Weekly update from the National Housing Conference |
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In this issue
June 4, 2023
Issue 92-20
· FHFA issues tenant protections RFI
· FHA proposes new program to help struggling homeowners
· PAVE Task Force announces new appraisal bias actions
· HUD launches new counseling awareness campaign
· Debt limit deal rescinds unspent COVID-19 relief funds
· IRS releases guidance on energy tax credits
· June is National Homeownership Month
Chart of the week: Residents supportive of allowing missing middle housing
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Black Homeownership Collaborative Celebrates Second Anniversary
By Charles R. Lowery, Jr., Senior Policy Director
The Black Homeownership Collaborative, a coalition of more than 100 organizations and individuals, brought together national and local housing advocates, elected officials and local leaders at the National Civil Rights Museum in Memphis, Tenn., on May 31 to recognize the two-year anniversary of its 3by30 initiative and to discuss strategies to increase Black homeownership across the country. The Black Homeownership Collaborative is committed to creating 3 million net new Black homeowners by the end of 2030.
NHC President and CEO David Dworkin demonstrated a revolutionary new mortgage calculator which has been released on www.3by30.org that provides detailed, easily navigated options for determining mortgage affordability based on actual borrower savings and closing cost estimates. The website, which Dworkin said is meant to be a “virtual trusted advisor for the Black consumer thinking about getting a mortgage” continues to offer tools for consumers seeking information about homeownership and the homebuying process, including a downpayment resource locator, and direct links to real estate professionals from markets across the United States.
Federal Housing Finance Agency (FHFA) Director Sandra Thompson kicked off the event with Bill Bynum, CEO of Hope Enterprises, with a fireside chat where they discussed the wealth gap, purchasing power and other challenges facing prospective Black homebuyers. “The homeownership gap today is wider than in the 60s when discrimination was legal,” said Director Thompson as she discussed steps FHFA, Fannie Mae, and Freddie Mac (the Enterprises) are taking to address this gap including the Enterprises’ equitable housing finance plans which were developed to address barriers experienced by renters, aspiring homeowners, and current homeowners – particularly in Black and Latino communities. “We must do everything we can to help people understand how important credit is – more important than a downpayment. Homeownership is not out of the realm of possibility – it is possible, it is doable, and we must do everything in our power to be helpful and not harmful in that process.” more.
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News from Washington | By Brittany Webb
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FHFA issues tenant protections RFI
The Federal Housing Finance Agency (FHFA) issued its anticipated request for information (RFI) on multifamily tenant protections. The RFI looks for feedback on opportunities and impacts of tenant protections on properties backed by Fannie Mae and Freddie Mac (the Enterprises). Topics include the role that the Enterprises should play in providing protections, eviction prevention and diversion programs, source of income protection, and fair housing provisions. The press release also notes that FHFA is evaluating the country’s lack of safe and affordable housing. NHC is convening a multifamily working group to discuss these issues. If you are interested in joining the working group, please reach out to Brittany Webb at bwebb@nhc.org.
Comments are due via FHFA’s website by July 31.
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FHA proposes new program to help struggling homeowners
The Federal Housing Administration (FHA) proposed a new home retention option to help struggling homeowners pay their mortgages through partial claims. The Payment Supplement Partial Claim program would allow servicers to bring a borrower’s mortgage loan current and temporarily reduce their monthly payment obligations for up to five years. The announcement notes that interest rate increases have limited the impact of FHA’s loss mitigation options. The Payment Supplement Partial Claim option allows borrowers experiencing hardship to keep their current interest rate, reduce their payment, and then pay FHA back when they sell or refinance their home. Comments on the proposal are due by June 30.
“When we saw that our existing loan modifications were no longer providing adequate payment relief, our team painstakingly explored every possible alternative to provide relief in the current rate environment, resulting in this innovative proposal,” said FHA Commissioner Julia Gordon.
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PAVE Task Force announces new appraisal bias actions
The Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) announced a set of new actions as part of the PAVE Action Plan to address appraisal bias against communities and people of color. Six agencies issued a proposed rule on Automated Valuation Models (AVMs), the algorithms used to assess home values, to establish quality control standards for AVMs. The change would help prevent algorithmic bias and ensure that home values are determined fairly. The agencies that proposed the rule include the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency (FHFA), the National Credit Union Administration, and the Office of the Comptroller of the Currency. The proposed rule has a 60-day comment period after publication in the Federal Register. Also, FHFA will update the Uniform Appraisal Dataset Aggregate Statistics to make appraisal data more transparent to the public and allow more analyses of appraisal trends.
