A.C.T.I.O.N. Campaign Legislative Update
The A.C.T.I.O.N. campaign currently has 150 supporters. Recent editorials have appeared in the San Francisco Chronicle and the Los Angeles Times, which highlight the campaign’s concerns.
On November 18, Democrats on the House Ways & Means Committee met to discuss proposals to include in a jobs creation bill. Chairman Charles Rangel's (D-N.Y.) staff suggested inclusion of the following campaign proposals:
Also on November 18, Rep. Pascrell (D-N.J.) introduced a bill (HR 4109) that would enact both parts of the carryback proposals for existing as well as new investments.
The House leadership is planning to consider this "jobs" legislation soon and pass a bill by December 18. However, it appears increasingly unlikely that the Senate will act on that bill this year, and the only likely tax bills the Senate will consider this month are the annual so-called tax extenders bill and a bill to extend the estate tax. The tax extenders bill, which the campaign had previously targeted as an appropriate legislative vehicle for the campaign's proposals and may still include an extension of the 9 percent exchange program, unfortunately no longer appears to be a viable legislative vehicle for the proposals in the House. The House leadership has indicated its position that no “new” policy be included in the tax extenders bill, and aside from extending the 9 percent exchange program, the campaign’s proposals have been deemed to be “new” policy.
GO Zone LIHTC Placed-in-Service Extension Update
The New York Times published a recent editorial regarding the need for the placed-in-service deadline extension for the GO Zone LIHTC as included in HR 3929/S 1761. As a result of the efforts of the initiative’s supporters, it appears that House may include the PIS extension in the tax extenders bill.
Enterprise strongly supports this legislation, which is crucial to the success of approximately 77 affordable rental housing developments along the Gulf Coast that are currently at risk. Without the extension, more than $1 billion in construction projects in the GO Zone will be unable to close financing.
Enterprise Discusses Green, Affordable Housing with Senate Energy and Resources Committee
Enterprise Vice President for Green Initiatives Dana Bourland joined a panel of industry experts and Senate Energy and Resources Committee Chairman Senator Jeff Bingaman (D-N.M.) along with other committee members on November 16 to discuss energy-efficient affordable housing.
Proposed Senate legislation calls for more than $2.5 billion in new funding to help make single-family and multifamily housing healthier, and more cost effective and energy efficient for low-income families. Other panelists included Cassius Peeler of the U.S. Green Building Council, Dennis Creech of Southface and Greg Thomas of Performance Systems Development. Review the presentation. (PDF, 5MB)
House Floor Expected to Debate Financial Services Overhaul
On December 2, Rep. Barney Frank (D-Mass.) introduced the Wall Street Reform and Consumer Protection Act of 2009 (HR 4173). The act combines ten bills previously passed by House committees, and will overhaul the financial services regulation system. Legislation authorizing the Consumer Financial Protection Agency is included as part of this bill. On December 2, the House Committee on Rules announced that it would report a rule for floor consideration of the act, indicating that full House of Representatives debate will begin the week of December 7. For more information, view the Library of Congress’ bill information.
House Committee Receives FHA Actuarial Report
The House Financial Services Committee held a hearing December 2 to receive the FY 2009 FHA Actuarial Report. U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan testified that the current economic crisis has forced FHA to significantly increase its market share; FHA is currently insuring 30 percent of home purchases and 20 percent of refinances. Despite the fact that secondary reserves have fallen below the congressionally mandated 2 percent level to 0.53 percent, an independent actuary has concluded that the reserves will remain positive under all but the most highly severe economic scenarios. In response to the fiscal challenges faced by FHA, Donovan testified that several corrective measures have been taken or are pending, including:
- Increased compliance monitoring and enforcement of FHA-approved lenders
- Strengthened credit and risk controls, including the hiring of a chief risk officer
- Increased efforts to ensure lenders assume responsibility for losses associated with loans not underwritten to FHA standards
Other potential actions include temporarily increasing the minimum FICO score for new FHA borrowers and increasing the borrower's required level of up-front cash. For further details and the complete text of witnesses’ testimony, visit the House Financial Services Committee’s hearing webpage. |
