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Housing Call: October 5, 2021

Federal updates

  • President Biden and congressional leaders are currently crafting an agreement with moderate Democrats to drastically cut the “Build Back Better Act” economic recovery package. The Washington Post reported Saturday that “the administration’s housing proposal, which called for more than $300 billion to build or retrofit over three million housing units, may prove among the first to hit the cutting room floor.” Housing organizations are urging members of Congress to leave housing funding at originally proposed levels in the package. President Biden has proposed a compromise plan that would reduce the topline number to $2.3 trillion. See our Action Alert for more details.
  • The U.S. Treasury released new guidance on the reallocation of Emergency Rental Assistance (ERA) funds. Entities that have not obligated at least 65 percent of their ERA1 funding by September 30, 2021 will be required to submit program improvement plans in which grantees must outline strategies to accelerate the distribution of funds. Grantees with expenditure ratios below 30 percent will be subject to recapture and reallocation. The guidance points to a process by which recaptured funds are to be reallocated based on performance and demonstrated need with the stated goal of preventing eviction. 
  • The U.S. is approaching it’s federal borrowing limit and the Treasury Department warned last week that Congress must address the debt ceiling before Oct. 18. Economists can only guess at the economic consequences an unprecedented U.S. default would have. 

North Carolina updates


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Housing Call: September 28, 2021

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