Housing Issues in the 117th Congress

Changes from July 23, 2021 to April 15, 2022

This page shows textual changes in the document between the two versions indicated in the dates above. Textual matter removed in the later version is indicated with ~~red strikethrough~~ and textual matter added in the later version is indicated with blue.

Housing Issues in the 117th Congress
~~July 23, 2021~~
~~The 117th Congress has been considering a variety of housing-related issues, with~~April 15, 2022 As the 117th Congress began, housing housing
challenges presented by the COVID-19 pandemic challenges presented by the COVID-19 pandemic ~~remaining~~continued to be a primary concern. In March 2021, Congress passed the American Rescue Plan Katie Jones, Coordinator Act of 2021 ~~a primary concern. As the Congress~~
~~Katie Jones, Coordinator~~
~~began, the COVID-19 pandemic was ongoing, as were concerns about some households’ ability~~
~~Analyst in Housing Policy~~
~~to maintain rent or mortgage payments due to the effects of the pandemic. In March 2021,~~

~~Congress passed the American Rescue Plan Act~~ (P.L. 117-2), a wide-ranging pandemic relief and (P.L. 117-2), a wide-ranging pandemic relief and
response law that included funding response law that included funding Analyst in Housing Policy for several new and existing housing programsfor several new and existing housing programs to help to help

address the effects of the pandemicaddress the effects of the pandemic.
~~Through hearings and legislative proposals, the 117th Congress has also indicated interest in~~, including funding for rental assistance, homeowner assistance, and homelessness assistance. The 117th Congress has also been considering a variety of other housing-related issues. Housing affordability is a perennial policy issue, but it has become particularly salient in light of increasing housing prices and ongoing housing supply constraints. There have been a variety of proposals to address housing affordability concerns, including significant new funding for affordable housing programs in proposed infrastructure packages (including the Build Back Better Act). Through hearings and proposed legislation, Congress has also expressed interest in addressing ~~a variety of other housing-related~~
~~issues, including proposals to address housing affordability concerns, to include housing funding in proposed infrastructure~~
~~packages, and to address~~ racial racial disparities in housing outcomes, in issues related to housing and climate resiliency, and in housing and disaster response. Other issues involve changes to housing-related rulemakings, including mortgage regulations promulgated~~disparities in housing outcomes. Other potential issues of interest include certain housing-~~
~~related rulemakings issued under the Trump Administration that the Biden Administration has revisited, including~~
~~rulemakings~~ by the Consumer Financial Protection Bureau and fair housing regulations promulgated by the Department of by the Consumer Financial Protection Bureau and fair housing regulations promulgated by the Department of
Housing and Urban Development. In addition, the status of two government-sponsored enterprises important to the housing Housing and Urban Development. In addition, the status of two government-sponsored enterprises important to the housing
finance system, Fannie Mae and Freddie Mac, has been of ongoing interest for finance system, Fannie Mae and Freddie Mac, has been of ongoing interest for ~~over~~more than a decade. a decade.
Housing market conditions provide context for the 117th Congress’s deliberations, although conditions vary locally and Housing market conditions provide context for the 117th Congress’s deliberations, although conditions vary locally and
national indicators may not reflect the conditions in a specific local community. During the pandemic, house prices have national indicators may not reflect the conditions in a specific local community. During the pandemic, house prices have
risen, but mortgage interest rates have risen, but mortgage interest rates have ~~fallen~~been low, helping to spur homebuyer demand. , helping to spur homebuyer demand. (Mortgage interest rates have begun to increase in the first months of 2022.) Housing supply, which was low before the Housing supply, which was low before the
pandemic began, has become even more constrained, contributing to price increases. Concerns about high housing costs, pandemic began, has become even more constrained, contributing to price increases. Concerns about high housing costs,
limited supply, and the potential for increased evictions and foreclosures as pandemic-related protections expire have been limited supply, and the potential for increased evictions and foreclosures as pandemic-related protections expire have been
prominent housing market prominent housing market ~~considerations~~ issues during the 117th Congressduring the 117th Congress~~, though uncertainty remains about market trends going~~
~~forward~~. .
Congressional Research Service Congressional Research Service

~~link to page 35~~ ~~Housing Issues in the 117th Congress~~

~~Contacts~~
~~Author Information~~ ....................................................................................................... 31....... 40

Congressional Research Service Congressional Research Service

Housing Issues in the 117th Congress

Introduction
While housing in the United States is primarily a private market enterprise, regulated at the state While housing in the United States is primarily a private market enterprise, regulated at the state
and local levels, federal policymakers play an important role in regulating housing finance, and local levels, federal policymakers play an important role in regulating housing finance,
providing affordable housing resources to state and local entities, and enforcing fair housing laws, providing affordable housing resources to state and local entities, and enforcing fair housing laws,
among other functions. Congress establishes laws governing U.S. housing policy, funds housing among other functions. Congress establishes laws governing U.S. housing policy, funds housing
policies and programs via the annual appropriations process and the federal tax code, and policies and programs via the annual appropriations process and the federal tax code, and
oversees policy and program implementation by various federal agencies. The House Financial oversees policy and program implementation by various federal agencies. The House Financial
Services Committee and the Senate Banking Committee, in particular, play prominent roles in Services Committee and the Senate Banking Committee, in particular, play prominent roles in
many of these functions as committees of jurisdiction. Federal agencies involved in housing many of these functions as committees of jurisdiction. Federal agencies involved in housing
policy and programs include the Department of Housing and Urban Development (HUD), the policy and programs include the Department of Housing and Urban Development (HUD), the
Federal Housing Finance Agency (FHFA), the Department of the Treasury (Treasury), and others. Federal Housing Finance Agency (FHFA), the Department of the Treasury (Treasury), and others.
~~The housing~~Housing policy priorities policy priorities ~~of the first session~~at the beginning of the 117th Congress of the 117th Congress ~~have been~~continued to be heavily heavily
influenced by the COVID-19 pandemic and both its public health and economic ramifications. influenced by the COVID-19 pandemic and both its public health and economic ramifications.
Significant new housing-related investments were included in the American Rescue Plan Act Significant new housing-related investments were included in the American Rescue Plan Act of 2021 (P.L. (P.L.
117-2), a pandemic relief and recovery law enacted early in the 117th Congress. 117-2), a pandemic relief and recovery law enacted early in the 117th Congress.
~~In addition to those related to the COVID-19 pandemic, several other housing policy~~
~~considerations are of interest to the 117th Congress. Housing affordability remains a prominent~~
~~concern, and a~~Housing affordability, while a perennial policy issue, has been a prominent concern during the 117th Congress in light of house price increases and limited housing supply affecting both homeownership and rental markets. A variety of policy proposals have been put forward to address the affordability of variety of policy proposals have been put forward to address the affordability of
both rental housing and homeownershipboth rental housing and homeownership~~. Furthermore,~~, including proposals for new housing funding proposals for new housing funding that have have
been included in broader infrastructure proposalsbeen included in broader infrastructure proposals~~, and~~. Several other housing policy considerations have also been of interest to the 117th Congress. For example, Congress has signaled an interest in Congress has signaled an interest in
addressing racial disparities in housing. addressing racial disparities in housing. ~~The Biden Administration~~ It has also focused attention on issues related to housing and climate as well as disaster resiliency. In addition, the Biden Administration has revisited certain housing-has revisited certain housing-
related policies that were implemented in recent years; for example, the Consumer Financial related policies that were implemented in recent years; for example, the Consumer Financial
Protection Bureau (CFPB) delayed the effective date of a mortgage-related rulemaking, while Protection Bureau (CFPB) delayed the effective date of a mortgage-related rulemaking, while
HUD has taken steps to rescind certain Trump Administration fair housing rules and reinstate HUD has taken steps to rescind certain Trump Administration fair housing rules and reinstate
elements of Obama Administration-era rules. Fannie Mae and Freddie Mac, two government-elements of Obama Administration-era rules. Fannie Mae and Freddie Mac, two government-
sponsored enterprises (GSEs) that back a large part of the mortgage market, sponsored enterprises (GSEs) that back a large part of the mortgage market, ~~remain in~~
~~conservatorship.~~ have been in conservatorship since 2008. Congress could take legislative action to address the conservatorship, and even Congress could take legislative action to address the conservatorship, and even
in the absence of in the absence of ~~legislation~~ legislation it could consider administrative steps taken by the GSEs’ regulator it could consider administrative steps taken by the GSEs’ regulator
and conservator, FHFA, that affect their activities. and conservator, FHFA, that affect their activities.
This report This report begins with an overview of certain housing and mortgage market indicators. It then provides a high-level overview of housing issues of interest to the 117th Congress and, provides a high-level overview of housing issues of interest to the 117th Congress and,
where applicable, refers to more in-depth CRS reports on the issues discussed. where applicable, refers to more in-depth CRS reports on the issues discussed.
Housing and Mortgage Market Conditions
This section provides background on housing and mortgage market conditions thus far during the This section provides background on housing and mortgage market conditions thus far during the
117th Congress to provide context for the housing policy issues discussed in the remainder of the 117th Congress to provide context for the housing policy issues discussed in the remainder of the
report.1 It includes selected indicators focused on single-family housing markets, single-family report.1 It includes selected indicators focused on single-family housing markets, single-family
~~housing finance,2 and rental markets. The ongoing effects of the COVID-19 pandemic create~~

1 For more information on these and other housing and mortgage market conditions, see HUD’s quarterly Housing 1 For more information on these and other housing and mortgage market conditions, see HUD’s quarterly Housing
Market Conditions reports, available at https://www.huduser.gov/portal/ushmc/quarterly_commentary.html, and its Market Conditions reports, available at https://www.huduser.gov/portal/ushmc/quarterly_commentary.html, and its
monthly Housing Market Indicators reports, available at https://www.huduser.gov/portal/ushmc/hmi-update.html. Both monthly Housing Market Indicators reports, available at https://www.huduser.gov/portal/ushmc/hmi-update.html. Both
~~of these report series collect data on various housing market indicators that are published by other entities.~~
~~2 Single-family homes are often defined as homes with one-to-four housing units, particularly in the context of housing~~
~~finance, meaning that a duplex or triplex would be considered single-family housing. In some contexts, however,~~
~~single-family homes may be defined as only one-unit homes. Single-family homes can be primary residences owned by~~
~~Congressional Research Service~~

1

~~link to page 7~~ ~~Housing Issues in the 117th Congress~~

~~uncertainty, however, and current trends in market conditions may not continue. In addition, some~~
~~housing data collection has been impacted by the pandemic and may not be directly comparable~~
~~to previous data, contributing to uncertainty about market trends.~~
~~This discussion is of market conditions at the national level. Local housing market conditions can~~
~~vary significantly, and national housing market trends may not reflect the conditions in a specific~~
~~area. Nevertheless, national housing market indicators can provide an overal sense of general~~
~~trends in housing.~~
~~Single-Family House Prices~~
~~As shown in Figure 1,~~ ~~nominal house prices3 have increased national y~~ Congressional Research Service 1 link to page 7 Housing Issues in the 117th Congress housing finance,2 and rental markets. The discussion of market conditions presented in this section is at the national level. Local housing market conditions can vary significantly, and national housing market trends may not reflect the conditions in a specific area. Nevertheless, national housing market indicators can provide an overall sense of general trends in housing. In general, during the 117th Congress, both homeownership and rental markets have been characterized by low levels of supply (i.e., relatively low numbers of homes available for sale or rent) and, relatedly, significant increases in house prices and rents. These price increases have made housing affordability concerns a prominent issue. A variety of factors, on both the supply side and the demand side, have contributed to low housing inventory levels. While there have been some increases in housing construction activity, challenges related to rising construction costs and the availability of labor and materials persist. Single-Family House Prices As shown in Figure 1, nominal house prices3 have increased nationally on a year-over-year basis on a year-over-year basis
in each quarter since the beginning of 2012, with year-over-year increases exceeding 5% for in each quarter since the beginning of 2012, with year-over-year increases exceeding 5% for
much of that period and exceeding 6% at times. These increases followed almost five years of much of that period and exceeding 6% at times. These increases followed almost five years of
house price declines in the years during and surrounding the financial crisis of 2007-2009 and house price declines in the years during and surrounding the financial crisis of 2007-2009 and
associated housing market turmoil. associated housing market turmoil.
The pace of house price increases remained fairly steady for several years before noticeably The pace of house price increases remained fairly steady for several years before noticeably
accelerating during 2020. In the fourth quarter of 2020, nominal house prices increased nearly accelerating during 2020. In the fourth quarter of 2020, nominal house prices increased nearly
11% from the same quarter a year earlier, fueled by strong housing demand (in part due to low 11% from the same quarter a year earlier, fueled by strong housing demand (in part due to low
mortgage interest rates, among other factors) and a limited supply of homes for sale.4 This rapid mortgage interest rates, among other factors) and a limited supply of homes for sale.4 This rapid
growth growth ~~has~~ continued into 2021, with nominal house prices increasing by continued into 2021, with nominal house prices increasing by ~~over 12~~more than 17% in the % in the ~~first~~
~~quarter.5~~

fourth quarter of 2021 over the same quarter a year earlier.5 of these report series collect data on various housing market indicators that are published by other entities. 2 Single-family homes are often defined as homes with one-to-four housing units, particularly in the context of housing finance, meaning that a duplex or triplex would be considered single-family housing. In some contexts, however, single-family homes may be defined as only one-unit homes. Single-family homes can be primary residences owned by owner-occupants, or they may be second homes or investment properties. Rental housing units may beowner-occupants, or they may be second homes or investment properties. Rental housing units may be in single-family in single-family
or multifamily properties. or multifamily properties.
3 The~~3 T he~~ Federal Housing Federal Housing ~~Finance Agency weights, indexes, and seasonally adjusts nominal price change data. Data~~
~~measure~~ Finance Agency House Price Index measures the average price changes in repeat sales or refinances on the same properties using repeat mortgage the average price changes in repeat sales or refinances on the same properties using repeat mortgage
transactions that were purchased or securitizedtransactions that were purchased or securitized by Fannie Mae or Freddieby Fannie Mae or Freddie Mac since January 1975Mac since January 1975. FHFA weights, indexes, and seasonally adjusts nominal price change data. For more . For more
information, see information, see ~~Federal Housing Finance Agency,~~ “FHFA House Price Index,” at https://www.fhfa.gov/ at https://www.fhfa.gov/~~DataT ools~~DataTools/Downloads//Downloads/
Pages/House-Price-Index.aspx. Pages/House-Price-Index.aspx.
4 Federal Housing 4 Federal Housing Finance Agency, “Finance Agency, “ U.S. HouseU.S. House Prices RisePrices Rise 10.8 Percent over the Last Year; Up 3.8 Percent in the 10.8 Percent over the Last Year; Up 3.8 Percent in the
Fourth Quarter,” newsFourth Quarter,” news release, February 23, 2021, https://www.fhfa.gov/Media/PublicAffairs/Pages/US-House-Prices-release, February 23, 2021, https://www.fhfa.gov/Media/PublicAffairs/Pages/US-House-Prices-
Rise-10pt8-Percent-over-the-Last-Year-Up-3pt8-PercentRise-10pt8-Percent-over-the-Last-Year-Up-3pt8-Percent -in-4Q.aspx. -in-4Q.aspx.
5 Federal Housing5 Federal Housing Finance Agency, “U.S. HouseFinance Agency, “U.S. House Prices RisePrices Rise ~~12.6~~ 17.5 Percent over the Last Year; Up 3. Percent over the Last Year; Up 3.~~5% in the First~~3% from the Third
Quarter,” newsQuarter,” news release, release, ~~May 25, 2021~~February 22, 2022, https://www.fhfa.gov/Media/PublicAffairs/Pages/US-House-Prices-Rise-, https://www.fhfa.gov/Media/PublicAffairs/Pages/US-House-Prices-Rise-~~12pt6-~~
~~Percent~~ 17pt5-Percent-over-the-Last-Year-Up--over-the-Last-Year-Up-~~3pt5~~3pt3-Percent--Percent-~~in-the-First~~from-the-Third-Quarter.aspx. -Quarter.aspx.
Congressional Research Service Congressional Research Service

2 2

link to page 8 link to page 8

Housing Issues in the 117th Congress

Figure 1. Year-over-Year House Price Changes (Nominal)
Q1 1995– Q1 1995–Q1Q4 2021 2021

Source: Figure created by CRS using data from the Federal Housing Finance Agency House Price Index Figure created by CRS using data from the Federal Housing Finance Agency House Price Index
((~~Seasonal y~~Seasonally Adjusted Purchase-Only Index), available at https://www.fhfa.gov/DataTools/Downloads/Pages/House- Adjusted Purchase-Only Index), available at https://www.fhfa.gov/DataTools/Downloads/Pages/House-
Price-Index-Datasets.aspx#qpo. Price-Index-Datasets.aspx#qpo.
Notes: Figure shows the percentage change in nominal house prices compared to the same quarter in the Figure shows the percentage change in nominal house prices compared to the same quarter in the
previous year. Gray bars indicate recessions. previous year. Gray bars indicate recessions.
Figure 2 shows the trend in real median prices on both new and existing homes since 1995. shows the trend in real median prices on both new and existing homes since 1995.
Median prices on both new and existing homes have Median prices on both new and existing homes have ~~general y~~generally trended upward over the past two trended upward over the past two
decades, with a decline in prices during and after the 2007-2009 financial crisis. While the decades, with a decline in prices during and after the 2007-2009 financial crisis. While the
median price of new homes has been consistently above that of existing homes, the median price median price of new homes has been consistently above that of existing homes, the median price
of existing homes has grown more than new homes—the median real price of existing homes of existing homes has grown more than new homes—the median real price of existing homes
increased about 76% from 1995 to 2020, while the median real price of new homes increased by increased about 76% from 1995 to 2020, while the median real price of new homes increased by
about 47% over the same period. about 47% over the same period.
Congressional Research Service Congressional Research Service

3 3

link to page 9 link to page 9

Housing Issues in the 117th Congress

Figure 2. Median Real House Prices
1995–2020 1995–2020

Source: CRS calculations based data from HUD’sCRS calculations based data from HUD’s U.S. Housing Market Conditions reports,reports, available available
at https://www.huduser.gov/portal/ushmc/home.html,at https://www.huduser.gov/portal/ushmc/home.html, which use data fromwhich use data from the National Association of Realtors the National Association of Realtors
for existing home prices,for existing home prices, the U.S. Census Bureau for new home prices, and the Bureau of Labor Statistics for the the U.S. Census Bureau for new home prices, and the Bureau of Labor Statistics for the
consumer price index. consumer price index.
Notes: Gray bars indicate recessions. Gray bars indicate recessions.
For more information on recent home price increases, see the following:  CRS In Focus IF12048, High Home Prices: Contributing Factors and Policy Considerations Home Mortgage Interest Rates
Most homebuyers take out a mortgage to purchase a home, Most homebuyers take out a mortgage to purchase a home, ~~especial y~~especially when purchasing a primary when purchasing a primary
residence.6 Therefore, owner-occupied housing markets and the mortgage market are closely residence.6 Therefore, owner-occupied housing markets and the mortgage market are closely
linked, although they are not the same. The ability of prospective homebuyers to obtain linked, although they are not the same. The ability of prospective homebuyers to obtain
mortgages as mortgages as ~~wel~~ well as the costs of those mortgages impact housing demand and affordability. as the costs of those mortgages impact housing demand and affordability.
Mortgage interest rates have been low by historical standards for several years, and Mortgage interest rates have been low by historical standards for several years, and ~~fel~~ fell further further
after the start of the COVID-19 pandemic due in part to the federal monetary policy response to after the start of the COVID-19 pandemic due in part to the federal monetary policy response to
it. Lower interest rates increase mortgage affordability and make it easier for some households to it. Lower interest rates increase mortgage affordability and make it easier for some households to
purchase homes or refinance their existing mortgages. purchase homes or refinance their existing mortgages.
As shown i As shown in Figure 3, ~~mortgage~~ mortgage interest rates have been consistently below 5% since May 2010. interest rates have been consistently below 5% since May 2010.
The rates decreased further throughout 2020, averaging less than 3% The rates decreased further throughout 2020, averaging less than 3% ~~for~~in several months several months ~~from~~
~~mid-2020 into 2021~~in 2020 and 2021. Rates began to increase in early 2022. The average mortgage interest rate in . The average mortgage interest rate in ~~May 2021 was 2.96~~March 2022 was 4.17%, compared to %, compared to
~~3.23% in May 2020 and 4.07% in May 2019.~~

3.08% in March 2021 and 3.45% in March 2020. 6 According to the National Association of Realtors’ 6 According to the National Association of Realtors’ ~~2020~~2021 Profile of Homebuyers and Sellers, about 87% of , about 87% of
homebuyers who purchased a primary residence between Julyhomebuyers who purchased a primary residence between July ~~2019~~ 2020 and June and June ~~2020~~ 2021 financed the purchase. See financed the purchase. See National National
Association of Realtors, Association of Realtors, ~~“Pandemic Caused Buyers to Seek Multi-Generational Homes, Sellers to Sell Faster,” press~~
~~release, November 11, 2020, https://www.nar.realtor/newsroom/pandemic-caused-buyers-to-seek-multi-generational-~~
~~homes-sellers-to-sell-faster~~Highlights from the 2021 Profile of Home Buyers and Sellers, November 2021, p. 9, https://cdn.nar.realtor/sites/default/files/documents/2021-highlights-from-the-profile-of-home-buyers-and-sellers-11-11-2021.pdf..
Congressional Research Service Congressional Research Service

4 4

link to page 10 link to page 10

Housing Issues in the 117th Congress

Figure 3. Mortgage Interest Rates
January 1995– January 1995–~~May 2021~~March 2022

Source: Figure created by CRS based on data from FreddieFigure created by CRS based on data from Freddie Mac’s PrimaryMac’s Primary Mortgage Market Survey, 30-Mortgage Market Survey, 30-
Year Fixed Rate HistoricYear Fixed Rate Historic Tables, available at http://www.freddiemac.com/pmms/. Tables, available at http://www.freddiemac.com/pmms/.
Notes: Freddie Freddie Mac surveys lendersMac surveys lenders on the interest rates they are charging for certain types of mortgage on the interest rates they are charging for certain types of mortgage
products. The actual interest rate paid by any given borrowerproducts. The actual interest rate paid by any given borrower wil depend on a number of factors. Gray bars wil depend on a number of factors. Gray bars
indicate recessions. indicate recessions.
Home Sales
Home sales include sales of both existing and newly built homes. Existing home sales Home sales include sales of both existing and newly built homes. Existing home sales ~~general y~~generally
number in the number in the ~~mil ions~~millions each year, while new home sales are each year, while new home sales are ~~usual y~~usually in the hundreds of in the hundreds of
thousands. As shown ithousands. As shown in Figure 4, ~~home~~ home sales sales ~~fel~~ fell for several years after 2005 and remained low for several years after 2005 and remained low
through the aftermath of the housing and financial crisis of 2007-2009 before through the aftermath of the housing and financial crisis of 2007-2009 before ~~general y~~generally rising rising
again after 2014. again after 2014.
Homebuyer demand has remained strong even throughout the COVID-19 pandemic. In 2020, the Homebuyer demand has remained strong even throughout the COVID-19 pandemic. In 2020, the
combined number of homes sold was about 6.5 combined number of homes sold was about 6.5 ~~mil ion~~million, the highest figure since 2006 and an , the highest figure since 2006 and an
increase from 6.0 increase from 6.0 ~~mil ion~~million in 2019. Existing home sales in 2020 numbered 5.6 in 2019. Existing home sales in 2020 numbered 5.6 ~~mil ion~~million, while new , while new
home sales numbered 815,000; both of these levels were the highest since 2006 as home sales numbered 815,000; both of these levels were the highest since 2006 as ~~wel~~ well. Although . Although
home sales have home sales have ~~general y~~generally been increasing in recent years, the supply of homes on the market has been increasing in recent years, the supply of homes on the market has
~~general y~~generally not been keeping pace with demand, contributing to house price increases. not been keeping pace with demand, contributing to house price increases.

