On April 18, 2024, The Senate Committee on Banking, Housing, and Urban Affairs held a full committee hearing entitled, "Oversight of Federal Housing Regulators.” The hearing primarily focused on what the federal government can do to expand America’s housing supply and lower the cost of housing.
Committee Chair Sherrod Brown (D-OH) mentioned the importance of Department of Housing and Urban Development (HUD) programs in his opening remarks stating, “HUD’s housing assistance programs are critical to keep rent affordable for millions of workers, veterans, seniors, and youth aging out of foster care who could face homelessness without them.” Ranking Member Tim Scott (R-SC) touted his Road to Housing Legislation that he believes creates nonpartisan reforms to our housing crisis and “re-centers support around families, helping those who are homeless, or renting, or preparing to buy a house.”
Acting Secretary Todman Says HUD Provided Historic Levels of Rental Assistance
HUD Acting Secretary Adrianne Todman and Federal Housing Finance Agency Director Sandra Thompson were the only witnesses at the full committee hearing. In her opening statement, Acting Secretary Todman thanked former HUD Secretary Marcia Fudge for her tenure at HUD and touted the work HUD has accomplished under the Biden Administration. In her opening remarks, the Acting Secretary stated “HUD has made historic strides to improve outcomes for the people we serve. We have provided historic levels of rental assistance, expanded opportunities for homeownership, supported the creation of affordable homes to rent and to buy, supported resilient communities, worked to root out housing discrimination, and helped people who don't make a lot of money just get a fair shot."
Specifically related to federally assisted housing, Senators discussed topics such as rising insurance premiums, fair market rent, Moving to Work, the Rental Assistance Demonstration, and energy efficiency.
Ranking Member Scott Advocates for Removing RAD Unit Cap
During questioning, Ranking Member Scott discussed how his Road to Housing legislation would help increase and preserve affordable units by eliminating the unit cap on the Rental Assistance Demonstration program and authorizing the Moving to Work program. Senator Scott asked Acting Secretary Todman if she had any proposals to combat homelessness. She responded that the additional funding for continuum of care and housing vouchers Congress provided has improved the issue. Senator Laphonza Butler (D-CA) expressed her concern with the impacts of climate disasters on insurance providers not renewing their homeowner and rental insurance policies for over thirty thousand Californians. Senator Butler asked how HUD and the FHFA can develop a framework to safeguard consumer protections in the event of natural disasters. Acting Secretary Todman shared that though HUD has limited authority with the insurance industry, HUD has convened an internal working group to look at how they can help housing providers who are experiencing high operating costs because of insurance increases. HUD will also be announcing more information this week outlining what they can do to help affordable housing providers, including engaging with insurance agencies.
Find a link to the full hearing, witness testimony, and the committee memorandum here.