Federal updates
- In case you missed it, the Treasury Department released new guidance last week that allows State and Local Fiscal Recovery Funds (SLFRF) to be used for long-term LIHTC loans. This guidance addresses a final Treasury rule published in January that inadvertently prevented recovery funds from being used for long-term housing financing in North Carolina and approximately 20 other states.
Since the LIFELINE Act has not advanced in Congress, Treasury incorporated measures from the bill into this new policy.
The guidance:
- Increases flexibility to use SLFRF to fully finance long-term affordable housing loans.
- Expands presumptively eligible affordable housing uses to to include housing that meets core requirements of HOME, the National Housing Trust Fund, the Housing Credit, public housing capital funds, Section 202, Section 811, project-based rental assistance, and USDA multifamily preservation.
The General Assembly plans to return in November to reallocate unspent State and Local Fiscal Recovery Funds, which can now be used for LIHTC under Treasury’s new guidance.
- Last week, Senate negotiators unexpectedly reached a reconciliation package deal. The Inflation Reduction Act of 2022 addresses climate change, taxes, health care and inflation. The bill proposes $300 billion in deficit reduction and $369.75 billion in energy security and climate change programs over the next 10 years. It also extends Affordable Care Act expansions, allows Medicare to negotiate drug prices, and increases taxes on corporations and the wealthiest Americans.
Related to housing, the package includes $1 billion for affordable housing energy upgrades, but excludes public housing as an eligible use of funds. This is significantly reduced from investments in Build Back Better, which included more than $150 billion in much-needed housing investments.
If the Senate passes the bill prior to leaving for recess on Friday, the House members (who have already adjourned) are expected to return to take up the legislation.
- The U.S. Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies (THUD) released its draft spending bill for 2023. The bill provides $70 billion, including $10.3 billion in offsets, for HUD’s affordable housing, homelessness, and community development programs. This is an increase of $4.3 billion over FY22-enacted levels, but $3 billion less than the House bill and $1.9 billion less than the amount proposed in President Biden’s FY23 budget request. For more details, see NLIHC’s updated budget chart and analysis.
State updates
- DHIC is partnering with The Presbyterian Homes Inc., to build a 156 apartment community for seniors. The community will include 10 efficiencies, 122 one-bedroom/one-bath units, and 24 two bedroom/one bath. The new housing units will be affordable to households with incomes below 60% of the area median income: DHIC builds more affordable housing in Raleigh | The Triangle Tribune
Reports, events, resources
- Report: Out of Reach 2022: The High Cost of Housing | NLIHC
- Virtual event: NLIHC hosts a live book discussion on the Invisible Child: Poverty, Survival and Hope in an American City, Thursday, 8/4 @ 3pm
- A College Town Takes On Exclusionary Zoning | Bloomberg
- Mortgage Rates Are Brought Down by Recession Fears | Washington Post
- Low-Cost Cities With Strong Economies Remain Attractive as Housing Market Slows | Wall Street Journal
- C.’s good for business, but low-income workers struggle | Axios
- Affordable rents in Asheville touted by national report, but debunked by locals | ABC 13
