White House Proposal Would Move Rural Housing Programs to HUD, Transfer CDBG to Dept. of Commerce

The White House recently released Delivering Government Solutions in the 21^st Century: Reform Plan and Reorganization Recommendation. The proposal would reorganize several aspects of the Federal Government, with affordable housing in the mix.

The U.S. Department of Agriculture’s rural housing loan guarantee program as well as its rural rental assistance program would be moved into the Department of Housing and Urban Development.

HUD’s Community Development Block Grant program would be consolidated with Economic Development Assistance Programs from the Economic Development Administration and would be reorganized under a newly created Bureau of Economic Growth within the Department of Commerce.

A permanent council on public assistance would be created, composed of Health and Human Services (which would also be renamed the Department of Health and Public Welfare after taking over USDA’s nutrition assistance programs), HUD, USDA, the Department of Education and the Workforce (another new proposition to combine labor and education), and others. The purpose of the council would be a coordinated effort for all public assistance programs, including the goal of implementing federal-wide work requirements for these programs.

The proposal would also end conservatorship for Fannie Mae and Freddie Mac (GSEs) and reduce their roles in the housing market as well as provide an explicit and limited federal backstop apart from support for low- and moderate-income homebuyers. The plan predicts other private companies competing in the space once the GSEs are taken out of conservatorship and made fully private, with a federal regulator ensuring fair access to the secondary market. The proposal is entirely silent on the future of rental housing finance and the GSEs’ multifamily business lines, and makes a critical mistake in assuming that affordable housing objectives and traditional underwriting are mutually exclusive and therefore would shift primary responsibility for serving low- and moderate-income borrowers to HUD and FHA.

The proposal remains just that for the moment, a proposal. Congress would have to act to implement such changes.

HUD Releases HOME Monthly Reports

HUD has announced that the latest HOME Monthly Reports, as of November 30, 2024, are now available. Why it matters: These reports are crucial for Participating Jurisdictions (PJs) to effectively track and manage their housing initiatives. Details: The bottom line: These reports empower PJs to optimize their housing strategies, ensuring effective use of resources and […]

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Workforce Housing Debt Financing Updates

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FHFA Unveils Enterprises’ Three-Year Plans to Improve Housing Opportunities for the Underserved

Fannie Mae and Freddie Mac (the Enterprises) will seek to extend housing access in rural underserved markets, enhance their support for manufactured housing and continue addressing liquidity needs for first-time homebuyers, among a host of activities outlined in plans published by the Federal Housing Finance Agency (FHFA).