Skip to content

Housing Call: March 12, 2024

Federal Updates

  • State of the Union Last week, President Biden delivered his State of the Union address. In his remarks, he addressed inflation and high interest rates. Most notably, he proposed a $10K mortgage relief tax credit for first and second-time homebuyers. He also mentioned plans to lift title insurance requirements on federally backed mortgages. Biden says he can fix America’s housing affordability crisis. Will it work?
  • Minibus bill passes We avoided a partial government shutdown on Friday when Congress passed 6 spending bills, which included housing. Those programs are now funded until the end of September when the FY 24 budget ends. Some of the more controversial spending bills, such as the Defense budget, are in the second tranche of bills that need to be passed by March 22.
  • Biden released his proposed FY25 budget yesterday The President’s proposed budget signals their policy priorities, but ultimately does not stand much of a chance of passing with the Republican-led House. The proposed budget looked very similar to last year’s. We’re still dissecting it, but so far, the notable highlights of this year’s proposed budget are:
    • Encourage Congress to expand LIHTC;
    • Create the Mortgage Relief tax credit (also mentioned in the SOTU)
    • Fund a first generation downpayment assistance program
    • Expand rental assistance and increase funding for the expansion of the Housing Choice Voucher program; and
    • Increase allocations for USDA 502 Single Family Direct Loan and 515 Rental Housing Direct Loans. 
  • Last week, the Treasury announced three new efforts to increase housing supply:
    • Updated guidance for the American Rescue Plan’s (ARP) State and Local Fiscal Recovery Funds (SLFRF) to make it easier for recipients to use remaining funds to construct affordable housing;
    • New clarifications to the ARP’s Emergency Rental Assistance (ERA) program which will make clear that qualifying recipients can use remaining funds on a broad range of uses to fund affordable housing serving very low-income families; and
    • An extension of the Federal Financing Bank’s (FFB) financing support for a risk-sharing initiative between the Department of Housing and Urban Development (HUD) and state and local housing finance agencies in order to lower the cost of creating and preserving affordable housing.

Ahead of the State of the Union, President Biden Highlights the Administration’s Investments in Affordable Housing and Plan to Lower Housing Costs for Working Families

Yellen says Biden’s proposed housing tax credits could boost supply | Reuters

Pushing for more affordable housing – Live Updates – POLITICO

 State Updates

State Legislative Updates – None 

Local Community Updates

  • Salem Gardens to undergo $40 million renovation. Winston-Salem complex to remain affordable for at least 30 years, under deal with city Salem Gardens, a 150-unit apartment community for low-income residents in Winston-Salem, will receive a $3M loan from the City as part of a larger $40M renovation. In return, the new owners have agreed to keep the property affordable for at least 30 additional years. Renovations will be done in a way so as to not displace residents.
  • UNC student organization to install solar on local affordable housing complex UNC student-run organization SolarEquity recently received a donation of 275 solar panels and is partnering with EmPOWERment Inc to solarize their new affordable development,  PEACH Apartments. The 10-unit complex is for residents earning between 30-60% AMI. Each household is expected to see a monthly savings on their energy bills of around $37.
  • Officials discuss affordable housing needs in Durham: ‘Not enough’ Last week, HUD Principal Deputy Assistant Secretary Richard Monocchio and Durham city leaders met with advocates and Durham residents for a roundtable discussion. Public housing residents voiced the need for additional services for children living in public housing, such as Head Start programs and community centers co-located within communities.
  • Durham’s Cornwallis Road housing community to get $3 million in renovations, addressing ‘significant need’ The Durham Housing Authority recently received a $3M grant from HUD that will be used for repairs at the Cornwallis Road public housing community. The 200-unit community was built 57 years ago and, like many aging public housing communities nationwide, is in need of expensive updates and repairs. DHA staff estimate that the building will need about $5M in repairs over the next 5 years. With a score of 30/100, the Cornwallis Road community scores the lowest of any public housing community in NC and among the lowest in the nation.
  • City of Raleigh approves creation of Transit Overlay District along New Bern Avenue Raleigh City Council voted last week to approve a Transit Overlay District for certain areas along the New Bern Bus Rapid Transit corridor. Some neighbors were concerned that the TOD would intensify gentrification and displacement for the low-income, long-time residents. Council ultimately sent planning staff back to parse the land into smaller tracts to consider for rezoning.
  • Wake issues urgent call for help after seeing a ‘disturbing’ rise in homeless students Over the past 10 years, Wake County schools have experienced an 88% increase in the number of homeless students. About 3.5% of Wake County’s 150,000 students are experiencing homelessness. According to the school system, most students and families that are experiencing homelessness have been evicted and aren’t able to afford the security deposit and first month’s rent for a new place to live. A $1.3M federal Covid grant that the school system has relied on to provide before and after-school care and tutoring for students experiencing homelessness must be expended by later this year. The school system is reaching out to community groups for replacement funding and encourages anyone who is interested in supporting students in transition to reach out.
  • The Wilson Housing Authority is accepting Housing Choice Voucher pre-applications through March 26. Interested individuals can pick up a pre-application at the Wilson Housing Authority Administration Building or by printing the PDF found on the front page of their website.

Events

Resources

In the News

  • Reminder that the Gap Report comes out on Thursday. Be on the lookout for an email from us with key highlights and takeaways.
  • Also, next week we will not be having a Housing Call because some of our staff will be at the National Low Income Housing Coalition’s Annual Policy Forum in DC. We’ll be back at our usual time on Tuesday, March 26 and can’t wait to share what we learn in DC with you.

Recommended read

Housing Call: March 5, 2024

Many thanks to our sponsors