Two weeks after Election Day, affordable housing advocates said they expect to see a continuation of divided government, with a Democrat majority in the House and most likely a Republican majority in the Senate depending on the two runoff races in Georgia in early January.
However, they are still optimistic about boosting housing and improving the low-income housing tax credit (LIHTC).
“It’s an intense polarized political environment,” Stockton Williams, executive director of the National Council of State Housing Agencies, told attendees during the annual Capitol Hill Update at the virtual AHF Live conference. “It’s going to take a lot of work to get small things accomplished, and we are looking for big things. But the LIHTC has been improved in more difficult economic scenarios and political times. I feel very good about our chances to get more resources for housing.”
Emily Cadik, executive director of the Affordable Housing Tax Credit Allocation, said one thing that will be different is that President-elect Biden will come into office with a $640 billion housing plan. In addition, she added, that the administration will look at what they can accomplish on the housing plan on the regulatory side without Congress’ approval.
According to Williams, the substantial regulatory agenda includes looking to reverse or revise fair housing and fair lending, update the Community Reinvestment Act, and decide the future of Fannie Mae and Freddie Mac. “That will be an area early on where the administration will try to make some headway.”
Stimulus Package
Panelists agreed that a second COVID-19 stimulus package is murky at this time, and there will be a better idea after Thanksgiving break on what could happen by the end of the year.
“Not only have we not gotten the rental assistance we need, so many benefits of the last relief bill have expired,” said Cadik. “It’s very frustrating to watch these deals come together and disappear.”
Williams said the NCSHA has been pleading with both sides of the aisle to get in pandemic-related needs, especially housing assistance.
“I’m not sure I would hold out hope that we would have a CARES Act by the end of the year, and it’s a shame because people really need it,” added David Gasson, executive director of the Housing Advisory Group.
Affordable Housing Credit Improvement Act
Advocates have been on the phone with leads of the Affordable Housing Credit Improvement Act (AHCIA) and aren’t wasting time to get this bill reintroduced next year.
“Considering it is most likely we will have a divided government again, we are not looking at any major changes and will keep the bill similar to the current Congress and make sure it has consensus with the industry and wouldn’t jeopardize any bipartisan support,” said Cadik.
On the Senate side, the advocates said they are looking for Sens. Maria Cantwell (D-Wash.), Ron Wyden (D-Ore.), and Todd Young (R-Ind.) to return to their lead sponsorship roles on the bill. On the House side, they also expect Reps. Suzan DelBene (D-Wash.), Don Beyer (D-Va.), and Jackie Walorski (R-Ind) to head up the House version.
“We are blessed that we have the core in the House and Senate among our champions returning,” said Williams. “And we have the opportunity to bring in new faces to round out the cohorts.”
Cadik noted that continuing to cultivate and rebuild new Senate Republican support will be a priority.
IRS Accommodations for COVID-19
Affordable housing associations and advocates are also working on a letter to the IRS and Treasury to request deadlines and other accommodations for the LIHTC program in light of disruption brought on by the pandemic.
“These deadlines are important to the state housing agencies who are administering the credit as well as the people in the audience today,” Williams said. “If we can’t get the deadlines extended, there could be problems with closing or placed-in-service dates or other milestones.”
The Benefits of Technology
Cadik said she always enjoys the start of a new Congress and administration because educating new members as well as returning ones is rewarding for her. And now with travel to Capitol Hill being harder for stakeholders across the country, technology has made it easier for the industry to reach out to Congress with virtual groundbreakings, Zoom calls, and virtual meetings.
“I’m looking forward to educating the new group and seeing how the industry can plug into our efforts with the technology,” she said.