Congressional Research Service Congressional Research Service

5 5

link to page 11 link to page 11

Housing Issues in the 117th Congress

Figure 4. New and Existing Home Sales
Annual, 1995–2020 Annual, 1995–2020

Source: Figure created by CRS using data from HUD’s Figure created by CRS using data from HUD’s U.S. Housing Market Conditions reports,reports, available available
at https://www.huduser.gov/portal/ushmc/home.html,at https://www.huduser.gov/portal/ushmc/home.html, which use data fromwhich use data from the National Association of Realtors the National Association of Realtors
for existing home salesfor existing home sales and the U.S. Census Bureauand the U.S. Census Bureau for new home sales. for new home sales.
Inventory of Homes for Sale
Home sales depend in part on the number of homes available for sale. The supply of houses on Home sales depend in part on the number of homes available for sale. The supply of houses on
the market has been low for several years and the market has been low for several years and ~~fel even~~declined further in 2020. As shown i further in 2020. As shown in Figure 5, , ~~the~~the
annual housing inventory—that is, the number of homes on the market at a given point in time (in annual housing inventory—that is, the number of homes on the market at a given point in time (in
this case, at the end of the year)—was this case, at the end of the year)—was ~~under 1.4 mil ion~~less than 1.4 million in 2020.7 The low housing inventory has in 2020.7 The low housing inventory has
been driven by several factors, including ongoing been driven by several factors, including ongoing ~~shortfal s~~shortfalls in housing construction to meet in housing construction to meet
demand8 and homeowners’ decisions about putting their homes on the market, which may have demand8 and homeowners’ decisions about putting their homes on the market, which may have
been influenced by the pandemic. Several factors, in turn, have been contributing to construction been influenced by the pandemic. Several factors, in turn, have been contributing to construction
~~shortfal s~~shortfalls; these include, among other things, the availability; these include, among other things, the availability and costs of land, labor, and and costs of land, labor, and
materials (including lumber).9 materials (including lumber).9

7 For existing homes, the inventory includes active listings and7 For existing homes, the inventory includes active listings and pending sales; seepending sales; see National Association of Realtors, National Association of Realtors,
“Inventory and Months’ Supply,” blog post, https://www.nar.realtor/blogs/economists-outlook/inventory-and-months-“Inventory and Months’ Supply,” blog post, https://www.nar.realtor/blogs/economists-outlook/inventory-and-months-
supply. For newsupply. For new homes, inventory includes homes that are “homes, inventory includes homes that are “ being builtbeing built to be soldto be sold and a permit to buildand a permit to build has been issued has been issued
(in permit(in permit -issuing places) or work has begun-issuing places) or work has begun on the footings or foundation (in nonpermit areas) and a saleson the footings or foundation (in nonpermit areas) and a sales contract has contract has
not been signednot been signed nor a deposit accepted.” Seenor a deposit accepted.” See ~~U.S. Census Bureau, New~~ U.S. Census Bureau, New Residential Sales,Residential Sales, “ “Definitions – Survey of Definitions – Survey of
Construction,” https://www.census.gov/construction/nrs/definitions/index.html#n. Construction,” https://www.census.gov/construction/nrs/definitions/index.html#n.
8 See,8 See, for example, Freddiefor example, Freddie Mac, Mac, Housing Supply: A Growing Deficit, Research Note, May 7, 2021, , Research Note, May 7, 2021,
http://www.freddiemac.com/research/insight/20210507_housing_supply.page. http://www.freddiemac.com/research/insight/20210507_housing_supply.page.
9 See,9 See, for example, Jim Parrott and Mark Zandi, for example, Jim Parrott and Mark Zandi, Overcoming the Nation’s Daunting Housing Supply Shortage, March , March
2021, https://www.moodysanalytics.com/-/media/article/2021/overcoming-the-nations-housing-supply-shortage.pdf. 2021, https://www.moodysanalytics.com/-/media/article/2021/overcoming-the-nations-housing-supply-shortage.pdf.
Congressional Research Service Congressional Research Service

6 6

link to page 12 link to page 12

Housing Issues in the 117th Congress

Figure 5. Annual Housing Inventory
1995–2020 1995–2020

Source: Figure created by CRS using data from HUD’s Figure created by CRS using data from HUD’s U.S. Housing Market Conditions reports,reports, available available
at https://www.huduser.gov/portal/ushmc/home.html,at https://www.huduser.gov/portal/ushmc/home.html, which use data fromwhich use data from the National Association of Realtors the National Association of Realtors
for existing home inventoriesfor existing home inventories and the U.S. Census Bureau for new home inventories. and the U.S. Census Bureau for new home inventories.
Notes: Annual inventory represents Annual inventory represents homes for sale as of the end of the year.homes for sale as of the end of the year.
Single-Family Housing Construction
A variety of statistics measure the amount of new housing construction underway, including A variety of statistics measure the amount of new housing construction underway, including
housing starts, housing permits, and housing completions. housing starts, housing permits, and housing completions.
Housing starts are the number of new housing units on which construction is started in a given Housing starts are the number of new housing units on which construction is started in a given
period and are period and are ~~typical y~~typically reported monthly as a reported monthly as a seasonally adjusted annual rate. This means that . This means that
the number of housing starts reported for a given month (1) has been adjusted to account for the number of housing starts reported for a given month (1) has been adjusted to account for
seasonal factors and (2) has been multiplied by 12 to reflect what the annual number of housing seasonal factors and (2) has been multiplied by 12 to reflect what the annual number of housing
starts would be if the current month’s pace continued for an entire year.10 starts would be if the current month’s pace continued for an entire year.10
Figure 6 shows the shows the ~~seasonal y~~seasonally adjusted annual rate of starts on one-unit homes from January adjusted annual rate of starts on one-unit homes from January
1995 through 1995 through ~~May 2021~~February 2022.11 Housing starts for single-family homes .11 Housing starts for single-family homes ~~fel~~ fell during the housing and during the housing and
financial crisis that began around 2007, reflecting decreased home purchase demand. Housing financial crisis that began around 2007, reflecting decreased home purchase demand. Housing
starts have starts have ~~general y~~generally been increasing since about 2012, and while they been increasing since about 2012, and while they ~~initial y~~ initially showed a steep showed a steep
drop early in the pandemic, they have since rebounded and reached their highest levels since drop early in the pandemic, they have since rebounded and reached their highest levels since

~~10 T he Census Bureau defines the seasonally adjusted~~ about 2006. Nevertheless, new housing construction has arguably remained below the levels 10 The Census Bureau defines the seasonally adjusted annual rate as “the seasonally adjustedannual rate as “the seasonally adjusted monthly value multiplied monthly value multiplied
by 12” and notes that it “is neither a forecast nor a projection; rather it is a description of the rate of buildingby 12” and notes that it “is neither a forecast nor a projection; rather it is a description of the rate of building permits,permits,
housing starts, housing completions, or new home sales in the particular month for which they are calculated.” Seehousing starts, housing completions, or new home sales in the particular month for which they are calculated.” See U.S. U.S.
CensusCensus Bureau,Bureau, “New Residential“New Residential ~~Construction,” at~~ Construction Press Release FAQs,” at https://www.census.gov/construction/nrc/https://www.census.gov/construction/nrc/~~definitions/index.html#s.~~
~~11 T he~~faqs/faqs_nrc_release.html#quest4. 11 The number of housing number of housing starts is consistently higher than the number of new home sales. starts is consistently higher than the number of new home sales. ~~T his~~This is primarily because is primarily because
housing starts includehousing starts include homes that are not intended to be put on the forhomes that are not intended to be put on the for -sale market, such as-sale market, such as homes built by the owner of homes built by the owner of
the land or homes builtthe land or homes built for rental. See U.S.for rental. See U.S. ~~Census Bureau, “~~ Census Bureau, “Comparing New Home SalesComparing New Home Sales and Newand New Residential Residential
Construction,” https://www.census.gov/construction/nrc/salesvsstarts.html. Construction,” https://www.census.gov/construction/nrc/salesvsstarts.html.
Congressional Research Service Congressional Research Service

7 7

~~link to page 13~~

Housing Issues in the 117th Congress

~~about 2007. Nevertheless, new housing construction has remained below the levels necessary to~~
~~meet demand, especial y for smal er, more affordable starter homes.12~~
necessary to meet demand.12 Some research has suggested that this shortfall has been particularly acute for smaller, more affordable starter homes.13 Figure 6. Single-Family Housing Starts
( (~~Seasonal y~~Seasonally adjusted annual rate) adjusted annual rate)

Source: Figure created by CRS using data from the U.S. Census Bureau, New Residential Construction Figure created by CRS using data from the U.S. Census Bureau, New Residential Construction
HistoricalHistorical Data, http://www.census.gov/construction/nrc/historical_data/.Data, http://www.census.gov/construction/nrc/historical_data/. Data are through Data are through ~~May 2021~~February 2022. .
Notes: Figure reflects Figure reflects starts in one-unit structures only, somestarts in one-unit structures only, some of which may be built for rent rather than sale. of which may be built for rent rather than sale.
The The ~~seasonal y~~seasonally adjusted annual rate is the number of housing starts that would be expected if the number of adjusted annual rate is the number of housing starts that would be expected if the number of
homes started in that month (on a homes started in that month (on a ~~seasonal y~~ seasonally adjusted basis) wereadjusted basis) were extrapolated over an entireextrapolated over an entire year. Gray bars year. Gray bars
indicate recessions.indicate recessions.
Single-Family Mortgage Market Composition
Most homebuyers use a mortgage to purchase a home. After a mortgage is originated, it might be held in a financial institution’s asset portfolio, or it After a mortgage is originated, it might be held in a financial institution’s asset portfolio, or it
might be securitized through one of several channels.might be securitized through one of several channels.1314 Two government-sponsored enterprises, Two government-sponsored enterprises,
Fannie Mae and Freddie Mac, Fannie Mae and Freddie Mac, ~~issue mortgage-backed securities and guarantee investors’~~
~~payments on those securities~~purchase mortgages and issue mortgage-backed securities, providing a guarantee that investors in those securities will receive timely principal and interest payments even if borrowers default on the underlying mortgages. Mortgages that are insured or guaranteed by a federal agency, such . Mortgages that are insured or guaranteed by a federal agency, such
as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA), are as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA), are
~~eligible~~ eligible to be included in mortgage-backed securities guaranteed by Ginnie Mae, part of HUD. to be included in mortgage-backed securities guaranteed by Ginnie Mae, part of HUD.
Private companies can also issue mortgage-backed securities without a government or GSE Private companies can also issue mortgage-backed securities without a government or GSE
guarantee, known as private label securities. The shares of mortgages that are provided through guarantee, known as private label securities. The shares of mortgages that are provided through
each of these channels can vary based on market conditions, policy decisions, and other factors, each of these channels can vary based on market conditions, policy decisions, and other factors,
and may be relevant to policymakers because of the implications for mortgage access and and may be relevant to policymakers because of the implications for mortgage access and
affordability as affordability as ~~wel~~ well as the federal government’s exposure to risk. as the federal government’s exposure to risk.
~~As shown in Figure 7, nearly 60% of mortgage originations (by dollar volume) in 2020 were~~
~~securitized by Fannie Mae or Freddie Mac. About 22% were held in financial institutions’~~

~~12 See,~~ 12 See, for example, Jim Parrott and Mark Zandi, for example, Jim Parrott and Mark Zandi, Overcoming the Nation’s Daunting Housing Supply Shortage, March , March
2021, https://www.moodysanalytics.com/-/media/article/2021/overcoming-the-nations-housing-supply-shortage.pdf2021, https://www.moodysanalytics.com/-/media/article/2021/overcoming-the-nations-housing-supply-shortage.pdf;
~~and Freddie~~ . 13 See, for example, Freddie Mac, Mac, Housing Supply: A Growing Deficit,, Research Note, May 7, 2021, http://www.freddiemac.com/Research Note, May 7, 2021, http://www.freddiemac.com/
research/insight/20210507_housing_supply.page. research/insight/20210507_housing_supply.page.
13 14 For more information on different types of mortgages and mortgage securitization channels, see CRS For more information on different types of mortgages and mortgage securitization channels, see CRS Report Report
R42995, R42995, An Overview of the Housing Finance System in the United States. .
Congressional Research Service Congressional Research Service

8 8

link to page link to page 1413

Housing Issues in the 117th Congress

As shown in Figure 7, about 55% of mortgage originations (by dollar volume) in 2021 were securitized by Fannie Mae or Freddie Mac. About 28% were held in financial institutions’ portfolios, and about 15~~portfolios, and about 18~~% were securitized FHA or VA loans. % were securitized FHA or VA loans. ~~Under 1~~About 2% of originations were % of originations were
included in private-label securities. included in private-label securities.
Figure 7. Share of Mortgage Originations by Type
~~2020~~2021

Source: Figure created by CRS based on Inside Mortgage Finance data as reportedFigure created by CRS based on Inside Mortgage Finance data as reported in Urban Institute, Housing in Urban Institute, Housing
Finance Policy Center, Finance Policy Center, Housing Finance at a Glance: A Monthly Chartbook, ~~March 2021~~ February 2022, p. 8. , p. 8.
Notes: Figure shows share of first-lien mortgage originations by dol ar volume. Figure shows share of first-lien mortgage originations by dol ar volume.
The The ~~nearly 60% of loans~~percentage of loan volume (55%) securitized by Fannie Mae or Freddie Mac in securitized by Fannie Mae or Freddie Mac in ~~2020 was an increase from~~
~~43% in 2019 and~~ 2021 was a decrease from nearly 60% in 2020 (the highest levelthe highest level since 2013since 2013), but an increase from 43% in 2019. The FHA/VA share also decreased somewhat, to 15%, compared to 18% in 2020 and 19% in 2019. The bank portfolio share increased in 2021, to 28% from 22% in 2020, but was lower than the 36% share in 2019. Private label securities increased to 2% from 1%.15 The overall volume of mortgage originations also increased significantly, rising from about $2.4 trillion in 2019 to more than $4.0 trillion in 2020 and an estimated $4.7 trillion in 2021.16 Much of this increase was driven by high refinancing volumes due to low interest rates. 15 For a graph showing each of these shares of mortgage originations for each year going ~~, likely reflecting impacts of the COVID-19~~
~~pandemic and its associated economic effects. The FHA/VA share was similar to 2019 (18%~~
~~compared to 19%), and the bank portfolio share was lower (22% compared to 36%).14 The overal~~
~~volume of mortgage originations also increased significantly in 2020, rising to $4.0 tril ion from~~
~~about $2.4 tril ion in 2019.15 Much of this increase was driven by high refinancing volumes due~~
~~to low interest rates.~~
~~Homeownership and Renter Rates~~
~~After the housing and mortgage market turmoil that began around 2007, there was a substantial~~
~~decrease in the homeownership rate and a corresponding increase in the share of renter~~
~~households. As shown in Figure 8, the share of renters increased from about 31% in 2005 and~~
~~2006 to a high of about 36.6% in 2016, before beginning to decrease and reaching 35.4% in 2019.~~
~~The share of renters appeared to fal further, to 33.4%, in 2020, although data collection for the~~

~~14 For a graph showing each of these shares of mortgage originations for each year going~~ back to 2001, see Urban back to 2001, see Urban
Institute, Housing Finance Policy Center, Institute, Housing Finance Policy Center, Housing Finance at a Glance: A Monthly Chartbook, , ~~March 2021, p. 8.~~
February 2022, p. 8, https://www.urban.org/research/publication/housing-finance-glance-monthly-chartbook-february-2022. Other monthly issues of Other monthly issues of Housing Finance at a Glance can be found on the Urban Institute’s website at can be found on the Urban Institute’s website at
https://www.urban.org/https://www.urban.org/~~policy-centers/housing-finance-policy-center/projects/~~tags/housing-finance-glance-monthly-housing-finance-glance-monthly-
~~chartbooks.~~
~~15 See Freddie~~ chartbook. 16 See Freddie Mac’s Quarterly Forecasts, Mac’s Quarterly Forecasts, Quarterly Forecast: Housing Market Continues to Rebound as Mortgage Rates Hover at Record Lows, October 2020, http://www.freddiemac.com/fmac-resources/research/pdf/202010-Forecast-03.pdf; Quarterly Forecast: As the Economy Recovers, the Housing Market Remains
Healthy While Mortgage Rates Move Up, April 2021, http://www.freddiemac.com/fmac-resources/research/pdf/, April 2021, http://www.freddiemac.com/fmac-resources/research/pdf/
2021Q2-Forecast2021Q2-Forecast -03.pdf-03.pdf; and and Quarterly Forecast: The Housing Market ~~Continues to Rebound as Mortgage Rates Hover at~~
~~Record Lows, October 2020, http://www.freddiemac.com/fmac-resources/research/pdf/202010-Forecast -03.pdf.~~Expected to Remain Stable Despite Rising Rates and Cooling Price Growth, January 21, 2022, https://www.freddiemac.com/research/forecast/20220121-quarterly-economic-forecast.

Congressional Research Service Congressional Research Service

9 9

link to page link to page 1514 Housing Issues in the 117th Congress Homeownership and Renter Rates After the housing and mortgage market turmoil that began around 2007, there was a substantial decrease in the homeownership rate and a corresponding increase in the share of renter households. As shown in Figure 8, the homeownership rate fell from a high of 69.0% in the mid-2000s to 63.4% in 2016, before rising again and reaching 66.6% in 2020. However, data collection for the

~~Housing Issues in the 117th Congress~~

Census Bureau survey that reports these statistics was affected by the COVID-19 pandemicCensus Bureau survey that reports these statistics was affected by the COVID-19 pandemic~~.16~~
~~Therefore~~; therefore, 2020 figures, 2020 figures ~~discussed in this subsection~~, in particular, may not be may not be ~~entirely comparable with prior~~
~~years.~~
~~The homeownership rate correspondingly fel from a high of 69.0% in the mid-2000s to 63.4% in~~
~~2016, before rising to 64.6% in 2019 and 66.6% in 2020 (though 2020 data was~~comparable with other years.17 In 2021, the homeownership rate was 65.5%. As the homeownership rate decreased, the share of renters correspondingly increased from about 31% in 2005 and 2006 to a high of about 36.6% in 2016, before beginning to decrease and reaching 35.4% in 2019. The share of renters appeared to fall further, to 33.4%, in 2020, although the 2020 data were subject to the ~~subject to~~
changes in data collection procedureschanges in data collection procedures) caused by the COVID-19 pandemic. In 2021, the renter share was 34.5%. .
Figure 8. Renter and Homeownership Rates
1995– 1995–~~2020~~2021

Source: Figure created by CRS based on data from the U.S. Census Bureau, Annual Housing Vacancy Figure created by CRS based on data from the U.S. Census Bureau, Annual Housing Vacancy
and Homeownershipand Homeownership Survey, Annual Statistics, Table 14, “HomeownershipSurvey, Annual Statistics, Table 14, “Homeownership Rates by Area.” Rates by Area.”
Notes: Because data col ection Because data col ection procedures were affected by the COVID-19 pandemic during 2020, the Census procedures were affected by the COVID-19 pandemic during 2020, the Census
Bureau urges caution in comparing 2020 estimates to previous estimates.Bureau urges caution in comparing 2020 estimates to previous estimates. Gray bars indicate recessions. Gray bars indicate recessions.
The The ~~overal~~ overall number of occupied housing units also increased over this period, from nearly 110 number of occupied housing units also increased over this period, from nearly 110
~~mil ion in 2006 to 123 mil ion in 2019 and 126 mil ion in 2020.17~~million in 2006 to nearly 127 million in 2021.18 The number of renter-occupied The number of renter-occupied
units increased from about 34 units increased from about 34 ~~mil ion~~million in 2006 to about 44 in 2006 to about 44 ~~mil ion in 2019 before fal ing to 42~~
~~mil ion in 2020~~million in 2021. The number of owner-occupied housing units . The number of owner-occupied housing units ~~fel~~ fell from about 75 from about 75 ~~mil ion~~ million in 2006 in 2006
to about 74 to about 74 ~~mil ion~~ million in 2014; it has since in 2014; it has since increased to about 83 million in 2021. 17 See U.S. Census Bureau, Historical Current Population Survey/Housing Vacancy Survey (CPS/HVS) Changes, https://www.census.gov/housing/hvs/files/annual21/ann21src.pdf. 18 U.S. Census Bureau, Housing Vacancies and Homeownership, Historical Tables, Table 7, “Annual Estimates of the Housing Inventory: 1965 to Present,” http://www.census.gov/housing/hvs/data/histtabs.html. Congressional Research Service 10 link to page 15 Housing Issues in the 117th Congress ~~increased to about 79 mil ion units in 2019 and nearly 84~~
~~mil ion in 2020. Again, however, 2020 data may not be directly comparable to prior years.~~
Composition of the Rental Housing Stock
Rental units can be in a variety of property types, including single-family homes, Rental units can be in a variety of property types, including single-family homes, ~~smal~~
small multifamily buildings, and large multifamilymultifamily buildings, and large multifamily buildings. As shown buildings. As shown inin Figure 9, in 2019 about half in 2019 about half
of rental units were in single-family properties (defined as properties with 1-4 of rental units were in single-family properties (defined as properties with 1-4 ~~dwel ing~~dwelling units: units:
about 33% of rental units were in 1-unit properties, and about 17% were in 2-4 unit properties). about 33% of rental units were in 1-unit properties, and about 17% were in 2-4 unit properties).

~~16 See U.S. Census Bureau, Historical Current Population Survey/Housing Vacancy Survey (CPS/HVS) Changes,~~
~~“Impacts of the coronavirus (COVID-19) pandemic on Housing Vacancies and Homeownership data collection for~~
~~2020,” https://www.census.gov/housing/hvs/files/annual20/ann20src.pdf.~~
~~17 U.S. Census Bureau, Housing Vacancies and Homeownership, Historical T ables, T able 7, “Annual Estimates of the~~
~~Housing Inventory: 1965 to Present,” http://www.census.gov/housing/hvs/data/histtabs.html.~~
~~Congressional Research Service~~

10

~~Housing Issues in the 117th Congress~~

About 31% of rental units were in buildings with 5-49 units, and 14% were in buildings with 50 About 31% of rental units were in buildings with 5-49 units, and 14% were in buildings with 50
or more units. Another 4% were manufactured housing.or more units. Another 4% were manufactured housing.1819
Figure 9. Rental Stock by Number of Units in Property
2019 2019

Source: Figure created by CRS using American Figure created by CRS using American Community Survey one-year estimates. Note: Due to the impact of COVID-19, the Census Bureau did not release standard one-year estimates as is routine for the American Community Survey. Instead, they released certain experimental estimates for 2020 one-year data. Due to the experimental nature of these estimates, this report does not include a discussion of these results. For more information about the 2020 experimental data, see U.S. Census Bureau, 2020 ACS 1-Year Experimental Data Release, November 30, 2021, https://www.census.gov/programs-surveys/acs/data/experimental-data.html. ~~Community Survey one-year estimates.~~
Ownership of rental properties varies widely, from individual Ownership of rental properties varies widely, from individual investors who own one or a few investors who own one or a few
units to large corporate institutions. Individual investors are more likely to own single-family units to large corporate institutions. Individual investors are more likely to own single-family
homes or homes or ~~smal er~~smaller buildings than large multifamily buildings. According to HUD’s 2018 Rental buildings than large multifamily buildings. According to HUD’s 2018 Rental
Housing Finance Survey, about 42% of rental properties have a mortgage.Housing Finance Survey, about 42% of rental properties have a mortgage.1920 However, the However, the
likelihoodlikelihood of a property being mortgaged increases with property size,of a property being mortgaged increases with property size,2021 suggesting that a larger suggesting that a larger
share of rental share of rental units are in properties with a mortgage. In general, single-family rental properties are in properties with a mortgage. In general, single-family rental properties
~~are financed with single-family mortgages while financing for multifamily properties is obtained~~
~~through the multifamily and commercial mortgage market.21~~
~~This variation in rental property composition and ownership may be relevant to Congress as it~~
~~considers various policy questions, including how to respond to chal enges faced by renters and~~
~~landlords due to the COVID-19 pandemic. Some property owners may have more difficulty than~~
~~others withstanding extended periods of reduced rental income without fal ing behind on bil s or~~
~~maintenance or having to sel a property, and considerations related to the ownership and~~
~~financing of rental properties could inform efforts to provide assistance to renters or landlords.~~

18 19 Data are from American Community Survey Data are from American Community Survey 2019 one-year estimates, 2019 one-year estimates, ~~T able~~Table B25032. A small number of occupied B25032. A small number of occupied
rental units are reported as beingrental units are reported as being in other types of structures, including boats and recreational vehicles. in other types of structures, including boats and recreational vehicles.
19 20 Department of Housing and Urban Development, “HUD and Census Department of Housing and Urban Development, “HUD and Census ~~Bureau Release Findings~~ Bureau Release Findings of Rental Housing of Rental Housing
Finance Survey,”Finance Survey,” press release, June 3, 2020, https://www.hud.gov/press/press_releases_media_advisories/press release, June 3, 2020, https://www.hud.gov/press/press_releases_media_advisories/
HUD_No_20_071. HUD_No_20_071.
2021 Urban Institute Housing Finance Policy Center, “Small Multifamily Units,” slide Urban Institute Housing Finance Policy Center, “Small Multifamily Units,” slide deck, Maydeck, May 2020, p. 5, 2020, p. 5,
https://www.urban.org/sites/default/files/2020/05/15/small_multifamily_units_0.pdf. https://www.urban.org/sites/default/files/2020/05/15/small_multifamily_units_0.pdf.
~~21 For more information on multifamily mortgages, see CRS Report R46480,~~ ~~Multifamily Housing Finance and~~
~~Selected Policy Issues~~.
Congressional Research Service Congressional Research Service

11 11

link to page 16 link to page 16

Housing Issues in the 117th Congress

~~Renter~~are financed with single-family mortgages while financing for multifamily properties is obtained through the multifamily and commercial mortgage market.22 Rental Vacancy Rates
As shown iAs shown in Figure 10, the rental vacancy rate has the rental vacancy rate has ~~general y~~generally been declining for several years and been declining for several years and
was 6.4% at the end of 2019. Lower vacancy rates may put upward pressure on rents as renter was 6.4% at the end of 2019. Lower vacancy rates may put upward pressure on rents as renter
households compete for fewer available units. households compete for fewer available units.
The rental vacancy rate at the end of 2020 was The rental vacancy rate at the end of 2020 was ~~essential y~~essentially unchanged from the end of 2019. unchanged from the end of 2019.22
23 However, like certain other measures discussed earlier, the Census Bureau reports that the data However, like certain other measures discussed earlier, the Census Bureau reports that the data
collection procedures for its survey were impacted by the COVID-19 pandemic during 2020 and collection procedures for its survey were impacted by the COVID-19 pandemic during 2020 and
urges caution in comparing 2020 quarterly estimates to previous quarters.urges caution in comparing 2020 quarterly estimates to previous quarters. ~~It suggests that changes~~
~~in vacancy rates during that period should be interpreted as reflecting both pandemic effects and~~
~~changes to data collection procedures.23~~24 The rental vacancy rate in the The rental vacancy rate in the ~~first~~fourth quarter of 2021 was quarter of 2021 was
~~6.8~~5.6%. The pandemic continued to affect data collection in %. The pandemic continued to affect data collection in 2021, although by the fourth~~the first~~ quarter of 2021, quarter of 2021, ~~though to a~~
~~lesser extent than in 2020.24~~
pandemic-related restrictions on data collection for this survey had ended. However, the Census Bureau continues to urge caution in comparing data to previous affected quarters.25 Figure 10. Rental Vacancy Rates
Q1 1995– Q1 1995–Q1Q4 2021 2021

Source: Figure created by CRS based on data from U.S. Census Bureau, Housing Vacancies and Figure created by CRS based on data from U.S. Census Bureau, Housing Vacancies and
HomeownershipHomeownership ~~Historical~~ Historical Tables, Table 1, “Quarterly Rental Vacancy Rates: 1956 to Tables, Table 1, “Quarterly Rental Vacancy Rates: 1956 to
Present,” http://www.census.gov/housing/hvs/data/histtabs.html. Present,” http://www.census.gov/housing/hvs/data/histtabs.html.
Notes: Because data col ection procedures were affected by the COVID-19 pandemic during 2020, the Census
~~Bureau urges caution in comparing 2020 quarterly estimates to previous quarterly estimates. Gray bars indicate~~
~~recessions.~~

