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FederalAdvocacyPrioritiesforHousingintheNewPoliticalLandscape

Monday,February6,2017

HousingActionIllinois

Mission:Toincreaseandpreservethesupplyofdecent,affordable,accessiblehousinginIllinoisforlow-andmoderate-incomehouseholds.

OurValues:Housingisahumanright.Webelieveinasocietythatpromotesbasichumanneedssuchasdecentandsafehousingforallofitsmembers.Publicpolicyandgovernmentspendingshouldensurethatthebasichousingneedsofallpeoplearemet.

November2016Election

Jan20:PresidentDonaldTrumpswornintooffice.

Jan24:SenateBankingCommitteeunanimouslyapprovedDr.BenCarson’snominationtobeHUDSecretarybyvoicevote.HisnominationnowgoesforavotebeforethefullSenate.

Senate:52Rs,46Ds,2Is

House:240Rs,193Ds,2Vacant

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FirstTrumpActiononHousing

Inoneofhisfirstacts,PresidentTrumprescindedtheObamaadministration’smovetolowerFederalHousingAdministration(FHA)mortgageinsurancepremiums.Thepolicy,settotakeeffectonJanuary27,wouldhavesavednewhomeownersabout$500peryearonaverage.

PresidentTrump’sorderindefinitelysuspendsthe.25percentagepointpremiumratecutforFHA-backedloanspendingmoreanalysisandresearch.

ExecutiveOrderonFinancialSystem

• February3orderrequiresSecretaryofTreasurytodevelopreportwithrecommendationswithin120daystopromoteTrumpadministration’s“coreprinciples”regardingregulationoffinancialsystem.

• Recommendationslikelytoincluderollbackofprotectionsunder2010Dodd-Franklaw,includingcreationoftheConsumerFinancialProtectionBureau,whichhasmandatetoprotectconsumersfrom“deceptive,unfairandabusive”practices,includinghowfinancialproducts,suchasmortgages,aresoldtoconsumers.

CurrentBudget(FY17)

December9,2016:Republican-controlledCongresspassedaContinuingResolution(CR)fundingthefederalgovernmentthroughtheendofnextApril.PresidentObamasignedtheCRintolaw.

BeforetheendofApril,anotherbudgetdealmustbenegotiated—afull-yearCRorfinalspendingbillstokeepthegovernmentoperatingthroughtheendofFY17onSeptember30.

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CurrentBudget(FY17)

Duetoincreasedcostsofoperatingprograms,manyprogramsrequireincreasedfundingtomaintaincurrenthousingunitsandsubsidies.

UnderacontinuingresolutionthatfreezesvoucherfundingforallofFY17atlastyear’slevel,vouchersformorethan100,000 familieswouldbelostnationally.Source:NLIHC

CurrentBudget(FY17)

IllinoishouseholdsusinghousingvouchersinFY16:

NumberofhousingvouchersinIllinoiscutundercontinuing

resolutionforFY17:Source:CBPP

90,760

4,447

CurrentBudget(FY17)

Therewillbea$200millionshortfallforproject-basedSection8contractrenewalsifthereisanotherCRfortherestofFY17.Source:HUD

Illinoishas331 contractswith28,651 unitsexpiringby2018.Source:NationalHousingTrust

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CurrentBudget(FY17)

HUDneeds$1.5billioninadditionalfundingoverFY2016enactedlevelsandUSDAneeds$18millioninordertomaintainexistingrentalassistancecontractsandfundinglevels.Source:NLIHC

NextYear’sBudget(FY18)

SpendingCaps

TheBudgetControlActof2011putspendingcapsonfederalspendingondefenseandnon-defenseprograms.Sincethen,Congresshasreachedshort-termagreementstoincreasespendingabovetheselimits.

SpendingcapsreturnfortheFY18budgetandposeasignificantrisktohousingprograms.

NextYear’sBudget(FY18)

PresidentTrumpwantstoliftthecapondefensespending,puttingspendinglimitationsonlyonnon-defenseprograms,includingaffordablehousing.

PresidentTrumpalsoproposedcuttingnon-defensespendingbyanadditional1%eachyearforthenext10years.

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BudgetTrendsSinceFY10

Sequestrationcutsfor2014,2015,and2016wereeased,yethousingassistancefundingin2016remains$2.1billion,or4.6%,belowthe2010leveladjustedforinflation.Source:CBPP

FromFY10toFY13,primarilyduetospendingcaps,annualhousingassistancefundingfellby$6.2billion,or13.3%,ininflation-adjustedterms.

NextYear’sBudget(FY18)

Examplesofotherprogramssubjecttocuts:

PublicHousingHOMEHomelessAssistanceGrantsHousingCounselingHousingforPeoplewithDisabilitiesHousingfortheElderlyFairHousingHealthyHomesandLeadHazardControlUSDAHousingPrograms

NextYear’sBudget(FY18)

UrgeyourMembersofCongresstoprotectaffordablehousingresourcesfromstrictspendingcaps.Askthemto:

• Lifttheharmfulspendingcaps.• Ensureparity(1:1)between

defenseandnon-defenseprograms.

• Providethehighestallocationpossibleforhousingprograms.

