Nation’s homelessness increases by 12%

HUD’s 2023 Annual Homeless Assessment Report: Part 1: Point-in-Time Estimates showed a 12% increase in the number of people experiencing homelessness between 2022 and 2023. The Point-in-Time (PIT) count determined that on a single night in 2023, roughly 653,100 people experienced homelessness. That’s the highest number recorded since the count began in 2007, and this is the seventh consecutive increase in people experiencing homelessness. Of those experiencing homelessness, homelessness among persons in families with children rose by 16%, and the rise in individuals experiencing homelessness was 11%. The number of people experiencing chronic homelessness, 31%, was also the highest recorded since the PIT count began, with two-thirds of those counted in unsheltered locations. HUD noted in its announcement that the rise in overall homelessness is mainly due to a sharp increase in the number of people who became homeless for the first time. From 2021 to 2022, the number of people who became newly homeless increased by 25%, despite the number of people exiting homelessness to permanent housing rising by 8%.

“Homelessness impacts every community in this nation. Fortunately, there are solutions that are proven to work if they are appropriately funded,” said Ann Oliva, resident and CEO of the National Alliance to End Homelessness, in a statement. “That includes making urgent and overdue investments in affordable housing and rental assistance to keep people housed, as well as in proven housing and supportive service models that rapidly reconnect people experiencing homelessness with permanent housing. We need sustained investment in evidence-based approaches at the federal and state levels to reverse course nationally.”

In Dec. 2022, the Biden Administration released a federal plan for reducing homelessness by 25% by 2025 titled “All In: The Federal Strategic Plan to Prevent and End Homelessness.” The plan’s announcement highlights the fact that according to the 2022 Annual Homelessness Assessment Report, 582,462 people experienced homelessness on a single night in Jan. 2022, a less than 1% increase from the previous year thanks to unprecedented federal investment during the pandemic. 

“Our nation’s response to the COVID-19 pandemic demonstrated that homelessness is a policy choice. During the height of the pandemic, the nation came together and chose to invest more in housing, health care, income supports, and other wraparound services to prevent people from losing their homes in the first place,” said Jeff Olivet, executive director of the United States Interagency Council on Homelessness. “The 2021 American Rescue Plan provided the single-largest investment in addressing homelessness in U.S. history. As a result, between 2020 and 2022, we collectively halted the rise in homelessness that had begun in 2017. This showed that progress is possible—even in the most difficult of times.”

FHFA releases summary of tenant protection RFI responses

The Federal Housing Finance Agency (FHFA) released a summary of the comments it received in response to its May 2023 Request for Input (RFI) on tenant protections for Enterprise-backed multifamily properties. The responses came from various stakeholders, including tenants, tenant advocates, nonprofits, lenders, multifamily property owners, developers, government officials, elected officials, and mortgage industry groups. FHFA organized the responses into five themes: access/barriers to housing, access to information, tenant stability, data and research, and risk management. FHFA’s summary listed several relevant topics offered by respondents, including source of income discrimination, support for Fair Housing laws, resident-centered communication, development of a rental registry/database/portal, just-cause evictions, rent control, and the research and support of pilot programs. NHC submitted comments on the RFI that addressed several of these same topics.

“The responses suggest that significant work will be required to advance resident-centered practices at Enterprise-backed properties, where applicable,” FHFA’s summary reads. “These responses will be foundational to FHFA’s future exploration of resident-centered management practices at Enterprise-backed properties. FHFA intends to continue its public stakeholder engagement process in 2024.”

FHFA increases Enterprises’ LIHTC cap to $1 billion

The Federal Housing Finance Agency (FHFA) announced that it will allow Fannie Mae and Freddie Mac (the Enterprises) to invest up to $1 billion annually in the Low-Income Housing Tax Credit (LIHTC) market beginning in 2024. Previously, the cap was set at $850 million. Further, the Enterprises will update their policies to only support projects that remain affordable for the entire 30-year period intended by the program, and any investments by the Enterprises above $500 million must be through transactions considered difficult to attract investment in order to target underserved areas and meet affordable housing goals.

“Since restarting their LIHTC investments in 2018, the Enterprises have furthered their ability to create and preserve affordable housing, especially in areas that have difficulty attracting investors,” said FHFA Director Sandra Thompson. “Today's announcement provides additional stability for investments in this critical segment of the housing market.”