Virtual Hearing - Build Back Better: Investing in Equitable and Affordable Housing (EventID=111446)

Video Description

Connect with the House Financial Services Committee Get the latest news: https://financialservices.house.gov/ Follow us on Facebook: https://www.facebook.com/HouseFinancialCmte/ Follow us on Twitter: https://twitter.com/FSCDems ___________________________________ On Wednesday, April 14, 2020, from 10:00 a.m. (ET) full Committee Chairwoman Waters and Ranking Member McHenry will host a virtual hearing entitled, “Build Back Better: Investing in Equitable and Affordable Housing Infrastructure." ___________________________________ Witnesses for this one-panel hearing will be: • Ms. Diane Yentel, President and CEO, National Low Income Housing Coalition • Dr. Michael McAfee, President and CEO, Policy Link • Ms. Jacqueline Waggoner, President, Solutions Division, Enterprise Community Partners • Dr. Saule Omarova, Beth and Marc Goldberg Professor of Law, Cornell University • Mr. Brian Riedl, Senior Fellow, Manhattan Institute ___________________________________ Introduction Similar to bridges and roads, affordable housing is a crucial part of the infrastructure of the United States and is a stable asset that allows individuals, families, and communities to gain access to resources and opportunities that enable them to thrive. Similar to investments into other infrastructure projects, investments into affordable housing infrastructure generate construction activity and jobs that stimulate the economy. For example, according to the National Association of Home Builders, “building 1000 multifamily rental homes of average construction value creates or retains 1,250 jobs, $142 million in wages and business income, and $55.91 million in taxes and revenue for local, state and federal government.” Further, similar to disinvestment in other infrastructure, disinvestment in affordable housing infrastructure can hamper economic growth. One study found that a lack of affordable housing in large metropolitan areas costs the U.S. economy approximately $2 trillion each year by hindering the ability of people with lower incomes to move to these areas. Another study estimated that the United States’ GDP growth was stunted by 13.5 percent from 1964 to 2009 due to a lack of accessibility to affordable housing. Sufficient investment in affordable housing over this time period would have engendered a $1.7 trillion increase in total income, and amounted to $8,775 in additional wages for each worker in the U.S. The Need for Investment in Affordable Housing Infrastructure There are 960,000 public housing units across the country that are home to 1.65 million residents. In 2010, HUD found that the national average per-unit estimate of capital needs was over $19,000, with a median per-unit need of greater than $15,000. The Public Housing Authorities Directors Association (PHADA)’s estimate of the total public housing capital backlog amounted to $70 billion as of the pre-pandemic date of February 2020. Failure to invest in our public housing stock may result in the permanent loss of these units, which are already being lost at a rate of about 10,000 units each year. Other federally assisted housing, including in the U.S. territories and tribal areas, is also facing significant capital investment needs that have been exacerbated by decreased federal funding or lack of new federal funding for key programs like the Community Development Block Grant (CDBG) program, the HOME Investment Partnerships program (HOME), the Project Based Rental Assistance Program (PBRA), the Native American Housing Block Grant (NAHBG) program, and rural housing programs. For example, the U.S. Department of Agriculture’s multifamily housing portfolio, which provides rental housing for low-income residents in rural areas, estimates a reserves deficit of $5.6 billion over the coming 20 years.” According to a report from the National Congress of American Indians, “of the 60,000 homes being maintained by federal housing assistance programs serving Native Americans, it is estimated that 70 percent are in need of retrofitting.” Local regulations and laws also affect the supply of affordable housing. For example, many states and localities impose impact fees, which are payments required by state or local governments on new development to provide revenue for infrastructure projects other than housing. Around 60 percent of cities in the United States with greater than 25,000 residents impose these fees. By making affordable housing developments more expensive, these fees can directly reduce the number affordable housing units in a development or reduce the affordability of the unit. The shrinking affordable rental housing stock described above has left millions of families, especially people of color, deeply cost-burdened or living in substandard conditions, or in worst cases, homeless. In 2019, over 17.6 million households paid more than half their income in rent... Hearing page: https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=407532