House Financial Services Committee FY2022
September 20, 2021
Reconciliation Legislation: In Brief
Maggie McCarty,
On September 13 and 14, 2021, the House Financial Services Committee marked up and
Coordinator
ultimately approved its reconciliation legislative recommendations pursuant to the directives in
Specialist in Housing Policy
S.Con.Res. 14, the Concurrent Budget Resolution for FY2022. The committee’s reconciliation
legislation proposes more than $300FY2022 Reconciliation: Title IV, House Financial December 7, 2021
Services Committee Provisions
Maggie McCarty,
On November 19, 2021, the House approved the Build Back Better Act (H.R. 5376), a FY2022
Coordinator
reconciliation measure. Title IV of the bill includes a modified version of the provisions
Specialist in Housing Policy
approved by the House Financial Services Committee in September 2021. These provisions were
developed pursuant to the directives in S.Con.Res. 14, the Concurrent Budget Resolution for
Grant A. Driessen
FY2022.
Specialist in Public Finance
Title IV of H.R. 5376, as approved by the House, would authorize over $156 billion in new mandatory billion in new mandatory
spendingbudget authority for programs and for programs and
Grant A. Driessen
activities within its jurisdictionactivities within the jurisdiction of the House
Joseph V. Jaroscak
Financial Services Committee, primarily focused on affordable housing. , primarily focused on affordable housing.
These include funding
Specialist in Public Finance
This is roughly half the
Analyst in Economic
amount that was proposed in the committee-reported version. H.R. 5376, as approved by the
Development Policy
House, includes funding for capital investments in existing housing, increasing affordable for capital investments in existing housing, increasing affordable
housing, and supporting housing, and supporting
homeownership. The legislation also contains several community and homeownership. The legislation also contains several community and
Diane P. Horn
economic development economic development
spending provisions, as well as funding for related administrative spending provisions, as well as funding for related administrative
infrastructure. In some cases,
Joseph V. Jaroscak
the legislation provides
Analyst in Flood Insurance
infrastructure. In some cases, the legislation would provide funding to existing programs, often
and Emergency
with alternate requirements or expanded or altered purposes; in other cases, it would create new
Management
programs.
funding to existing programs, often with alternate requirements or
Analyst in Economic
expanded or altered purposes; in other cases, it creates new programs.
Development Policy
Diane P. Horn
Analyst in Flood Insurance and Emergency Management
Katie Jones
Analyst in Housing Policy Analyst in Housing Policy
Julie M. Lawhorn
Analyst in Economic Analyst in Economic
Development Policy Development Policy
Libby Perl
Specialist in Housing Policy Specialist in Housing Policy
Congressional Research Service
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12 14 FY2022 Reconciliation: Title IV, House Financial Service Committee FY2022 Reconciliation Legislation: In Brief Services Committee Provisions
Contents
Overview ......................................................................................................................................... 4 1
Capital Investments in Existing Housing .................................................................................. 5 1
Increasing Affordable Housing ................................................................................................. 5 2
Supporting Homeownership ...................................................................................................... 5 2
Community and Economic Development ...................................................................... 2
Administrative Infrastructure........... 6 Administrative Infrastructure .................................................................................................. 3.. 6
Tables
Table 1. Summary of Provisions ................................................................................................ 4
...... 7
Contacts
Author Information ........................................................................................................................ 14 9
Congressional Research Service
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FY2022 Reconciliation: Title IV, House Financial Service Committee FY2022 Reconciliation Legislation: In Brief
n September 13 and 14, 2021, the House Financial Services Committee marked up and ultimately approved its reconciliation legislative recommendations pursuant to the
O directives in S.Con.Res. 14, the Concurrent Budget Resolution for FY2022.
S.Con.Res. 14 directed committees in the House and the Senate to submit their legislative recommendations to each chamber’s respective Budget Committee by September 15, 2021. The Budget Committees are then to package the committee responses into an omnibus budget reconciliation bil and report the measure to their respective chambers without “any substantive revision.”Services Committee Provisions
n November 19, 2021, the House approved the Build Back Better Act (H.R. 5376), a FY2022 budget reconciliation measure. Title IV of the legislation includes a modified
O version of the provisions approved by the House Financial Services Committee on
September 13 and 14, 2021, and incorporated into H.R. 5376 and reported by the House Budget Committee (H.Rept. 117-13) on September 27, 2021. These provisions were developed pursuant to the directives in S.Con.Res. 14, the Concurrent Budget Resolution for FY2022. (For more information, see CRS Report R46893, (For more information, see CRS Report R46893,
S.Con.Res. 14: The Budget
Resolution for FY2022.) .)
This budget resolution and its resulting reconciliation package is one of two legislative
This budget resolution and its resulting reconciliation package is one of two legislative
initiatives initiatives
developed in response to President Biden’s American Jobs Plan infrastructure investment developed in response to President Biden’s American Jobs Plan infrastructure investment
proposal. The first package—the Infrastructure Investment and Jobs Act—was passed by the proposal. The first package—the Infrastructure Investment and Jobs Act—was passed by the
Senate in August 2021Senate in August 2021
, approved by the House on November 5, 2021, and signed into law on November 15, 2021 (P.L. 117-58). It authorized. It contains new spending for a variety of transportation, energy, and water new spending for a variety of transportation, energy, and water
programs, among others. This second package, referred to as the Build Back Better Act and developed pursuant to S.Con.Res. 14, programs, among others, but included no dedicated funding for affordable housing. The second package—the Build Back Better Act—is designed to be broader in purpose and larger in terms of is designed to be broader in purpose and larger in terms of
overal overall new spending than the firstnew spending than the first
.
