Federal Advocacy Priorities for Housing in the New Political … · 2017-03-10 · 3/9/17 1 Federal...
Transcript of Federal Advocacy Priorities for Housing in the New Political … · 2017-03-10 · 3/9/17 1 Federal...
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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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