Good News For Housing

Several months ago, Congress passed a two-year bipartisan budget agreement. This agreement lifted caps on federal spending for FY 2018 and FY 2019 by nearly $300 billion. The Omnibus Spending Bill that was signed by President Trump on March 23 provided noted increases in housing resources. The U.S. Department of Housing and Urban Development (HUD) will receive a total of $42.7 billion for federal FY2018, $12 billion more than the President’s budget request and at levels above what was proposed in either the House or Senate’s draft budget bills. The Omnibus bill also increased state Housing Credit authority for four years beginning in 2018.

Under the FFY2018 budget, the Arizona Department of Housing (ADOH) now expects to see increases in its HOME Investment Partnership and Community Development Block Grant allocations. Homeless assistance grants, public housing resources, and other housing programs will also see increases.

A 12.5 percent increase in the Low-Income Housing Tax Credit Program allocation for four years beginning in 2018, will provide additional resources to help lessen the impact of the 2017 tax reform bill, which has been expected to reduce the value of credits overall, reducing the number of units that could be produced.

The Omnibus bill also provided language regarding the House and Senate Committees on Appropriations’ support of HUD’s cancellation of previously issued solicitations to competitively procure new Section 8 Project Based Contract Administration-type services on a regional basis nationally. It further directed HUD to report within 90 days of enactment of the Omnibus bill, its funding requirements necessary to undertake and oversee a state-by-state contracting methodology, as compared to the cancelled regionally based proposal. As the Section 8 Project Based Contract Administrator serving the state of Arizona since 2001, ADOH applauds this direction which addresses its concerns about HUD’s previous direction regarding the important services the Department now provides to the State’s HUD project-based portfolio.

The State Senate Makes It Official

The Arizona legislature has been in session since January 8, and much has happened since then, including the Senate Confirmation of Arizona Department of Housing Director Carol Ditmore. On January 22, the Senate Commerce and Public Safety Committee voted unanimously to approve the Governor’s nomination of Director Ditmore and on January 23 she was unanimously confirmed by the full Senate. On January 22, the legislature also opened a Special Session to address the Opioid Epidemic with a final bill sent to the Governor’s Office just three days later.

The Arizona Department of Housing is monitoring a number of bills that pertain to issues effecting the Department, but in all matters remains neutral on bills that are under consideration by our State officials.

By Rule, the legislature is to have completed its business for the year by the 100th day of the session, which is April 17.