Vermont Affordable Housing Coalition



Vermont Congressional DelegationVAHC/ VCEH Annual Meeting – September 17, 2019Federal UpdateFederal Appropriations UpdateThe 2020 federal fiscal year begins October 1, 2019. Throughout the summer, the House Appropriations Committee passed 12 spending bills and the House and the Senate agreed to a two year budget deal that increases federal spending caps and raises the debt limit. The Senate plans to take up the spending bills in the Appropriations Committee throughout September. The House and Senate are negotiating a continuing resolution to fund the federal government through the fall as Congress agrees on the spending plan for 2020. Federal spending on housing programs is primarily contained within the Transportation, Housing and Urban Development (HUD) and Agriculture bills. The Senate Appropriations Committee intends to markup both of these bills during the week of September 16. The Senate intends to release information on proposed funding levels for individual programs at the end of the week. 2020 is a challenging year for the HUD budget. The Senate topline allocation for Transportation and Housing agencies is $74.3 billion. This is 4% over FY19 enacted levels, and $15 billion over the President’s request. However, revenue shortfalls from Fannie Mea and Freddie Mac, combined with higher than anticipated rent cost increase, resulted in a $1.1 billion shortfall in the bill. As Vice Chair of the Senate Appropriations Committee, Senator Leahy is committed to protecting vital housing resources, even in this difficult budget environment. Proposed Trump Administration Rules Proposed Rule on Broad-Based Categorical Eligibility for the Supplemental Nutrition Assistance Program (SNAP)On July 23, the Trump Administration published a proposed rule that would change the eligibility criteria for SNAP. This could result in Vermonters losing their nutrition benefits and would have a ripple effect through Vermont’s school system. Hunger Free Vermont is coordinating public comments to the Administration prior to the deadline on Monday, September 23. Housing Finance ReformThe Trump administration recently issued a new proposal to reform the housing finance system. Their primary goal is to remove Fannie Mae and Freddie Mac from government conservatorship and create a growing role for the private sector in the housing finance system.Importantly, the Trump proposal does not suggest making changes to the Housing Trust Fund as part of this reform. However, if there are other private mortgage guarantors besides Fannie and Freddie, contributions to the trust fund could decrease. One significant downside of the proposal is that it would eliminate Fannie and Freddie’s affordable housing goals, and is vague about a proposal to replace it with an alternative.Most of these changes will require Congressional action. As Congress debates this plan and housing finance reform, Senator Sanders’ focus will be to preserve and expand the Housing Trust Fund, protect affordable housing goals, and ensure that all lenders have equal access to mortgages guarantees.Proposed RulesTrump has also proposed a number of recent rules that would be extremely damaging to the most vulnerable families in need of affordable housing.In May, they proposed using a new inflation measure to determine the federal poverty line. This new measure, called Chained CPI, would grow the poverty line more slowly and make fewer families eligible for programs like Medicaid, CHIP, and health insurance subsidies. HUD also recently proposed banning “mixed-status” families, where some family members are undocumented, from receiving Section 8 or living in public housing. It is estimated that 25,000 families could lose housing as a result of this change, including 55,000 children who are either citizens or legal permanent residents. Finally, DHS recently published its final “public charge” rule, to update how DHS will determine whether immigrants will be considered a public charge as a result of using income based programs. The new rule makes it easier for DHS to deny immigration applicants if they could be receiving housing and other public benefits. We are deeply concerned this forces families to choose between accessing much-needed affordable housing and protecting their immigration status.Please be assured that Senator Sanders is strongly opposed to these rules and Trump’s cruel policies towards the most vulnerable among us. Housing-Related bills – Representative Welch Congressman Welch introduced the PATH Fairness Act (H.R. 3592), which would provide less populated rural states like Vermont more equitable access to the Projects for Assistance in Transition from Homelessness (PATH) program. PATH provides formula block grants to states to provide services for the homeless or those at imminent risk of becoming homeless because of mental illness.Congressman Welch is a cosponsor of the Affordable Housing Credit Improvement Act (H.R. 3077) which would strengthen the Low-Income Housing Tax Credit by making the financing of affordable housing more predictable and streamlined, facilitating housing credit development in challenging markets like rural communities, increase the housing credit’s ability to serve extremely low-income tenants, and support the preservation of existing affordable housingCongressman Welch is a cosponsor of the New Markets Tax Credit Extension Act (H.R. 1680) which would permanently extend the New Market Tax Credit. This credit stimulates private investment and economic growth in low income urban and rural communities that lack access to the patient capital needed to support and grow businesses, create jobs, and sustain healthy local economies.Congressman Welch cosponsored the Ending Homelessness Act (H.R. 1856), a comprehensive plan to ensure the lowest income people and families in America have safe, decent, and affordable homes. ................
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