~~22 T he~~ 22 For more information on multifamily mortgages, see CRS Report R46480, Multifamily Housing Finance and Selected Policy Issues. 23 The rental vacancy rate at the end of 2020 was 6.5%, not statistically different from the fourth quarter 2019 rate of rental vacancy rate at the end of 2020 was 6.5%, not statistically different from the fourth quarter 2019 rate of
6.4%. See6.4%. See ~~U.S. Census Bureau,~~ U.S. Census Bureau, “Quarterly Residential Vacancies“Quarterly Residential Vacancies and Homeownership, Fourth Quarter 2020,” press and Homeownership, Fourth Quarter 2020,” press
release, February 2, 2021, https://www.census.gov/housing/hvs/files/currenthvspress.pdf.release, February 2, 2021, https://www.census.gov/housing/hvs/files/currenthvspress.pdf.
~~23 See U.S. Census Bureau,~~ 24 See U.S. Census Bureau, “Frequently asked questions:“Frequently asked questions: ~~T he~~ The impact of the coronavirus (COVID-19) pandemic on the impact of the coronavirus (COVID-19) pandemic on the
Current Population Survey/HousingCurrent Population Survey/Housing Vacancy SurveyVacancy Survey (CPS/HVS),”(CPS/HVS),” p. 4, https://www.census.gov/housing/hvs/files/p. 4, https://www.census.gov/housing/hvs/files/
qtr420/impact_coronavirus_20q4.pdf.qtr420/impact_coronavirus_20q4.pdf.
~~24 U.S. Census Bureau, “Quarterly Residential Vacancies and Homeownership, First Quarter 2021,” press release, April~~
~~27, 2021, https://www.census.gov/housing/hvs/files/currenthvspress~~ The Census Bureau suggests that changes in vacancy rates during that period should be interpreted as reflecting both pandemic effects and changes to data collection procedures. 25 U.S. Census Bureau, “Quarterly Residential Vacancies and Homeownership, Fourth Quarter 2021,” press release, February 2, 2022, https://www.census.gov/housing/hvs/files/qtr421/q421press.pdf. .pdf.
Congressional Research Service Congressional Research Service

12 12

link to page 17 link to page 17

Housing Issues in the 117th Congress

Notes: Because data col ection procedures were affected by the COVID-19 pandemic during some quarters in 2020 and 2021, the Census Bureau urges caution in interpreting estimates from affected quarters and in comparing those estimates to previous or subsequent quarterly estimates. Gray bars indicate recessions. Renter Cost Burdens
A variety of factors impact rental housing affordability, including the supply of rental housing A variety of factors impact rental housing affordability, including the supply of rental housing
units available,units available, the characteristics of those units (e.g., age, amenities), the demand for available the characteristics of those units (e.g., age, amenities), the demand for available
units, and renter incomes. Under the most commonly used definition, housing is considered to be units, and renter incomes. Under the most commonly used definition, housing is considered to be
affordable if a household is paying no more than 30% of its income in housing costs. Households affordable if a household is paying no more than 30% of its income in housing costs. Households
that pay more than 30% are considered to be cost-burdened, and those that pay more than 50% that pay more than 30% are considered to be cost-burdened, and those that pay more than 50%
are considered to be severely cost-burdened. are considered to be severely cost-burdened.
Cost burdens can affect both renter and owner households as Cost burdens can affect both renter and owner households as ~~wel~~ well as households of as households of al all income income
levels, but they are highest among lower-income renter households. As shown ilevels, but they are highest among lower-income renter households. As shown in Figure 11, about , about
46% of 46% of al all renter households were cost-burdened in 2019 (about 22% had moderate cost burdens renter households were cost-burdened in 2019 (about 22% had moderate cost burdens
and 24% had severe cost burdens). Cost burdens, and and 24% had severe cost burdens). Cost burdens, and ~~especial y~~especially severe cost burdens, were most severe cost burdens, were most
prevalent among renters with the lowest incomes. About 80% of renter households with annual prevalent among renters with the lowest incomes. About 80% of renter households with annual
incomes below $30,000 were cost-burdened, with most being severely cost-burdened. Nearly incomes below $30,000 were cost-burdened, with most being severely cost-burdened. Nearly
60% of renter households with incomes of at least $30,000 but less than $45,000 were cost-60% of renter households with incomes of at least $30,000 but less than $45,000 were cost-
burdened, with most being moderately cost-burdened. burdened, with most being moderately cost-burdened.
Figure 11. Renter Cost Burdens
2019 2019

Source: Figure created by CRS using data fromFigure created by CRS using data from Joint Center for Housing Studies, Joint Center for Housing Studies, State of the Nation’s Housing
~~2020~~2021, Appendix Tables, https://www.jchs.harvard.edu/state-nations-housing-, Appendix Tables, https://www.jchs.harvard.edu/state-nations-housing-~~2020~~2021, showing Joint Center for , showing Joint Center for
Housing Studies tabulations of AmericanHousing Studies tabulations of American Community Survey data. Community Survey data.
Housing and the Broader Economy
The housing market plays an important role in the larger economy, as it accounts for a significant The housing market plays an important role in the larger economy, as it accounts for a significant
portion of economic activity. Housing contributes to GDP in two direct ways: residential fixed portion of economic activity. Housing contributes to GDP in two direct ways: residential fixed
investment and spending on housing services. Residential fixed investment includes investment and spending on housing services. Residential fixed investment includes al all spending spending
on the construction of new single- and multi-family structures, residential remodeling, and on the construction of new single- and multi-family structures, residential remodeling, and
~~brokers’ fees. Housing services includes al spending on renters’ utilities and rent and~~
~~homeowners’ imputed rent25 and utility payments.~~

~~25 Imputed rent is the estimate of the rent a homeowner would be willing to pay to live in his own house.~~
~~Congressional Research Service~~

13

~~link to page 18~~

~~Housing Issues in the 117th Congress~~

Congressional Research Service 13 link to page 18 Housing Issues in the 117th Congress brokers’ fees. Housing services includes all spending on renters’ utilities and rent and homeowners’ imputed rent26 and utility payments. As shown i As shown in Figure 12, residential investment was $885.2 residential investment was $885.2 ~~bil ion~~billion in 2020 and accounted for in 2020 and accounted for
roughly 4% of GDP. Housing services were $2.8 roughly 4% of GDP. Housing services were $2.8 ~~tril ion~~trillion and accounted for roughly 13% of GDP. and accounted for roughly 13% of GDP.
Despite the pandemic, spending on both residential investment and housing services were up in Despite the pandemic, spending on both residential investment and housing services were up in
2020, accounting for 17.5% of GDP as compared to 16.3% in 2019. Spending in the housing 2020, accounting for 17.5% of GDP as compared to 16.3% in 2019. Spending in the housing
market has fluctuated over time, and over the last few decades there has not been a consistent, market has fluctuated over time, and over the last few decades there has not been a consistent,
long-term trend in housing spending as a share of GDP. Housing’s share of economic output rose long-term trend in housing spending as a share of GDP. Housing’s share of economic output rose
in the lead up to the housing market crash and financial crisis of 2007-2009, and in the lead up to the housing market crash and financial crisis of 2007-2009, and ~~fel~~ fell rapidly rapidly
during it. Since the crisis, housing’s share of output has risen more during it. Since the crisis, housing’s share of output has risen more ~~gradual y~~gradually and is now in line and is now in line
with pre-crisis numbers. with pre-crisis numbers.
Figure 12. Total Housing Spending as a Share of GDP
1995-2020 1995-2020

Source: CRS calculations based on Bureau of Economic Analysis,CRS calculations based on Bureau of Economic Analysis, National Income and Product Accounts, Table National Income and Product Accounts, Table
1.1.5 and Table 2.3.5. 1.1.5 and Table 2.3.5.
As evidenced by the housing crash and the role it played in the 2007-2009 financial crisis, the As evidenced by the housing crash and the role it played in the 2007-2009 financial crisis, the
housing market can play a critical role in the health of the broader economy. However, housing market can play a critical role in the health of the broader economy. However,
fluctuations in the housing market do not necessarily line up perfectly fluctuations in the housing market do not necessarily line up perfectly ~~w ith~~with the business cycle. the business cycle.
Spending on housing can increase even as economic output Spending on housing can increase even as economic output ~~fal s~~falls, as witnessed during the , as witnessed during the
COVID-19 pandemic. COVID-19 pandemic.
~~That said, house prices are typical y thought to impact~~Nevertheless, house price movements can influence residential investment residential investment, and therefore and therefore, affect affect
~~economic growth, al~~ macroeconomic activity, all else being equal. Rising home prices likely encourage else being equal. Rising home prices likely encourage ~~additional~~greater
construction construction ~~spending~~ (in order to take advantage of the higher sale prices on the completed new (in order to take advantage of the higher sale prices on the completed new
~~homes), leading to more robust economic growth~~homes), and possibly resulting in more jobs for construction workers. A decline in housing prices is likely to depress . A decline in housing prices is likely to depress
construction spending, leading to more anemic economic growth. Fluctuations in house prices can construction spending, leading to more anemic economic growth. Fluctuations in house prices can
also have effects on the economy through so-also have effects on the economy through so-~~cal ed~~called wealth effects ~~(i.e., as~~. In this case, if the value of the value of
homeowners’ assetshomeowners’ assets, (and therefore net wealthand therefore net wealth,) increases, they may be inclined to increase their consumption, which can stimulate the economy. In the United States, consumer 26 Imputed rent is the estimate of the rent a homeowner would be willing to pay to live in his own house. Congressional Research Service 14 Housing Issues in the 117th Congress ~~increases, they tend to spend more). In addition,~~
~~increases in housing value encourage homeowners to spend more for a variety of other reasons,~~
~~including higher confidence in the economy, increased equity for homeowners to borrow against,~~
~~and higher rental income. A decrease in prices results in the opposite. In the United States,~~
~~consumer~~ spending makes up roughly 70% of the economy; therefore, changes in housing wealth spending makes up roughly 70% of the economy; therefore, changes in housing wealth
can result in significant changes in can result in significant changes in ~~economic growth.~~
~~Congressional Research Service~~

14

~~Housing Issues in the 117th Congress~~

GDP. While rising home prices may generally result in increasing residential investment and potentially GDP, rising home prices may also result in decreased housing affordability, which could offset some of the positive effects on the economy. For more information on housing’s contribution to the For more information on housing’s contribution to the ~~overal~~ overall economy, see CRS In Focus economy, see CRS In Focus
IF11327, IF11327, Introduction to U.S. Economy: Housing Market..
Housing Issues in the 117th Congress
While the housing issues of interest to policymakers While the housing issues of interest to policymakers ~~wil~~ continue to evolve as the 117th Congress continue to evolve as the 117th Congress
progresses, this section provides a high-level overview of some broad issues that have beenprogresses, this section provides a high-level overview of some broad issues that have been~~, or~~
~~are likely to be, of interest~~ of interest to Congress. .
Housing Policy Responses to the COVID-19 Pandemic
The The ~~ongoing~~COVID-19 pandemic and its economic impacts have raised concerns about the ability of pandemic and its economic impacts have raised concerns about the ability of
~~individuals~~ individuals and families to afford their housing, as and families to afford their housing, as ~~wel as spil over~~well as spillover effects for housing markets. effects for housing markets.
Both the 116th and 117th Congresses, and the Trump and Biden Administrations, have taken Both the 116th and 117th Congresses, and the Trump and Biden Administrations, have taken
actions related to housing policy and the pandemic (discussed below). actions related to housing policy and the pandemic (discussed below). ~~However, concerns persist~~
~~that when temporary protections expire—including eviction moratoriums, foreclosure~~
~~moratoriums, and mortgage forbearance periods—more households~~ Some temporary protections—including eviction and foreclosure moratoriums—have ended during the 117th Congress, raising concerns about the number of households that may be in danger of losing ~~may be in danger of losing~~
their homes through eviction or foreclosure.their homes through eviction or foreclosure.
116th Congress
During the 116th Congress, there were a number of federal actions related to housing and the During the 116th Congress, there were a number of federal actions related to housing and the
pandemic, including the following: pandemic, including the following:
 The Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-  The Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-
136), enacted in March 2020, contained certain housing-related pandemic 136), enacted in March 2020, contained certain housing-related pandemic
response provisions. These included additional funding for certain federal response provisions. These included additional funding for certain federal
housing programs, temporary mortgage forbearance for housing programs, temporary mortgage forbearance for ~~federal y~~federally backed backed
mortgages, and temporary eviction and foreclosure moratoriums that applied to mortgages, and temporary eviction and foreclosure moratoriums that applied to
certain certain ~~federal y~~federally related rental units and mortgages, respectively. related rental units and mortgages, respectively.
 Federal agencies took a variety of administrative actions in response to the  Federal agencies took a variety of administrative actions in response to the
pandemic. Among other things, federal agencies and Fannie Mae and Freddie pandemic. Among other things, federal agencies and Fannie Mae and Freddie
Mac administratively extended their foreclosure moratoriums after the CARES Mac administratively extended their foreclosure moratoriums after the CARES
Act foreclosure moratorium expired, and the Centers for Disease Control and Act foreclosure moratorium expired, and the Centers for Disease Control and
Prevention (CDC) implemented a separate and broader eviction moratorium after Prevention (CDC) implemented a separate and broader eviction moratorium after
the CARES Act eviction moratorium expired. the CARES Act eviction moratorium expired.
 The Consolidated Appropriations Act, 2021 (P.L. 116-260), enacted in December  The Consolidated Appropriations Act, 2021 (P.L. 116-260), enacted in December
2020, contained additional housing-related pandemic response provisions, most 2020, contained additional housing-related pandemic response provisions, most
notably an extension of the CDC’s eviction moratorium and funding for rental notably an extension of the CDC’s eviction moratorium and funding for rental
assistance. assistance.
For a full discussion of actions that Congress and federal agencies took to address the housing For a full discussion of actions that Congress and federal agencies took to address the housing
impacts of the pandemic during the 116th Congress and links to related CRS reports, see the “The impacts of the pandemic during the 116th Congress and links to related CRS reports, see the “The
COVID-19 Pandemic and Housing” section in CRS Report R45710, COVID-19 Pandemic and Housing” section in CRS Report R45710, Housing Issues in the 116th
Congress.
~~117th Congress~~
~~In March 2021, the 117th Congress passed and President Biden signed another pandemic relief~~
~~law,~~ Congress. Congressional Research Service 15 Housing Issues in the 117th Congress 117th Congress During the 117th Congress, both Congress and federal agencies have taken various actions to continue to address the housing-related impacts of the pandemic. At the same time, some of the temporary protections that had been put in place to assist renters and homeowners affected by the pandemic—namely, federal foreclosure and eviction moratoriums—have ended during this Congress. Major actions related to COVID-19 and housing during the 117th Congress are summarized below. Housing Funding in the American Rescue Plan Act In March 2021, the 117th Congress passed and President Biden signed the American Rescue Plan Act the American Rescue Plan Act ~~(P.L. 117-2)~~of 2021 (ARPA, P.L. 117-2) to provide additional pandemic relief funding. The enacted law included funding for several . The enacted law included funding for several
new and existing housing programs, including additional funding for new and existing housing programs, including additional funding for emergency rental assistance, a new rental assistance, a new
~~Congressional Research Service~~

15

~~Housing Issues in the 117th Congress~~

Homeowner Assistance Fund, homelessness assistance, housing counseling, Native American Homeowner Assistance Fund, homelessness assistance, housing counseling, Native American
housing programs, and fair housing activities. housing programs, and fair housing activities.
~~Furthermore, during the 117th Congress, federal agencies have taken several steps to extend~~
~~existing pandemic-related housing protections, implement previously enacted assistance~~
~~measures, or propose additional protections:~~
~~ The CDC announced three additional extensions of its federal eviction~~
~~moratorium. As of the cover date of this report, the most recent extension goes~~
~~through July 31, 2021, and the CDC stated that it expects this extension to be the~~
~~last.26 In addition, Treasury began al ocating emergency rental assistance funding~~
~~that was first provided in P.L. 116-260 to states and localities.~~
~~ Federal agencies and Fannie Mae and Freddie Mac extended existing foreclosure~~
~~moratoriums that apply to the mortgages they back. As of the cover date of this~~
~~report, the most recent extension goes through July 31, 2021, with the~~
~~Administration indicating that this wil be the federal agencies’ last extension.27~~
~~In addition, al of these entities announced that mortgage forbearance periods for~~
~~mortgages they back could be extended beyond the period al owed under the~~
~~CARES Act under certain circumstances.~~
~~ In June 2021, concurrent with the announcement of the extension of the CDC~~
~~eviction moratorium and foreclosure moratoriums for federal y backed mortgages~~
~~through July 31, 2021, the White House announced a series of actions designed~~
~~to help state and local governments promote housing stability and prevent~~
~~evictions and foreclosures. These included revisions to Treasury guidance on the~~
~~use of Emergency Rental Assistance (ERA) funds designed to speed the delivery~~
~~of assistance;~~For more information, see  CRS Insight IN11641, Housing Funding in the American Rescue Plan Act of 2021 Federal Eviction Moratorium and Emergency Rental Assistance The 117th Congress has seen the continuation of efforts begun in the 116th Congress to forestall evictions, and the resulting residential displacement, of renters triggered by the economic fallout of the COVID-19 pandemic. At the beginning of the 117th Congress, a nationwide temporary federal eviction moratorium was in effect. The eviction moratorium had been ordered by the CDC—pursuant to its public health authorities—in September 2020 and was slated to expire at the end of the year (December 31, 2020). However, prior to its expiration, the 116th Congress extended it legislatively, through January 31, 2021. The CDC subsequently administratively updated/extended the order several times, the last time through October 3, 2021. However, the national eviction moratorium was effectively ended on August 26, 2021, when the Supreme Court blocked its enforcement of the order, following a series of legal challenges. (Some state and local eviction moratoriums remained in place beyond the end of the federal moratorium.) At the same time that the federal eviction moratorium was in place, Congress—first the 116th and then the 117th—funded a new federal Emergency Rental Assistance (ERA) program at the Treasury Department. The first tranche of ERA funding—$25 billion—was provided by the FY2021 Consolidated Appropriations Act in December 2020. The second tranche of ERA funding—$21.55 billion—was appropriated by ARPA. While there are some differences between ERA-1 and ERA-2, generally, both rounds of funding were awarded via formula to states and localities to be used to fund rental and utility payments and arrearages for low-income renters. Some policymakers and other stakeholders expressed concern about the slow award of ERA funds to at-risk renters, particularly in light of the end of eviction moratoriums. Treasury published multiple revisions to program guidance, as well as best practices, to attempt to speed dispersal. In June 2021, the White House announced implementation of “a whole-of-government Congressional Research Service 16 Housing Issues in the 117th Congress effort to raise awareness about emergency rental assistance.”27 This included a letter to state and local courts from the Deputy Attorney General a letter to state and local courts from the Deputy Attorney General
encouraging the adoption of eviction diversion efforts and guidance on how ERA encouraging the adoption of eviction diversion efforts and guidance on how ERA
funds can be used to support such effortsfunds can be used to support such efforts;, and the convening of a White House summit to convening of a White House summit to
~~plan for eviction prevention; extensions of deadlines related to mortgage~~
~~forbearance approval; and implementation of “a whole-of-government effort to~~
~~raise awareness about emergency rental assistance.”28~~
~~ In June 2021, the CFPB promulgated a final rule temporarily amending certain~~
~~mortgage servicing procedures under Regulation X29 in response to the pandemic~~
~~and the concern that a large number of borrowers may exit forbearance around~~
~~the same time without receiving a meaningful opportunity to be reviewed for loss~~
~~mitigation.30 (Loss mitigation refers to options to avoid foreclosure, such as~~

~~26 Centers for Disease Control and Prevention (CDC), “T emporary Halt in Residential Evictions to Prevent the Further~~
~~Spread of COVID-19,” June 24, 2021, https://www.cdc.gov/coronavirus/2019-ncov/covid-eviction-declaration.html.~~
~~27 T he White House, “Fact Sheet: Biden-Harris Administration Announces Initiatives to Promote Housing Stability By~~
~~Supporting Vulnerable T enants~~plan for eviction prevention. In January 2022, Treasury implemented the first round of statutorily directed recapture of ERA-1 funding from states and localities that did not meet spending targets, reallocating funds to communities that demonstrated they could use additional funding. Treasury has continued to recapture and reallocate unused ERA funding, as directed by the ERA statutes. For more information, see the following:  CRS Insight IN11673, The CDC’s Federal Eviction Moratorium  CRS Legal Sidebar LSB10632, Litigation of the CDC’s Eviction Moratorium  CRS Legal Sidebar LSB10638, Supreme Court Blocks Enforcement of the CDC’s Eviction Moratorium  CRS Report R46688, Pandemic Relief: The Emergency Rental Assistance Program Actions Related to COVID-19 and Mortgages The 117th Congress has also seen the continuation of efforts begun in the 116th Congress to assist homeowners who may be having difficulty paying their mortgages due to COVID-19-related financial hardships. At the beginning of the 117th Congress, foreclosure moratoriums were in effect for mortgages backed by federal agencies (HUD, VA, and USDA) and Fannie Mae and Freddie Mac. The federal agencies and Fannie Mae and Freddie Mac extended these existing moratoriums through July 31, 2021, at which point they expired.28 Although the foreclosure moratoriums for federally backed mortgages have expired, borrowers with mortgages backed by federal agencies or Fannie Mae or Freddie Mac continue to be eligible to request a COVID-19-related forbearance if they are experiencing a financial hardship as a result of the pandemic. In September 2021, FHA, VA, and USDA all extended their deadlines for requesting COVID-19-related forbearance through the end of the COVID-19 national emergency.29 (Fannie Mae and Freddie Mac have not set a deadline for requesting COVID-19-related forbearance.) In addition, all of these entities announced that mortgage forbearance periods for mortgages they back could be extended under certain circumstances.30 Each has also implemented certain loss mitigation options to assist borrowers who are exiting COVID-19- 27 The White House, “Fact Sheet: Biden-Harris Administration Announces Initiatives to Promote Housing Stability By Supporting Vulnerable Tenants and Preventing Foreclosures,” June 24, 2021, https://www.whitehouse.gov/briefing- and Preventing Foreclosures,” June 24, 2021, https://www.whitehouse.gov/briefing-
room/statements-releases/2021/06/24/fact-sheet-biden-harris-administration-announces-initiatives-to-promote-housing-room/statements-releases/2021/06/24/fact-sheet-biden-harris-administration-announces-initiatives-to-promote-housing-
stability-by-supporting-vulnerable-tenants-and-preventing-foreclosures/. stability-by-supporting-vulnerable-tenants-and-preventing-foreclosures/. ~~T he fact sheet states that the foreclosure~~
~~moratorium is being extended “by a final month, until July 31st.”~~
~~28 Ibid.~~
~~29 Regulation X implements certain mortgage servicing standards under the Real Estate Settlement Procedures Act~~
~~(RESPA).~~
~~30 Consumer Financial Protection Bureau, “Protections for Borrowers Affected by the COVID-19 Emergency Under~~
~~the Real Estate Settlement Procedures Act (RESPA), Regulation X,” 86 Federal Register 34848-34903, June 30, 2021,~~
~~https://www.federalregister.gov/documents/2021/06/30/2021-13964/protections-for-borrowers-affected-by-the-covid-~~
~~19-emergency-under-the-real-estate-settlement. For an executive summary of the rule, see~~
~~https://files.consumerfinance.gov/f/documents/cfpb_covid-mortgage-servicing-rule_executive-summary_2021-06.pdf.~~
~~Congressional Research Service~~