The committee’s reconciliation legislation proposes more than $300 bil ion in new mandatory spending for programs and activities within its jurisdiction, and does include funding for affordable housing, primarily in Title IV (but also in the tax provisions in Title XIII).1
Title IV of the Build Back Better Act would authorize over $156 billion in new mandatory budget authority2 for programs and activities within the jurisdiction of the House Financial Services Committee, primarily focused on affordable , primarily focused on affordable
housing. housing.
These includeThis is roughly half the amount of funding initially proposed by the Financial Services Committee and included in the legislation reported by the House Budget Committee. It would fund programs and activities administered by the Department of Housing and programs and activities administered by the Department of Housing and
Urban Development (HUD), the Department of Agriculture (USDA), the Department of the Urban Development (HUD), the Department of Agriculture (USDA), the Department of the
Treasury (Treasury), the Federal Emergency Management Agency Treasury (Treasury), the Federal Emergency Management Agency
(FEMA), and the Department of Commerce (Commerce).
Overview Title IV of the Build Back Better Act(FEMA), the United States Interagency Council on Homelessness (USICH) and the Department of Commerce (Commerce).
The remainder of this report briefly summarizes the legislation’s provisions.
Overview
The House Financial Services Committee’s reconciliation proposal primarily proposes new
primarily proposes new funding for various affordable housing-related programs and activities.funding for various affordable housing-related programs and activities.
13 These include funding for These include funding for
capital investments in existing housing, increasing affordable housing, and supporting capital investments in existing housing, increasing affordable housing, and supporting
homeownership. The legislation also contains several community and economic development homeownership. The legislation also contains several community and economic development
spending provisions, as spending provisions, as
wel well as funding for related administrative infrastructure. In some cases, as funding for related administrative infrastructure. In some cases,
the legislationthe legislation
provides funding to existing programs, often with alternate requirements or provides funding to existing programs, often with alternate requirements or
expanded or altered purposes; in other cases, it creates new programs. expanded or altered purposes; in other cases, it creates new programs.
A brief review of the provisions, grouped into thematic categories, is provided below; a summary
A brief review of the provisions, grouped into thematic categories, is provided below; a summary
of specific provisions, ordered by section number in the legislation, is provided inof specific provisions, ordered by section number in the legislation, is provided in
Table 1. (For (For
more information about existing federal affordable housing programs and policies, see CRS more information about existing federal affordable housing programs and policies, see CRS
Report RL34591, Report RL34591,
Overview of Federal Housing Assistance Programs and Policy.).)
Capital Investments in Existing Housing
A number of the provisions contained in the House Financial Services Committee legislation would invest new resources in improving the physical condition of existing housing, particularly affordable housing or housing occupied by lower-income individuals and families. This includes
1 While the Financial Services Committee has primary jurisdiction over federal housing
1 For more information, see CRS Report R46960, Tax Provisions in the Build Back Better Act: Rules Committee Print 117-18.
2 Of the $156.6 billion in total budget authority estimated by the Congressional Budget Office (CBO) to be made available from FY2022 to FY2031 under Title IV of H.R. 5376, $156.1 billion would be made available in the first year (FY2022).
3 While the Financial Services Committee has primary jurisdiction over federal housing programs and investments, programs and investments,
other committees have jurisdiction over some aspects of federal housingother committees have jurisdiction over some aspects of federal housing
policy; thus, their reconciliation packages may policy; thus, their reconciliation packages may
also includealso include
housing-related provisions. housing-related provisions.
T heThe House Ways and Means Committee has jurisdiction over tax policy, House Ways and Means Committee has jurisdiction over tax policy,
includingincluding
housing-related tax provisions such as the Low Income Housing housing-related tax provisions such as the Low Income Housing
T axTax Credit program Credit program
. .
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FY2022 Reconciliation: Title IV, House Financial Service Committee FY2022 Reconciliation Legislation: In Brief
Services Committee Provisions
Capital Investments in Existing Housing A number of the provisions contained in Title IV would invest new resources in improving the physical condition of existing housing, particularly affordable housing or housing occupied by lower-income individuals and families. This includes a significant increase in funding for capital grants for public housing (§40001), grants to a significant increase in funding for capital grants for public housing (§40001), grants to
revitalize revitalize distressed multifamily housing (§40007), and grants to revitalize and preserve rural distressed multifamily housing (§40007), and grants to revitalize and preserve rural
rental housing (§40008). Additional provisions would devote funding for identification and rental housing (§40008). Additional provisions would devote funding for identification and
remediation of lead-based paint and other health hazards in housing (§40102) and for energy and remediation of lead-based paint and other health hazards in housing (§40102) and for energy and
water efficiency and related upgrades to existing HUD-assisted multifamily housing properties water efficiency and related upgrades to existing HUD-assisted multifamily housing properties
(§40006). (§40006).
Increasing Affordable Housing
Several provisions would aim to increase the amount of availableSeveral provisions would aim to increase the amount of available
affordable housing, either affordable housing, either
through the creation of additional housing units that would be affordable to lower-income through the creation of additional housing units that would be affordable to lower-income
households or through rental assistance to defray the costs of renting existing housing. Funding households or through rental assistance to defray the costs of renting existing housing. Funding
provided to multipleprovided to multiple
programs could be used for the development (or preservation or programs could be used for the development (or preservation or
rehabilitation) of affordable housing units for rental or homeownership, including the HOME rehabilitation) of affordable housing units for rental or homeownership, including the HOME
program (with a set-aside of funding program (with a set-aside of funding
specifical yspecifically for activities eligible for activities eligible
under the Housing Trust under the Housing Trust
Fund) (§40002); a new Housing Investment Fund (§40003); a new Community Restoration and Fund) (§40002); a new Housing Investment Fund (§40003); a new Community Restoration and
RevitalizationRevitalization
Fund (§40105); and some prioritization for housing activities under the Fund (§40105); and some prioritization for housing activities under the
Community Development Block Grant program (§40101).Community Development Block Grant program (§40101).
