Research & Innovations

In an opening legislative salvo to advance the public policy goal of guaranteeing universal housing vouchers to all eligible families, a trio of three key members of the U.S. House of Representatives have circulated a draft proposal among stakeholders that is being readied for introduction in the House.

The “Ending Homelessness Act of 2021” is sponsored by House Financial Services Committee Chairwoman Maxine Waters (D-CA), and cosponsored by Housing, Community Development and Insurance Subcommittee Chairman Emanuel Cleaver (D-MO) and Financial Services Committee member Representative Richie Torres (D-NY).

The Ending Homelessness Act would create a housing voucher entitlement program to allow every eligible household to receive rental assistance. The program would be phased in over time, prioritizes the homeless, and includes other requirements and reforms – including prohibiting funding under the program for Moving to Work, a requirement to use Small Area FMRs, and a ban on source of income discrimination, among other changes.

A brief bulleted summary of the legislative proposal follows:

Section 2: Expansion of Housing Choice Voucher Program

• Appropriates amounts necessary to fund 500,000 incremental vouchers in FY22.
• Appropriates amounts necessary to fund one million incremental vouchers for each year of FY23 through FY25.
• Appropriates amounts necessary to renew all expiring tenant-based Section 8 contracts and provide administrative fees for each year of FY22 through FY25.
• Eligible households have an income that does not exceed the higher of --
  • 15 percent area median income (AMI) with adjustments for larger and smaller families— except HUD can establish income ceilings higher or lower than fifteen percent because of unusually high or low family incomes ((in the AMI)- unstated); or
  • 50 percent of poverty guidelines issued by the U.S. Department of Health and Human Services (HHS) (except this does not apply to public housing agencies or projects located in Puerto Rico or other U.S. territories or possessions)
• Also defines eligible households as “an extremely low-income household that includes an individual who is a recipient of supplemental security income benefits under title XVI of the Social Security Act.”
• Allocated funds are prioritized to public housing agencies in jurisdictions having large numbers of families; having high rates of homelessness; and have high rates of other severe housing hardship, including overcrowding and evictions.

 

Section 3: Entitlement Program for Housing Choice Vouchers

• For FY26 and each fiscal year thereafter, an eligible family under Section 8 tenant-based assistance is entitled to “such rental assistance…during such period that such family meets the requirements…as a qualified family.”
• Appropriates for FY26 and each fiscal year thereafter, amounts necessary to provide assistance under Section 8 for each qualified family, and for administrative fees.
• For FY27, a qualified family has an income that does not exceed 22.5 percent of AMI, except HUD may establish income ceilings higher or lower because of unusually high or low family incomes; or the updated poverty guidelines issued by HHS (except this does not apply to public housing agencies or projects located in Puerto Rico or other U.S. territories or possessions)
• For FY28 , a qualified family is an extremely low-income family. For FY29, a qualified family is a very low-income family. For FY30 and thereafter, a qualified family is a low-income family.
• Repeals income targeting requirements.
• HUD is required to encourage public housing agencies to form geographical regional consortia to administer the rental assistance.
• Allows HUD to waive, or specify alternative requirements for, any statute or regulation under Section 8 tenant-based assistance, except for requirements related to fair housing, nondiscrimination, labor standards, and the environment.
• Requires HUD and public housing agencies to utilize small area fair market rents for FY22 and each fiscal year thereafter. Rents shall be based on units located within a zip code rather than a housing market area.
• Allows housing agencies to project-base the assistance, notwithstanding Section 8(o) (tenant-based assistance); except that a qualified family may opt to use the assistance on a tenant-based basis for a different dwelling unit at any time, and the project-basing percentage limitation shall not apply.
• Qualified assisted families may use the assistance for security deposits, and broker and application fees for obtaining a unit; except HUD may limit the amount of assistance used for such purposes. HUD will require the recapture of any amounts used for a security deposit upon the termination of the residence by an assisted family.
• For FY22 and thereafter, HUD is required to establish by regulation a new administrative fee “that reflects local variation in the cost of administering a well-run housing choice voucher program and which encourages public housing agencies to expand housing choice for assisted families.”
• Appropriated funds are prohibited to be used under the Moving to Work program.

