RubinBrown Apartment Stats 2020

EXECUTIVE SUMMARY

The Outlook for Affordable Housing by Emily Cadik, guest writer from Affordable Housing Tax Credit Coalition

The Road Ahead: What We Know There is already a slate of broadly supported, well-vetted proposals to strengthen our nation’s affordable housing poised for advancement in any political climate. Even in this period of hyper-partisanship, the Affordable Housing Credit Improvement Act, legislation to expand and strengthen the Housing Credit, has the support of more than half of the House of Representatives and more than one-third of the Senate – ranging from members of the Freedom Caucus to Democratic Socialists. Advocacy from the affordable housing community over many years (taking members of Congress to see developments and meet with residents firsthand, meeting with members of Congress and staff on Capitol Hill, and now virtually) has paid dividends in terms of the depth and breadth of support we have built. The question is not if there is support for the Housing Credit, but rather when we will get some of our top priorities across the finish line. With Democrats retaining control of the House, we know that House Democratic leadership, including Speaker Nancy Pelosi (D-CA) and House Ways and Means Chairman Richie Neal (DMA), have been committed to expanding and strengthening the Housing Credit. There also are tenacious champions for the program on both sides of the aisle in Representatives Suzan DelBene (D-WA) and Jackie Walorski (R-IN). The House has passed sweeping legislation, which has stalled in the Senate, that would make nearly a dozen changes to significantly expand and strengthen the Housing Credit while also providing $100 billion in rental assistance, which we expect to remain a priority in 2021. We also know that, regardless of which party controls the Senate, the leaders of the Senate Finance Committee that oversees the Housing Credit, current Ranking Member Sen. Ron Wyden (D-OR) and upcoming leader Sen. Mike Crapo (R-ID), are strong supporters of the Housing Credit and affordable housing generally. Whereas outgoing Senate Finance Committee Chairman Chuck Grassley (R-IA) was largely focused on oversight, there are more potential areas of overlap between Sen. Crapo and Sen. Wyden’s agendas, including housing.

The COVID-19 crisis has provided a powerful reminder of the need for a safe home, and since it began, we have seen growing political awareness of the now staggering need for affordable housing. But, the past few months have also seen excruciating legislative gridlock that has prevented even modest bipartisan solutions from advancing. Congress had initially planned for five phases of COVID-19 relief legislation, but has yet to come to an agreement on anything past the CARES Act, which was signed into law in March, meaning there are still two phases left to go. Ever since the passing of Supreme Court Justice Ruth Bader Ginsburg, the prospect for bipartisan compromise on additional relief has waned further. But, the climate in Washington changes by the hour, and there could be any of a number of events forcing parties back to the negotiating table over the coming weeks and months. Most immediately, the Affordable Housing Tax Credit Coalition and their partners are urging Congress to keep affordable housing production moving forward by enacting measures related to the Low-Income Housing Tax Credit (Housing Credit), while also providing sorely needed rental assistance to help keep renters housed. The most immediate issue facing the Housing Credit is that the so-called “4 percent” Housing Credit rate has fallen to an all-time low of 3.07% as a result of the cuts to federal borrowing rates. A minimum 4% rate is needed to allow developments to move forward. But longer term, additional resources — including an expansion and strengthening of the Housing Credit — will be needed to build more affordable housing that can stabilize the growing number of households in need and stimulate the economy. In addition to affordable housing production, there is a need for a substantial infusion of rental assistance. Though recent eviction moratoria provide a temporary reprieve for some renters, rental assistance is imperative to ensure overdue rent payments can be paid back.

Executive Summary

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