Additional In addition, the House-passed bill would temporarily increase the amount that the Federal Home Loan Banks are annually required to contribute to their Affordable Housing Program (§40012); this provision was not included in the committee-reported bill.
Additional funding for capital grants and project-based rental assistance would be provided for funding for capital grants and project-based rental assistance would be provided for
the development of new housing units for persons with disabilities under the existing Section 811 the development of new housing units for persons with disabilities under the existing Section 811
program (§40004) and for persons age 62 and older under the Section 202 program (§40005). The program (§40004) and for persons age 62 and older under the Section 202 program (§40005). The
legislationlegislation
would also provide funding for new Section 8 project-based rental assistance contracts would also provide funding for new Section 8 project-based rental assistance contracts
to be awarded to owners or developers of affordable multifamily properties (§40010). to be awarded to owners or developers of affordable multifamily properties (§40010).
Additional y, the bil Additionally, the bill would provide a significant increase in funding for new Housing Choice would provide a significant increase in funding for new Housing Choice
Vouchers (§40009), which subsidize the rents of low-income renters in the private market. Vouchers (§40009), which subsidize the rents of low-income renters in the private market.
Supporting Homeownership
A number of provisions would provide funding for new A number of provisions would provide funding for new
or existing programsprograms or initiatives focused on focused on
supporting homeownership. Existing programs funded in the bil include certain single-family rural housing programs administered by USDA’s Rural Housing Service (§40204) and HUD’s Self-Help Homeownership Opportunity Program (SHOP), which supports “sweat equity” homeownership programs (§40205). New initiatives include funding for down payment and other homebuyer assistance forsupporting homeownership. These include funding for down payment and other homebuyer assistance for first-time, first-generation homebuyers (§40201); funding for a “wealth-building home loan” program to subsidize certain mortgages with 20-year terms for eligible first-time, first-generation homebuyers (§ first-time, first-generation homebuyers (§
40201); 40202); and funding to facilitate funding to facilitate
greater availabilitygreater availability
of “smal -dollar” of small-dollar mortgages no greater than $100,000 (§40203) mortgages no greater than $100,000 (§40203)
; and.
The House-passed bill would also provide funding funding
for a pilot “wealth-building home loan” to subsidize certain mortgages with 20-year terms for
eligible first-time, first-generation homebuyers (§40202). for an existing home repair grant program administered by USDA’s Rural Housing Service (§40204). In addition to this USDA home repair grant funding, the committee-reported bill had included funding for certain other existing USDA
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FY2022 Reconciliation: Title IV, House Financial Services Committee Provisions
single-family housing programs and funding for HUD’s Self-Help Homeownership Opportunity Program (SHOP).4 Funding for these other programs was not included in the House-passed bill.
In addition, certain homeownership activities would be among the eligible
In addition, certain homeownership activities would be among the eligible
uses of funds provided uses of funds provided
in other provisions—such as funding for HUD’s HOME program (§40002), a new HUD in other provisions—such as funding for HUD’s HOME program (§40002), a new HUD
Community Restoration and RevitalizationCommunity Restoration and Revitalization
Fund (§40105), Fund (§40105),
and a new Housing Investment Fund a new Housing Investment Fund
at Treasury’s Community Development Financial Institutions (CDFI) Fund (§40003)at Treasury’s Community Development Financial Institutions (CDFI) Fund (§40003)
, and the increased contributions to the Federal Home Loan Banks’ Affordable Housing Program included in the House-passed bill (§40012). .
Community and Economic Development
The legislationThe legislation
would also provide funding for community and economic development-related would also provide funding for community and economic development-related
activities. For example, the Community Development Block Grant (CDBG) program would activities. For example, the Community Development Block Grant (CDBG) program would
receive additionalreceive additional
funding (§40101), and a new Unlocking Possibilities Program (§40103) would funding (§40101), and a new Unlocking Possibilities Program (§40103) would
provide competitive grants to states and localities for planning and implementation of various provide competitive grants to states and localities for planning and implementation of various
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House Financial Service Committee FY2022 Reconciliation Legislation: In Brief
housing and land-use planning initiatives. Additionalhousing and land-use planning initiatives. Additional
resources would also be provided for the resources would also be provided for the
Minority Business Development Agency (§40401) and State Minority Business Development Agency (§40401) and State
Smal Small Business Credits (§40402). Business Credits (§40402).
Administrative Infrastructure
Nearly Nearly
al all of the provisions in the legislationof the provisions in the legislation
include funding for the administrative costs of include funding for the administrative costs of
federal agencies in implementing the programs or activities. In addition, several provisions are federal agencies in implementing the programs or activities. In addition, several provisions are
designed solely to increase administrative capacity. For example, administration and capacity-designed solely to increase administrative capacity. For example, administration and capacity-
building funding is provided for HUD building funding is provided for HUD
and the USICH (§40301) as (§40301) as
wel well as community-based as community-based
nonprofits (§40302). Additional resources are provided for purposes of Fair Housing Act nonprofits (§40302). Additional resources are provided for purposes of Fair Housing Act
enforcement (§40106 and §40107), and additional funding (along with programmatic changes) is enforcement (§40106 and §40107), and additional funding (along with programmatic changes) is
provided to support the provided to support the
National Flood Insurance Program (§40104).
4 Namely, §40204 of the committee-reported bill included funding for USDA’s Section 502 Direct Home Loan Program and Section 523 Mutual Self-Help Housing Grants, as well as Section 504 Housing Repair Grants. The House-passed bill included funding only for the Section 504 grants. Section 40205 of the committee-passed bill included funding for SHOP, which supports sweat equity homeownership programs. National Flood Insurance Program (§40104).
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Table 1. Summary of Provisions
(
(
Dol ars in bil ions)
Sec.
