- 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
- Early last week, the House and Senate came to an agreement on the state budget. It’s been sent to the governor and the three parties are negotiating. No one has seen the budget compromise yet, but we’ve heard some of the topline numbers could include the elimination of corporate income tax, personal income tax cuts, and Medicaid expansion.
- A new draft of HB 951 “Energy Solutions for NC” is set to be heard in the NC Senate Agriculture and Energy Committee on Tuesday, October 4. While the bill does include an “on-tariff financing” program for energy efficiency upgrades, the consequence of the bill’s passage will significantly increase electricity bills and does not offer any relief for low-income ratepayers. You can read more and take action here.
- DHIC celebrated the grand opening of the Willard Street Apartments, 82 new affordable apartments in downtown Durham.
- 160 tenants behind on rent applied for aid. Their landlord won’t accept the money. | Raleigh N&O
- Three-minute explainer video from NC Budget & Tax Center on the North Carolina budget process
- Upcoming virtual event from Harvard University’s Joint Center for Housing Studies: Zoning and Equity. Thursday, October 21, 2021 from 12:00-1:00 pm ET