Updated Road to Housing Act Advances; BABA Reform Bill Introduced

Coming off our annual Affordable Housing Forum co-hosted by the Housing Advisory Group and our friends at the Affordable Housing Tax Credit Coalition, we are excited to report that following discussions between the Speaker of the House, Senate Majority Leader and Chairmen and Ranking Members of the Senate Banking Committee and House Financial Services Committee, the Senate is considering bringing an updated version of the 21st Century ROAD to Housing Act up for a vote this week.  

This version of “ROAD” includes many of the changes passed by the House and excludes the build-to-rent and 7-year divestiture requirement for rental homes that was included in the previous version of the Senate bill. This is a win for affordable rental housing and our investors. Both versions of the bill increase the Public Welfare Investment cap for banks from 15% to 20%.  

The Senate bill also restored a provision authorizing the Community Development Block Grant Disaster Recovery program for 7 years, language that was not included in the House version. This may be an uphill fight, as it lacks support from many in the House

The Senate additionally re-inserted several upper-chamber priorities, including the BUILD NOW Act, which would incentivize communities to build more housing through the Community Development Block Grant program; the Rental Assistance Demonstration bill, which would raise the cap on housing authorities to convert voucher-based assistance; and the Moving to Work bill, which would aim to add a new cohort of MTW public housing agencies.

While we are still reviewing the updated text, the new Senate bill appears to include many of the provisions we have been advocating for in the housing bill. Pending an affirmative vote by the Senate this week, the House could bring the bill up when they return to Washington next week. It is important to note that at this point, neither the White House, House Leadership, nor Financial Services Committee leadership has signaled their support for the Senate product.

We will keep you apprised on the status of the bill and ask that you continue to advocate with Members of both chambers until the bill is passed and signed by the President.

On another positive front, Congressman Mike Flood (R-NE) and Congresswoman Maggie Goodlander (D-NH) have introduced the Build America Affordably Act, a bill that would address many of the issues we are confronting with the Build America Buy America program. 

This Section-by-Section illustrates the purpose of the legislation. Specifically, the bill calls for the Secretary of HUD to conduct a comprehensive study on the impacts of the Build America, Buy America Act (BABA) on affordable housing development and preservation projects assisted through covered federal housing programs.

While that study is underway, a stay would be placed on the BABA mandate, allowing housing using federal resources to proceed. The stay would last until 60 days after Congress receives a report from HUD on the effects of the BABA program on housing, as well as HUD’s recommendations on how to address those effects.

And finally, the legislation would provide HUD with 90 days to address all submitted waivers. If the 90 days pass without a decision, the waiver would be deemed automatically approved.

We are seeking support among Democratic Members for the Build Housing Affordably Act and ask that you contact your Member of Congress and ask them to sign on to the legislation. 

Additionally, HUD is preparing to issue a Request for Information (RFI), seeking input from domestic manufacturers on their ability to provide materials that meet the BABA guidelines. We are told that this RFI will also survey housing providers about their experiences attempting to comply with the BABA mandate. We will circulate the RFI as soon as it is issued, and we cannot emphasize enough the importance of submitting comments if you have had issues attempting to comply with the statute, including long wait times for waiver requests and added costs associated with compliance.

Thank you.