 

Section 5: Prohibiting Housing Discrimination Based on Source of Income or Veteran Status

• Adds source of income under the Fair Housing Act to include “current or future use of a tenant- or project-based housing voucher under Section 8…and any form of Federal, State, or local housing assistance provided to a person or family or provided to a housing owner on behalf of a person or family, including rental vouchers, rental assistance, down payment assistance, other homeownership assistance, assistance to cover housing costs, and other rental and homeownership subsidies, or guarantees or financial assistance provided through government and nongovernment organizations, including both receipt of such assistance and compliance with its terms thereof…”
• Source of income also includes supplemental security income benefits; railroad retirement benefits, or income provided through federal, state, or local governments or nongovernment organizations, or through any public or state-supported general or disability income assistance program; court ordered income, including spousal or child support; payments from a trust, guardian, conservator, co-signer, or relative; and any other source of income or funds, including savings accounts and investments.
• Includes veteran status in the list of discrimination prohibitions.
• Authorizes for each of FY22 through FY31 $90 million for the Fair Housing Initiatives Program; and $47 million for the Fair Housing Assistance Program; and $3 million for each of FY22 through FY24 for HUD to carry out a national media campaign to raise public awareness to help individuals understand their expanded rights and learn how to report housing discrimination under the Fair Housing Act.

 

Section 6: Funding to Address Unmet Need

• Establishes a new subtitle under the McKinney-Vento Homeless Assistance Act for emergency funding to address unmet needs of homeless populations in jurisdictions with the highest need.
• Appropriates $1 billion for each of FY22 through FY26 for emergency relief grants. Funds to be provided through formula grants, with a formula established in consultation with the United States Interagency Council on Homeless (USICH).
• The formula shall include data providing accurate counts of the poverty rate in the geographic area; shortages of affordable housing for low- very low-, and extremely low-income households; the number of overcrowded housing units in the geographic area; the number of unsheltered homeless individuals and the number of chronically homeless individuals; and any other factors HUD considers appropriate.
• The funding formula shall be established by regulation not later than 6 months after enactment.
• Appropriates $100 million for each of FY22 through FY26 in competitive grants for outreach funding to provide outreach and coordinate services for persons and households who are homeless or formerly homeless.

 

Section 7: Housing Trust Fund

• Appropriates $1 billion for each of FY22 through FY26 to the Housing Trust Fund with a priority for housing the homeless. Limits the amount of tenant rent contribution to not more than 30 percent of adjusted income.

 

Section 8: Technical Assistance Funds to Help States and Local Organizations Align Health and Housing Systems

• Makes available $20 million to HUD to provide technical assistance under McKinney-Vento to integrate and coordinate assistance with health care funded by federal programs in collaboration with HHS and the USICH.
• In allocating funding, HUD shall seek to “assist States and localities in integrating and aligning policies and funding between Medicaid programs, behavioral health providers, and housing providers to create supportive housing opportunities; and 2) engage State Medicaid program directors, Governors, State housing and homelessness agencies, any other relevant State offices, and any relevant local government entities, to assist States in increasing use of their Medicaid programs to finance supportive services for homeless persons.”
• Funding priority is given to states and localities having the highest numbers of chronically homeless persons; and to assist localities adopting local policies, such as zoning and regulation, leveraging the private sector’s participation providing affordable housing for low-, very low-, and extremely low-income households for a minimum of 15 years.

 

Section 9: Permanent Authorization of Appropriations for McKinney-Vento Homeless Assistance Act Grants

• Authorizes to be appropriated such sums as may be necessary for each fiscal year.

 

Section 10: Permanent Extension of United States Interagency Council on Homelessness

• Repeals the sunset of USICH.

 

Section 11: Eligibility of Private Nonprofit Organizations for Funding

• Eligible entity private nonprofit organizations under McKinney-Vento, including eligible entity faith-based organizations, are eligible for assistance under this Act.

 

Section 13: Emergency Designation

• Designates amounts in this Act as an emergency requirement under the statutory Pay-As-You-Go Act, and as an emergency requirement in the Senate.

Last week, HUD released a notice for Restoring Affirmatively Furthering Fair Housing (AFFH) Definitions and Certifications. The purpose of this notice is to reinstate the previous 2015 AFFH rule and processes that were repealed and replaced without a public comment period in January 2020. By restoring the previous rule, HUD is requiring that program participants and those receiving financial assistance through HUD programs, take meaningful steps to address racial disparities and segregation practices in housing related programs and activities in communities nationwide.

HUD requests that any comments be submitted by July 12, 2021. If you have any comments or concerns with this new rule, please provide feedback directly to [email protected]. CLPHA staff will be working on providing a more detailed analysis of this new rule in the coming weeks.

This new rule will go into effect on July 31, 2021.