16

~~Housing Issues in the 117th Congress~~

~~repayments plans, loan modifications, or other foreclosure alternatives.) Under~~
~~the final rule~~ 28 Upon the expiration of the foreclosure moratoriums at the end of July, the federal agencies and Fannie Mae and Freddie Mac extended prohibitions on foreclosure-related evictions until September 30, 2021. 29 For more information on COVID-19-related mortgage forbearance and related deadlines, see Consumer Financial Protection Bureau, “Learn About Forbearance,” https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/help-for-homeowners/learn-about-forbearance/. 30 For a summary of these extensions, see Consumer Financial Protection Bureau, “Extend Your Forbearance,” at https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/help-for-homeowners/extend-forbearance/. Congressional Research Service 17 link to page 5 Housing Issues in the 117th Congress related forbearance plans.31 (Loss mitigation refers to options to avoid foreclosure, such as repayments plans, loan modifications, or other foreclosure alternatives.) In June 2021, the CFPB promulgated a final rule temporarily amending certain mortgage servicing procedures under Regulation X32 in response to the pandemic and the concern that a large number of borrowers might exit forbearance around the same time without receiving a meaningful opportunity to be reviewed for loss mitigation.33 Under the final rule, which became effective on August 31, 2021, servicers may offer certain types of loan modifications to , servicers may offer certain types of loan modifications to
borrowers with pandemic-related hardships even if they have not received a borrowers with pandemic-related hardships even if they have not received a
completed loss mitigation application from the borrower. In addition, completed loss mitigation application from the borrower. In addition, until January 1, 2022, the rule required~~the rule~~
~~requires~~ servicers to ensure that at least one of several procedural safeguards servicers to ensure that at least one of several procedural safeguards
(described in the final rule) (described in the final rule) ~~have been~~were met before initiating met before initiating foreclosure on foreclosure on
mortgages that mortgages that ~~are~~were at least 120 days past due. Finally, as noted above, ARPA included funding for a new Homeowner Assistance Fund (HAF). Through the HAF, Treasury provides funding to states, territories, and tribes to use to provide mortgage payment assistance or other related assistance to eligible homeowners who are in danger of default, foreclosure, or displacement due to COVID-19-related hardships.34 For more information, see the following: ~~at least 120 days past due. The final rule becomes effective on~~
~~August 31, 2021.~~
~~For more information, see the following:~~
 CRS Insight IN11641, Housing Funding in the American Rescue Plan Act of
~~2021~~
 CRS Insight IN11673, The CDC’s Federal Eviction Moratorium
 CRS Report R46688, Emergency Rental Assistance through the Coronavirus
~~Relief Fund~~
 CRS Report R46830,  CRS Report R46830, The Homeowner Assistance Fund in the American Rescue
Plan Act: In Brief
Housing Affordability
~~Housing~~While housing affordability is a perennial policy issue for Congress affordability is a perennial policy issue for Congress~~. While affordability chal enges can~~
, the house price increases and supply constraints described earlier in the “Housing and Mortgage Market Conditions” section have exacerbated concerns about housing affordability. Affordability challenges can affect both owners and renters at varying levels of incomeaffect both owners and renters at varying levels of income; however, lower-income renter households are , lower-income renter households are
the most likely to face severe housing cost burdens,the most likely to face severe housing cost burdens,35 placing them at greatest risk for housing placing them at greatest risk for housing
insecurity. Estimates vary, but they insecurity. Estimates vary, but they ~~general y~~generally show that current federal housing assistance show that current federal housing assistance
programs reach roughly one in four eligible households.programs reach roughly one in four eligible households. ~~In light of persistent concerns that many~~
~~express about housing affordability, the 117th Congress may consider various affordable housing~~
~~policy options.~~
~~Proposals to address housing affordability have taken many forms.31 One approach is to provide~~
~~additional funding for new or~~ Proposals to address housing affordability in general, and for low-income renter households in particular, can take many forms.36 One approach is to provide additional funding for new or 31 For a summary of the types of loss mitigation options that may be available, see Consumer Financial Protection Bureau, “Exit Your Forbearance,” https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/help-for-homeowners/repay-forbearance/. 32 Regulation X implements certain mortgage servicing standards under the Real Estate Settlement Procedures Act (RESPA). 33 Consumer Financial Protection Bureau, “Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X,” 86 Federal Register 34848-34903, June 30, 2021, https://www.federalregister.gov/documents/2021/06/30/2021-13964/protections-for-borrowers-affected-by-the-covid-19-emergency-under-the-real-estate-settlement. For an executive summary of the rule, see https://files.consumerfinance.gov/f/documents/cfpb_covid-mortgage-servicing-rule_executive-summary_2021-06.pdf. 34 States, territories, and tribes have discretion in how to structure their Homeowner Assistance Fund programs, within the parameters of ARPA and Treasury’s program guidance. For information on individual states’ Homeowner Assistance Fund programs, see the National Council of State Housing Agencies website at https://www.ncsha.org/homeowner-assistance-fund/. 35 See Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing 2021, pp. 32-33, https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_State_Nations_Housing_2021.pdf. 36 For a discussion of certain legislative proposals made in the 116th Congress, see the section on “Proposed New Investments in Affordable Housing” in CRS Report R45710, Housing Issues in the 116th Congress. Congressional Research Service 18 link to page 25 link to page 25 Housing Issues in the 117th Congress existing programs that support the development of affordable existing programs that support the development of affordable
housing in an attempt to increase the supply of such housing. Another is to pursue demand-side housing in an attempt to increase the supply of such housing. Another is to pursue demand-side
interventions that help individualsinterventions that help individuals with their housing costs, such as by expanding rental assistance with their housing costs, such as by expanding rental assistance
through the Section 8 Housing Choice Voucher program or creating new tax credits for renters or through the Section 8 Housing Choice Voucher program or creating new tax credits for renters or
homebuyers. A third approach is to take steps to encourage or incentivize state and local homebuyers. A third approach is to take steps to encourage or incentivize state and local
governments to review or address existing policies that may negatively affect housing governments to review or address existing policies that may negatively affect housing
development and affordability in their communities, such as land use regulations or other development and affordability in their communities, such as land use regulations or other
regulatory requirements that could make regulatory requirements that could make ~~building~~ building housing more difficult or costly. housing more difficult or costly.
~~Among other proposals related to housing affordability in the 117th Congress, there~~The 117th Congress has seen a variety of proposals related to housing affordability, including some related to all of the above approaches. For example, see the following:  There have been have been
proposals proposals ~~for~~to provide significant additional federal funding for significant additional federal funding for constructing new affordable housing, constructing new affordable housing,
including several that have been included inincluding several that have been included in various infrastructure proposals various infrastructure proposals ~~(discussed further in~~
~~the next section). Additional y, there~~and, ultimately, in the Build Back Better Act reconciliation legislation (discussed further in the “Housing in the Build Back Better Act and Other Infrastructure Proposals” section of this report).  There have been proposals to expand existing rental assistance have been proposals to expand existing rental assistance
programs to serve programs to serve more families,more families,3237 including a including a ~~draft~~ proposal to create a Housing Choice Voucher proposal to create a Housing Choice Voucher
entitlement, which would entitlement, which would ~~al ow~~allow the program to serve the program to serve ~~al eligible~~ all eligible households. This households. This draft proposal was the subject of a hearing by the House Financial Services Committee,38 and in July 2021 it was introduced as H.R. 4496, the Ending Homelessness Act of 2021, as part of a legislative housing package announced by House Financial Services Committee Chairwoman Maxine Waters.39  Proposals to encourage local governments to examine land use and other regulatory requirements or to support related activities have included, among others, provisions in the Build Back Better Act40 and the Yes in My Backyard Act (H.R. 3198/S. 1614). The latter was one of several bills included in a June 2021 Senate Banking Committee hearing on selected bills related to affordable housing.41 In addition, the President’s FY2023 budget request proposed $35 billion in new mandatory funding for a Housing Supply Fund at HUD to support new housing production, housing-related infrastructure improvements, and efforts to reduce local barriers to housing development.42 The budget request also proposed expansions to the 37 For example, see S. 1991, which would ~~proposal was~~

~~31 For a discussion of certain legislative proposals made in the 116th Congress, see the section on “Proposed New~~
~~Investments in Affordable Housing” in CRS Report R45710, Housing Issues in the 116th Congress.~~
~~32 For example, see S. 1991, which would~~ authorize 500,000 new vouchers, and President Biden’sauthorize 500,000 new vouchers, and President Biden’s FY2022 budget FY2022 budget
request, which includesrequest, which includes a request for fundinga request for funding for an additional 200,000 new vouchers.for an additional 200,000 new vouchers.
~~Congressional Research Service~~

17

~~Housing Issues in the 117th Congress~~

~~the subject of a hearing by the House Financial Services Committee,33 and in July 2021 it was~~
~~introduced as H.R. 4496 as part of a legislative housing package announced by Financial Services~~
~~Committee Chairwoman Maxine Waters.34~~
~~Housing in Infrastructure Proposals~~
~~The topic of infrastructure investments has been prominent during the 117th Congress. The Biden~~
~~Administration’s infrastructure proposal, the American Jobs Plan, was released in the spring of~~
~~2021 and contains a number of proposals to invest additional resources in housing.35 Those~~
~~proposals include the following:~~
~~ funding through tax credits, grants, and rental assistance to produce, preserve,~~
~~and provide energy efficiency retrofits for affordable rental housing;~~
~~ enacting the Neighborhood Homes Investment Act (S. 98/H.R. 2143), which~~
~~would provide new tax credits to build and rehabilitate housing for low- and~~
~~moderate-income homeowners and buyers in certain disadvantaged areas;~~
~~ new grants to incentive land use and zoning policy changes in local communities;~~
~~ additional funding to address the backlog of capital needs, address health and~~
~~safety concerns, and promote energy efficiency in public housing;~~
~~ funding to replace lead pipes and service lines to reduce lead exposure in homes;~~
~~and~~
~~ additional funding for HUD’s Community Development Block Grant (CDBG) to~~
~~promote climate resiliency in low- and moderate-income communities at higher~~
~~risk of climate-related disasters.~~
~~Both the House Financial Services Committee and the Senate Banking Committee have held~~
~~hearings related to housing as infrastructure.36 In addition, in April 2021, Chairwoman Waters~~
~~released draft legislation, the Housing is Infrastructure Act of 2021, which would authorize~~

~~33 U.S. Congress, House Committee on Financial Services,~~ ~~Virtual Hearing - Universal Vouchers: Ending~~
~~Hom elessness and Expanding Economic Opportunity in Am erica~~ ~~, 117th Cong., 1st sess., June 9, 2020,~~
~~https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=407952.~~
~~34 House Financial Services Commit t ee, “ Wat ers Announces Int roduct ion of Groundbreaking Legislat ive Housing~~
~~Package,” press release, July 15, 2021, https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=~~
~~408154.~~
~~35 See T he White House, “Fact Sheet: T he American Jobs Plan,” March 31, 2021, https://www.whitehouse.gov/~~
~~briefing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/. Some additional detail on these~~
~~proposals was released in May 2021; see T he White House, “Fact Sheet: T he American Jobs Plan Will Produce,~~
~~Preserve, and Retrofit More T han 2 Million Affordable Housing Units and Create Good-Paying Jobs,” May 26, 2021,~~
~~https://www.whitehouse.gov/briefing-room/statements-releases/2021/05/26/fact-sheet-the-american-jobs-plan-will-~~
~~produce-preserve-and-retrofit-more-than-2-million-affordable-housing-units-and-create-good-paying-jobs/.~~
~~36 T hese have included U.S. Congress, House Committee on Financial Services,~~ ~~Build Back Better: Investing in~~
~~Equitable and Affordable Housing Infrastructure, 117th Cong., 1st sess., April 14, 2021,~~
~~https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=407532; U.S. Congress, House Committee on~~
~~Financial Services,~~ ~~Building Back a Better, More Equitable Housing Infrastructure for Am erica: Oversight of the~~
~~Departm ent of Housing and Urban Developm ent, 117th Congress, 1st sess., July 20, 2021,~~
~~https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=408108, and U.S. Congress, Senate Committee~~
~~on Banking, Housing, and Urban Affairs,~~ ~~21st Century Com m unities: Expanding Opportunity Through Infrastructure~~
~~Investm ents, 117th Cong., 1st sess., May 20, 2021, https://www.banking.senate.gov/hearings/21st -century-communities-~~
~~expanding-opportunity-through-infrastructure-investments, at which HUD Secretary Marcia Fudge was one of the~~
~~witnesses.~~
~~Congressional Research Service~~

18

~~Housing Issues in the 117th Congress~~

~~hundreds of bil ions of dollars in new funding for various affordable housing programs and~~
~~activities.37 It was subsequently introduced as H.R. 4497 as part of a legislative housing package~~
~~announced by Chairwoman Waters.38~~
~~Fair Housing~~
~~Congress enacted the Fair Housing Act “to provide, within constitutional limitations, for fair~~
~~housing throughout the United States.”39 Congress passed the act in 1968 after years of private~~
~~and government-sanctioned housing discrimination that resulted in racial y segregated~~
~~neighborhoods and unequal access to housing.40 As amended, the act prohibits discrimination in~~
~~the sale, rental, or financing of housing based on race, color, religion, national origin, sex,~~
~~familial status, and disability.41~~
Historical y, courts and HUD general y recognized that the Fair Housing Act bars both intentional
~~discrimination as wel as disparate impact (also referred to as discriminatory effects)~~
~~discrimination resulting from “facial y neutral decision[s].”42 Intentional discrimination claims~~
~~al ege that a defendant made a housing decision based on “a discriminatory intent or motive.”43~~
~~Disparate impact claims involve al egations that a housing practice has “a disproportionately~~
~~adverse effect on [a protected class] and [is] otherwise unjustified by a legitimate rationale.”44~~
~~Various court actions over the past decade have created uncertainty about whether the act~~
~~supports disparate impact claims, and if it does, what test courts should apply to evaluate such~~
~~claims. In 2015, the Supreme Court held that disparate impact claims are cognizable (i.e., viable)~~
~~under the Fair Housing Act, and provided guidance to HUD and lower courts regarding how~~

~~37 See https://democrats-financialservices.house.gov/UploadedFiles/BILLS-117pih-~~
~~HousingisInfrastructureActof2021.pdf.~~
~~38 House Financial Services Committee, “Waters Announces Introduction of Groundbreaking Legislative Housing~~
~~Package,” press release, July 15, 2021, https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=~~
~~408154. A version of this legislation was also introduced in the 116 th Congress and was ordered reported by the House~~
~~Financial Services Committee (H.R. 5187, 116th Congress). Additionally in the 116th Congress, a set of “ additional~~
~~infrastructure investments” was included in T itle V of the FY2021 T ransportation -HUD appropriations legislation that~~
~~passed the House (H.R. 7616, as incorporated into H.R. 7617, 116th Congress), although they were not included in the~~
~~final FY2021 full-year appropriat ions package.~~
~~39 42 U.S.C. §3601. T he Fair Housing Act (42 U.S.C. §§3601 -3631) was originally enacted as T itle VIII of the Civil~~
~~Rights Act of 1968 (P.L. 90-284).~~
~~40 See NAACP v. HUD, 817 F.2d 149, 154-55 (1st Cir. 1987) (Breyer, J.); Nat’l Fair Housing Alliance v. Carson, 330~~
~~F. Supp. 3d 14, 24 (D.D.C. 2015). See also T homas J. Sugrue, ‘From Jim Crow to Fair Housing,’ in~~ ~~The Fight for Fair~~
~~Housing: Causes, Consequences, and Future Im plications of the 1968 Fair Housing Act, ed. Gregory D. Squires (New~~
~~York: Routledge, an imprint of the T aylor & Francis Group, 2018), pp. 14 -27.~~
~~41 P.L. 104-76 (authorizing certain housing for older persons); P.L. 100-430 (adding protections for the disabled and~~
~~families with children).~~
~~42 Metro. Hous. Dev. Corp. v. Vill. of Arlington Heights, 558 F.2d 1283, 1290 (7th Cir. 1977). T here are two types of~~
~~disparate impact discrimination: “ T he first occurs when that decision has a greater adverse impact on one [protected]~~
~~group than on another. T he second is the effect which the decision has on the community involved; if it perpetuates~~
~~segregation and thereby prevents interracial association it will be considered invidious under the Fair Housing Act~~
~~independently of the extent to which it produces a disparate effect on different racial group s.” Ibid.~~
~~43 T exas Dept. of Hous. & Cmnty Affairs v. Inclusive Communities Project, 135 S. Ct. 2507, 2513 (2015) (internal~~
~~quotations omitted).~~
~~44 Ibid. (internal quotations omitted).~~
~~Congressional Research Service~~

19

~~Housing Issues in the 117th Congress~~

~~claims should be assessed.45 During the Obama, Trump, and Biden Administrations, HUD has~~
~~issued differing regulations to implement disparate impact liability that have sparked litigation.46~~
~~In addition to prohibiting discrimination, the act~~ 38 U.S. Congress, House Committee on Financial Services, Virtual Hearing - Universal Vouchers: Ending Homelessness and Expanding Economic Opportunity in America, 117th Cong., 1st sess., June 9, 2020, https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=407952. 39 House Financial Services Committee, “Waters Announces Introduction of Groundbreaking Legislative Housing Package,” press release, July 15, 2021, https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=408154. The legislative housing package also included two other bills introduced by Chairwoman Waters: the Housing is Infrastructure Act of 2021 (H.R. 4497), which would authorize appropriations for a variety of affordable housing programs and activities, and the Downpayment Toward Equity Act of 2021 (H.R. 4495), which would establish a down payment assistance program for income-eligible first-time, first-generation homebuyers. 40 See the Unlocking Possibilities Program in Section 40103 of H.R. 5376 as passed by the House. 41 U.S. Congress, Senate Committee on Banking, Housing, and Urban Affairs, Examining Bipartisan Bills to Increase Access to Housing, 117th Cong., 1st sess., June 24, 2021, https://www.banking.senate.gov/hearings/examining-bipartisan-bills-to-increase-access-to-housing. 42 HUD FY2023 Budget Justifications, Housing Supply Fund (Mandatory Request), https://www.hud.gov/sites/dfiles/ Congressional Research Service 19 Housing Issues in the 117th Congress Low-Income Housing Tax Credit43 and $5 billion in new mandatory funding for Treasury’s Community Development Financial Institutions (CDFI) Fund to support financing for affordable housing development.44 Homelessness Housing affordability challenges and housing instability arising from the COVID-19 pandemic have increased concerns that more people may be at risk of homelessness.45 Data collection during the pandemic has been limited, and pandemic-related interventions may have prevented homelessness in some cases, so there is not yet a full picture of changes in the number of people experiencing homelessness. HUD directs a point-in-time (PIT) count of the number of people experiencing homelessness on one day during the last week of January each year. However, the 2021 PIT count included only people living in shelter (emergency shelter and transitional housing) and not those who were unsheltered (living on the street or other places not meant for human habitation); the number of people living in shelter declined by 8% from January 2020 to January 2021.46 Between the CARES Act and ARPA, Congress appropriated nearly $15 billion for HUD programs to assist people experiencing homelessness. The CARES Act provided $4 billion for the Emergency Solutions Grants program to provide emergency and non-congregate shelter accommodations as well as short-term rental assistance to assist people immediately at risk of losing their housing. ARPA provided $5 billion that will fund approximately 70,000 emergency housing vouchers through the Section 8 program to assist people experiencing homelessness.47 Further, it appropriated an additional $5 billion for the HOME program, which communities are to use for various activities that primarily assist people who are homeless or at risk of homelessness, including development of affordable housing, rental assistance, and supportive services.48 In the 117th Congress, the House Financial Services Committee’s Subcommittee on Housing, Community Development, and Insurance held a hearing about addressing homelessness in February 2022, “Housing America: Addressing Challenges in Serving People Experiencing Homelessness,” during which Members cited a number of related bills that have been proposed in the 117th Congress.49 In addition, on June 24, 2021, the Senate Banking Committee held a hearing CFO/documents/2023_CJ_Program_CC3_Housing_Supply_Fund.pdf. 43 Department of the Treasury, General Explanations of the Administration’s Fiscal Year 2023 Revenue Proposals, pp. 20-21, https://home.treasury.gov/system/files/131/General-Explanations-FY2023.pdf. 44 Department of the Treasury FY2023 Budget Justifications, Community Development Financial Institutions Fund, pp. 10-11, https://home.treasury.gov/system/files/266/12-CDFI-FY-2023-CJ.pdf. 45 For example, see Riordan Frost, Pre-Pandemic Trends Offer Insight into Post Pandemic Homelessness, Joint Center for Housing Studies, March 30, 2021, https://www.jchs.harvard.edu/blog/pre-pandemic-trends-offer-insight-post-pandemic-homelessness. 46 U.S. Department of Housing and Urban Development, The 2021 Annual Homeless Assessment Report (AHAR) to Congress, January 2022, p. 8, https://www.huduser.gov/portal/sites/default/files/pdf/2021-AHAR-Part-1.pdf. 47 More information about the emergency housing vouchers is available on HUD’s website, https://www.hud.gov/ehv. 48 See U.S. Department of Housing and Urban Development, Requirements for the Use of Funds in the HOME-American Rescue Plan Program, September 13, 2021, https://www.hud.gov/sites/dfiles/OCHCO/documents/2021-10cpdn.pdf. 49 U.S. Congress, House Committee on Financial Services, Subcommittee on Housing, Community Development, and Insurance, Housing America: Addressing Challenges in Serving People Experiencing Homelessness, 117th Cong., 2nd sess., February 2, 2022. Congressional Research Service 20 link to page 34 Housing Issues in the 117th Congress on bills that would address affordable housing, including S. 1991, the Family Stability and Opportunity Vouchers Act of 2021, which would provide Section 8 vouchers for families with children who are homeless or unstably housed.50 Housing in the Build Back Better Act and Other Infrastructure Proposals The topic of infrastructure investments has been prominent during the 117th Congress. In Spring 2021, the Biden Administration released its infrastructure proposal, the American Jobs Plan, which contained a number of proposals to invest additional resources in housing.51 Two legislative initiatives were developed in response to President Biden’s American Jobs Plan infrastructure investment proposal. The first package—the Infrastructure Investment and Jobs Act (IIJA, P.L. 117-58)—was enacted in November 2021. It included new spending for a variety of transportation, energy, and water programs, among others, including funding to replace lead water service lines and funding for hazard mitigation (the latter of which is discussed further in the “Housing and Climate Impacts” section of this report). It did not include funding specifically for affordable housing programs or initiatives, however. The second legislative package—the Build Back Better Act (H.R. 5376)—was developed pursuant to reconciliation directives included in S.Con.Res. 14, the Concurrent Budget Resolution for FY2022.52 As passed by the House in November 2021, the Financial Services Committee title of the bill (Title IV) included about $157 billion in new mandatory spending over 10 years for programs and activities within the committee’s jurisdiction, primarily a range of new and existing affordable housing programs.53 Most of the housing investments that were proposed in the Administration’s American Jobs Plan are included in the bill in some form, as are other housing-related investments. Among other things, Title IV of the House-passed bill would include funding to  produce, preserve, or rehabilitate affordable housing, including funding for programs such as the Housing Trust Fund, Section 202, and Section 811 programs;  increase funding for existing federally assisted affordable housing, including public housing, project-based Section 8 multifamily housing, and rural rental housing programs;  provide additional rental assistance through funding for new Section 8 vouchers; 50 U.S. Congress, Senate Committee on Banking, Housing, and Urban Affairs, Examining Bipartisan Bills to Increase Access to Housing, 117th Cong., 1st sess., June 24, 2021. 51 See The White House, “Fact Sheet: The American Jobs Plan,” March 31, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/. Some additional detail on these proposals was released in May 2021; see The White House, “Fact Sheet: The American Jobs Plan Will Produce, Preserve, and Retrofit More Than 2 Million Affordable Housing Units and Create Good-Paying Jobs,” May 26, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/05/26/fact-sheet-the-american-jobs-plan-will-produce-preserve-and-retrofit-more-than-2-million-affordable-housing-units-and-create-good-paying-jobs/. 52 For more information on S.Con.Res. 14, see CRS Report R46893, S.Con.Res. 14: The Budget Resolution for FY2022. 53 This amount compares to about $300 billion in new spending that was included in the version of the bill reported out of committee. For more information on the committee-passed bill, see U.S. House Committee on Financial Services, “Committee Passes Build Back Better Agenda to Provide Long-Overdue Investments in Housing Resources,” press release, September 14, 2021, https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=408325. Congressional Research Service 21 Housing Issues in the 117th Congress  assist local communities with planning and implementing local housing and community development strategies; and  provide assistance for homebuyers, including funding for a new down payment assistance program for first-time, first generation homebuyers. In addition, the Ways and Means Committee title of the bill (Title XIII) includes certain additional tax-related housing provisions; namely, changes to the Low-Income Housing Tax Credit and the inclusion of the Neighborhood Homes Investment Act (NHIA). The NHIA would provide tax credits to support the development or rehabilitation of single-family homes in certain distressed neighborhoods. (For more information on the NHIA, see CRS In Focus IF11884, Neighborhood Homes Investment Act: Overview and Policy Considerations.) As of the cover date of this report, the Senate had not considered the Build Back Better Act. Earlier in the 117th Congress, both the House Financial Services Committee and the Senate Banking Committee held hearings related to housing as infrastructure.54 In July 2021, House Financial Services Committee Chairwoman Maxine Waters introduced the Housing is Infrastructure Act of 2021 (H.R. 4497) as part of her legislative housing package.55 The Housing is Infrastructure Act would authorize hundreds of billions of dollars in new funding for various affordable housing programs and activities. Many of the activities included in that bill, as well as certain other parts of the Chairwoman’s legislative housing package, were included in the House-passed version of the Build Back Better Act in some form. For more information, see the following:  CRS Report R46916, FY2022 Reconciliation: Title IV, House Financial Services Committee Provisions  CRS Report R46960, Tax Provisions in the Build Back Better Act: Rules Committee Print 117-18 Native American Housing Assistance and Self-Determination Act Reauthorization The 117th Congress has been considering legislation to reauthorize the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA, P.L. 104-330). NAHASDA 54 These have included U.S. Congress, House Committee on Financial Services, Build Back Better: Investing in Equitable and Affordable Housing Infrastructure, 117th Cong., 1st sess., April 14, 2021, https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=407532; U.S. Congress, House Committee on Financial Services, Building Back a Better, More Equitable Housing Infrastructure for America: Oversight of the Department of Housing and Urban Development, 117th Congress, 1st sess., July 20, 2021, https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=408108; and U.S. Congress, Senate Committee on Banking, Housing, and Urban Affairs, 21st Century Communities: Expanding Opportunity Through Infrastructure Investments, 117th Cong., 1st sess., May 20, 2021, https://www.banking.senate.gov/hearings/21st-century-communities-expanding-opportunity-through-infrastructure-investments, at which HUD Secretary Marcia Fudge was one of the witnesses. 55 House Financial Services Committee, “Waters Announces Introduction of Groundbreaking Legislative Housing Package,” press release, July 15, 2021, https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=408154. A version of this legislation was also introduced in the 116th Congress and was ordered reported by the House Financial Services Committee (H.R. 5187). Additionally in the 116th Congress, a set of “additional infrastructure investments” was included in Title V of the FY2021 Transportation-HUD appropriations legislation that passed the House (H.R. 7616, as incorporated into H.R. 7617), although they were not included in the final FY2021 full-year appropriations package. Congressional Research Service 22 Housing Issues in the 117th Congress authorizes the Indian Housing Block Grant (IHBG), through which HUD provides formula funding to federally recognized tribes and Alaska Native villages that can be used for a range of affordable housing activities.56 As amended, it also authorizes the Native Hawaiian Housing Block Grant (NHHBG), which provides funding for affordable housing activities that benefit Native Hawaiians eligible to reside on the Hawaiian Home Lands. The most recent authorization for most NAHASDA programs expired at the end of FY2013, although Congress has continued to fund NAHASDA programs in annual appropriations laws.57 NAHASDA reauthorization legislation has been introduced and considered to varying degrees in every Congress since the 113th, but none has ultimately been enacted. While both tribes and Congress have been generally supportive of NAHASDA, there is sometimes disagreement over specific provisions or policy proposals that have been included in reauthorization bills. In the 117th Congress, different NAHASDA reauthorization bills have been introduced in the House and the Senate. In September 2021, the House Financial Services Committee ordered to be reported H.R. 5195, which would reauthorize the IHBG, the NHHBG, and certain other Native American housing programs (namely, HUD’s Section 184 Indian Home Loan Guarantee Program and Section 184A Native Hawaiian Housing Loan Guarantee Program) through FY2026.58 In February 2022, the Senate Committee on Indian Affairs ordered to be reported S. 2264, which would reauthorize the IHBG, the NHHBG, and the Section 184 and Section 184A programs through FY2032.59 Both bills also contain a range of other provisions that would make changes to NAHASDA and otherwise address housing assistance for Indian tribes in various ways. Fair Housing The evolving administrative and judicial interpretations of certain requirements of the Fair Housing Act have been of ongoing interest to Congress.60 Congress enacted the Fair Housing Act “to provide, within constitutional limitations, for fair housing throughout the United States.”61 Congress passed the act in 1968 after years of private and government-sanctioned housing discrimination that resulted in racially segregated neighborhoods and unequal access to housing.62 56 NAHASDA also authorizes the Title VI loan guarantee program, through which HUD provides loan guarantees to increase tribes’ access to financing for affordable housing activities. 57 The NHHBG has not been reauthorized since its original authorization expired in FY2005, although it has generally continued to receive funding in appropriations acts. 58 U.S. House Committee on Financial Services, “Committee Passes Legislation to Expedite Emergency Rental Assistance and Provide Protections for Descendants of Black Native American Freedmen,” press release, September 14, 2021, https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=408326. 59 U.S. Senate Committee on Indian Affairs, “Schatz, Murkowski Lead Committee Passage of Bipartisan Bill to Advance Native American Housing Programs,” press release, February 17, 2022, https://www.indian.senate.gov/news/press-release/schatz-murkowski-lead-committee-passage-bipartisan-bill-advance-native-american. 60 Past Congresses have held hearings and considered legislative provisions related to HUD actions on the Fair Housing Act and other fair housing issues. See, for example, from the 116th Congress, House Financial Services Committee, “Waters Statement on HUD’s Move to Weaken Protections Against Housing Discrimination,” press release, August 22, 2019, https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=404216. Also in the 116th Congress, a provision in the FY2021 House-passed appropriations bill for multiple agencies, including HUD, would have prohibited funds from being used to implement, administer, or enforce HUD’s 2020 AFFH rule (see Section 506 of the General Provisions for Additional Infrastructure Investments in H.R. 7617). No such provision was included in the enacted Consolidated Appropriations Act, 2021 (P.L. 116-260). 61 42 U.S.C. §3601. The Fair Housing Act (42 U.S.C. §§3601-3631) was originally enacted as Title VIII of the Civil Rights Act of 1968 (P.L. 90-284). 62 See NAACP v. HUD, 817 F.2d 149, 154-55 (1st Cir. 1987) (Breyer, J.); Nat’l Fair Housing Alliance v. Carson, 330 F. Supp. 3d 14, 24 (D.D.C. 2015). See also Thomas J. Sugrue, ‘From Jim Crow to Fair Housing,’ in The Fight for Fair Congressional Research Service 23 Housing Issues in the 117th Congress As amended, the act prohibits discrimination in the sale, rental, or financing of housing based on race, color, religion, national origin, sex, familial status, and disability.63 The Fair Housing Act bars intentional discrimination, through which plaintiffs allege that a defendant made a housing decision based on “a discriminatory intent or motive.”64 In addition, prior to 2005, HUD and courts had historically recognized that the act also bars disparate impact (also referred to as discriminatory effects) discrimination—“facially neutral [housing] decision[s]” that have “a disproportionately adverse effect on [a protected class] and [are] otherwise unjustified by a legitimate rationale.”65 However, the Supreme Court, in the 2005 decision Smith v. City of Jackson, Mississippi66 (a case involving the federal Age Discrimination in Employment Act of 1967 [ADEA]), indirectly called into question past decisions that had held that disparate impact claims are cognizable (i.e., viable) under the Fair Housing Act. In Smith, the Court held that the ADEA supports disparate impact claims in part because the law expressly prohibits actions that “adversely affect” a protected class.67 Due to the absence of similar statutory language in the Fair Housing Act, various court decisions following Smith raised questions about whether the act supports disparate impact claims, and if it does, the test courts should apply to evaluate them.68 The Supreme Court settled some of this uncertainty in a 2015 opinion, holding that disparate impact claims are cognizable under the Fair Housing Act, while providing guidance to HUD and lower courts regarding how claims should be assessed.69 During the Obama, Trump, and Biden Administrations, HUD issued differing regulations to implement disparate impact liability post-Smith, which sparked litigation.70 Housing: Causes, Consequences, and Future Implications of the 1968 Fair Housing Act, ed. Gregory D. Squires (New York: Routledge, an imprint of the Taylor & Francis Group, 2018), pp. 14-27. 63 P.L. 104-76 (authorizing certain housing for older persons); P.L. 100-430 (adding protections for the disabled and families with children). 64 Texas Dept. of Hous. & Cmnty Affairs v. Inclusive Communities Project, 135 S. Ct. 2507, 2513 (2015) (internal quotation marks omitted). 65 Metro. Hous. Dev. Corp. v. Vill. of Arlington Heights, 558 F.2d 1283, 1290 (7th Cir. 1977). There are two types of disparate impact discrimination: “The first occurs when that decision has a greater adverse impact on one [protected] group than on another. The second is the effect which the decision has on the community involved; if it perpetuates segregation and thereby prevents interracial association it will be considered invidious under the Fair Housing Act independently of the extent to which it produces a disparate effect on different racial groups.” Ibid. 66 544 U.S. 228 (2005). 67 Ibid. at 235-38. 68 See, for example, Am. Ins. Assoc. v. Dept. of Hous. and Urban Dev., 74 F. Supp. 3d 30 (D.D.C. 2014) (vacated and remanded) (interpreting the Fair Housing Act as only prohibiting intentional discrimination, not discriminatory effects, and vacating HUD’s 2013 rule). The district court’s decision was subsequently vacated and remanded for reconsideration in accordance with the Supreme Court’s Inclusive Communities ruling. Am. Ins. Assoc. v. Dept. of Hous. and Urban Dev. No. 14-5321, September 23, 2015 (D.C. Cir.) (per curiam). The Supreme Court also granted certiorari in two cases to address the question of whether disparate impact claims were cognizable under the Fair Housing Act, which signaled to many that the Court was likely to reverse the prevailing understanding that the act bars disparate impact discrimination. Twp. of Mount Holly, N.J. v. Mt. Holly Gardens Citizens in Action, Inc., 133 S. Ct. 2824, (2013); and Magner v. Gallagher, 132 S. Ct. 548 (2011). Both cases were dismissed before the Court heard any argument. Twp. of Mount Holly, N.J. v. Mt. Holly Gardens Citizens in Action, Inc., 134 S. Ct. 636, (2013); Magner v. Gallagher, 132 S. Ct. 1306, (2012). See also Joshua Thompson and Ralph Kasarda, Symposium: Just give the Court a Chance, SCOTUSblog (January 6, 2015), https://www.scotusblog.com/2015/01/symposium-just-give-the-court-a-chance/. 69 Texas Dept. of Hous. & Cmnty Affairs v. Inclusive Communities Project, 135 S. Ct. 2507, 2513 (2015). 70 See, for example, Mass. Fair Hous. Ctr. v. United States HUD, 496 F. Supp. 3d 600, 603 (D. Mass. 2020) Congressional Research Service 24 Housing Issues in the 117th Congress In addition to prohibiting discrimination, the Fair Housing Act imposes a broad mandate on HUD imposes a broad mandate on HUD and all other ~~and al other~~
federal “executive departments and agencies [to] administer their programs and activities relating federal “executive departments and agencies [to] administer their programs and activities relating
to housing and urban development ... in a manner affirmatively to further the purposes of [the to housing and urban development ... in a manner affirmatively to further the purposes of [the
Fair Housing Act].”Fair Housing Act].”4771 This mandate, known as the “affirmatively furthering fair housing” mandate This mandate, known as the “affirmatively furthering fair housing” mandate
(AFFH), is not further delineated in the statute, and the Obama, Trump, and Biden (AFFH), is not further delineated in the statute, and the Obama, Trump, and Biden
Administrations have implemented the mandate differently. Administrations have implemented the mandate differently.
~~The evolving administrative and judicial interpretations of the Fair Housing Act’s AFFH~~
~~requirements and disparate impact liability, each discussed below, have been of ongoing interest~~
~~to Congress. For example, past Congresses have held hearings and considered legislative~~
~~provisions related to HUD actions on these and other fair housing issues.48~~ For more information For more information
on the Fair Housing Act in general, see on the Fair Housing Act in general, see the following:  CRS Report 95-710, CRS Report 95-710, The Fair Housing Act (FHA): A
Legal Overview.
Affirmatively Furthering Fair Housing
~~What affirmatively furthering fair housing~~(AFFH) What AFFH means is not defined in statute means is not defined in statute~~. Various courts, in~~
~~decisions regarding HUD’s obligations,~~, and various court decisions regarding HUD’s obligations under the mandate have concluded that it means more than refraining from have concluded that it means more than refraining from
discrimination.discrimination.4972 A 1987 federal A 1987 federal ~~appel ate~~appellate court decision examined the Fair Housing Act’s legislative history and concluded ~~court decision looked at the legislative history of the~~
~~Fair Housing Act, saying~~ that the “law’s supporters saw the ending of discrimination as a means that the “law’s supporters saw the ending of discrimination as a means
toward truly opening the nation’s housing stock to persons of every race and creed.”toward truly opening the nation’s housing stock to persons of every race and creed.” 73 With that With that
goal in mind, the court stated goal in mind, the court stated
This broader goal suggests an intent that HUD do more than simply not discriminate itself; This broader goal suggests an intent that HUD do more than simply not discriminate itself;
it reflects the desire to have HUD use its grant programs to assist in ending discrimination it reflects the desire to have HUD use its grant programs to assist in ending discrimination
and segregation, to the point where the supply of genuinely open housing increases.and segregation, to the point where the supply of genuinely open housing increases.5074
Over the years, HUD has enforced the AFFH requirement first through guidance and then through Over the years, HUD has enforced the AFFH requirement first through guidance and then through
regulations. HUD’s AFFH regulations have changed several times in the last regulations. HUD’s AFFH regulations have changed several times in the last ~~six~~seven years over years over ~~three~~
the span of three presidential administrations. The first AFFH regulations, issued by the Obama Administration in presidential administrations. The first AFFH regulations, issued by the Obama Administration in
2015, were replaced by Trump Administration regulations that became effective on September 8, 2015, were replaced by Trump Administration regulations that became effective on September 8,
2020. Most recently, the Biden Administration announced an interim final AFFH rule that 2020. Most recently, the Biden Administration announced an interim final AFFH rule that
~~replaces~~replaced the Trump Administration rule as of July 31, 2021. During the Obama Administration, HUD’s 2015 regulations defined AFFH as “taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.”75 States and localities receiving HUD formula grant funding, as well as Public Housing Authorities (PHAs), were required to assess the needs of their communities and ways in which they could (government appeal voluntarily dismissed, Mass. Fair Housing Ctr. v. HUD, No 21-1003 (1st Cir. Feb. 18, 2021)); Am. Ins. Assoc. v. Dept. of Hous. and Urban Dev., 74 F. Supp. 3d 30 (D.D.C. 2014) (vacated and remanded by Am. Ins. Assoc. v. Dept. of Hous. and Urban Dev. No. 14-5321, September 23, 2015 (D.C. Cir.) (per curiam)). 71 42 U.S.C. §3608(d). 72 See, for example, NAACP v. HUD, 817 F.2d 149, 155 (1987) ( ~~the Trump Administration rule as of July 31, 2021.~~