“Having your home undervalued is bigger than just a number on a page. It can be the difference between getting a loan and not – between having enough money for retirement or not,” said HUD Secretary Marcia Fudge.
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HUD launches new counseling awareness campaign
HUD launched a new housing counseling awareness campaign, “Let’s Make Home the Goal,” as a nationwide multi-year campaign to raise awareness of the availability and benefits of housing counseling. The campaign is designed to reach communities of color that have historically faced barriers to home buying to help close the racial homeownership gap through advertising, events, and public service announcements in 13 states.
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Debt limit deal rescinds unspent COVID-19 relief funds
Congress passed the Fiscal Responsibility Act last week to avoid defaulting on the nation’s debt. The legislation rescinds unobligated funding that was included in previous appropriations bills, mainly from relief programs established during the COVID-19 pandemic. Obligation occurs when a federal agency enters into a binding agreement, such as a contract, grant, or other legal commitment, to spend the funds for a specific purpose. Housing programs that have lost unobligated funding include:
- Tenant-based rental assistance,
- Project-based rental assistance,
- Section 202 Housing for the Elderly,
- Section 811 Housing for Persons with Disabilities,
- Native American housing,
- Fair housing programs, and
- Rural homeowner assistance.
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IRS releases guidance on energy tax credits
The IRS released new guidance for tax credits under Notice 2023-44 that gives detailed information on qualified investments in advanced energy projects established under the Inflation Reduction Act. The guidance provides more details on how to apply for the first allocation of the credits; the window for applying opened May 31 and closes July 31. Of the $10 billion allocation in tax credits, $4 billion must be allocated to projects in an energy community as defined by the code.
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June is National Homeownership Month
In tandem with National Homeownership Month, HUD and NAHB will host the 2023 Innovative Housing Showcase on the National Mall from June 9-11. The Showcase will feature existing innovative and affordable housing designs and technologies. As part of the Showcase, HUD will host an event, House Party 2.0, on June 10 to educate aspiring homeowners about housing counseling, financial education, down payment assistance and FHA mortgage loans. June is also recognized as National Healthy Homes Month, which seeks to highlight HUD and its partners’ work to protect residents from health hazards.
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Residents supportive of allowing missing middle housing
New research from Zillow revealed broad support for developing “missing middle” housing in residential neighborhoods traditionally zoned for single-family homes. A survey conducted across 29 metro areas found that 82% of adults support allowing at least one multifamily option within their community. In addition, surveyed residents were more likely to support allowing accessory dwelling units, with 70% voicing support, and duplexes and triplexes, with 59% expressing support.
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A segment from Action News 5 covered the Black Homeownership Collaborative’s second anniversary, celebrated in Memphis, Tenn. The piece outlined the 3by30 initiative with quotes from NHC President and CEO David Dworkin and featured a 23-year-old homeowner, Nicholas Whiteside, who purchased a house through Freddie Mac’s CreditSmart Essentials and Homebuyers U courses. Both Dworkin and Whiteside spoke at the event.
An opinion piece in The Hill by Rep. Bonnie Watson Coleman (D-N.J.) argues that exclusionary zoning must be confronted to address the housing crisis. The article notes the interconnection of three crises: rising income inequality, resurging racial animus, and the housing affordability crisis. The piece connects zoning policies with persistent racial inequalities and touts New Jersey’s declaration of exclusionary zoning as unconstitutional, leading to higher affordable housing production.
A Buzzfeed article outlines 19 lessons experienced homebuyers wish they had learned before purchasing their home as advice for others looking to purchase for the first time. The stories range from understanding homeowner associations, inspections, and the risks of “flipped” houses to shopping around for mortgage providers and understanding lenders selling loan portfolios.
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Monday, June 5
Tuesday, June 6
Wednesday, June 7
Thursday, June 8
Friday, June 9
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The National Housing Conference is a diverse continuum of affordable housing stakeholders that convene and collaborate through dialogue, advocacy, research, and education, to develop equitable solutions that serve our common interest. |
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