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 $300 billion in new mandatory spending for programs and
Grant A. Driessen
activities within its jurisdiction, primarily focused on affordable housing. These include funding
Specialist in Public Finance
for capital investments in existing housing, increasing affordable housing, and supporting

homeownership. The legislation also contains several community and economic development
spending provisions, as well as funding for related administrative infrastructure. In some cases,
Joseph V. Jaroscak
the legislation provides 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

Julie M. Lawhorn
Analyst in Economic
Development Policy

Libby Perl
Specialist in Housing Policy

Congressional Research Service

link to page 7 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.” (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 initiatives
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
Senate in August 2021. It contains 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, is designed to be broader in purpose and larger in terms of
overal new 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, primarily focused on affordable
housing. These include programs and activities administered by the Department of Housing and
Urban Development (HUD), the Department of Agriculture (USDA), the Department of the
Treasury (Treasury), the Federal Emergency Management Agency (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
funding for various affordable housing-related programs and activities.1 These include funding for
capital investments in existing housing, increasing affordable housing, and supporting
homeownership. The legislation also contains several community and economic development
spending provisions, as wel as funding for related administrative infrastructure. In some cases,
the legislation provides funding to existing programs, often with alternate requirements or
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
of specific provisions, ordered by section number in the legislation, is provided in Table 1. (For
more information about existing federal affordable housing programs and policies, see CRS
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 programs and investments,
other committees have jurisdiction over some aspects of federal housing policy; thus, their reconciliation packages may
also include housing-related provisions. T he House Ways and Means Committee has jurisdiction over tax policy,
including housing-related tax provisions such as the Low Income Housing T ax Credit program .
Congressional Research Service

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House Financial Service Committee FY2022 Reconciliation Legislation: In Brief

a significant increase in funding for capital grants for public housing (§40001), grants to
revitalize distressed multifamily housing (§40007), and grants to revitalize and preserve rural
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
water efficiency and related upgrades to existing HUD-assisted multifamily housing properties
(§40006).
Increasing Affordable Housing
Several provisions would aim to increase the amount of available affordable housing, either
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
provided to multiple programs could be used for the development (or preservation or
rehabilitation) of affordable housing units for rental or homeownership, including the HOME
program (with a set-aside of funding specifical y for activities eligible under the Housing Trust
Fund) (§40002); a new Housing Investment Fund (§40003); a new Community Restoration and
Revitalization Fund (§40105); and some prioritization for housing activities under the
Community Development Block Grant program (§40101).
Additional 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
program (§40004) and for persons age 62 and older under the Section 202 program (§40005). The
legislation 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).
Additional y, the bil 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.
Supporting Homeownership
A number of provisions would provide funding for new or existing programs 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 for first-time, first-generation homebuyers (§40201); funding to facilitate
greater availability of “smal -dollar” mortgages no greater than $100,000 (§40203); and funding
for a pilot “wealth-building home loan” to subsidize certain mortgages with 20-year terms for
eligible first-time, first-generation homebuyers (§40202).
In addition, certain homeownership activities would be among the eligible uses of funds provided
in other provisions—such as funding for HUD’s HOME program (§40002), a new HUD
Community Restoration and Revitalization Fund (§40105), and a new Housing Investment Fund
at Treasury’s Community Development Financial Institutions (CDFI) Fund (§40003).
Community and Economic Development
The legislation would also provide funding for community and economic development-related
activities. For example, the Community Development Block Grant (CDBG) program would
receive additional funding (§40101), and a new Unlocking Possibilities Program (§40103) would
provide competitive grants to states and localities for planning and implementation of various
Congressional Research Service

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House Financial Service Committee FY2022 Reconciliation Legislation: In Brief

housing and land-use planning initiatives. Additional resources would also be provided for the
Minority Business Development Agency (§40401) and State Smal Business Credits (§40402).
Administrative Infrastructure
Nearly al of the provisions in the legislation include funding for the administrative costs of
federal agencies in implementing the programs or activities. In addition, several provisions are
designed solely to increase administrative capacity. For example, administration and capacity-
building funding is provided for HUD and the USICH (§40301) as wel as community-based
nonprofits (§40302). Additional resources are provided for purposes of Fair Housing Act
enforcement (§40106 and §40107), and additional funding (along with programmatic changes) is
provided to support the National Flood Insurance Program (§40104).
Congressional Research Service