~~45 Ibid.~~
~~46 See, for example, Mass. Fair Hous. Ctr. v. United States HUD, 4 96 F. Supp. 3d 600, 603 (D. Mass. 2020); Am. Ins.~~
~~Assoc. v. Dept. of Hous. and Urban Dev., 74 F. Supp. 3d 30 (D.D.C. 2014) (vacated and remanded).~~
~~47 42 U.S.C. §3608(d).~~
~~48 See, for example, from the 116th Congress, House Financial Services Committee, “Waters Statement on HUD’s~~
~~Move to Weaken Protections Against Housing Discrimination,” press release, August 22, 2019,~~
~~https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=404216. Also in the 116th Congress, a~~
~~provision in the FY2021 House-passed appropriations bill for multiple agencies, including HUD, would have~~
~~prohibited funds from being used to implement, administer, or enforce HUD’s 2020 AFFH rule (see Section 506 of the~~
~~General Provisions for Additional Infrastructure Investments in H.R. 7617 in the 116th Congress). No such provision~~
~~was included in the enacted Consolidated Appropriations Act, 2021 ( P.L. 116-260).~~
~~49 See, for example, NAACP v. HUD, 817 F.2d at 149, 155 (~~“Finally, every court that has considered the question has “Finally, every court that has considered the question has
held or stated that held or stated that ~~T itle~~Title VIII imposes upon HUD VIII imposes upon HUD an obligation to do more than simply refrain from discriminating (and an obligation to do more than simply refrain from discriminating (and
from purposefully aidingfrom purposefully aiding discrimination by others).”); Nat’l Fair Housingdiscrimination by others).”); Nat’l Fair Housing Alliance v. Carson, 330 F.Supp.3dAlliance v. Carson, 330 F.Supp.3d 14,25 14,25
(D.D.C. 2015) (same). (D.D.C. 2015) (same).
50 73 NAACP v. HUDNAACP v. HUD, 817 F.2d at 155. 74 Ibid. 75 U.S. Department of Housing and Urban Development, “Affirmatively Furthering Fair Housing,” 80 Federal Register 42353, July 16, 2015, https://www.federalregister.gov/documents/2015/07/16/2015-17032/affirmatively-furthering-fair-housing. Congressional Research Service 25 Housing Issues in the 117th Congress improve access to housing. They were also required to submit a report to HUD, called an ~~, 817 F.2d at 155.~~
~~Congressional Research Service~~

20

~~Housing Issues in the 117th Congress~~

~~During the Obama Administration, HUD’s 2015 regulations defined AFFH as “taking meaningful~~
~~actions that, taken together, address significant disparities in housing needs and in access to~~
~~opportunity, replacing segregated living patterns with truly integrated and balanced living~~
~~patterns, transforming racial y and ethnical y concentrated areas of poverty into areas of~~
~~opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.”51~~
~~States and localities receiving HUD formula grant funding, as wel as Public Housing Authorities~~
~~(PHAs), were required to assess the needs of their communities and ways in which they could~~
~~improve access to housing. They were also required to submit a report to HUD, cal ed an~~
Assessment of Fair Housing (AFH). Assessment of Fair Housing (AFH).
During the Trump Administration, HUD suspended implementation of the 2015 AFFH During the Trump Administration, HUD suspended implementation of the 2015 AFFH
regulations in May 2018. On August 7, 2020, HUD issued a new final rule, entitledregulations in May 2018. On August 7, 2020, HUD issued a new final rule, entitled “Preserving “Preserving
Community and Neighborhood Choice,” that repealed and replaced the 2015 regulations.Community and Neighborhood Choice,” that repealed and replaced the 2015 regulations.5276 The The
final rule stated that fair housing “means housing that, among other attributes, is affordable, safe, final rule stated that fair housing “means housing that, among other attributes, is affordable, safe,
decent, free of unlawful discrimination, and accessible as required under civil rights laws,” and decent, free of unlawful discrimination, and accessible as required under civil rights laws,” and
that AFFHthat AFFH means “to take any action means “to take any action ~~rational y~~rationally related to promoting any attribute or attributes of related to promoting any attribute or attributes of
fair housing.”fair housing.”5377 States and localities were to certify that they satisfied the States and localities were to certify that they satisfied the ~~requirement to AFFH~~AFFH requirement as as
part of their consolidated planspart of their consolidated plans~~;54 the~~.78 The rule did not apply to PHAs rule did not apply to PHAs~~. The rule~~ and took effect on took effect on
September 8, 2020. September 8, 2020.
On January 26, 2021, On January 26, 2021, ~~the Biden Administration~~ President Biden issued a Presidential Memorandum to HUD, issued a Presidential Memorandum to HUD,
directing the agency to “take directing the agency to “take al all steps necessary to examine the effects of the August 7, 2020, rule steps necessary to examine the effects of the August 7, 2020, rule
~~entitled~~ entitled ‘Preserving Community and Neighborhood Choice’ … including the effect that repealing ‘Preserving Community and Neighborhood Choice’ … including the effect that repealing
the July 16, 2015, rule entitled ‘Affirmatively Furthering Fair Housing’ has had on HUD’s the July 16, 2015, rule entitled ‘Affirmatively Furthering Fair Housing’ has had on HUD’s
statutory duty to affirmatively further fair housing.”statutory duty to affirmatively further fair housing.”5579
On June 10, 2021, HUD published an interim final rule that On June 10, 2021, HUD published an interim final rule that ~~repeals~~repealed the Trump Administration the Trump Administration
rule and rule and ~~reinstates~~reinstated certain aspects of the 2015 AFFH rule, including the definition of AFFH as certain aspects of the 2015 AFFH rule, including the definition of AFFH as
~~wel~~ well as grantee certification requirements.as grantee certification requirements.5680 It does not require submission of an AFH, and HUD It does not require submission of an AFH, and HUD
states that it anticipates releasing a proposed rule, subject to notice and comment procedures, to states that it anticipates releasing a proposed rule, subject to notice and comment procedures, to
address other aspects of the 2015 AFFH rule.address other aspects of the 2015 AFFH rule.5781 The interim final rule The interim final rule isbecame effective on July 31, effective on July 31,
~~2021.~~

51 U.S. Department of Housing and Urban Development, “Affirmatively Furthering Fair Housing,” 80 Federal Register
~~42353, July 16, 2015, https://www.federalregister.gov/documents/2015/07/16/2015-17032/affirmatively-furthering-~~
~~fair-housing.~~
~~52 U.S.~~ 2021. For more information, see the following:  CRS Report R44557, The Fair Housing Act: HUD Oversight, Programs, and Activities Disparate Impact Discrimination Amidst the growing uncertainty regarding disparate impact discrimination under the Fair Housing Act following the Supreme Court’s Smith opinion discussed above,82 HUD, for the first time in February 2013 during the Obama Administration, issued regulations to “formalize HUD’s long-held interpretation of the availability of ‘discriminatory effects’ liability under the Fair Housing 76 U.S. Department of Housing and Urban Development, “Preserving Community and Neighborhood Choice,” 85Department of Housing and Urban Development, “Preserving Community and Neighborhood Choice,” 85
Federal Register 47899, August 7, 2020, https://www.federalregister.gov/documents/2020/08/07/2020-16320/47899, August 7, 2020, https://www.federalregister.gov/documents/2020/08/07/2020-16320/
preserving-community-and-neighborhood-choice. preserving-community-and-neighborhood-choice.
53 77 85 85 Federal Register 47905. 47905.
5478 85 85 Federal Register 47909. 47909.
~~55 T he~~79 The White House, “Memorandum on Redressing White House, “Memorandum on Redressing ~~Our~~ Our Nation’s and the Federal Government’s History of Nation’s and the Federal Government’s History of
Discriminatory Housing Practices and Policies,” January 26, 2021, https://www.whitehouse.gov/briefing-room/Discriminatory Housing Practices and Policies,” January 26, 2021, https://www.whitehouse.gov/briefing-room/
presidential-actions/2021/01/26/memorandum-on-redressing-our-nations-and-the-federal-governments-history-of-presidential-actions/2021/01/26/memorandum-on-redressing-our-nations-and-the-federal-governments-history-of-
discriminatory-housing-practices-and-policies/. discriminatory-housing-practices-and-policies/.
5680 U.S. U.S. Department of Housing and Urban Development, “Restoring Affirmatively Furthering Fair Housing Definitions Department of Housing and Urban Development, “Restoring Affirmatively Furthering Fair Housing Definitions
and Certifications,” 86and Certifications,” 86 Federal Register 30779, 30783, June 10, 2021, https://www.federalregister.gov/documents/ 30779, 30783, June 10, 2021, https://www.federalregister.gov/documents/
2021/06/10/2021-12114/restoring-affirmatively-furthering-fair-housing-definitions-and-certifications. 2021/06/10/2021-12114/restoring-affirmatively-furthering-fair-housing-definitions-and-certifications.
5781 Ibid. Ibid. ~~at 30785.~~
at 30785. HUD had not issued a proposed rule as of the cover date of this report. 82 See supra n. 66-67 and surrounding text. Congressional Research Service Congressional Research Service

2126 Housing Issues in the 117th Congress Act and to provide nationwide consistency in the application of that form of liability.”83 In 2014, a federal district court briefly vacated the 2013 disparate impact rule after holding that disparate impact claims are not cognizable under the Fair Housing Act and that HUD had exceeded its statutory authority in issuing the rule.84 About a year later, a federal appellate court vacated the district court’s decision and remanded proceedings for reconsideration in accordance with the Supreme Court’s 2015 decision,

~~Housing Issues in the 117th Congress~~

~~For more information, see the following:~~
 CRS Report R44557, The Fair Housing Act: HUD Oversight, Programs, and
~~Activities~~
~~Disparate Impact Discrimination~~
~~In February 2013, during the Obama Administration, HUD for the first time issued regulations~~
~~“formaliz[ing] HUD’s long-held interpretation of the availability of ‘discriminatory effects’~~
~~liability under the Fair Housing Act and to provide nationwide consistency in the application of~~
~~that form of liability.”58 However, various court decisions raised doubts about the legality of the~~
~~2013 rule and disparate impact liability under the act general y.59 In 2015, the U.S. Supreme~~
~~Court, in~~ Texas Department of Housing and Community Affairs v. Inclusive Communities Project,
Inc.,85 In Inclusive Communities, the Supreme Court held that disparate impact claims are cognizable under the Fair Housing Act. held that disparate impact claims are cognizable under the Fair Housing Act.6086 The Court’s ~~The~~ ~~Inclusive~~
~~Communities~~ decision did not expressly adopt decision did not expressly adopt the disparate impact test implemented by HUD’s 2013 ruleHUD’s 2013 rule~~. Rather~~; rather, the Court adopted a , the Court adopted a
three-step burden-shifting test using language similar, but not identical, to the 2013 rulethree-step burden-shifting test using language similar, but not identical, to the 2013 rule~~, while~~
~~also outlining~~ and outlined a number of limiting a number of limiting factors that lower courts and HUD should apply when factors that lower courts and HUD should apply when
assessing disparate impact claims.assessing disparate impact claims.61
87 In September 2020, near the end of the Trump Administration, HUD issued a final rule In September 2020, near the end of the Trump Administration, HUD issued a final rule ~~that~~
~~amended the 2013 rule~~ intended “to better reflect the Supreme Court’s 2015 [“to better reflect the Supreme Court’s 2015 [Inclusive Communities] ]
ruling.”ruling.”6288 The 2020 rule would have significantly altered the 2013 rule by ~~The 2020 rule~~, among other things, , among other things, ~~would have imposed~~imposing new pleading requirements on new pleading requirements on
plaintiffs to maintain a prima facie disparate impact claim and plaintiffs to maintain a prima facie disparate impact claim and ~~would have established~~establishing new new
defenses that a defendant could use to rebut disparate impact claims. Shortly defenses that a defendant could use to rebut disparate impact claims. Shortly ~~thereafter~~after the rule’s issuance, housing , housing
advocates filed a advocates filed a ~~lawsuit in a~~law suit in federal district court federal district court ~~al eging~~alleging that the 2020 rule should be set aside that the 2020 rule should be set aside
because it because it iswas an arbitrary and capricious interpretation of the law in violation of the Administrative arbitrary and capricious interpretation of the law in violation of the Administrative
Procedure Act (APA).Procedure Act (APA).6389 Before the 2020 rule went into effect, the Before the 2020 rule went into effect, the district court issued a preliminary court issued a preliminary
injunction enjoininginjunction enjoining HUD fromHUD from implementing and enforcing the 2020 rule, which had the effect of keeping the 2013 rule in place.90 ~~enforcing the 2020 rule and reinstating the 2013 rule until a~~
~~future order of the court.64~~
The court explained that the 2020 rule constituted a “massive overhaul” of the 2013 rule by The court explained that the 2020 rule constituted a “massive overhaul” of the 2013 rule by
“introducing new, onerous pleading requirements,” “easing the burden on defendants of justifying “introducing new, onerous pleading requirements,” “easing the burden on defendants of justifying

58a policy with discriminatory effect while at the same time rendering it more difficult for plaintiffs to rebut that justification,” and “arm[ing] defendants with broad new defenses.”91 In the court’s view, these alterations “weaken[ed], for housing discrimination victims and fair housing organizations, disparate impact liability under the Fair Housing Act.”92 HUD argued that these changes were justified because they brought the rule into alignment with Inclusive Communities and “provide[d] better clarity to the public.”93 The court concluded that these major changes, 83 Department of Housing and Urban Development, “Implementation of the Fair Housing Act’s Discriminatory Effects Department of Housing and Urban Development, “Implementation of the Fair Housing Act’s Discriminatory Effects
Standard,”Standard,” 7878 Federal Register 11460, February 15, 2013, https://www.federalregister.gov/documents/2013/02/15/ 11460, February 15, 2013, https://www.federalregister.gov/documents/2013/02/15/
2013-03375/implementation-of-the-fair-housing-acts-discriminatory-effects-standard. 2013-03375/implementation-of-the-fair-housing-acts-discriminatory-effects-standard.
~~59 See, for example,~~84 Am. Ins. Assoc. v. Dept. of Hous. and Urban Dev., 74 F. Supp. Am. Ins. Assoc. v. Dept. of Hous. and Urban Dev., 74 F. Supp. 3d 30 (D.D.C. 2014) (vacated and 3d 30 (D.D.C. 2014) (vacated and
remanded) (interpreting the Fair Housing Act asremanded) (interpreting the Fair Housing Act as only prohibiting intentional discrimination, not discriminatory effects, only prohibiting intentional discrimination, not discriminatory effects,
and and vacating HUD’s 2013 rule). 85~~vacating HUD’s 2013 rule). T he district court’s decision was subsequently vacated and remanded for~~
reconsideration in accordance with the Supreme Court’s Inclusive Communities ~~ruling.~~ Am. Ins. Assoc. v. Dept. of Am. Ins. Assoc. v. Dept. of
Hous. and Urban Dev. No. 14-5321, September 23, 2015 (D.C. Cir.) (Hous. and Urban Dev. No. 14-5321, September 23, 2015 (D.C. Cir.) (per curiam ~~). T he Supreme Court has also granted~~
~~certiorari in two cases to address the question of whether disparate impact claims are cognizable under the Fair Housing~~
~~Act, which signaled to many that the Court was likely to reverse the prevailing understanding that t he act bars disparate~~
~~impact discrimination. T wp. of Mount Holly, N.J. v. Mt. Holly Gardens Citizens in Action, Inc., 133 S. Ct. 2824,~~
~~(2013); and Magner v. Gallagher, 132 S. Ct. 548 (2011). Both cases were dismissed before the Court heard any~~
~~argument. T wp. of Mount Holly, N.J. v. Mt. Holly Gardens Citizens in Action, Inc., 134 S. Ct. 636, (2013); Magner v.~~
~~Gallagher, 132 S. Ct. 1306, (2012).~~
~~60 576 U.S. 519 (2015).~~
~~61 Ibid. at 531-45.~~
~~62 85 Federal Register 60288.~~
~~63 Mass. Fair Hous. Ctr. v. United States HUD, 496 F. Supp. 3d 600, 603 (D. Mass. 2020).~~
~~64 Ibid. at 612.~~
~~Congressional Research Service~~