Title
Appropriation
Agency
Summary
CRS Contact
40001
Public Housing
$80.00Dollars in billions)
Funding
Reported
by
House-
Section
Title
Committee
Passed
Agency
Summary
CRS Contact
Subtitle A—Creating and Preserving Affordable, Equitable and Accessible Housing For the 21st Century
40001
Public Housing Investment
$80.000
$65.000
HUD
HUD
Funding to local public housing authorities (PHAs) for capital
Funding to local public housing authorities (PHAs) for capital
grants (both formula-
Maggie McCarty,
Investment
Maggie McCarty,
grants (both formula-based and competitive)based and competitive)
to rehabilitate to rehabilitate
Specialist in Housing
existing public housing propertiesexisting public housing properties
and for the development of
Policy
and for the
Specialist in Housing
development of new units of public housing. new units of public housing.
Policy
40002 40002
Investments in
Investments in
Affordable and
72.000
25.000
72.00
HUD
HUD
Funding for the HOME program, which provides formula
Funding for the HOME program, which provides formula
grants to states and eligible
Katie Jones, Analyst in
Affordable and
Katie Jones, Analyst in
Accessible Housing Production
grants to states and eligible local governments to use for a local governments to use for a
Housing Policy
range of affordable housing activities,range of affordable housing activities,
including both including both
Housing Policy
Accessible Housing
rental housing and homeownership.rental housing and homeownership.
Of the total amount of HOME funding provided, Of the total amount of HOME funding provided,
Production
$36.77 bil ion is to be al ocateda portion ($14.9 bil ion in the House-passed bil ) is to be allocated to states according to the Housing Trust Fund to states according to the Housing Trust Fund
formula and used only for activities eligibleformula and used only for activities eligible
under that program (primarilyunder that program (primarily
rental housing development production, preservation, and
rehabilitation of rental housing for the lowest income households). for the lowest income households).
40003
40003
Housing Investment
Housing Investment
10.00Funda
10.000
0.750
Treasury
Treasury
Funding for a new program administered
Funding for a new program administered
by Treasury’s by Treasury’s
Community Development
Katie Jones, Analyst in Katie Jones, Analyst in
Funda
Community Development Financial Institutions (CDFI) Fund Financial Institutions (CDFI) Fund
Housing Policy
to provide competitive grants to CDFIs or eligible to provide competitive grants to CDFIs or eligible
Housing Policy
nonprofits to develop,nonprofits to develop,
preserve,preserve,
rehabilitate,rehabilitate,
finance, or purchase affordable housing. finance, or purchase affordable housing.
40004
40004
Section 811
Section 811
Supportive
1.000
0.500
1.00
HUD
HUD
Funding for capital grants and project rental assistance for
Funding for capital grants and project rental assistance for
nonprofit grantees to
Libby Perl,Libby Perl,
Specialist in
Housing for People With
nonprofit grantees to develop units of housing for persons
Housing Policy
Disabilities
with disabilities through the Section 811 program. Specialist in
Supportive Housing
develop units of housing for persons with disabilities through the Section 811
Housing Policy
for People With
program. Funding is Funding is
also available for the Section 811 Project Rental Assistance also available for the Section 811 Project Rental Assistance
Disabilities
program administeredprogram administered
through state housing finance agencies.through state housing finance agencies.
CRS-7
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Funding
40005
40005
Section 202
Section 202
Supportive
2.500
0.500
2.50
HUD
HUD
Funding for capital grants and Section 8 project-based rental
Funding for capital grants and Section 8 project-based rental
assistance for nonprofit
Libby Perl,Libby Perl,
Specialist in
Housing for the Elderly
assistance for nonprofit grantees to develop units of housing
Housing Policy
Program
Specialist in
Supportive Housing
grantees to develop units of housing for persons who are age 62 and older through for persons who are age 62 and older through
Housing Policy
for the Elderly
the Section the Section 202 program. 202 program.
Program
40006 40006
Improving Energy
Improving Energy
6.00
HUD
Funding for direct loans (which may be forgivable) and grants to improve Efficiency or
6.000
2.000
HUD
Funding for up to $4 bil ion in direct loans (which may be
Libby Perl, Specialist in
Water Efficiency or Climate
converted to grants) and grants to improve energy and water
Housing Policy
Resilience of Affordable
energy and
Libby Perl, Specialist in
Efficiency or Water
water efficiency or climateefficiency or climate
resilience resilience in HUD-assisted multifamily
Housing
housing properties receiving project-based assistance through
Maggie McCarty,
the Section 202, Section 811, and Section 8 project-based
Specialist in Housing
rental assistance programs.
Policy
40007
Revitalization of Distressed
4.000
1.600
HUD
Funding for up to $6 bil ion in direct loans (which may be
Libby Perl, Specialist in
Multifamily Properties
forgivable) to make necessary physical improvements to
Housing Policy
distressed HUD-assisted multifamily housing properties
funded in HUD-assisted multifamily housing properties
Housing Policy
Efficiency or Climate
funded through the Section 202, Section 811, and Section 8 project-based rental
Resilience of
assistance programs.
Maggie McCarty,
Affordable Housing
Specialist in Housing Policy
CRS-4
link to page 11 link to page 11
Sec.
Title
Appropriation
Agency
Summary
CRS Contact
40007
Revitalization of
4.00
HUD
Funding for direct loans (which may be forgivable) to make necessary physical
Libby Perl, Specialist in
Distressed
improvements to distressed HUD-assisted multifamily housing properties funded
Housing Policy
Multifamily
through the Section 202, Section 811, Section 236, through the Section 202, Section 811, Section 236,
Maggie McCarty,
and Section 8 programs. and Section 8 programs.
