Federal Update

While numerous federal housing proposals have been put forward in the midst of the Coronavirus pandemic, it does not appear that any of the legislation has traction at this time. Housing advocates continue to encourage congressional leaders to pass a minimum 4% credit rate for bond-financed housing deals, a key provision of the Affordable Housing Credit Improvement Act that would ensure that this source of financing is maximized for affordable housing.

On July 1st, the House of Representatives passed the Moving Forward Act, a significant infrastructure bill that included many key affordable housing provisions, including a 50 percent increase to the Housing Credit volume cap, a 4 percent minimum credit rate for bond-financed tax credit properties, an increase to the private activity bond volume cap, creation of a single-family housing tax credit, and other program funding increases. While this legislation passed on a party line vote and is not expected to proceed in the Senate, some provisions may be included in coronavirus relief legislation that the Senate is set to consider this month.

Since the CARES Act was enacted this spring, Arizona has been notified that the state will receive $124 million in CARES Act funding for Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA) funding, with additional CDBG grant funding expected sometime this summer. $46 million was allocated to the State of Arizona, while the remaining $78 million will be distributed directly to entitlement communities.

In addition to CARES Act funding distributed by the U.S. Department of Housing & Urban Development (HUD) (see chart below), some local jurisdictions have allocated additional general CARES Act funding for housing-related assistance. For example, Maricopa County recently allocated $50 million for rental assistance, and the City of Phoenix allocated $20 million to avoid local evictions. Other local jurisdictions are also considering doing the same. When all is said and done, we expect over $200 million may be available for housing and community development related uses.