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link to page 11
Table 1 Summary of Provisions
(Dol ars in bil ions)
Sec.
Title
Appropriation
Agency
Summary

CRS Contact
40001
Public Housing
$80.00
HUD
Funding to local public housing authorities (PHAs) for capital grants (both formula-

Maggie McCarty,
Investment
based and competitive) to rehabilitate existing public housing properties and for the
Specialist in Housing
development of new units of public housing.
Policy
40002
Investments in
72.00
HUD
Funding for the HOME program, which provides formula grants to states and eligible

Katie Jones, Analyst in
Affordable and
local governments to use for a range of affordable housing activities, including both
Housing Policy
Accessible Housing
rental housing and homeownership. Of the total amount of HOME funding provided,
Production
$36.77 bil ion is to be al ocated to states according to the Housing Trust Fund
formula and used only for activities eligible under that program (primarily rental
housing development for the lowest income households).
40003
Housing Investment
10.00
Treasury
Funding for a new program administered by Treasury’s Community Development

Katie Jones, Analyst in
Funda
Financial Institutions (CDFI) Fund to provide competitive grants to CDFIs or eligible
Housing Policy
nonprofits to develop, preserve, rehabilitate, finance, or purchase affordable housing.
40004
Section 811
1.00
HUD
Funding for capital grants and project rental assistance for nonprofit grantees to

Libby Perl, Specialist in
Supportive Housing
develop units of housing for persons with disabilities through the Section 811
Housing Policy
for People With
program. Funding is also available for the Section 811 Project Rental Assistance
Disabilities
program administered through state housing finance agencies.

40005
Section 202
2.50
HUD
Funding for capital grants and Section 8 project-based rental assistance for nonprofit

Libby Perl, Specialist in
Supportive Housing
grantees to develop units of housing for persons who are age 62 and older through
Housing Policy
for the Elderly
the Section 202 program.
Program
40006
Improving Energy
6.00
HUD
Funding for direct loans (which may be forgivable) and grants to improve energy and

Libby Perl, Specialist in
Efficiency or Water
water efficiency or climate resilience 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, and Section 8 programs.

Properties
Recipients would be required to extend affordability restrictions by 30 years.
Maggie McCarty,
Specialist in Housing
Policy
40008
Investments in Rural
4.80b
USDA
Funding for direct loans and grants for new construction, preservation, and

Maggie McCarty,
Rental Housing
rehabilitation (including energy and water efficiency and climate resilience upgrades)
Specialist in Housing
of rural rental properties under the Section 515 program and farm labor housing
Policy
under the Section 514/516 program.
40009
Housing Vouchers
75.00c
HUD
Funding for the creation of new Housing Choice Vouchers (including a set-aside for

Maggie McCarty,
new vouchers for persons experiencing or at risk of homelessness, survivors of
Specialist in Housing
domestic violence, and victims of trafficking; and tenant protection vouchers for
Policy
public housing residents), associated renewal costs, administrative fees, and landlord
outreach and mobility activities. New vouchers are to be al ocated to PHAs pursuant
to a new formula established by the HUD Secretary, based on severe housing need
among extremely low-income renters and PHA capacity.
40010
Project-Based Rental
15.00
HUD
Funding for new project-based rental assistance contracts to be awarded to

Maggie McCarty,
Assistance
owners/developers of affordable multifamily housing properties, to be distributed as
Specialist in Housing
determined by the HUD Secretary.
Policy
40011
Investments in
2.00
HUD
Funding for multiple existing programs 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
formula and competitive grants, Indian Community Development Block Grants, and
the Native Hawai an Housing Block Grant.
40101
Community
8.50
HUD
Funding for the Community Development 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.
and Infrastructure
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 Contact
40102
Lead-Based Paint
10.00
HUD
Funding for grants to states, localities, tribes, and nonprofits—as wel as some