Properties
Recipients would be requiredRecipients would be required
to
Specialist in Housing
to extend affordability restrictionsextend affordability restrictions
by 30 years. by 30 years.
Maggie McCarty, Specialist in Housing Policy Policy
40008
40008
Investments in Rural
Investments in Rural
Rental
4.800
2.000
4.80b
USDA
USDA
Funding for direct loans and grants for new construction,
Funding for direct loans and grants for new construction,
preservation, and
Maggie McCarty, Maggie McCarty,
Rental Housing Housing
preservation, and rehabilitation (including energy and water rehabilitation (including energy and water
efficiency and climate resilience upgrades)
Specialist in Housing
of rural rental
Specialist in Housing
efficiency and climate resilience upgrades) of rural rental
Policy
properties under the Section 515 program and farm labor housing properties under the Section 515 program and farm labor housing
Policy
under the Section 514/516under the Section 514/516
program; as well as rental assistance under the Section 521 program. program.
40009
40009
Housing Vouchers
Housing Vouchers
75.
75.
00c000b
24.000
HUD
HUD
Funding for the creation of new Housing Choice Vouchers
Funding for the creation of new Housing Choice Vouchers
Maggie McCarty,
(including(including
a set- set-
asideasides for new vouchers for persons
Specialist in Housing
for
Maggie McCarty,
new vouchers for persons experiencing or at riskexperiencing or at risk
of homelessness,of homelessness,
survivors of
Specialist in Housing survivors of
Policy
domestic
domestic
violence,violence,
and victimsand victims
of trafficking; and tenant protection vouchers for of trafficking; and tenant protection vouchers for
Policy
public housing residents), associated public housing residents), associated
renewal renewal costs, administrative fees,costs, administrative fees,
and landlord and landlord
outreach and outreach and
mobility mobility activities.activities.
New vouchers are to be New vouchers are to be
al ocatedallocated to PHAs pursuant to PHAs pursuant
to a new formula established by the HUD Secretary,to a new formula established by the HUD Secretary,
based on severebased on severe
housing need housing need
among extremelyamong extremely
low-income renters and PHA capacity. low-income renters, PHA capacity, and geographic diversity among PHAs.
CRS-8
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Funding
40010
40010
Project-Based Rental
Project-Based Rental
15.
15.
00000
1.000
HUD
HUD
Funding for new project-based rental assistance contracts to
Funding for new project-based rental assistance contracts to
be awarded to
Maggie McCarty, Maggie McCarty,
Assistance
Assistance
be awarded to owners/developersowners/developers
of affordable multifamilyof affordable multifamily
Specialist in Housing
housing properties,housing properties,
to be distributed as to be distributed as
Specialist in Housing
determined by the determined by the
Policy
HUD Secretary. HUD Secretary.
Policy
40011 40011
Investments in
Investments in
Native
2.000
1.000
2.00
HUD
HUD
Funding for multiple existing programs
Funding for multiple existing programs
that support a variety
Katie Jones, Analyst in
American Communities
of tribal housing and community development activities;
Housing Policy
namely, Indian Housing Block that support a variety of tribal housing and
Katie Jones, Analyst in
Native American
community development activities; namely, Indian Housing Block Grant (IHBG)
Housing Policy
Communities
Grant (IHBG) formula and formula and
competitive competitive grants, Indian Community Developmentgrants, Indian Community Development
Block Grants, and Block Grants, and
the Native the Native
Hawai anHawaiian Housing Block Grant.
40012
Increased Affordable Housing
NA
0.972c
FHLBs
This section would temporarily increase funding for the
Katie Jones, Analyst in
Program Investment
Affordable Housing Program (AHP) by increasing the
Housing Policy
percentage of net income that each of the 11 regional Federal Home Loan Banks is annually required to contribute to the AHP. The required percentage would be increased to 15% (compared to 10% in current law) for each year from 2022 through 2027.
Subtitle B—21st Century Sustainable and Equitable Communities Housing Block Grant.
40101
40101
Community
Community
Development
8.500
3.050
8.50
HUD
HUD
Funding for the Community Development
Funding for the Community Development
Block Grant
Joe Jaroscak, Analyst
Block Grant Funding for
program (CDBG), with a newly structured set-aside for
in Economic
Affordable Housing and
colonias (certain U.S.-Mexico border communities)—as well
Development Policy
Infrastructure
as funding for technical assistance and agency program administrative costs—and for new competitive Block Grant program (CDBG), with a
Joe Jaroscak, Analyst in
Development Block
newly structured set-aside for colonias (certain U.S.-Mexico border communities)—
Economic Development
Grant Funding for
as wel as funding for technical assistance and agency program administrative costs—
Policy
Affordable Housing
and for new competitive grants to support manufactured home communities. grants to support manufactured home communities.
and Infrastructure
Additional flexibility for new housing construction activities is available for certain Additional flexibility for new housing construction activities is available for certain
funding recipients.
CRS-5
link to page 11 link to page 11 link to page 11
Sec.
Title
Appropriation
Agency
Summary
CRS Contactfunding recipients.
40102
40102
Lead-Based Paint
Lead-Based Paint
Hazard
10.000
5.000
10.00
HUD
HUD
Funding for grants to states, localities,
Funding for grants to states, localities,
tribes, and tribes, and
nonprofits—as wel as some
Maggie McCarty, Maggie McCarty,
Hazard Control And Control And
Housing-Related
nonprofits—as well as some funding for ownersfunding for owners
of federal y subsidized housing—for lead-based paint inspection,
Specialist in Housing
Housing-Related
controls, and abatement, as wel as testing and mitigation of other housing-related
Policy
Health and Safety
of federally
Specialist in Housing
Health and Safety Hazard
subsidized housing—for lead-based paint inspection, controls,
Policy
Mitigation in Housing of
and abatement, as well as testing and mitigation of other
Families With Lower Incomes
housing-related health and safety hazards, among other purposes, with resourceshealth and safety hazards, among other purposes, with resources
targeted to serving lower-income households.