22

~~Housing Issues in the 117th Congress~~

~~a policy with discriminatory effect while at the same time rendering it more difficult for plaintiffs~~
~~to rebut that justification,” and “arm[ing] defendants with broad new defenses.”65 In the court’s~~
~~view, these alterations “weaken[], for housing discrimination victims and fair housing~~
~~organizations, disparate impact liability under the Fair Housing Act.”66 HUD argued that these~~
changes were justified because they brought the rule into alignment with Inclusive Communities
~~and “to provide better clarity to the public.”67 The court concluded that these major changes,~~
~~“which r[a]n the risk of neutering disparate impact liability~~ ). 86 576 U.S. 519 (2015). 87 Ibid. at 531-45. 88 Department of Housing and Urban Development, “Implementation of the Fair Housing Act’s Disparate Impact Standard,” 85 Federal Register 60288, September 24, 2020, https://www.federalregister.gov/documents/2020/09/24/2020-19887/huds-implementation-of-the-fair-housing-acts-disparate-impact-standard. 89 Mass. Fair Hous. Ctr. v. United States HUD, 496 F. Supp. 3d 600, 603 (D. Mass. 2020). 90 Ibid. at 612. 91 Ibid. at 606-608. 92 Ibid. at 607. 93 Ibid. at 610. Congressional Research Service 27 Housing Issues in the 117th Congress “which r[a]n the risk of neutering disparate impact liability under the Fair Housing Act, under the Fair Housing Act,
appear[ed] inadequately justified” and “accomplish[ed] the opposite of clarity.”appear[ed] inadequately justified” and “accomplish[ed] the opposite of clarity.”6894 Consequently, Consequently,
the court held that the plaintiffs demonstrated “a substantial likelihoodthe court held that the plaintiffs demonstrated “a substantial likelihood of success on the merits as of success on the merits as
to their claim that the 2020 Rule [wa]s arbitrary and capricious under the APA.”to their claim that the 2020 Rule [wa]s arbitrary and capricious under the APA.”6995
On January 26, 2021, President Biden issued a memorandum directing HUD to “ On January 26, 2021, President Biden issued a memorandum directing HUD to “~~as soon as~~
~~practicable, take al steps~~ take all steps necessary to examine the effects of the [2020 rule].”necessary to examine the effects of the [2020 rule].”7096 HUD responded HUD responded
to this presidential directive by voluntarily dismissing its appeal of the federal district court’s to this presidential directive by voluntarily dismissing its appeal of the federal district court’s
~~injunction71 and by~~ injunction97 and proposing a regulation that would recodify the 2013 rule and effectively proposing a regulation that would recodify the 2013 rule and effectively
rescind the 2020 rule.rescind the 2020 rule.~~72 In a~~98 In the proposed rule issued on June 25, 2021, HUD expressed its belief proposed rule issued on June 25, 2021, HUD expressed its belief
“that the practical effect of the 2020 Rule’s amendments “that the practical effect of the 2020 Rule’s amendments is[wa]s to severely limit HUD’s and plaintiffs’ to severely limit HUD’s and plaintiffs’
use of the discriminatory effects framework in ways that use of the discriminatory effects framework in ways that ~~substantial y~~substantially diminish that frameworks’ diminish that frameworks’
effectiveness in accomplishing the purposes that Inclusive Communities articulated.”effectiveness in accomplishing the purposes that Inclusive Communities articulated.”7399 HUD HUD
further explained that “the 2013 Rule has provided a workable and balanced framework for further explained that “the 2013 Rule has provided a workable and balanced framework for
investigating and litigatinginvestigating and litigating discriminatory effects claims that is consistent with the Act, HUD’s discriminatory effects claims that is consistent with the Act, HUD’s
own guidance, own guidance, Inclusive Communities, and other jurisprudence.”, and other jurisprudence.”74100 As a consequence, parties who As a consequence, parties who
previously filed suits previously filed suits ~~chal enging~~challenging the 2013 rule as inconsistent with the 2013 rule as inconsistent with Inclusive Communities could could
continue the lawsuits because the 2013 rule has been reinstated.continue the lawsuits because the 2013 rule has been reinstated.75101
For more information, see the following: For more information, see the following:
 CRS Report R44203,  CRS Report R44203, Disparate Impact Claims Under the Fair Housing Act

~~65 Ibid. at 606-608.~~
~~66 Ibid. at 607.~~
~~67 Ibid. at 610.~~
~~68 Ibid. at 611.~~
~~69 Ibid.~~
~~70 T he White House, “Memorandum on Redressing Our~~ Racial Disparities in Housing Despite the Fair Housing Act and other efforts, long-standing racial disparities in housing outcomes persist. For many housing indicators, the discrepancy is especially pronounced between 94 Ibid. at 611. 95 Ibid. 96 The White House, “Memorandum on Redressing Our Nation’s and the Federal Government’s History of Nation’s and the Federal Government’s History of
Discriminatory Housing Practices and Policies,” January 26, 2021, https://www.whitehouse.gov/briefing-room/Discriminatory Housing Practices and Policies,” January 26, 2021, https://www.whitehouse.gov/briefing-room/
presidential-actions/2021/01/26/memorandum-on-redressing-our-nations-and-the-federal-governments-history-of-presidential-actions/2021/01/26/memorandum-on-redressing-our-nations-and-the-federal-governments-history-of-
discriminatory-housing-practices-and-policies/. discriminatory-housing-practices-and-policies/.
71 97 Mass. Fair Housing Mass. Fair Housing Ctr. v. HUD, No 21-1003 (1st Cir. Feb. 18, 2021). Ctr. v. HUD, No 21-1003 (1st Cir. Feb. 18, 2021).
7298 Department of Housing and Urban Development, “Reinstatement of HUD’s Discriminatory Effects Standard,” 86Department of Housing and Urban Development, “Reinstatement of HUD’s Discriminatory Effects Standard,” 86
Federal Register 33590, June 25, 2021, https://www.federalregister.gov/documents/2021/06/25/2021-13240/33590, June 25, 2021, https://www.federalregister.gov/documents/2021/06/25/2021-13240/
reinstatementreinstatement -of-huds-discriminatory-effects-standard. -of-huds-discriminatory-effects-standard.
73 99 Ibid. Ibid. at 33594. at 33594.
74100 Ibid. Ibid.
~~75 See, for example~~101 See, generally,, Christopher J. Willis, RichardChristopher J. Willis, Richard J. Andreano, Jr., and Lori J. Sommerfield, “President Biden Issues J. Andreano, Jr., and Lori J. Sommerfield, “President Biden Issues
Executive Order Directing HUD to ReviewExecutive Order Directing HUD to Review Fair HousingFair Housing Act Disparate Impact Rule,” Consumer Finance Monitor, Act Disparate Impact Rule,” Consumer Finance Monitor,
BallardBallard Spahr, LLP, February 3, 2021, https://www.consumerfinancemonitor.com/2021/02/03/president-biden-issues-Spahr, LLP, February 3, 2021, https://www.consumerfinancemonitor.com/2021/02/03/president-biden-issues-
executive-order-directing-hud-to-review-fair-housing-act-disparate-impact-rule/. executive-order-directing-hud-to-review-fair-housing-act-disparate-impact-rule/.
Congressional Research Service Congressional Research Service

2328

Housing Issues in the 117th Congress

~~Racial Disparities in Housing~~
~~Despite the Fair Housing Act and other efforts, longstanding racial disparities in housing~~
~~outcomes persist. For many housing indicators, the discrepancy is especial y pronounced between~~
Black individuals and White individuals, including in homeownership rates,Black individuals and White individuals, including in homeownership rates,76102 renter cost renter cost
burdens,burdens,77103 and, most recently, the housing-related impacts of the COVID-19 pandemic. and, most recently, the housing-related impacts of the COVID-19 pandemic.78
104 While housing-related legislative While housing-related legislative proposals in general can have implications for racial disparities proposals in general can have implications for racial disparities
in housing, the 117th Congress has signaled a particular interest in considering ways to directly in housing, the 117th Congress has signaled a particular interest in considering ways to directly
address such disparities. For example, the House Financial Services Committee held a hearing in address such disparities. For example, the House Financial Services Committee held a hearing in
March 2021 entitled “Justice for March 2021 entitled “Justice for Al All: Achieving Racial Equity Through Fair Access to Housing : Achieving Racial Equity Through Fair Access to Housing
and Financial Services.”and Financial Services.”79105 The committee’s hearing memorandum included descriptions of The committee’s hearing memorandum included descriptions of
several introduced or draft several introduced or draft ~~bil s~~bills that would address specific issues related to housing and race, and that would address specific issues related to housing and race, and
some of these some of these ~~bil s~~bills have since received additional consideration. have since received additional consideration. ~~For example, in April 2021 the~~
~~committee~~Similarly, the Senate Banking Committee held a hearing in April 2021 entitled “Separate and Unequal: The Legacy of Racial Discrimination in Housing,” which examined related issues.106 The Biden Administration, including HUD, has also focused attention on promoting equity in federal programs.107 One issue that has received particular attention is possible racial disparities in home appraisals. In April 2021, the House Financial Services Committee ordered to be reported the Real Estate Valuation Fairness and Improvement Act of ordered to be reported the Real Estate Valuation Fairness and Improvement Act of
~~2021 (H.R. 2553), regarding potential racial disparities in appraisals. Similarly, the Senate~~
~~Banking Committee held a hearing in April 2021 entitled “Separate and Unequal: The Legacy of~~
~~Racial Discrimination in Housing,” which examined related issues.80~~
2021 (H.R. 2553), one of the bills included in the committee’s March 2021 hearing, which would establish an interagency task force to examine real estate valuation standards and would take actions to promote diversity in the appraisal profession. In June 2021, the Biden Administration released a fact sheet highlighting a number of actions it In June 2021, the Biden Administration released a fact sheet highlighting a number of actions it
has taken or proposed that it states has taken or proposed that it states ~~wil~~ will help address racial disparities in housing, including announcing an interagency task force to address inequities in home appraisals led by HUD Secretary Marcia Fudge. 108 That task force, known as the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE), released a report in March 2022 outlining steps that agencies would take to address appraisal bias.109 The Senate Banking Committee and House Financial Services Committee held hearings on the topic shortly thereafter.110 Additionally, in 102~~help address racial disparities in housing.81~~
~~Housing and Climate Impacts~~
~~Many communities across the country are experiencing the impacts of climate change. Many~~
~~extreme weather and climate-related events are expected to become more frequent and more~~
~~intense in a warmer world.82 Climate-related risks to the housing stock include the impacts of~~

76 In the fourth quarter of 2019, 73.7% of White householders owned homes, compared to 44% of Black householders; In the fourth quarter of 2019, 73.7% of White householders owned homes, compared to 44% of Black householders;
see U.S.see U.S. ~~Census Bureau, Housing Vacancies~~ Census Bureau, Housing Vacancies and Homeownership historical tables, and Homeownership historical tables, ~~T able~~Table 16, https://www.census.gov/ 16, https://www.census.gov/
housing/hvs/data/histtabs.html. housing/hvs/data/histtabs.html.
77103 In 2019, 54% of Black renters spent In 2019, 54% of Black renters spent more than 30% of income on housing, compared to 42% of White renters; see more than 30% of income on housing, compared to 42% of White renters; see
Joint Center for Housing Studies,Joint Center for Housing Studies, State of the Nation’s Housing 2020, Excel Data , Excel Data ~~T able~~Table W-1, W-1,
https://www.jchs.harvard.edu/state-nations-housing-2020. https://www.jchs.harvard.edu/state-nations-housing-2020.
78104 Black renters and homeowners have been more likely than White renters and homeowners to report being behind on Black renters and homeowners have been more likely than White renters and homeowners to report being behind on
housing payments duringhousing payments during the pandemic; see Consumer Financial Protection Bureau, the pandemic; see Consumer Financial Protection Bureau, Housing insecurity and the
COVID-19 ~~pandem ic~~pandemic, March 2021, p. 8, https://files.consumerfinance.gov/f/documents/, March 2021, p. 8, https://files.consumerfinance.gov/f/documents/
cfpb_Housing_insecurity_and_the_COVID-19_pandemic.pdf. cfpb_Housing_insecurity_and_the_COVID-19_pandemic.pdf.
79105 U.S. U.S. Congress, HouseCongress, House Committee on Financial Services, Committee on Financial Services, Justice for All: Achieving Racial Equity Through Fair
Access to Housing and Financial Services, 117th Cong., 1st sess.,, 117th Cong., 1st sess., March 10, 2021, https://financialservices.house.gov/March 10, 2021, https://financialservices.house.gov/
calendar/eventsingle.aspx?EventID=406264. calendar/eventsingle.aspx?EventID=406264.
80106 U.S. U.S. Congress, Senate Committee on Banking, Housing, and Urban Affairs, Congress, Senate Committee on Banking, Housing, and Urban Affairs, Separate and Unequal: The Legacy of
Racial ~~Discrim ination~~Discrimination in Housing, 117th Cong., 1st sess., April 13, 2021, https://www.banking.senate.gov/hearings/, 117th Cong., 1st sess., April 13, 2021, https://www.banking.senate.gov/hearings/
separate-and-unequal-the-legacy-of-racial-discrimination-in-housing. separate-and-unequal-the-legacy-of-racial-discrimination-in-housing.
~~81 T he~~ 107 For more on HUD’s equity-related efforts, see https://www.hud.gov/equity. 108 The White House, “Fact Sheet: Biden-Harris Administration Announces New White House, “Fact Sheet: Biden-Harris Administration Announces New Actions to BuildActions to Build Black Wealth and Black Wealth and
Narrow the Racial Wealth Gap,” June 1, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/Narrow the Racial Wealth Gap,” June 1, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/
06/01/fact06/01/fact -sheet-biden-harris-administration-announces-new-actions-to-build-black-wealth-and-narrow-the-racial--sheet-biden-harris-administration-announces-new-actions-to-build-black-wealth-and-narrow-the-racial-
wealth-gap/. wealth-gap/.
~~82 D.R. Reidmiller, C.W. Avery, D.R. Easterling et al.,~~ ~~Impacts, Risks, and Adaptation in the United States: Fourth~~
~~National Clim ate Assessm ent, U.S. Global Change Research Program, Volume II, Washington, DC, November 23,~~
~~2018, pp. 1-47, https://nca2018.globalchange.gov/ (hereinafter, Fourth National Clim ate Assessm ent).~~
~~Congressional Research Service~~

24

~~Housing Issues in the 117th Congress~~

~~flooding and coastal erosion,83 sea level rise,84~~109 Interagency Task Force on Property Appraisal and Valuation Equity, Action Plan to Advance Property Appraisal and Valuation Equity: Closing the Racial Wealth Gap by Addressing Mis-valuations for Families and Communities of Color, March 2022, https://pave.hud.gov/sites/pave.hud.gov/files/documents/PAVEActionPlan.pdf. The task force website is at https://pave.hud.gov/. 110 U.S. Congress, Senate Committee on Banking, Housing, and Urban Affairs, Strengthening Oversight and Equity in Congressional Research Service 29 Housing Issues in the 117th Congress February 2022, House Financial Services Committee Chairwoman Maxine Waters sent a letter to HUD, regulatory agencies, and appraiser professional organizations indicating that her committee would be taking actions, including legislation, to address racial discrimination in appraisals.111 Housing and Climate Impacts Many communities across the country are experiencing the impacts of climate change, with extreme weather and climate-related events expected to become more frequent and more intense in a warmer world.112 Climate-related risks to the housing stock include the impacts of flooding and coastal erosion,113 sea level rise,114 high-intensity rainfall events,115 higher urban temperatures,116 and increased wildfire activity from extreme heat and increased wildfire activity from extreme heat
events combined with drought.events combined with drought.85117 This vulnerability to the effects of climate change has This vulnerability to the effects of climate change has ~~increased~~
~~interest in~~ highlighted the importance of improving the resilience of the nation’s housing stock and mitigating housing’s improving the resilience of the nation’s housing stock and mitigating housing’s
climate-related impacts through increased energy efficiency or other measures.climate-related impacts through increased energy efficiency or other measures.86
~~Both Congress and the White House have put forward funding proposals to address climate-~~
~~related housing issues. For example, funding for various climate-related housing activities is~~
~~included in the White House’s American Jobs Plan infrastructure proposal,87 the FY2022 HUD~~
~~budget proposal,88 and the Housing is Infrastructure bil (H.R. 4497) introduced by House~~
~~Financial Services Chairwoman Waters in July 2021 as part of a legislative housing package.89 In~~
~~addition, in May 2021 the House Financial Services Committee held a hearing entitled “Built to~~
~~Last: Examining Housing Resilience in the Face of Climate Change.”90~~
~~Climate impacts may also have implications for housing markets and housing finance. A number~~
~~of studies suggest that risks associated with sea level rise are not fully reflected in home prices,91~~
~~though there are already indications of reductions in property prices in homes subject to recurring~~
~~flooding.92 For example, a nationwide evaluation of the effect of floodplain location on property~~

~~83 As of 2013 (the most recent data available in the Fourth National Climate Assessment), coastal shoreline counties~~
~~were home to 133.2 million people, or 42% of the population, and 49.4 million housing units. See~~ ~~Fourth National~~
~~Clim ate Assessm ent, pp. 323-330. T he numbers cited by the Fourth National Clim ate Assessm ent come from a Reuters~~
~~analysis of data provided by RealtyT rac; incomplete data for some areas means the actual total is probably much~~
~~higher. See Ryan McNeill, Deborah J. Nelson, and Duff Wilson, “ As the Seas Rise, A Slow-Motion Disaster Gnaws at~~
~~America’s Shores,” Reuters, September 4, 2017, https://www.reuters.com/investigates/special-report/waters-edge-the-~~
~~crisis-of-rising-sea-levels/.~~
~~84 For example, 13.1 million people may need to move away from the shoreline by 2100, as flooding and erosion make~~
~~coastal floodplains increasingly hazardous. Under a high climate change scenario, between $66 billion and $106 billion~~
~~worth of real estate will be below sea level by 2050, and $238 billion to $507 billion by 2100. See~~ ~~Fourth National~~
~~Clim ate Assessm ent, pp. 330, 335, and 338.~~
~~85 Research suggests that there are now about 49 million homes in the wildland urban~~ 118 Climate impacts may also have implications for housing markets and housing finance. A number of studies suggest that risks associated with sea level rise are not fully reflected in home prices,119 the Appraisal Process, 117th Cong., 2nd sess., March 24, 2022, https://www.banking.senate.gov/hearings/strengthening-oversight-and-equity-in-the-appraisal-process and U.S. Congress, House Committee on Financial Services, Devalued, Denied, and Disrespected: How Home Appraisal Bias and Discrimination Are Hurting Homeowners and Communities of Color, 117th Cong., March 29, 2022, https://financialservices.house.gov/events/eventsingle.aspx?EventID=409150. 111 House Committee on Financial Services, “Waters Calls on Regulators and Industry to Hold Appraisers Accountable and Announces Plans for Legislation,” press release, February 22, 2022, https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=409146. Draft legislation was discussed at the March 2022 House Financial Services Committee hearing described in the previous footnote. 112 D.R. Reidmiller, C.W. Avery, D.R. Easterling et al., Impacts, Risks, and Adaptation in the United States: Fourth National Climate Assessment, U.S. Global Change Research Program, Volume II, Washington, DC, November 23, 2018, pp. 1-47, https://nca2018.globalchange.gov/ (hereinafter, Fourth National Climate Assessment). 113 The Intergovernmental Panel on Climate Change (IPCC) February 2022 report estimates that 15.4 million housing units in the United States are in the 100-year floodplain, or the 1%-annual-chance floodplain, which is defined as the area with a 1% or greater risk of flooding every year. See H.-P. Pörtner, D.C. Roberts, and E.S. Poloczanska et al., Climate Change 2022: Impacts, Adaptation, and Vulnerability, IPCC, Summary for Policymakers, February 28, 2022, pp. 6-37, https://www.ipcc.ch/report/ar6/wg2/ (hereinafter, “IPCC Adaptation”). 114 For example, 13.1 million people may need to move away from the shoreline by 2100, as flooding and erosion make coastal floodplains increasingly hazardous. Under a high climate change scenario, between $66 billion and $106 billion worth of real estate will be below sea level by 2050, and $238 billion to $507 billion by 2100. See Fourth National Climate Assessment, pp. 330, 335, and 338. 115 IPCC Adaptation, p. 14-47. 116 IPCC Adaptation, p. 6-24 and pp. 14-47 - 14-48. 117 The number of homes in the wildland urban interface (WUI)—the area where interface (WUI)—the area where
houses are in or adjacent to wildlandhouses are in or adjacent to wildland ~~vegetation —~~ vegetation and which has the highest which has the highest ~~residential wildfire risk. T his number~~ wildfire risk—has been has been
increasing by roughly 350,000 houses per year over the last two decades.increasing by roughly 350,000 houses per year over the last two decades. ~~See~~ See Marshall Burke, Anne Driscoll, Jenny Marshall Burke, Anne Driscoll, Jenny
~~Xue~~ Xue et al., et al., The Changing Risk and Burden of Wildfire in the US , National Bureau, National Bureau of Economic Research, Working of Economic Research, Working
Paper 27423, Cambridge, MA, June 2020, p. 2, Paper 27423, Cambridge, MA, June 2020, p. 2, https://www.nber.org/papers/w27423. According to the IPCC February 2022 report, 29 million people in the United States live in areas with significant wildfire risk, and 12 million of these are socially vulnerable. See IPCC Adaptation, p. 14-27. 118 Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing 2021, Cambridge, MA, June 16, 2021, p. 6 and pp. 34-35, https://www.jchs.harvard.edu/sites/default/files/reports/files/Harvard_JCHS_State_Nations_Housing_2021.pdf. 119 See, for example, Laura A. Bakkensen and Lint Barrage, Flood Risk Belief Heterogeneity and Coastal Home Price Dynamic: Going Under Water? ~~https://www.nber.org/papers/w27423.~~
~~86 Joint Center for Housing Studies of Harvard University, The State of the Nation’s Housing 2020, Cambridge, MA,~~
~~December 16, 2020, p. 7, https://www.jchs.harvard.edu/state-nations-housing-2020.~~
~~87 See https://www.whitehouse.gov/briefing-room/statements-releases/2021/05/26/fact-sheet-the-american-jobs-plan-~~
~~will-produce-preserve-and-retrofit -more-than-2-million-affordable-housing-units-and-create-good-paying-jobs/.~~
~~88 See HUD’s FY2022 budget justifications at https://www.hud.gov/sites/dfiles/CFO/documents/~~
~~6_2022CJ_ClimateInitiative.pdf.~~
~~89 See House Financial Services Committee, House Financial Services Committee, “Waters Announces Introduction of~~
~~Groundbreaking Legislative Housing P ackage,” press release, July 15, 2021, https://financialservices.house.gov/news/~~
~~documentsingle.aspx?DocumentID=408154, for a link to the bill text.~~
~~90 U.S. Congress, House Committee on Financial Services, Subcommittee on Housing, Community Development, and~~
~~Insurance, Built to Last: Exam ining Housing Resilience in the Face of Clim ate Change , 117th Cong., 1st sess., May 4,~~
~~2021, https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=407747.~~
~~91 See, for example, Laura A. Bakkensen and Lint Barrage,~~ ~~Flood Risk Belief Heterogeneity and Coastal Home Price~~
~~Dynam ic: Going Under Water?~~ ~~National Bureau of Economic Research, Working Paper 23854, Cambridge, MA,~~
~~February 2021, pp. 8-10, https://www.nber.org/papers/w23854.~~
~~92 See, for example, Benjamin J. Keys and Philip Mulder,~~ ~~Neglected No More: Housing Markets, Mortgage Lending,~~
~~and Sea Level Rise, National Bureau of Economic Research, Working Paper 27930, Cambridge, MA, October 2020, p.~~
~~3, https://www.nber.org/system/files/working_papers/w27930/w27930.pdf; and Stephen A. McAlpine and Jeremy R.~~
~~Porter, “Estimating Recent Local Impacts of Sea-Level Rise on Current Real-Estate Losses: A Housing Market Case~~
~~Study in Miami-Dade, Florida,” Population Research and Policy Review, vol. 27 (2018), pp. 871-895.~~
~~Congressional Research Service~~

25

~~Housing Issues in the 117th Congress~~

National Bureau of Economic Research, Working Paper 23854, Cambridge, MA, February 2021, pp. 8-10, https://www.nber.org/papers/w23854. Congressional Research Service 30 Housing Issues in the 117th Congress though there are already indications of reductions in property prices in homes subject to recurring flooding.120 For example, a nationwide evaluation of the effect of floodplain location on property prices by the National Bureau of Economic Research (NBER) found that for single-family homes, prices by the National Bureau of Economic Research (NBER) found that for single-family homes,
being zoned into the floodplain reduces property values by 2% to 10%, with the strongest being zoned into the floodplain reduces property values by 2% to 10%, with the strongest
discount in states with strict real estate disclosure laws. The NBER estimates that there are at discount in states with strict real estate disclosure laws. The NBER estimates that there are at
least 3.8 least 3.8 ~~mil ion~~million floodplain homes in the United States that are overvalued by a total of $34 floodplain homes in the United States that are overvalued by a total of $34
~~bil ion.93~~
~~FHFA, Fannie Mae, and Freddie Mac have noted that they may be~~ billion.121 The Mortgage Bankers Association’s Research Institute for Housing America published a report on the impact of climate change on housing and housing finance in which it noted that, in addition to increasing residential property damage, climate change may increase mortgage default and mortgage prepayment risk, trigger adverse selection in the types of loans that are sold to the government-sponsored enterprises, and increase the volatility of house prices.122 FHFA, Fannie Mae, and Freddie Mac have noted that Fannie Mae and Freddie Mac may be exposed to the risk of future exposed to the risk of future
losses from natural disasters on mortgages that they own or guarantee, particularly as the losses from natural disasters on mortgages that they own or guarantee, particularly as the
magnitude and frequency of these disasters increases with climate change.magnitude and frequency of these disasters increases with climate change.94123 As climate impacts As climate impacts
grow over time, the mortgages on such properties may become grow over time, the mortgages on such properties may become riskier.124 In January 2021, FHFA ~~riskier.95 The FHFA recently~~
issued a request for input on climate change and natural disaster risk to the housing finance issued a request for input on climate change and natural disaster risk to the housing finance
~~system.96 Furthermore, in Executive Order 14030, signed on May 20, 2021, President Biden~~
~~directed the HUD Secretary, with other cabinet secretaries, to consider approaches to better~~
~~integrate climate-related financial risk into underwriting standards, loan terms and conditions, and~~
~~asset management and servicing procedures, as related to their federal lending policies and~~
~~programs.97~~
~~Housing and Disaster Response and Recovery~~
~~The extent to which federal policies adequately and effectively address the housing needs of~~
~~disaster survivors as wel as the range of disasters that occur is of ongoing interest to~~
~~policymakers. When disasters occur, the President may authorize an emergency or major disaster~~
~~declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford~~
~~Act; P.L. 93-288, as amended). The declaration may authorize the Federal Emergency~~
~~Management Agency (FEMA) to provide housing assistance, including through the Individuals~~
~~and Households Program (IHP).98 Additional y, Congress may appropriate further relief and~~
~~recovery funding for the Community Development Block Grant Disaster Recovery (CDBG-DR)~~
~~program.~~