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ThreatstoCurrentGoodPolicies:AffordableCareAct/MedicaidExpansion

• RepealoftheAffordableCareAct=lossofMedicaidExpansion.ThroughtheACA,32states,includingIllinois,haveexpandedMedicaidcoverage.InIllinois,expandedMedicaidcoversadultsmakingapproximately$16,000orless,providinghealthcarecoverageformorethan600,000people.

• Medicaidmakestreatmentavailableforpeoplewithmentalillness,helpingmanypeoplemaintainhousing.

Medicaidshouldnotbeblockgranted.BlockgrantingMedicaidwillresultinlargecutstotheprogram.

ThreatstoCurrentGoodPolicies:AffirmativelyFurtheringFairHousing

• EffortstoeliminatethenewAffirmativelyFurtheringFairHousing(AFFH)requirementsanduseoffederalfundstoimplementthem.

• Effortstopassanti-AFFHprovisionscouldhappeninastandalonebill,butareaslikelytobetriedaspartofbudgetlegislation.

• ThiswasattemptedlastyearintheSenate.WeandotherssuccessfullyappealedtoSenatorKirktoopposeeffortstostopAFFHimplementation.WithsupportofothermoderateRepublicansintheSenate,AFFHresourceswerepreserved.

ThreatstoCurrentGoodPolicies:LowIncomeHousingTaxCredit

ThegoalofRepublicantaxreformproposalistolowercorporatetaxrates.Todoso,Congresswouldneedtoeliminatenearlyalltaxexpenditures,puttingtheLowIncomeHousingTaxCreditatrisk.

Insteadweshouldexpandandimprovethecreditsothatitbetterservespeoplewiththelowestincomes.

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ThreatstoCurrentGoodPolicies

• HouseRepublicans’ABetterWayAnti-PovertyPlanproposeswelfarereform-stylechangestohousingprograms,includingworkrequirementsandtimelimits.

• Attemptstoblockgranthousingprograms.• Attempttoeliminateand/orcutofffundingfor

NationalHousingTrustFund.• AttacksonConsumerFinancialProtectionBureau.• PresidentTrump’sexecutiveordertoidentifyfederal

moneytobewithheldfrom"sanctuarycities,”includingChicago.

• Otherissues,tobedetermined.

AdvocatingwithCongressMembers:OutreachtoallMembersisImportant!

• Townhallsmeetingsandotherlocalpublicevents• Districtofficevisits• Sitevisitstoyourprogram• Publiceducationeventsandactivities• Coordinatedcall-inefforts

AdvocatingwithCongressMembers:PotentialPartners

• YourContinuumofCare• Localaffordablehousingoreconomicjustice

coalitions—joinoneorstartone• Faith-basedgroups• Workwithadvocatesonrelatedissues,suchas

healthcare,immigration

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IllinoisCongressMembersonKeyCommittees

AppropriationsCommittee(THUD)SenatorRichardDurbinRepresentativeMikeQuigley

FinancialServicesCommitteeRepresentativeRandyHultgrenRepresentativeBillFoster

WaysandMeansCommitteeRepresentativePeterRoskamRepresentativeDannyDavis

OpportunitiesforPositiveChange:InfrastructureInvestment

SenateDemocratsreleaseda$1trillioninfrastructureplaninJanuarythattheysaywouldcreate15millionjobsover10years.

Theplanincludes$100billionfor“revitalizingAmerica’sMainStreets.”Thiscouldincludeinvestmentsin“solutionsgearedtowardhelpingthemorethan11.4millionhouseholds thatpaymorethanhalfoftheirincomemonthlyonrent,includingexpandingexistingtaxincentivesandotheraffordablehousingfederalprograms.”Source:NLIHC

OpportunitiesforPositiveChange:RebalanceFederalHousingPolicy

Thefederalgovernmentspent$190billionin2015tohelppeoplebuyorrenthomes.Mosthomeownershipexpendituresgotothetopfifthofhouseholdsbyincome.Morethan4/5 ofthevalueofthemortgageinterestandpropertytaxdeductionsgoestohouseholdswithincomesofmorethan$100,000.Overall,about60% offederalhousingspendingforwhichincomedataareavailable(countingbothtaxexpendituresandprogramspending)benefitshouseholdswithincomesabove$100,000.Source:CBPP

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OpportunitiesforPositiveChange:UnitedforHomesCampaign

Reformthemortgageinterestdeductionandinvestthesavingsintoaffordablehousing.NationalLowIncomeHousingCoalitionproposalwouldgive15millionadditionalhomeownerswhocurrentlydonotbenefitfromMIDataxbreakandwouldgenerate$241billioninsavingsover10yearstobereinvestedintoaffordablerentalhousingforthelowestincomepeople.

Learnmore:http://unitedforhomes.org

AdditionalResourcesandDataSources

nlihc.orghousingactionil.org

cbpp.org/topics/housing naeh.org

Wantmoreinformationandassistancewithadvocacyandorganizing?

BobPalmerPolicyDirectorHousingActionIllinois312-939-6074x.206bob@housingactionil.org

GiannaBakerOutreachManagerHousingActionIllinois312-939-6074x.110gianna@housingactionil.org

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HelpBuildtheMovementforAffordableHousing

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