CRS-9
link to page 13 link to page 13
Funding
40103
Unlocking Possibilities Program
4.500
1.750targeted to serving
Hazard Mitigation in
lower-income households.
Housing of Families With Lower Incomes
40103
Unlocking
4.50
HUD
HUD
Funding for new competitive
Funding for new competitive
grants for planning and implementation activities
Joe Jaroscak, Analyst in
Possibilities Program
grants for research, planning,
Joe Jaroscak, Analyst
and implementation activities related to state and local related to state and local
in Economic
housing policyhousing policy
and zoning regulations. Eligibleand zoning regulations. Eligible
entities
Economic Development
include CDBG entities include
Development Policy
CDBG grantees and regionalgrantees and regional
planning agencies or consortiaplanning agencies or consortia
.
Policy
40104
Strengthening
4.00h
FEMA
Cancels al (for certain planning activities).
40104
Strengthening Resilience Under
4.000
0.60
FEMA
Cancels all outstanding National Flood Insurance Program
Diane Horn, Analyst in
National Flood Insurance
(NFIP) debt to Treasury. The NFIP currently owes $20.525
Flood Insurance and
Program
bil ion to Treasury.d
Emergency
Directs FEMA to spend an amount equal to the interest that
Management
the NFIP would have paid in servicing the cancelled debt for flood mapping in FY2022 and FY2023outstanding National Flood Insurance Program (NFIP) debt to the
Diane Horn, Analyst in
Resilience Under
Treasury and directs FEMA to use any savings accruing from this debt cancel ation,
Flood Insurance and
National Flood
including any amounts of interest avoided from such cancel ation, only for deposit in
Emergency Management
Insurance Program
and use under the National Flood Insurance Reserve Fund (42 U.S.C. §4017a). The NFIP currently owes $20.525 bil ion to the Treasury.d Funding of $3 bil ion to the NFIP for its existing flood hazard mapping and risk analysis program, to supplement other amounts appropriated, to supplement other amounts appropriated
, and to remain and to remain
available until expended.available until expended.
Funding of $Funding of $
1 bil ion 600 mil ion to the NFIP for a new means-tested affordability program to to the NFIP for a new means-tested affordability program to
provide discounts to eligibleprovide discounts to eligible
NFIP policyholders NFIP policyholders for insurance costs.e for insurance costs, to remain available until September 30, 2026.e
40105
Community
7.50
40105
Community Restoration and
7.500
3.000
HUD
HUD
Funding for new competitive
Funding for new competitive
grants to partnerships of eligiblegrants to partnerships of eligible
entities for planning
Joe Jaroscak, Analyst in
Restoration and
and implementing a variety of eligible activities related to housing and civic
Economic Development
Revitalization Fund
infrastructure. The activities include those eligible under HUD’s CDBG program and
Policy
additional enumerated uses, as wel
Joe Jaroscak, Analyst
Revitalization Fund
entities for planning and implementing a variety of eligible
in Economic
activities related to housing and civic infrastructure. The
Development Policy
activities include those eligible under HUD’s CDBG program
and additional enumerated uses, as well as a set-aside of funding to support community as a set-aside of funding to support community
land trusts.land trusts and shared equity
Katie Jones, Analyst in
Katie Jones, Analyst in
homeownership.
Housing Policy Housing Policy
40106
40106
Fair Housing
Fair Housing
Activities and
1.000
0.700
1.00
HUD
HUD
Funding for the Fair Housing Initiatives Program for eligible
Funding for the Fair Housing Initiatives Program for eligible
fair housing organizations
Libby Perl,Libby Perl,
Specialist in Specialist in
Activities and
Investigations
fair housing organizations to expand capacity to accept and to expand capacity to accept and
Housing Policy
investigate complaints,investigate complaints,
conduct testing, and provide conduct testing, and provide
Housing Policy
Investigations
education and outreach, among other activities. education and outreach, among other activities.
40107
40107
Intergovernmental
Intergovernmental
0.25Fair Housing
0.250
0.100
HUD
HUD
Funding for Fair Housing Assistance
Funding for Fair Housing Assistance
Program grantees to Program grantees to
increase capacity to
Libby Perl,Libby Perl,
Specialist in Specialist in
Fair Housing
Activities and Investigations
increase capacity to enforce state and local fair housing laws enforce state and local fair housing laws
Housing Policy
that are substantiallythat are substantial y equivalent to the equivalent to the
Housing Policy
Activities and
federal Fair Housing Act, and to assist grantees in affirmativelyfederal Fair Housing Act, and to assist grantees in affirmatively
furthering fair furthering fair
Investigations
housing. housing.
CRS-
CRS-
610
link to page
link to page
11
Sec.
Title
Appropriation
Agency
Summary
CRS Contact13 link to page 13 link to page 13
Funding
Subtitle C—Homeownership Investments
40201
40201
First-Generation
First-Generation
10.
10.
00000
10.000
HUD
HUD
Funding for a new program to provide formula grants to
Funding for a new program to provide formula grants to
states and competitive
Katie Jones, Analyst in Katie Jones, Analyst in
Down payment
Downpayment Assistance
states and competitive grants to eligiblegrants to eligible
entities to use for entities to use for
Housing Policy
down payment and other assistance fordown payment and other assistance for
eligible
Housing Policy
Assistance
eligible first-time,first-time,
first-generation homebuyers. first-generation homebuyers.
