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

10
3/9/17 1 Federal Advocacy Priorities for Housing in the New Political Landscape Monday, February 6, 2017 Housing Action Illinois Mission: To increase and preserve the supply of decent, affordable, accessible housing in Illinois for low-and moderate-income households. Our Values: Housing is a human right. We believe in a society that promotes basic human needs such as decent and safe housing for all of its members. Public policy and government spending should ensure that the basic housing needs of all people are met. November 2016 Election Jan 20: President Donald Trump sworn into office. Jan 24: Senate Banking Committee unanimously approved Dr. Ben Carson’s nomination to be HUD Secretary by voice vote. His nomination now goes for a vote before the full Senate. Senate: 52 Rs, 46 Ds, 2 Is House: 240 Rs, 193 Ds, 2 Vacant

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

Page 1: Federal Advocacy Priorities for Housing in the New Political … · 2017-03-10 · 3/9/17 1 Federal Advocacy Priorities for Housing in the New Political Landscape Monday, February

3/9/17

1

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

Page 2: Federal Advocacy Priorities for Housing in the New Political … · 2017-03-10 · 3/9/17 1 Federal Advocacy Priorities for Housing in the New Political Landscape Monday, February

3/9/17

2

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.

Page 3: Federal Advocacy Priorities for Housing in the New Political … · 2017-03-10 · 3/9/17 1 Federal Advocacy Priorities for Housing in the New Political Landscape Monday, February

3/9/17

3

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

Page 4: Federal Advocacy Priorities for Housing in the New Political … · 2017-03-10 · 3/9/17 1 Federal Advocacy Priorities for Housing in the New Political Landscape Monday, February

3/9/17

4

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.

Page 5: Federal Advocacy Priorities for Housing in the New Political … · 2017-03-10 · 3/9/17 1 Federal Advocacy Priorities for Housing in the New Political Landscape Monday, February

3/9/17

5

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.

Page 6: Federal Advocacy Priorities for Housing in the New Political … · 2017-03-10 · 3/9/17 1 Federal Advocacy Priorities for Housing in the New Political Landscape Monday, February

3/9/17

6

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.

Page 7: Federal Advocacy Priorities for Housing in the New Political … · 2017-03-10 · 3/9/17 1 Federal Advocacy Priorities for Housing in the New Political Landscape Monday, February

3/9/17

7

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

Page 8: Federal Advocacy Priorities for Housing in the New Political … · 2017-03-10 · 3/9/17 1 Federal Advocacy Priorities for Housing in the New Political Landscape Monday, February

3/9/17

8

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

Page 9: Federal Advocacy Priorities for Housing in the New Political … · 2017-03-10 · 3/9/17 1 Federal Advocacy Priorities for Housing in the New Political Landscape Monday, February

3/9/17

9

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

Page 10: Federal Advocacy Priorities for Housing in the New Political … · 2017-03-10 · 3/9/17 1 Federal Advocacy Priorities for Housing in the New Political Landscape Monday, February

3/9/17

10

HelpBuildtheMovementforAffordableHousing

SignuptobeaHousingChampionathousingactionil.org/housingchampions

We’llsendpolicyupdatesandactionalertstohelpyoustayinformedandtakeaction.