AHCIA momentum grows with bipartisan sponsorship list - new local support letter circulating

With the support of over one-third of Congress, the Affordable Housing Credit Improvement Act (AHCIA) of 2023 continues gaining momentum. As of Sept. 5, 96 Republicans and 96 Democrats are cosponsoring the bill across both chambers. Enactment of the AHCIA is NHC’s top priority. The AHCIA would boost the construction of nearly two million new affordable housing units over ten years by expanding and improving the Low-Income Housing Tax Credit program.

"The extensive bipartisan support the Affordable Housing Credit Improvement Act has achieved in so short a time shows that members of Congress from across the ideological spectrum are ready to put aside their differences and work together to meet the housing needs of their constituents. The housing crisis impacts every state and district, spanning the red-blue divide, and the Housing Credit is the most important tool we have to bring private sector investment into desperately needed affordable housing," said the Steering Committee of the ACTION Campaign. "Despite the need, this essential program suffered a cut in resources in 2022 after an increase in Housing Credit authority expired. It's time to restore that cut, further expand this program's resources, and make common sense improvements to further strengthen this already successful program. We call on Congressional leaders to recognize the strong support for this legislation by passing it this year."

ACTION is circulating a local government leader sign-on letter to further build momentum around passing AHCIA in partnership with the National League of Cities, the National Association of Counties, and Mayors and CEOs for U.S. Housing Investment. The letter seeks support from mayors, county board chairs, and county executives. People can sign on to support until 5 PM ET on Sept. 15. 

ICE completes Black Knight acquisition

Intercontinental Exchange, Inc. (ICE), a global data and technology provider, completed its acquisition of Black Knight, a software, data, and analytics company that serves the housing finance continuum. Antitrust concerns stalled the $11.9 billion deal since its May 2022 announcement, but an agreement with the Federal Trade Commission (FTC) last month resolved those issues. The FTC had expressed concerns that the merger would drive up costs and reduce innovation from combining the two top mortgage technology providers. To satisfy the FTC's worries, ICE and Black Knight will complete the divestiture of Black Knight's loan origination system and product and pricing engine unit to a subsidiary of Constellation Software Inc. after the acquisition..

"Since our founding over twenty years ago, ICE has steadfastly adhered to our founding principle, demonstrated throughout our history, that applying technological innovation and digitization to traditionally analog businesses can make markets more efficient and transparent for all participants," said Jeffrey Sprecher, ICE founder, chair and chief executive officer. "Our team is well-positioned and ready to apply our proven playbook across the U.S. mortgage ecosystem to help improve the homeownership experience for millions of American families."

CDFI Fund updates NMTC eligibility

Treasury's Community Development Financial Institutions Fund (CDFI Fund) announced updated eligibility information for the New Markets Tax Credit (NMTC) Program. Treasury based the updated eligibility data on American Community Survey data from 2016-2020. The update is part of Treasury's efforts to use data sources that reflect current socioeconomic and demographic information.

The update made NMTC Low-Income Community Data available and ready for use as of Sept. 1, including an updated list of High Migration Rural Tracts. Island Area data that covers American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, and the U.S. Virgin Islands should be updated in Dec. You can find more information on the data transition in this FAQ document.  

HUD updates Fair Market Rents; allocates $113 million in Housing Choice Vouchers

HUD published the new Fair Market Rents (FMRs) for Fiscal Year 2024, which helps to determine the maximum amount a Housing Choice Voucher will cover. Nationally, FMRs will increase by an average of approximately 12%. Accompanying this announcement, the Office of Public and Indian Housing released $113 million in additional funding for Housing Choice Vouchers for 118 high-performing public agencies across 36 states. HUD estimates the money will assist 9,500 families.

"This year, HUD found that rents rose once again, accentuating the strain on costs for American families. These updated Fair Market Rents and our funding will ensure households can utilize vouchers in a competitive rental market," said HUD Secretary Marcia Fudge.

HUD also approved requests from the Housing Authority of the City of Los Angeles and the Los Angeles County Development Authority to modify Housing Choice Voucher requirements to expedite the existing verification process. The approved waiver allows Los Angeles housing authorities to adjust the income verification process within 60 days of issuing the voucher. The move modifies the prior requirement that income must be verified before the agency may issue a voucher.

"In light of the extraordinary crisis of homelessness that exists in Los Angeles, HUD is allowing the Los Angeles housing authority to modify a rule that too often delays people's access to the assistance they need to move from the streets or temporary housing into healthy, stable, affordable homes," said HUD Secretary Fudge. 

HUD PD&R announces Direct Rental Assistance pilot

HUD’s Office of Public Development and Research (PD&R) announced it is looking to partner with a broad spectrum of stakeholders, including philanthropy, guaranteed income advocacy groups, tenant advocates, and the private sector, in a Direct Rental Assistance pilot study to learn whether the Housing Choice Voucher (HCV) program could be improved by providing housing subsidies directly to eligible renters rather than to their landlords. Despite the benefits offered to assisted households, voucher holders face increasing challenges in finding affordable rental units due to source of income discrimination, lack of landlord participation in the HCV program, and tight rental markets. Such issues have led industry groups, tenant advocates, and elected officials alike to call for reform of the HCV program.

Building from the experience of other guaranteed income pilots across the country, HUD’s pilot would allow households to receive a traditional voucher funded by HUD or a monthly payment for the equivalent value funded by a philanthropy organization. This pilot would run for several years across various housing markets to allow HUD to compare success rates and other outcomes between households receiving vouchers and households utilizing direct cash subsidies. To learn more about the pilot, please reach out to Aaron Shroyer at Aaron.m.shroyer@hud.gov.

$256 million available in Choice Neighborhoods funding

HUD announced $256 million in funding for Choice Neighborhoods Implementation (CNI) Grants. CNI Grants primarily fund the redevelopment of severely distressed HUD properties into a mixed-income community. Since the program’s inception, the Choice Neighborhoods program has completed 13,000 new mixed-income units built across 52 cities with more than 37,000 units planned. Those eligible to apply include public housing authorities, local governments, and tribal entities. Awards go up to $50 million and are powerful tools for communities to revitalize neighborhoods. This funding announcement follows HUD's $370 million award to eight awardees who will collectively invest $3 billion in distressed neighborhoods and create over 5,000 new housing units. The application for implementation grants closes on Dec. 11. You can find the Notice of Funding Opportunity here.