40202
40202
Wealth-Building
0.50Home Loan Programf
0.500
5.000
HUD
HUD
Funding
Funding
to support a pilotfor a new program to subsidize mortgages with 20- program to subsidize mortgages with 20-
year repayment
Katie Jones, Analyst in Katie Jones, Analyst in
Home Loan Program
and
terms,
and
year repayment terms, but monthly payments similarbut monthly payments similar
to those
Housing Policy
USDA,
to those on a 30-year mortgage, that are on a 30-year mortgage, that are
Housing Policy
USDA,
insured by the Federal insured by the Federal
with
Housing AdministrationHousing Administration
(FHA) or guaranteed by USDA for (FHA) or guaranteed by USDA for
with
Treasury
eligible
eligible
first-time,first-time,
first-generation homebuyers. first-generation homebuyers.
Treasury
40203 40203
HUD-Insured
HUD-Insured
Smal
0.10Small Dol ar
0.100
0.100
HUD
HUD
Funding for HUD to increase access to single-family
Funding for HUD to increase access to single-family
mortgages with original principal
Katie Jones, Analyst in
Dol ar Mortgage
balances of $100,000 or less that are insured by FHA or guaranteed by HUD’s
Housing Policy
Demonstration
Section 184/184A programs
Katie Jones, Analyst in
Mortgage Demonstration
mortgages with original principal balances of $100,000 or less
Housing Policy
Program
that are insured or guaranteed by HUD. HUD can use funding for loan subsidy costs and for . HUD can use funding for loan subsidy costs and for
Program
other activities intended to increase access to such mortgages.other activities intended to increase access to such mortgages.
40204
40204
Investments in Rural
Investments in Rural
0.
0.
20f200
0.100
USDA
Funding for assistance to certain homeowners in rural areas.g
Katie Jones, Analyst in
Homeownership
Housing Policy
40205
Self-Help Homeownership
0.050
0.000
HUD
The committee-reported bil included funding for SHOP,
Katie Jones, Analyst in
Opportunity Program (SHOP)
which provides competitive grants to eligible organizations to
Housing Policy
support sweat equity homeownership
USDA
Funding for Section 502 Direct Home Loans, Section 504 Housing Repair Grants
Katie Jones, Analyst in
Homeownership
(with certain adjustments to eligibility criteria and al owable uses), and Section 523
Housing Policy
Mutual Self-Help Housing Grants.
40205
Self-Help
0.05
HUD
Funding for SHOP, which provides competitive grants to eligible organizations to
Katie Jones, Analyst in
Homeownership
support sweat equity homeownership programs.
Housing Policy
Opportunity Program (SHOP)
40301
Program
2.00
HUD
Funding primarily for administrative costs of HUD in implementing programs funded
Libby Perl, Specialist in
Administration,
and
through the reconciliation package and HUD programs general y, and for training,
Housing Policy
Training, Technical
USICH
technical assistance, and capacity building. Amounts are also provided to the USICH
Assistance, and
and HUD’s Office of Inspector General to carry out their functions.
Maggie McCarty,
Capacity Building,
Specialist in Housing
and USICH
Policy
40302
Community-Led
0.10
HUD
Funding for new competitive grants to non-federal entities with capacity for
Joe Jaroscak, Analyst in
Capacity Building
providing technical assistance to local nonprofit community development
Economic Development
organizations including, but not limited to, community land trusts and community
Policy
development corporations. Eligible activities programs. The House-passed bil did not include this funding.
Subtitle D—HUD and Community Capacity Building
40301
Program Administration,
2.000
1.000
HUD,
Funding primarily for administrative costs of HUD in
Libby Perl, Specialist in
Training, Technical Assistance,
Treasury,
implementing programs funded through the reconciliation
Housing Policy
and Capacity Building, and
USDAh
package and HUD programs generally, and for training,
Agency Oversight
technical assistance, and capacity building. Amounts are also
Maggie McCarty,
provided to the Office of Inspector General for HUD,
Specialist in Housing
Treasury, and the Department of Agriculture, for oversight of
Policy
the funds provided by this title.
CRS-11
Funding
40302
Community-Led Capacity
0.100
0.100
HUD
Funding for new competitive grants to nonfederal entities
Joe Jaroscak, Analyst
Building
with capacity for providing technical assistance to local
in Economic
nonprofit community development organizations including,
Development Policy
but not limited to, community land trusts and community development corporations. Eligible activities include the provision of technical include the provision of technical
assistance and training, predevelopment assistance grants, and other activities as assistance and training, predevelopment assistance grants, and other activities as
determined determined by the by the
HUD Secretary.
Subtitle E—Economic DevelopmentHUD Secretary.
CRS-7
link to page 11
Sec.
Title
Appropriation
Agency
Summary
CRS Contact
40401
40401
Minority Business
Minority Business
3.
3.
10g 100
1.600
Commerce
Commerce
Funding for new and existing
Funding for new and existing
Business Centers and Specialty Centers and the
MBDA Business Centers, Rural
Julie Lawhorn, Analyst Julie Lawhorn, Analyst
in
Development
creation of new rural Business Centers. Funding for the fol owing new activities: the
Economic Development
Agency
establishment of five regional Minority Business Development Agency (MBDA)
Policy
offices; an annual forum on capital formation; a new technical assistance program for smal , underserved manufacturers; a grant program for minority-serving institutions to support entrepreneurship curricula; and a grant program for eligible business enterprises and nonprofits to address gaps in access to capital, assist with startup costs, or support business expansion.
40402
Manufacturing
1.00
Development Agency (MBDA)
Business Centers, and Specialty Centers. Funding also to
in Economic
support minority business enterprises; the establishment of
Development Policy
regional MBDA offices; entrepreneurship education curricula; nonprofits that support minority business enterprises; and research, evaluation, and administrative activities.