~~93 Miyuki Hino and Marshall Burke, Does Information About Climate Risk Affect Property Values? National Bureau of~~
~~Economic Research, Working Paper 26807, Cambridge, MA, February 2020, https://www.nber.org/papers/w26807.~~
~~94 Federal Housing Finance Agency, Office of the Inspector General,~~ ~~Disaster Risk for Enterprise Single-Family~~
~~Mortgages, White Paper WPR-2021-004, Washington, DC, March 23, 2021, pp. 5 -8, https://www.fhfaoig.gov/sites/~~
~~default/files/WPR-2021-004.pdf.~~
~~95 Lael Brainard, Member of the Federal Reserve Board of Governors, “Financial Stability Implications of Climate~~
~~Change,” speech at “T ransform Tomorrow T oday,” Ceres 2021 Conference, Boston, MA, March 23, 2021,~~
~~https://www.federalreserve.gov/newsevents/speech/brainard20210323a.htm.~~
~~96 Federal Housing Finance Agency, Office of the Director,~~ ~~Climate and Natural Disaster Risk Management at the~~
~~Regulated Entities: Request for Input, January 2021, https://www.fhfa.gov/Media/PublicAffairs/Documents/Climate-~~
~~and-Natural-Disaster-RFI.pdf.~~
97system.125 FHFA released a statement in December 2021 acknowledging that climate change poses a serious threat to the U.S. housing finance system, and announced that it is also enhancing its agency-wide monitoring and supervision of climate change issues.126 The Financial Stability Oversight Council (of which the FHFA Director is a member) identified climate change as an emerging and increasing threat to U.S. financial stability, noting that the primary exposure of the government-sponsored enterprises to risk from climate change arises from credit losses in the mortgage market. However, they may be subject to additional exposures, and FHFA is in the process of identifying and measuring climate-related risks to its regulated entities. FHFA is beginning with flood risk, but plans to also examine the impacts of other perils, such as wind damage, wildfires, and droughts.127 120 See, for example, Benjamin J. Keys and Philip Mulder, Neglected No More: Housing Markets, Mortgage Lending, and Sea Level Rise, National Bureau of Economic Research, Working Paper 27930, Cambridge, MA, October 2020, p. 3, https://www.nber.org/system/files/working_papers/w27930/w27930.pdf; and Stephen A. McAlpine and Jeremy R. Porter, “Estimating Recent Local Impacts of Sea-Level Rise on Current Real-Estate Losses: A Housing Market Case Study in Miami-Dade, Florida,” Population Research and Policy Review, vol. 27 (2018), pp. 871-895. 121 Miyuki Hino and Marshall Burke, Does Information About Climate Risk Affect Property Values? National Bureau of Economic Research, Working Paper 26807, Cambridge, MA, February 2020, https://www.nber.org/papers/w26807. 122 Sean Becketti, The Impact of Climate Change on Housing and Housing Finance, Research Institute for Housing America, September 23, 2021, pp. 16-19, 22847_Research_RIHA_September_2021_Report_WB.pdf. 123 Federal Housing Finance Agency, Office of the Inspector General, Disaster Risk for Enterprise Single-Family Mortgages, White Paper WPR-2021-004, Washington, DC, March 23, 2021, pp. 5-8, https://www.fhfaoig.gov/sites/default/files/WPR-2021-004.pdf. 124 Lael Brainard, Member of the Federal Reserve Board of Governors, “Financial Stability Implications of Climate Change,” speech at “Transform Tomorrow Today,” Ceres 2021 Conference, Boston, MA, March 23, 2021, https://www.federalreserve.gov/newsevents/speech/brainard20210323a.htm. 125 Federal Housing Finance Agency, Office of the Director, Climate and Natural Disaster Risk Management at the Regulated Entities: Request for Input, January 2021, https://www.fhfa.gov/Media/PublicAffairs/Documents/Climate-and-Natural-Disaster-RFI.pdf. 126 Federal Housing Finance Agency, “FHFA Acting Director Sandra L. Thompson’s Statement on Climate Change,” press release, December 27, 201, https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Acting-Director-Sandra-L-Thompsons-Statement-on-Climate-Change.aspx. 127 Financial Stability Oversight Council, Report on Climate-Related Financial Risk 2021, Washington, DC, October Congressional Research Service 31 Housing Issues in the 117th Congress Both Congress and the White House have introduced initiatives to address climate risks to housing. For example, in February 2021, Executive Order (E.O.) 14008 directed the head of each government agency to submit a draft action plan within 120 days of the E.O. that describes steps the agency can take with regard to its facilities and operations to bolster adaptation and increase resilience to the impacts of climate change.128 In May 2021, E.O. 14030 directed federal agencies to develop, within 120 days, a comprehensive government-wide climate-risk strategy to identify and disclose climate-related financial risk to government programs, assets, and liabilities.129 In response, HUD published its Climate Adaptation and Resilience Plan in November 2021, in which it identified the potential vulnerability of the FHA Mutual Mortgage Insurance Fund and General Insurance and Special Risk Insurance Fund to increased defaults and losses as a specific threat to HUD programs.130 The Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58), enacted in November 2021, appropriated significant new funding for hazard mitigation, which could be used by communities to reduce risks associated with climate change. This includes $500 million for the STORM Act State Revolving Loan Program, $1 billion for the Building Resilient Communities and Infrastructure grant program, and $3.5 billion for the Flood Mitigation Assistance grant program.131 Other legislation introduced during the 117th Congress would also provide funding for various types of climate resilience activities. For example, the Housing is Infrastructure Act of 2021 (H.R. 4497) would authorize funding for various affordable housing programs and activities and require certain amounts of funding to be used for activities related to climate and natural disaster resilience. The Build Back Better Act, as passed by the House, includes funding for energy and water efficiency or climate resilience improvements for federally assisted multifamily housing. In addition, a number of committees have held hearings on housing and climate change during the 117th Congress, including the House Financial Services Committee,132 the House Select Committee on the Climate Crisis,133 and the Senate Committee on Banking, Housing and Urban Affairs.134 21, 2021, pp. 58-59, https://home.treasury.gov/system/files/261/FSOC-Climate-Report.pdf. 128 Executive Order 14008, “Tackling the Climate Crisis at Home and Abroad,” 86(19) Federal Register 7625, February 1, 2021. 129 Executive Order 14030, “Climate-Related Financial Risk,” 86(99) Executive Order 14030, “Climate-Related Financial Risk,” 86(99) Federal Register 27967-27971, May 20, 202127967-27971, May 20, 2021. 130 Department of Housing and Urban Development, Climate Action Plan, Washington, DC, November 2021, p. 11, https://www.hud.gov/sites/dfiles/Main/documents/HUD-Climate-Action-Plan.pdf. 131 For additional information on these mitigation programs, see CRS Report R46989, FEMA Hazard Mitigation: A First Step Toward Climate Adaptation. 132 U.S. Congress, House Committee on Financial Services, Subcommittee on Housing, Community Development, and Insurance, Built to Last: Examining Housing Resilience in the Face of Climate Change, 117th Cong., 1st sess., May 4, 2021, https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=407747; and U.S. Congress, House Committee on Financial Services, Build Back Better: Investing in Equitable and Affordable Housing Infrastructure, 117th Cong., 1st sess., April 14, 2021, p. https://financialservices.house.gov/events/eventsingle.aspx?EventID=407532. 133 U.S. Congress, House Select Committee on Climate Crisis, Building Climate Resilient Communities, 117th Cong., 1st sess., June 11, 2021, https://climatecrisis.house.gov/committee-activity/hearings/building-climate-resilient-communities. 134 U.S. Congress, Senate Committee on Banking, Housing, and Urban Affairs, 21st Century Communities: Capitalizing on Opportunities in the Clean Energy Economy, 117th Cong., 1st sess., April 22, 2021, pp. https://www.banking.senate.gov/hearings/21st-century-communities_capitalizing-on-opportunities-in-the-clean-energy-economy; and U.S. Congress, Senate Committee on Banking, Housing, and Urban Affairs, 21st Century Communities: Climate Change, Resilience, and Reinsurance, 117th Cong., 1st sess., July 20, 2021, pp. https://www.banking.senate.gov/hearings/21st-century-communities_climate-change-resilience-and-reinsurance. Congressional Research Service 32 Housing Issues in the 117th Congress Housing and Disaster Response and Recovery The extent to which federal policies adequately and effectively address the housing needs of disaster survivors following the range of disasters that may occur is of ongoing interest to policymakers. When disasters occur, the President may authorize an emergency or major disaster declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act; P.L. 93-288, as amended). The declaration may authorize the Federal Emergency Management Agency (FEMA) to provide housing assistance, including through the Individuals and Households Program (IHP).135 Additionally, Congress may appropriate further relief and recovery funding for the Community Development Block Grant Disaster Recovery (CDBG-DR) program. ,
~~https://www.govinfo.gov/content/pkg/FR-2021-05-25/pdf/2021-11168.pdf.~~
~~98 42 U.S.C. §5174. See also 44 C.F.R. §206.110(a), and FEMA,~~ ~~Individual Assistance Program and Policy Guide~~
~~(IAPPG), FP 104-009-03, v. 1.1, May 2021, pp. 6, 41, https://www.fema.gov/sites/default/files/documents/~~
~~fema_individual-assistance-program_policy-guide_05-26-2021.pdf (hereinafter FEMA, IAPPG).~~
~~Congressional Research Service~~

26

~~Housing Issues in the 117th Congress~~

FEMA IHP Housing Assistance
IHP Housing Assistance for Economically Destructive Disasters
Stafford Act declarations tend to Stafford Act declarations tend to ~~respond to~~support response and recovery following natural disasters that result in physical damages (e.g., natural disasters that result in physical damages (e.g.,
hurricanes)hurricanes)~~; however, although~~. Although uncommon, uncommon, ~~there have been~~ Presidents have issued declarations for incidents that do not declarations for incidents that do not
result in physical damages, such as public health incidents (e.g., the COVID-19 pandemic). result in physical damages, such as public health incidents (e.g., the COVID-19 pandemic).
Disasters Disasters ~~commonly~~can have economic consequences. During the early response to the COVID-19 have economic consequences. During the early response to the COVID-19
pandemic, Congress considered the federal government’s options for providing rental assistance pandemic, Congress considered the federal government’s options for providing rental assistance
payments to individuals experiencing financial hardship due to the pandemic. Although Rental payments to individuals experiencing financial hardship due to the pandemic. Although Rental
Assistance is a form of IHP assistance,Assistance is a form of IHP assistance,99136 it is premised on an individual it is premised on an individual being displaced from being displaced from
their primary residence because it is uninhabitable, inaccessible, unavailable due to forced their primary residence because it is uninhabitable, inaccessible, unavailable due to forced
relocation, or nonfunctional due to utility outages.relocation, or nonfunctional due to utility outages.~~100~~137 FEMA does not have the statutory authority FEMA does not have the statutory authority
to provide temporary rental or mortgage payments when people experience disaster-caused to provide temporary rental or mortgage payments when people experience disaster-caused
financial hardship. However, this has not always been the case. Prior to May 2002, the Stafford financial hardship. However, this has not always been the case. Prior to May 2002, the Stafford
Act authorized Act authorized ~~assistance to disaster survivors unable to make mortgage or rental payments.~~
the President to provide temporary mortgage or rental payments to or on behalf of individuals and families meeting certain criteria.138 Section 206 of the Disaster Mitigation Act of 2000 (DMA2K; P.L. 106-390) amended the Stafford Section 206 of the Disaster Mitigation Act of 2000 (DMA2K; P.L. 106-390) amended the Stafford
Act to remove temporary mortgage and rental payments, and add the language predicating Act to remove temporary mortgage and rental payments, and add the language predicating
assistance on displacement.assistance on displacement.~~101~~
~~DMA2K was general y intended~~139 Congress intended DMA2K to control the federal cost of disaster assistance; however, the to control the federal cost of disaster assistance; however, the
specific justification for removing the provision of mortgage and rental payments from the specific justification for removing the provision of mortgage and rental payments from the
~~amended version of the Stafford Act is not specified in the committee reports on the bil .102~~
135 42 U.S.C. §5174. See also 44 C.F.R. §206.110(a), and FEMA, Individual Assistance Program and Policy Guide (IAPPG), FP 104-009-03, v. 1.1, May 2021, pp. 6, 41, https://www.fema.gov/sites/default/files/documents/fema_iappg-1.1.pdf (hereinafter FEMA, IAPPG). 136 42 U.S.C. §5174(c)(1)(A). 137 42 U.S.C. §5174(b)(1); see also FEMA, IAPPG, pp. 80-81. 138 The 2001 version of Stafford Act Section 408(b)—Temporary Mortgage and Rental Payments—stated “The President is authorized to provide assistance on a temporary basis in the form of mortgage or rental payments to or on behalf of individuals and families who, as a result of financial hardship caused by a major disaster, have received written notice of dispossession or eviction from a residence by reason of a foreclosure of any mortgage or lien, cancellation of any contract of sale, or termination of any lease, entered into prior to such disaster. Such assistance shall be provided for the duration of the period of financial hardship but not to exceed 18 months [emphasis added].” 139 See the prior version of the Stafford Act’s provision of temporary rental or mortgage payments at 42 U.S.C. §5174(b), 2001, https://www.govinfo.gov/content/pkg/USCODE-2001-title42/pdf/USCODE-2001-title42-chap68-subchapIV-sec5174.pdf. Congressional Research Service 33 Housing Issues in the 117th Congress amended version of the Stafford Act is not specified in the committee reports on the bill.140 During a Senate hearing in 2003, the Department of Homeland Security Office of Inspector General (DHS OIG) attributed Congress’s elimination of mortgage and rental payments to lack of program use and implementation challenges.141 Despite these challenges, the DHS OIG stated that the “effects of the 9/11 terrorist attack ... demonstrated genuine need for programs such as this. Therefore, we have recommended ... that Congress consider reinstating the program under the Stafford Act.”142 Congress may continue to evaluate whether FEMA’s housing assistance programs are adequate Congress may continue to evaluate whether FEMA’s housing assistance programs are adequate
and appropriate to meet the needs of survivors following disasters that result in economic, rather and appropriate to meet the needs of survivors following disasters that result in economic, rather
than physical, damages—as this was a gap that was revealed by the economic effects of the than physical, damages—as this was a gap that was revealed by the economic effects of the
COVID-19 pandemic. COVID-19 pandemic.
IHP Housing Assistance and Hazard Mitigation
IHP housing assistance may take various forms, including temporary assistance to rent alternate IHP housing assistance may take various forms, including temporary assistance to rent alternate
accommodations and assistance for repair and reconstruction, such as through Home Repair accommodations and assistance for repair and reconstruction, such as through Home Repair
Assistance. The objective of Home Repair Assistance is to make the disaster survivors’ home Assistance. The objective of Home Repair Assistance is to make the disaster survivors’ home

~~99 42 U.S.C. §5174(c)(1)(A).~~
~~100 42 U.S.C. §5174(b)(1); see also FEMA, IAPPG, pp. 80-81.~~
~~101 See the prior version of the Stafford Act’s provision of temporary rental or mortgage payments at 42 U.S.C.~~
~~§5174(b), 2001, https://www.govinfo.gov/content/pkg/USCODE-2001-title42/pdf/USCODE-2001-title42-chap68-~~
~~subchapIV-sec5174.pdf.~~
~~102 U.S. Congress, House Committee on T ransportation~~“safe, sanitary, or functional,” not to return the home to its pre-disaster condition or to improve it.143 Still, repairs may include hazard mitigation measures to make the housing more resilient.144 On June 10, 2021, FEMA announced an expansion of the mitigation assistance provided for IHP Home Repair Assistance for disasters declared on or after May 26, 2021, to “allow eligible homeowners ... [to] repair or rebuild stronger, more durable homes.”145 FEMA’s guidance details the types of mitigation measures that are available under the IHP.146 Its regulations and guidance impose limitations on the mitigation assistance that may be provided, including that it may only be awarded for disaster-damaged real property components that existed and were functional prior to the declared disaster,147 and the amount of financial assistance for 140 U.S. Congress, House Committee on Transportation and Infrastructure, and Infrastructure, Disaster Mitigation and Cost Reduction Act
of 1999, 106th Cong., 1st sess., March 3, 1999, Report 106-40, pp. 1, 12, 17, https://www.congress.gov/106/crpt/hrpt40/, 106th Cong., 1st sess., March 3, 1999, Report 106-40, pp. 1, 12, 17, https://www.congress.gov/106/crpt/hrpt40/
CRPTCRPT -106hrpt40.pdf. -106hrpt40.pdf. 141 During the 108th Congress, then During the 108th Congress, then ~~Department of Homeland Security (DHS) Deputy Inspector~~
~~General Richard L. Skinner included~~ DHS Deputy Inspector General, Richard “Rick” L. Skinner, included in his in his statement, in the “Individual Assistance Review” section~~statement~~, with regard to “Eligibility Issues, with regard to “Eligibility Issues in the Mortgage and Rental in the Mortgage and Rental
Assistance Program,” that “FEMA historically has not had to implement the Mortgage and Rental Assistance (MRA) Assistance Program,” that “FEMA historically has not had to implement the Mortgage and Rental Assistance (MRA)
program on a large scale becauseprogram on a large scale because previous disastersprevious disasters ~~did~~ did not coincide with nor result in widespreadnot coincide with nor result in widespread unemployment and unemployment and
national economic losses. From the inception of MRA until September 11, 2001, national economic losses. From the inception of MRA until September 11, 2001, ~~on ly~~only $18.1 million had been awarded $18.1 million had been awarded
under the program for 68 declaredunder the program for 68 declared disasters, compared to approximately $76 million as a result of the New York disasters, compared to approximately $76 million as a result of the New York
disaster alone. Becausedisaster alone. Because it wasit was seldom used,seldom used, ~~Congress~~ Congress eliminated the program when it enacted the Disaster eliminated the program when it enacted the Disaster ~~Mitiga tion~~Mitigation
Act of 2000 (DMA 2000) making the program unavailable after May 1, 2002.” U.S. Congress,Act of 2000 (DMA 2000) making the program unavailable after May 1, 2002.” U.S. Congress, Senate Committee on Senate Committee on
Environment and Public Works, Subcommittee on Clean Air, Climate Change, and Nuclear Safety,Environment and Public Works, Subcommittee on Clean Air, Climate Change, and Nuclear Safety, Review of the
General Accounting Office Report on FEMA’s Activities After the Terrorist Attacks on ~~Septem ber~~September 11, 2001 , 108th , 108th
Cong., 1st sess.,Cong., 1st sess., September 24, 2003, S.Hrg. 108-364, p. 253, https://www.govinfo.gov/content/pkg/CHRG-108shrg92386/pdf/CHRG-108shrg92386.pdf (hereinafter “U.S. Congress, Review of the GAO Report on FEMA’s Activities After September 11, 2001”). 142 U.S. Congress, Review of the GAO Report on FEMA’s Activities After September 11, 2001, pp. 253-254 (Statement of Rick Skinner, DHS Deputy IG). 143 FEMA, IAPPG, p. 85. 144 FEMA, IAPPG, p. 86. 145 FEMA, “Hazard Mitigation Under the Individuals and Households Program,” press release, June 10, 2021, https://www.fema.gov/fact-sheet/hazard-mitigation-under-individuals-and-households-program (hereinafter “FEMA, “Hazard Mitigation Under the IHP””). 146 FEMA, “Hazard Mitigation Under the IHP.” 147 44 C.F.R. §§206.111 and 206.117(a), (b)(2)(i), (b)(2)(iii), and (b)(2)(iv); and FEMA, IAPPG, p. 87~~September 24, 2003, S.Hrg. 108-364, p. 253~~. .
Congressional Research Service Congressional Research Service

2734

Housing Issues in the 117th Congress

~~“safe, sanitary, or functional,” not to return the home to its pre-disaster condition or to improve~~
~~it.103 Stil , repairs may include hazard mitigation measures to make the housing more resilient.104~~
~~On June 10, 2021, FEMA announced an expansion of the mitigation assistance provided for IHP~~
~~Home Repair Assistance for disasters declared on or after May 26, 2021, to “al ow eligible~~
~~homeowners ... [to] repair or rebuild stronger, more durable homes.”105~~
~~FEMA’s guidance details the types of mitigation measures that are available under the IHP.106 Its~~
~~regulations and guidance impose limitations on the mitigation assistance that may be provided,~~
~~including that it may only be awarded for disaster-damaged real property components that existed~~
~~and were functional prior to the declared disaster,107 and the~~housing is capped in statute.148 Additionally, although hazard mitigation measures are intended to “reduce the likelihood of future damage,” this assistance is not available until after a disaster has occurred and received a presidential Stafford Act declaration.149 Congress may consider whether the funding for mitigation measures provided for Home Repair Assistance is sufficient, and could also consider whether there is a need to expand eligibility for pre-disaster mitigation or expand the programs that support pre-disaster mitigation. IHP Policy Change to Ownership Documentation Requirements to Advance Equity On September 2, 2021, FEMA released a memorandum amending FEMA’s Individual Assistance program guidance in accordance with the Biden Administration and FEMA’s equity initiatives.150 One significant policy change to the IHP is that FEMA now accepts expanded forms of documentation to verify an applicant’s occupancy and ownership, which is required before FEMA can provide certain types of IHP assistance.151 To that end, FEMA will accept a “written self-declarative statement ... from applicants whose pre-disaster residence was passed down via heirship.”152 In this context, FEMA defines heirship as “the legal right to receive real and personal property under state law upon the death of an ancestor or next of kin.”153 Prior to this policy change, there were reports that some African American families in the Southern United States were prevented from receiving assistance for which they may have otherwise been eligible because they own property passed down by heirship and lack the formal or traditional documentation FEMA previously would accept to prove ownership (e.g., deed or deed of trust to the property).154 Although other property-related challenges may persist for some people who own property passed down by heirship (without formal or traditional documentation 148 42 U.S.C. §5174(h)(1); and FEMA, IAPPG, pp. 42, 85. For FY2022, the maximum amount of financial assistance for amount of financial assistance for
~~housing is capped in statute.108 Additional y, although hazard mitigation measures are intended to~~
~~“reduce the likelihood of future damage,” this assistance is not available until after a disaster has~~
~~occurred and received a presidential Stafford Act declaration.109~~
~~Congress may consider whether the funding for mitigation measures provided for Home Repair~~
~~Assistance is sufficient, and could also consider whether there is a need to expand eligibility for~~
~~pre-disaster mitigation or expand the programs that support pre-disaster mitigation.~~
~~CDBG-DR~~
~~Following some disasters, Congress has provided Community Development Block Grant~~
~~(CDBG) funding in supplementary~~housing is $37,900; see DHS/FEMA, “Notice of Maximum Amount of Assistance Under the Individuals and Households Program,” 86 Federal Register 63046, November 15, 2021, https://www.govinfo.gov/content/pkg/FR-2021-11-15/pdf/2021-24755.pdf. 149 FEMA, IAPPG, pp. 85-86. Homeowners may benefit from hazard mitigation projects, such as those funded through the Hazard Mitigation Grant Program (HMGP), but an individual homeowner is not able to apply directly for HMGP funding; see FEMA, “Property Owners and the Hazard Mitigation Grant Program,” last updated September 26, 2021, https://www.fema.gov/grants/mitigation/hazard-mitigation/property-owners. 150 Memorandum from Keith Turi, Assistant Administrator of the FEMA Recovery Directorate, to FEMA Regional Administrators, “Amendment to FP 104-009-03, Individual Assistance Program and Policy Guide, Version 1.1,” September 2, 2021, https://www.fema.gov/sites/default/files/documents/fema_iappg-policy-amendments-memo.pdf (hereinafter, “Memorandum from Keith Turi”); Executive Order 13985, “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government,” 86 Federal Register 7009-7013, January 25, 2021, https://www.govinfo.gov/content/pkg/FR-2021-01-25/pdf/2021-01753.pdf; FEMA, “FEMA Makes Changes to Individual Assistance Policies to Advance Equity for Disaster Survivors,” release HQ-21-193, September 2, 2021, https://www.fema.gov/press-release/20210902/fema-makes-changes-individual-assistance-policies-advance-equity-disaster (hereinafter “FEMA, “Changes to Advance Equity””); and FEMA, “2022–2026 FEMA Strategic Plan Building the FEMA our Nation Needs and Deserves,” https://www.fema.gov/sites/default/files/documents/fema_2022-2026-strategic-plan.pdf (hereinafter “FEMA, “2022-2026 Strategic Plan””). 151 42 U.S.C. §5174(c)(2)(A)(i) and (c)(3)(A); FEMA, IAPPG, pp. 51-55. 152 Memorandum from Keith Turi, pp. 8-9. 153 Memorandum from Keith Turi, p. 9, footnote 3. 154 Hannah Dreier and Andrew Ba Tran, “The real damage: Why FEMA is denying disaster aid to Black families that have lived for generations in the Deep South,” Washington Post, July 11, 2021, https://www.washingtonpost.com/nation/2021/07/11/fema-black-owned-property/ (hereinafter, “Hannah Dreier, “The real damage””). Congressional Research Service 35 Housing Issues in the 117th Congress of ownership),155 such individuals may now be able to receive disaster assistance from FEMA.156 Upon issuing the updated guidance, FEMA stated that the change was made to “reduce barriers to access experienced by underserved populations.”157 CDBG-DR Following some disasters, Congress has provided Community Development Block Grant (CDBG) funding in supplemental appropriations for disaster recovery purposes, which has come appropriations for disaster recovery purposes, which has come
to be known as CDBG-DR. These HUD-administered grants assist impacted states and localities to be known as CDBG-DR. These HUD-administered grants assist impacted states and localities
in their recovery efforts under CDBG statutory authorities. CDBG-DR is not a in their recovery efforts under CDBG statutory authorities. CDBG-DR is not a ~~formal y~~formally
authorized program, meaning the rules that govern the funding use and oversight vary with HUD authorized program, meaning the rules that govern the funding use and oversight vary with HUD
~~guidance accompanying each al ocation. Previous Congresses, including the 116th Congress,~~
~~considered legislation to permanently authorize CDBG-DR, and it is possible that the 117th~~
~~Congress could consider such legislation as wel .~~
~~For more information on CDBG-DR, see the following:~~
 CRS Report R46475, The Community Development Block Grant’s Disaster
~~Recovery (CDBG-DR) Component: Background and Issues~~

