not require the tenant to vacate the dwelling unit before 30 days after the date on which the lessor provides the tenant with a notice to vacate; and may not issue a notice to vacate until after the expiration of the 120-day period.