The text of the sweeping legislative package was unveiled this afternoon, providing at least level funding for all HUD programs, permanently authorizing the 4 percent Low Income Housing Tax Credit, and providing $25 billion in rent relief to struggling landlords and renters.

The House is expected to vote on the package tonight, with a final vote expected by 10:00 pm ET. The Senate is expected to begin consideration immediately after it passes the House, with the aim to hold a final vote at some point overnight. The President has indicated that he will sign the bill.

This package is the culmination of years of work by NAHRO and its members; the permanent authorization of the 4 percent Low Income Housing Tax Credit has been a priority for NAHRO. Additionally, NAHRO members have pushed for rent relief and full-year appropriations for HUD throughout the year. NAHRO thanks its members for their hard work to make this monumental package possible.

While the COVID-19 relief title does not include additional direct funding for HUD programs, Democratic leadership has made it clear that they intend to pursue additional relief early next year. “Once this deal is signed into law, it cannot be the final word on Congressional relief,” said Senate Minority Leader Chuck Schumer. “The bipartisan agreement is simply a down payment. It will establish a floor – not a ceiling – for coronavirus relief in 2021.”

FY 2021 Omnibus

The FY 2021 Transportation-HUD title of the bill provides all HUD programs with at least level funding for the current fiscal year. Most of the programs increased received a modest bump up in funding, though the HOME program disappointingly remains level funded.

The legislation also includes language that prevents HUD from altering the annual contributions contract, language that was originally championed by NAHRO in FY 2020.

• Public Housing Capital Fund: $2.765 billion ($19 million more in formula grants than FY 2020)
• Public Housing Operating Fund: $4.839 billion ($290 million more than FY 2020)
• Choice Neighborhoods: $200 million ($25 million more than FY 2020)
• Section 8 Housing Assistance Payment Renewals: $23.080 billion ($1.578 billion more than FY 2020)
• Ongoing Administrative Fees: $2.129 billion ($182 million more than FY 2020)
• Self-Sufficiency: $155 million (FSS: $105 million; ROSS: $35 million; and Jobs Plus: $15 million) ($25 million more than FY 2020)
• Section 8 Project-Based Rental Assistance: $13.465 billion ($895 million more than FY 2020)
• Native American Housing Programs: $825 million (level with FY 2020)
• Community Development Block Grant: $3.475 billion ($50 million more than FY 2020)
• HOME Investment Partnerships: $1.35 billion (level with FY 2020)
• Housing Opportunity for Persons with AIDS: $430 million ($20 million more than FY 2020)
• Homeless Assistance Grants: $3 billion ($49 million more than FY 2020)

Tax Extenders

• Low Income Housing Tax Credit: The bill sets the minimum credit rate for the 4 percent credit at 4 percent for all applicable credits allocated or obligated after December 31, 2020. The bill further increases the number of tax credits available to qualified disaster zone projects. Qualified disaster zones are areas where the President declared a non-COVID-19 disaster between January 1, 2020, and 60 days after the enactment of the bill.

COVID-19 Relief

• Rent Relief: The $25 billion would be distributed and overseen by the U.S. Department of Treasury and the funds would be sent to States and local jurisdictions to operate emergency rental assistance programs for local landlords and tenants. Local jurisdictions will need to have a population of 200,000 or more people to be eligible. The five U.S. territories (the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa) will share $400 million of the funds. Indian Tribes that were eligible for last fiscal year’s Native American Housing Block Grant program are also eligible for these rental assistance funds and will share $800 million.The distribution of funds to landlord and tenants will be done by the State, local jurisdiction, U.S. territory, District of Columbia, and Indian Tribe grantees. Public Housing Authorities (PHAs) will not be direct recipients of rental assistance funds from the Treasury department. However, PHAs should contact the grantee that serves their community to learn more about the local distribution and to offer to act as a subgrantee to operate an emergency rental assistance program.
• The distribution of funds to landlord and tenants will be done by the State, local jurisdiction, U.S. territory, District of Columbia, and Indian Tribe grantees. Public Housing Authorities (PHAs) will not be direct recipients of rental assistance funds from the Treasury department. However, PHAs should contact the grantee that serves their community to learn more about the local distribution and to offer to act as a subgrantee to operate an emergency rental assistance program.
• Eligible households include families that have income below 80 percent of the area median income, have an obligation to pay rent; has a household member that has a reduction of income due to COVID-19; and the household is experiencing or at risk of homelessness.  The local emergency rental assistance programs must have an application process that prioritizes families that are 50 percent or below area median income. The funds can be used by eligible households for payment of: rent, rental arrears, utilities and home energy costs, utilities and home energy arrears, and other expenses related to housing incurred due to COVID-19 Landlords or property owners may apply on behalf of their residents – tenants are required to cosign the landlord’s application and the landlord must inform the tenant that the landlord applied and any funds the landlord received must be applied to the tenant’s rental obligations. Assistance received by households cannot be used to determine eligibility for other federal assistance programs and will not be taxable to the household.

• Eviction Moratorium: The emergency coronavirus relief bill also includes an eviction moratorium extension. Specifically, the current Centers for Disease Control and Prevention (CDC) Eviction Moratorium will be extended to Thursday, January 31, 2021. All aspects of the CDC Eviction Moratorium will remain in place. Current tenant declarations will remain in effect until January 31, 2021 and new tenant declarations may be provided to landlords until January 31, 2021.

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