40402
Manufacturing Facility
1.00
0.500
Treasury
Provides for additional payments to states, made
Grant Driessen,
(Enhanced use of Defense
proportionally to their nationwide share of manufacturing
Specialist in Public
Production Act of 1950)
Treasury
Provides for additional payments to states, made proportional y to their nationwide
Grant Driessen,
Facility
share of manufacturing jobs lost in the last 30 years, for programs that promote jobs lost in the last 30 years, for programs that promote
Specialist in PublicFinance
economic
economic
competitiveness competitiveness and invest in manufacturing technology or clean energy, and invest in manufacturing technology or clean energy,
Finance
and for other purposes. and for other purposes.
40403
Supporting Factory-Built
NA
0.025
Treasury
Extends the authority of the Treasury Secretary to administer Grant Driessen,
Housing Through the State
and implement the SSBCI program by 30 months, through
Specialist in Public
Small Business Credit Initiative
FY2030, and provides $25 mil ion in SSBCI technical
Finance
(SSBCI)
assistance for certain factory-built housing projects.
Source: Table prepared by CRS based on the text of the Amendment Table prepared by CRS based on the text of the Amendment
in the Nature of a Substitute to the Committeein the Nature of a Substitute to the Committee
Print, as approved byPrint, as approved by
the House Financial Services the House Financial Services
CommitteeCommittee
and posted on its websiteand posted on its website
at https://financialservices.house.gov/uploadedfiles/hmkp-117-ba00-20210913-sd004.pdfat https://financialservices.house.gov/uploadedfiles/hmkp-117-ba00-20210913-sd004.pdf
. Notes: Funds are available through FY2031, unless otherwise noted; and H.R. 5376, as approved by the House, and the Congressional Budget Office (CBO) score of H.R. 5376. Notes: Amounts shown reflect total budget authority provided in FY2022; total budget authority from FY2022 to 2031 may differ from this amount, based on CBO scoring. The periods of availability for funding vary across and within accounts. Summaries reflect the version of the legislation as passed by the House. .
a. The Housing Investment Fund would be a newly established fund, but it would be similara. The Housing Investment Fund would be a newly established fund, but it would be similar
in many ways to the existing Capital Magnet Fund, which is also in many ways to the existing Capital Magnet Fund, which is also
administered
administered
by the by Treasury’s Treasury’s
CDFI Fund. CDFI Fund.
b.
b.
Most funds are available until expended; some funding is available through FY2024. c. Funding used for new, incremental vouchers is to be al ocated annual y from FY2022 through FY2026. d. The language in the bil directs the cancel ation of al Funding used for new, incremental vouchers is to be allocated annually from FY2022 through FY2026.
CRS-12
c. The Congressional Budget Office (CBO) estimates that from FY2022 to FY2031, this provision wil result in an increase in AHP spending of $972 mil ion. It also
estimates that the change in FHLB contributions wil increase revenues by $796 mil ion, resulting in a net increase in the deficit of about $170 mil ion. See CBO, Estimated Budgetary Effects of Title IV, Committee on Financial Services, H.R. 5376, the Build Back Better Act, November 15, 2021, https://www.cbo.gov/publication/57619.
d. The language in the bil directs the cancellation of all NFIP debt rather than a specific amount. The amount indicated is not appropriation but a NFIP debt rather than a specific amount. The amount indicated is not appropriation but a
cancel ation of
program debt, which wil score as an additional budget authority. See CRS Insight IN10784, National Flood Insurance Program Borrowing Authority, by Diane P. Horn; and Congressional Budget Office (CBO), CBO Estimate for H.R. 2266, With An Amendment - The Additional Supplemental Appropriations for Disaster Relief Requirements
Act, 2017, As Posted on the House Document Repository on October 11, 2017, https://www.cbo.gov/system/files/115th-congress-2017-2018/costestimate/hr2266amend.pdfcancellation of
program debt. The interest payments and subsequent receipts are intergovernmental transfers and have no net effect on the deficit; outlays for flood mapping would be direct spending. See CBO, Estimated Budgetary Effects of Title IV, Committee on Financial Services, H.R. 5376, the Build Back Better Act, November 15, 2021, https://www.cbo.gov/publication/57619. .
e. FEMA does not currently have the authority to implement
e. FEMA does not currently have the authority to implement
an affordability program. f.
This section was titled “Wealth-Building Home Loan” in the committee-reported bil .
g. The committee-reported bil included funding for Section 502 Direct Home Loans, Section 504 Housing Repair Grants (with certain adjustments to eligibility criteria
and allowable uses), and Section 523 Mutual Self-Help Housing Grants. The House-passed bil includes only the Section 504 Housing Repair Grants funding.
h. The committee-reported bil included funding for the United States Interagency Council on Homelessness; that funding was not included in the House-passed
version.
CRS-13
FY2022 Reconciliation: Title IV, House Financial Services Committee Provisions an affordability program, which would require congressional action. f.
Funding available until expended.
g. Funding has periods of availability ranging from through FY2026 through FY2029. h. Most funds are available until expended; some are available through FY2026.
CRS-8
House Financial Service Committee FY2022 Reconciliation Legislation: In Brief
Author Information
Maggie McCarty, Coordinator Maggie McCarty, Coordinator
Katie Jones
Katie Jones
Specialist in Housing Policy
Specialist in Housing Policy
Analyst in Housing Policy
Analyst in Housing Policy
Grant A. Driessen
Grant A. Driessen
Julie M. Lawhorn
Julie M. Lawhorn
Specialist in Public Finance
Specialist in Public Finance
Analyst in Economic Development Policy
Analyst in Economic Development Policy
Joseph V. Jaroscak
Joseph V. Jaroscak
Libby Perl
Libby Perl
Analyst in Economic Development Policy
Analyst in Economic Development Policy
Specialist in Housing Policy
Specialist in Housing Policy
Diane P. Horn
Diane P. Horn
Analyst in Flood Insurance and Emergency
Analyst in Flood Insurance and Emergency
Management Management
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 otnot 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
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