Maggie McCarty,
Hazard Control And
funding 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
health and safety hazards, among other purposes, with resources targeted to serving
Hazard Mitigation in
lower-income households.
Housing of Families
With Lower Incomes
40103
Unlocking
4.50
HUD
Funding for new competitive grants for planning and implementation activities

Joe Jaroscak, Analyst in
Possibilities Program
related to state and local housing policy and zoning regulations. Eligible entities
Economic Development
include CDBG grantees and regional planning agencies or consortia.
Policy
40104
Strengthening
4.00h
FEMA
Cancels al outstanding 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, and to remain
available until expended.
Funding of $1 bil ion to the NFIP for a new means-tested affordability program to
provide discounts to eligible NFIP policyholders for insurance costs, to remain
available until September 30, 2026.e
40105
Community
7.50
HUD
Funding for new competitive grants 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 as a set-aside of funding to support community

land trusts.
Katie Jones, Analyst in
Housing Policy
40106
Fair Housing
1.00
HUD
Funding for the Fair Housing Initiatives Program for eligible fair housing organizations
Libby Perl, Specialist in
Activities and
to expand capacity to accept and investigate complaints, conduct testing, and provide
Housing Policy
Investigations
education and outreach, among other activities.
40107
Intergovernmental
0.25
HUD
Funding for Fair Housing Assistance Program grantees to increase capacity to

Libby Perl, Specialist in
Fair Housing
enforce state and local fair housing laws that are substantial y equivalent to the
Housing Policy
Activities and
federal Fair Housing Act, and to assist grantees in affirmatively furthering fair
Investigations
housing.
CRS-6

link to page 11
Sec.
Title
Appropriation
Agency
Summary

CRS Contact
40201
First-Generation
10.00
HUD
Funding for a new program to provide formula grants to states and competitive

Katie Jones, Analyst in
Down payment
grants to eligible entities to use for down payment and other assistance for eligible
Housing Policy
Assistance
first-time, first-generation homebuyers.
40202
Wealth-Building
0.50
HUD
Funding to support a pilot program to subsidize mortgages with 20-year repayment

Katie Jones, Analyst in
Home Loan Program
and
terms, but monthly payments similar to those on a 30-year mortgage, that are
Housing Policy
USDA,
insured by the Federal Housing Administration (FHA) or guaranteed by USDA for
with
eligible first-time, first-generation homebuyers.
Treasury
40203
HUD-Insured Smal
0.10
HUD
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. HUD can use funding for loan subsidy costs and for
Program
other activities intended to increase access to such mortgages.
40204
Investments in Rural
0.20f
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 include the provision of technical
assistance and training, predevelopment assistance grants, and other activities as
determined by the HUD Secretary.
CRS-7

link to page 11
Sec.
Title
Appropriation
Agency
Summary

CRS Contact
40401
Minority Business
3.10g
Commerce
Funding for new and existing Business Centers and Specialty Centers and the

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
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
Specialist in Public
economic competitiveness and invest in manufacturing technology or clean energy,
Finance
and for other purposes.
Source: Table prepared by CRS based on the text of the Amendment in the Nature of a Substitute to the Committee Print, as approved by the House Financial Services
Committee and posted on its website at https://financialservices.house.gov/uploadedfiles/hmkp-117-ba00-20210913-sd004.pdf.
Notes: Funds are available through FY2031, unless otherwise noted.
a. 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
administered by the Treasury’s CDFI Fund.
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 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.pdf.
e. FEMA does not currently have the authority to implement 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
Katie Jones
Specialist in Housing Policy
Analyst in Housing Policy

Grant A. Driessen
Julie M. Lawhorn
Specialist in Public Finance
Analyst in Economic Development Policy

Joseph V. Jaroscak
Libby Perl
Analyst in Economic Development Policy
Specialist in Housing Policy

Diane P. Horn

Analyst in Flood Insurance and Emergency
Management

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
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