Federal UpdateCOSCDA Annual Conference

September 30, 2019

Overview

• FY2020 Appropriations

• Current Legislation

• HUD Actions

• Progress on Priorities

• Outlook

• Advocacy Activities

FY2020 Appropriations

• President• Budget released on March 11

• Eliminates CDBG and HOME, $2.59b for Homeless Assistance Grants

• House• Deemed budget levels in April

• Appropriations committee and chamber approved THUD bill in July

• Senate• Two-year budget agreement signed by president in July

• Suspends debt-ceiling limit through July 2021

• September: Senate Appropriations issued sub-allocations, approved THUD bill

Funding Levels

Program FY2018 FY2019 House FY2020 Senate FY2020

CDBG $3.3 $3.3 $3.6 $3.325

HOME $1.362 $1.25 $1.75 $1.25

Homeless Assistance

$2.513 $2.636 $2.8 $2.761

*Figures in billions

FY2020 Appropriations – House Directives

• CDBG• Resiliency and broadband incorporated into Con Plan

• Utilizing CDBG to support technical assistance for coal communities

• Encourages investment supporting transitional housing for persons in recovery

• Directs HUD to issue report on best development practices of CDBG recipients

FY2020 Appropriations – House Directives

• HOME • Suspends 24-month commitment deadline

• Reminds HUD to issue report on increasing housing stock in high-cost metros

• Directs HUD to review HOME rental unit requirements, barriers to homeownership among eligible homebuyers

FY2020 Appropriations – House Directives

• Homeless Assistance Grants• Directs Secretary to prioritize resources to grantees reallocating

funds from lower to higher performing projects• Creates HUD HAG account to recapture lapse funding in previous

year and repurpose for CoC and ESG (est. yield $90m annually)• Includes $100m for Youth Homelessness Demonstration grants• Provides $50m for rapid re-housing, supportive services to

survivors of domestic violence, sexual assault, dating violence, and stalking

• Directs HUD to report on legislative, programmatic changes to utilize tiny homes

FY2020 Appropriations - Senate Directives

•CDBG• Includes $25m for PILOT under SUPPORT Act (transitional

housing for persons in recovery)• Directs HUD to issue report on facilitating grantee and

non-profit partnerships

FY2020 Appropriations – Senate Directives

• HOME • Suspends 24-month commitment deadline

• Recognizes leveraging power ($1 of HOME = $7.85; $8.67 for rental projects)

• Directs HUD to restart Rental Policy Working Group to research policy overlap between HOME and LIHTC supporting housing needs of low-income veterans

• Directs HUD to brief Congress on aligning environmental reviews of HOME and HTF, issue regulations within a year*

FY2020 Appropriations – Senate Directives

• Homeless Assistance Grants• Directs HUD to issue report on transitioning to multi-year NOFA,

awarding bonus points to CoCs partnering w. PHAs

• Directs HUD to issue guidance on eligibility under CoC to fund transitional housing for domestic violence victims, areas of coordination between CoC and other federal programs

• Includes $80m for Youth Homelessness Demonstration

• Issues guidance for HUD to ensure CoC grantee has staff person responsible for child supportive services

Current Legislation

• Affordable Housing is Infrastructure Act of 2019• Working document issued in April by HFS Chairwoman Maxine

Waters (D-CA)

• Briefing held to examine affordable housing issues

• Authorizes $95 billion to promote new and existing housing units

• Creates $10 billion competitive program under CDBG

• Authorizes $5 billion for Housing Trust Fund

• HOME not included in bill

• Legislation w. updated language expected in coming weeks

Current Legislation

• Disaster Recovery Act of 2019• Bi-partisan legislation

• House bill approved out of committee and Senate bill introduced (July)

• Permanently authorizes CDBG-Disaster Recovery program

• Provides consist regulations

• Sets timelines on allocation and release of funds

• Senate version creates new office to coordinate HUD’s DR activities

• Grantee administration 5 – 10%

Current Legislation

• Ending Homelessness Act of 2019• Legislation led by HFS Chairwoman Waters, introduced in March

• Hearing held ahead of bill introduction in Feb

• Applies $13.27 billion across emergency relief grants, vouchers, outreach, and technical assistance

• $1 billion authorized for HTF

• Reported out of committee in March

HUD Actions

• Section 3 Rule Update• Intends to increase employment among low-income persons

through HUD-funded projects

• Proposed Update• Hours over hires

• Introduces new category of worker “Targeted Sec. 3 Worker”

• Proposes service area of 5,000 population

• Raises project threshold to $200k

HUD Actions

• Opportunity Zones• HUD increasingly involved in program

• Secretary leading WH Opportunity and Revitalization Council

• Requested comments on connecting HUD w. OZs

• Reducing regulatory and administration burdens through programs

• Utilize HUD tools to help stakeholders realize available resources across federal government

HUD Actions

• CDBG SUPPORT Act Formula and Eligible States• Details criteria to determine eligibility for funding

• Opioid death rate (70%)

• Unemployment (15%)

• Labor force participation (15%)

• Lists 25 states and D.C. eligible for assistance

• Reveals percentage of funds to be allocated to each state

• Additional guidance expected from HUD

Progress on Priorities

• All COSCDA programs funded to at least FY19 levels• House levels closer to COSCDA funding requests

• Senate bill includes directive to align HOME, HTF env. reviews

• Funding for CDBG authorized in proposed affordable housing bill• HOME expected in final introduced bill

• Bill introduced on reforming CDBG-DR under HUD

• Suspension of HOME 24-month commitment • Appropriations bills

Outlook

• Government operating under CR through Nov 21

• Appropriations moves to conference

• CDBG-DR vote in House, consideration by Senate Banking Comm.

• Housing finance reform actions by administration

• Introduction of additional infrastructure-related legislation

• 2020 Elections

Advocacy Activities

• Outreach to Hill on FY20 appropriations

• Prepare advocacy for FY21 appropriations

• Draft 2021 advocacy priorities

• Recommend CDBG env. review reforms to Congress, HUD

• Recommend HOME administrative reforms to Congress

Advocacy Activities

• Respond to recent HUD regulatory proposals, request for comments

• Gather and share project examples from states

• Engage COSCDA members to showcase investments

• Update reports on CPD programs

• Determine path forward for community development & affordable housing, align w. COSCDA member needs

Questions