~~103 FEMA, IAPPG, p. 85.~~
~~104 FEMA, IAPPG, p. 86.~~
~~105 FEMA, “Hazard Mitigation Under the Individuals and Households Program,” press release, June 10, 2021,~~
~~https://www.fema.gov/fact-sheet/hazard-mitigation-under-individuals-and-households-program (hereinafter FEMA,~~
~~“Hazard Mitigation Under the IHP”).~~
~~106 FEMA, “Hazard Mitigation Under the IHP.”~~
~~107 44 C.F.R. §§206.111 and 206.117(a), (b)(2)(i), (b)(2)(iii), and (b)(2)(iv); and FEMA, IAPPG, p. 87.~~
~~108 42 U.S.C. §5174(h)(1); and FEMA, IAPPG, pp. 42, 85. For FY2021, the maximum amount of financial assistance~~
~~for housing is $36,000; see FEMA, “Notice of Maximum Amount of Assistance Under the Individuals and Households~~
~~Program,” 85 Federal Register 69340, November 2, 2020, https://www.govinfo.gov/content/pkg/FR-2020-11-02/pdf/~~
~~2020-24235.pdf.~~
~~109 FEMA, IAPPG, pp. 85-86. Homeowners may benefit from hazard mitigation projects, such as those funded through~~
~~the Hazard Mitigation Grant Program (HMGP), but an individual homeowner is not able to apply directly for HMGP~~
~~funding; see FEMA, “ Property Owners and the Hazard Mitigation Grant Program,” last accessed June 11, 2021,~~
~~https://www.fema.gov/grants/mitigation/hazard-mitigation/property-owners.~~
~~Congressional Research Service~~

28

~~Housing Issues in the 117th Congress~~

~~CFPB Revisions to the Qualified Mortgage Rule~~
~~The Dodd-Frank Wal Street Reform and Consumer Protection Act (Dodd-Frank Act; P.L. 111-~~
guidance accompanying each allocation. The Reforming Disaster Recovery Act of 2021 (H.R. 4707/S. 2471), introduced in the 117th Congress, would authorize CDBG-DR as a standing program and codify a CDBG-DR program structure. (In the 116th Congress, a substantially similar bill, H.R. 3702, was passed by the House.) On December 15, 2021, the U.S. Senate Committee on Banking, Housing, and Urban Affairs conducted a hearing to consider authorization of CDBG-DR as a standing program.158 Another bill introduced in the 117th Congress, H.R. 2809, the Natural Disaster Recovery Program Act of 2021, would establish a separate program to address unmet needs of states and tribal entities in disaster recovery. In addition to the hearing on CDBG-DR authorization, the U.S. House Committee on Financial Services has conducted hearings on various aspects of CDBG-DR grant administration, in its oversight role, during the 117th Congress. On January 19, 2022, the House Financial Services Subcommittee on Oversight and Investigations, held a hearing to examine findings by the U.S. Government Accountability Office159 regarding the distribution of CDBG-DR funds for vulnerable populations.160 On July 15, 2021, the Subcommittee on Oversight and Investigations 155 See Conner Bailey et al., “Heirs’ Property and Persistent Poverty among African Americans in the Southeastern United States,” U.S. Department of Agriculture Forest Service, Southern Research Station, “Heirs’ Property,” p. 17; see also Skipper G. StipeMaas, “The Georgia Heirs Property Law Center, Inc.: Addressing Tangled Title and Economic Security for Georgians,” U.S. Department of Agriculture Forest Service, Southern Research Station, “Heirs’ Property,” p. 104. In this study, it was concluded that “[h]ome and land ownership should provide cultural, environmental, economic, and political stability from which to operate. Heirs property creates instability, reducing people’s ability to manage their homes and land. Consequently, people lose their ability to grow wealth, stabilize communities and tax bases, and sustainably manage our farms, forests, and wetlands.” 156 Conner Bailey et al., “Heirs’ Property and Persistent Poverty among African Americans in the Southeastern United States,” U.S. Department of Agriculture Forest Service, Southern Research Station, “Heirs’ Property,” p. 17. This study stated in its conclusions that “the clouded nature of title to heirs’ property means that such property has no collateral value. The land cannot be used as collateral for a mortgage to build a home or start a business or for other productive use. The cumulative effect of $6.6 billion in clouded title represents a significant impediment on the economic prospects of African Americans in the Black Belt South”, but also noted that “FEMA ... [has] identified mechanisms to give heirs’ property owners access to government program benefits.” 157 FEMA, “Changes to Advance Equity”; see also FEMA, “2022-2026 Strategic Plan,” p. 11 (see “Equity in Action” text box). 158 U.S. Congress, Senate Committee on Banking, Housing, and Urban Affairs, Disaster Recovery Assistance - Authorization of the Community Development Block Grant – Disaster Recovery Program, 117th Cong., December 15, 2021, https://www.banking.senate.gov/hearings/disaster-recovery-assistance_-authorization-of-the-community-development-block-grant—disaster-recovery-program. 159 U.S. Government Accountability Office, Disaster Recovery: Better Data Are Needed to Ensure Equitable Delivery of HUD Block Grant Funds to Vulnerable Populations , GAO-22-105548, January 19, 2022, https://www.gao.gov/products/gao-22-105548. 160 U.S. Congress, House Committee on Financial Services, Subcommittee on Oversight and Investigations, Ensuring Congressional Research Service 36 Housing Issues in the 117th Congress of the House Committee on Financial Services held a hearing to examine the management and distribution of CDBG-DR and CDBG Mitigation (CDBG-MIT) funds in Texas, as well as broader issues related to targeting of funds and HUD’s monitoring of such activities.161 For more information on CDBG-DR, see the following:  CRS Report R46475, The Community Development Block Grant’s Disaster Recovery (CDBG-DR) Component: Background and Issues CFPB Revisions to the Qualified Mortgage Rule The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act; P.L. 111-203) was enacted in 2010 to address conditions that were perceived to have led to the 2007-2009 203) was enacted in 2010 to address conditions that were perceived to have led to the 2007-2009
housing and financial crisis. Among other provisions, it required lenders to make a good faith housing and financial crisis. Among other provisions, it required lenders to make a good faith
effort to ensure that residential borrowers have the ability to repay their mortgage loans. If a effort to ensure that residential borrowers have the ability to repay their mortgage loans. If a
borrower brings a lawsuit claiming that a lender did not follow this requirement, the lender could borrower brings a lawsuit claiming that a lender did not follow this requirement, the lender could
be required to pay monetary damages if it is found to be in violation.be required to pay monetary damages if it is found to be in violation.~~110~~162 The CFPB released a final The CFPB released a final
rule implementing these ability-to-repay (ATR) requirements in January 2013; the rule took effect rule implementing these ability-to-repay (ATR) requirements in January 2013; the rule took effect
in January 2014.in January 2014.~~111~~163
One of several ways that a mortgage originator can comply with the ATR requirements is by One of several ways that a mortgage originator can comply with the ATR requirements is by
originating a qualifiedoriginating a qualified mortgage (QM), a mortgage that meets certain specified underwriting and mortgage (QM), a mortgage that meets certain specified underwriting and
product feature requirements. A QM reduces an originator’s legal liabilityproduct feature requirements. A QM reduces an originator’s legal liability by providing either a by providing either a
rebuttable presumption of compliance with the ATR requirements or safe harbor protection, rebuttable presumption of compliance with the ATR requirements or safe harbor protection,
depending on the loan’s pricing. The QM rule has been amended several times since being depending on the loan’s pricing. The QM rule has been amended several times since being
finalizedfinalized in 2013.in 2013.~~112~~164 In December 2020, near the end of the Trump Administration, the CFPB In December 2020, near the end of the Trump Administration, the CFPB
issued a final rule making certain changes to the definition of a General QM.issued a final rule making certain changes to the definition of a General QM.~~113~~165 Among other Among other
things, it replaced a limitthings, it replaced a limit on the on the ~~al owable~~allowable debt-to-income ratio for a General QM with a measure debt-to-income ratio for a General QM with a measure
of the loan’s pricing with the aim of increasing credit access to households that have of the loan’s pricing with the aim of increasing credit access to households that have
demonstrated the ability to repay loans despite having lower income.demonstrated the ability to repay loans despite having lower income.~~114~~166 The CFPB also issued a The CFPB also issued a
new “seasoned QM” rule.new “seasoned QM” rule.~~115~~167 Under this rule, certain non-QM mortgages could become QMs or Under this rule, certain non-QM mortgages could become QMs or
~~certain rebuttable presumption QMs could become safe harbor QMs after a lender has held them~~
~~in its own portfolio for a certain amount of time.~~
~~In March 2021, the CFPB issued a proposed rule to delay the mandatory compliance date of the~~
~~revised General QM rule by over a year, from July 1, 2021, to October 1, 2022.116 The delay~~
~~would give the incoming CFPB leadership time to review the revisions. (Mortgage originators~~
~~could choose to comply with either the old or the new QM rule in the interim.) Despite support~~

~~110 15 U.S.C. §1640~~
~~111~~ Equitable Delivery of Disaster Benefits to Vulnerable Communities and Peoples: An Examination of GAO’s Findings of the CDBG Program, 117th Cong., 2nd sess., January 19, 2022, https://financialservices.house.gov/events/eventsingle.aspx?EventID=408704. 161 U.S. Congress, House Committee on Financial Services, Subcommittee on Oversight and Investigations, CDBG Disaster Recovery: States, Cities, and Denials of Funding, 117th Cong., 1st sess., July 15, 2021, https://financialservices.house.gov/events/eventsingle.aspx?EventID=408106. 162 15 U.S.C. §1640 163 Consumer Financial Protection Bureau, “Ability-to-Repay and Qualified Mortgage Standards Consumer Financial Protection Bureau, “Ability-to-Repay and Qualified Mortgage Standards Under the Under the ~~T ruth~~Truth in in
Lending Act (Regulation Z),” 78Lending Act (Regulation Z),” 78 Federal Register 6408-6620, January 30, 2013. 6408-6620, January 30, 2013.
~~112~~164 For amendments to the For amendments to the ~~AT R~~ATR/QM rule, see Consumer Financial Protection Bureau, “Final Rule:/QM rule, see Consumer Financial Protection Bureau, “Final Rule: ~~Ability -to-~~
Ability-to-Repay/QualifiedRepay/Qualified Mortgage Rule,”Mortgage Rule,” at https://www.consumerfinance.gov/rules-policy/final-rules/ability-to-pay-qualified-at https://www.consumerfinance.gov/rules-policy/final-rules/ability-to-pay-qualified-
mortgage-rule/. mortgage-rule/.
~~113~~165 Consumer Financial Protection Bureau, “Qualified Mortgage Definition Under the Consumer Financial Protection Bureau, “Qualified Mortgage Definition Under the ~~T ruth~~Truth in Lending Act in Lending Act
(Regulation Z): General(Regulation Z): General QM Loan Definition,” 85QM Loan Definition,” 85 Federal Register 86308-86400, December 29, 2020. 86308-86400, December 29, 2020.
~~114~~166 For example, the CFPB found that some households had difficulty refinancing into less expensive For example, the CFPB found that some households had difficulty refinancing into less expensive ~~lo ans~~loans because because
their debttheir debt -to-income ratio exceeded the 43% threshold for lenders to receive safe harbor protection. See-to-income ratio exceeded the 43% threshold for lenders to receive safe harbor protection. See CFPB, CFPB, Ability-
to-Repay and Qualified Mortgage Rule ~~Assessm ent~~Assessment Report, January 2019, pp. 11, 147-153, , January 2019, pp. 11, 147-153,
https://files.consumerfinance.gov/f/documents/cfpb_ability-to-repay-qualified-mortgage_assessmenthttps://files.consumerfinance.gov/f/documents/cfpb_ability-to-repay-qualified-mortgage_assessment -report.pdf. -report.pdf.
~~115~~ 167 Consumer Financial Protection Bureau, “Qualified Consumer Financial Protection Bureau, “Qualified ~~Mort gage~~Mortgage Definition Under the Definition Under the ~~T ruth~~Truth in Lending Act in Lending Act
(Regulation Z): Seasoned(Regulation Z): Seasoned QM Loan Definition,” 85QM Loan Definition,” 85 Federal Register 86402-86455, December 29, 2020. 86402-86455, December 29, 2020. ~~T his~~This
amendment wasamendment was implemented as requiredimplemented as required by the Economic Growth, Regulatory Relief,by the Economic Growth, Regulatory Relief, and Consumer Protection Act Congressional Research Service 37 Housing Issues in the 117th Congress certain rebuttable presumption QMs could become safe harbor QMs after a lender has held them in its own portfolio for a certain amount of time. In March 2021, the CFPB issued a proposed rule to delay the mandatory compliance date of the revised General QM rule by over a year, from July 1, 2021, to October 1, 2022.168 The delay would give the incoming CFPB leadership time to review the revisions. (Mortgage originators could choose to comply with either the old or the new QM rule in the interim.) Despite support ~~and Consumer Protection A ct~~
~~of 2018 (P.L. 115-174).~~
~~116 Consumer Financial Protection Bureau, “Qualified Mortgage Definition Under the T ruth in Lending Act~~
~~(Regulation Z): General QM Loan Definition; Delay of Mandatory Compliance Date,” 86 Federal Register 12839-~~
~~12857, March 5, 2021.~~
~~Congressional Research Service~~

29

~~Housing Issues in the 117th Congress~~

for the 2020 amendments from some in the mortgage industry,for the 2020 amendments from some in the mortgage industry,~~117~~169 the CFPB issued a final rule on the CFPB issued a final rule on
April 30, 2021, adopting the delay.April 30, 2021, adopting the delay.~~118~~170
The CFPB has also indicated that it may reconsider the seasoned QM rule, as The CFPB has also indicated that it may reconsider the seasoned QM rule, as ~~wel~~ well as aspects of as aspects of
the General QM rule, in the future.the General QM rule, in the future.~~119~~
171 For more information, see the following: For more information, see the following:
 CRS In Focus IF11761,  CRS In Focus IF11761, The Qualified Mortgage (QM) Rule and Recent
Revisions
Status of Fannie Mae and Freddie Mac
In 2008, Fannie Mae and Freddie Mac, two GSEs that guarantee mortgage-backed securities and In 2008, Fannie Mae and Freddie Mac, two GSEs that guarantee mortgage-backed securities and
together back about half of the U.S. mortgage market, were experiencing financial difficulties together back about half of the U.S. mortgage market, were experiencing financial difficulties
stemming from the housing and mortgage market turmoil that was taking place during the stemming from the housing and mortgage market turmoil that was taking place during the
financial crisis at the time. They consented to enter conservatorship overseen by the FHFA, their financial crisis at the time. They consented to enter conservatorship overseen by the FHFA, their
new regulator established by the Housing and Economic Recovery Act of 2008 (P.L. 110-289). new regulator established by the Housing and Economic Recovery Act of 2008 (P.L. 110-289).
Treasury agreed to provide financial support in exchange for senior preferred stock in each GSE Treasury agreed to provide financial support in exchange for senior preferred stock in each GSE
and the option to purchase up to 79.9% of common stock at a nominal cost in the future. Fannie and the option to purchase up to 79.9% of common stock at a nominal cost in the future. Fannie
Mae and Freddie Mac have remained in conservatorship since that time. They could ultimately Mae and Freddie Mac have remained in conservatorship since that time. They could ultimately
leave conservatorship through legislative action,leave conservatorship through legislative action,~~120 or, potential y~~172 or, potentially, through administrative actions , through administrative actions
taken by the FHFA and Treasury.taken by the FHFA and Treasury.
Whether or not it pursues a legislative resolution to the conservatorship, Congress may take an Whether or not it pursues a legislative resolution to the conservatorship, Congress may take an
~~interest in any actions by the FHFA that could affect the eventual release of Fannie Mae and~~
~~Freddie Mac from conservatorship, or in how actions the FHFA takes affect homebuyers and the~~
~~mortgage market. In June 2021, the Supreme Court, in Collins v. Yellen, struck down as~~
~~unconstitutional a statutory provision that had limited the ability of the President to remove an~~
~~FHFA Director during a director’s five-year term.121 The decision al ows the President to remove~~
~~the director at wil , rather than only for cause. Following that decision, President Biden removed~~
~~FHFA Director Mark Calabria and designated as Acting FHFA Director Sandra L. Thompson,~~
~~who had been serving as the FHFA’s Deputy Director of the Division of Housing Mission and~~

~~117 See,~~ interest in any actions by the FHFA that could affect the of 2018 (P.L. 115-174). 168 Consumer Financial Protection Bureau, “Qualified Mortgage Definition Under the Truth in Lending Act (Regulation Z): General QM Loan Definition; Delay of Mandatory Compliance Date,” 86 Federal Register 12839-12857, March 5, 2021. 169 See, for example, Mortgage Bankers Association, “MBA Urges No Delay to CFPB QM Final Rule,”for example, Mortgage Bankers Association, “MBA Urges No Delay to CFPB QM Final Rule,” April 7, 2021, April 7, 2021,
https://newslink.mba.org/mba-newslinks/2021/april/mba-newslink-wednesday-apr-7-2021/mba-urges-no-delay-to-https://newslink.mba.org/mba-newslinks/2021/april/mba-newslink-wednesday-apr-7-2021/mba-urges-no-delay-to-
cfpb-qm-final-rule/; and Center For Responsiblecfpb-qm-final-rule/; and Center For Responsible Lending, “Lending, “ CRL Statement on CFPB’s Plan to Revise Qualified CRL Statement on CFPB’s Plan to Revise Qualified
Mortgage Standards,”Mortgage Standards,” press release, January 24, 2020, at https://www.responsiblelending.org/media/crl-statement-press release, January 24, 2020, at https://www.responsiblelending.org/media/crl-statement-
cfpbs-plan-revise-qualified-mortgage-standards. cfpbs-plan-revise-qualified-mortgage-standards.
~~118~~170 Consumer Financial Protection Bureau, “Qualified Mortgage Definition under the Consumer Financial Protection Bureau, “Qualified Mortgage Definition under the ~~T ruth~~Truth in Lending Act (Regulation in Lending Act (Regulation
Z): General,” 86Z): General,” 86 Federal Register 22844-22860, April 30, 2021, https://www.federalregister.gov/documents/2021/04/22844-22860, April 30, 2021, https://www.federalregister.gov/documents/2021/04/
30/2021-09028/qualified-mortgage-definition-under-the-truth-in-lending-act-regulation-z-general-qm-loan-definition. 30/2021-09028/qualified-mortgage-definition-under-the-truth-in-lending-act-regulation-z-general-qm-loan-definition.
~~119~~171 Consumer Financial Protection Bureau, “ Consumer Financial Protection Bureau, “ Statement on Mandatory Compliance Date of General QM Final RuleStatement on Mandatory Compliance Date of General QM Final Rule and and
Possible Reconsideration of GeneralPossible Reconsideration of General QM Final RuleQM Final Rule and Seasonedand Seasoned QM Final Rule,”QM Final Rule,” February 23, 2021, February 23, 2021,
https://files.consumerfinance.gov/f/documents/cfpb_qm-statement_2021-02.pdf. https://files.consumerfinance.gov/f/documents/cfpb_qm-statement_2021-02.pdf.
~~120~~ 172 Previous Congresses Previous Congresses have consideredhave considered legislative housing finance reform to varying degrees, and many proposals for legislative housing finance reform to varying degrees, and many proposals for
reforming the housing finance system have been put forward byreforming the housing finance system have been put forward by Members of Congress,Members of Congress, think tanks, and industry think tanks, and industry
groups. In March 2021, Senate Banking Committee Ranking Member Pat groups. In March 2021, Senate Banking Committee Ranking Member Pat ~~T oomey~~Toomey released a set of guiding released a set of guiding principles principles
for housing finance reform; see “for housing finance reform; see “ ~~T oomey~~Toomey Outlines Housing Finance Reform Principles,” press release, March 15, 2021, Outlines Housing Finance Reform Principles,” press release, March 15, 2021,
https://www.banking.senate.gov/newsroom/minority/toomey-outlines-housing-finance-reform-principles#:~:text=https://www.banking.senate.gov/newsroom/minority/toomey-outlines-housing-finance-reform-principles#:~:text=
today%20released%20a%20set%20of,equitable%20access%20for%20all%20lenders. today%20released%20a%20set%20of,equitable%20access%20for%20all%20lenders.
~~121 Collins v. Yellen, 141 S. Ct. 1761 (2021).~~
Congressional Research Service Congressional Research Service

3038

Housing Issues in the 117th Congress

~~Goals.122 New leadership at the FHFA could likely have implications for policy decisions related~~
~~to Fannie Mae and Freddie Mac.~~
eventual release of Fannie Mae and Freddie Mac from conservatorship, or in how actions the FHFA takes affect homebuyers and the mortgage market. In June 2021, the Supreme Court, in Collins v. Yellen, struck down as unconstitutional a statutory provision that had limited the ability of the President to remove an FHFA Director during a director’s five-year term.173 The decision allows the President to remove the director at will, rather than only for cause. Following that decision, President Biden removed FHFA Director Mark Calabria and designated as Acting FHFA Director Sandra L. Thompson, who had been serving as the FHFA’s Deputy Director of the Division of Housing Mission and Goals.174 In December 2021, President Biden announced that he would nominate Acting Director Thompson to be the permanent FHFA Director.175 The Senate Banking Committee held a hearing on her nomination on January 13, 2022,176 and advanced her nomination to the full Senate on March 16, 2022.177 For more information, see the following: For more information, see the following:
 CRS Report R44525,  CRS Report R44525, Fannie Mae and Freddie Mac in Conservatorship:
Frequently Asked Questions
 CRS Report R46746,  CRS Report R46746, Fannie Mae and Freddie Mac: Recent Administrative
Developments
 CRS Legal Sidebar LSB10614,  CRS Legal Sidebar LSB10614, Supreme Court: Structure of Federal Housing
Finance Agency Violates Constitution

173 Collins v. Yellen, 141 S. Ct. 1761 (2021). 174 FHFA, “Sandra L. Thompson Announced as Acting Director of FHFA,” news

~~Author Information~~

~~Katie Jones, Coordinator~~
~~Maggie McCarty~~
~~Analyst in Housing Policy~~
~~Specialist in Housing Policy~~

~~David H. Carpenter~~
~~Libby Perl~~
~~Legislative Attorney~~
~~Specialist in Housing Policy~~

~~Darryl E. Getter~~
~~Elizabeth M. Webster~~
~~Specialist in Financial Economics~~
~~Analyst in Emergency Management and Disaster~~

~~Recovery~~

~~Diane P. Horn~~
~~Lida R. Weinstock~~
~~Analyst in Flood Insurance and Emergency~~
~~Analyst in Macroeconomic Policy~~
~~Management~~

~~122 FHFA, “ Sandra L. T hompson Announced as Acting Director of FHFA,” news~~ release, June 23, 2021, release, June 23, 2021,
https://www.fhfa.gov/Media/PublicAffairs/Pages/Sandra-L-https://www.fhfa.gov/Media/PublicAffairs/Pages/Sandra-L-~~T hompson~~Thompson-Announced-as-Acting-Director-of-FHFA.aspx-Announced-as-Acting-Director-of-FHFA.aspx.
SeeSee also FHFA, “also FHFA, “ FHFA Director Mark Calabria’s Statement on the U.S. SupremeFHFA Director Mark Calabria’s Statement on the U.S. Supreme Court’s Collins v. Yellen Decision,” Court’s Collins v. Yellen Decision,”
June 23, 2021,June 23, 2021, https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Director-Mark-Calabrias-Statementhttps://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Director-Mark-Calabrias-Statement ~~-on-the-~~
~~US-Supreme-Courts-Collins-v-Yellen-Decision.aspx.~~
~~Congressional Research Service~~

31

~~Housing Issues in the 117th Congress~~

-on-the-US-Supreme-Courts-Collins-v-Yellen-Decision.aspx. 175 The White House, “President Biden Announces Nominee for Director of the Federal Housing Finance Agency,” December 14, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/12/14/president-biden-announces-nominee-for-director-of-the-federal-housing-finance-agency/#:~:text=WASHINGTON%20%E2%80%93%20Today%2C%20President%20Joe%20Biden,Housing%20Finance%20Agency%20(FHFA). 176 U.S. Congress, Senate Committee on Banking, Housing, and Urban Affairs, Nomination Hearing, 117th Cong., 2nd sess., January 13, 2022, https://www.banking.senate.gov/hearings/01/04/2022/nomination-hearing-1. 177 U.S. Senate Committee on Banking, Housing, and Urban Affairs, “Brown Moves Fed and FHFA Nominees,” press release, March 16, 2022, https://www.banking.senate.gov/newsroom/majority/brown-moves-fed-and-fhfa-nominees. Congressional Research Service 39 Housing Issues in the 117th Congress Author Information Katie Jones, Coordinator Maggie McCarty Analyst in Housing Policy Specialist in Housing Policy David H. Carpenter Libby Perl Legislative Attorney Specialist in Housing Policy Darryl E. Getter Elizabeth M. Webster Specialist in Financial Economics Analyst in Emergency Management and Disaster Recovery Diane P. Horn Lida R. Weinstock Analyst in Flood Insurance and Emergency Analyst in Macroeconomic Policy Management Joseph V. Jaroscak Analyst in Economic Development Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should under the direction of Congress. Information in a CRS Report should ~~n ot~~not be relied upon for purposes other be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material. copy or otherwise use copyrighted material.

Congressional Research Service Congressional Research Service
R46855 R46855 · VERSION ~~1 · NEW~~
324 · UPDATED 40