MBA CREF Policy Update March 23, 2023

Registration is open for MBA’s National Advocacy Conference (NAC) on April 18-19 in Washington, D.C. This critical event allows you to connect directly with elected officials in our nation’s capital. Register today. 

Sign MBA’s Home for All Pledge: Join the 380+ MBA member companies that have signed MBA’s Home for All Pledge, representing a commitment to promoting affordable rental housing; minority homeownership; and company diversity, equity and inclusion.

Secretary Yellen Testifies Before Senate Finance Committee on FY24 Budget, Health of U.S. Banking System 

Last week a hearing with Treasury Secretary Janet Yellen before the Senate Finance Committee on the President’s Fiscal Year 2024 budget featured much discussion on the health of the U.S. banking system. Secretary Yellen said that the banking system is sound and resilient, but faced numerous questions on the future of deposit insurance, bank supervision, and the shortcomings of Silicon Valley Bank. Related to real estate, Chairman Ron Wyden (D-OR) stated in his opening remarks that there appears to be bipartisan interest in tax credits to boost the supply of affordable housing. A summary of the hearing can be found here. 

• Why it matters: The hearing was the first opportunity for Senators to question Secretary Yellen regarding the recent failure of Silicon Valley Bank and Signature Bank. Senators also discussed the economic impact of inflation and the harmful consequences of not raising the debt ceiling.
• What’s next: Both the Senate Banking Committee and House Financial Services Committee are expected to hold oversight hearings on the federal regulators’ response to the recent bank failures. 

For more information, please contact Ethan Saxon at (202) 557-2913 or Tallman Johnson at (202) 557-2866.

House Financial Services Subcommittee Holds Flood Insurance Hearing

The House Financial Services Committee’s Subcommittee on Housing and Insurance recently held a hearing on options to expand flood insurance coverage. The primary focus of the hearing was aimed at addressing the issue of flood insurance coverage for consumers who reside outside of National Flood Insurance Program (NFIP) Special Flood Hazard Areas (SFHA). Lawmakers on the panel also discussed the need to reauthorize the NFIP on a long-term basis. There have been almost two dozen short-term reauthorizations for the NFIP since the last long-term reauthorization of the program (the “Biggert-Waters” reforms) was enacted in 2012. 

• Why it matters: For years, Congress has debated the need for reforms to modernize the financially beleaguered flood insurance program, with policymakers divided over the appropriate level of public subsidy needed. Members on both sides of the aisle discussed affordability issues, especially in LMI communities, as well as the importance of consumer education, pointing to the proportion of flood damage that occurs in areas deemed “low risk.” A detailed hearing summary is here.
• What’s next: The subcommittee will likely hold additional hearings in the coming months, and another brief reauthorization is likely before the program lapses on September 30, 2023, pending bicameral negotiations tied to the FY 2024 budget and appropriations process. MBA will continue to advocate for uniformity and consistency in private flood insurance requirements for all types of mortgages. 

For more information, contact Alden Knowlton at (202) 557-2741 or Borden Hoskins at (202) 557-2712.

New York Legislature Releases Response to Governor’s Proposed Budget; Rejects Most Elements of Governor’s Housing Plan

Last week, the New York Senate and Assembly released their versions of proposed SFY2023 budget bills. Importantly, the Legislature appears to have rejected large elements of the Governor’s comprehensive housing plan to build 800,000 homes over the next decade. In recent weeks, legislators began objecting to the Governor’s proposal to mandate new housing targets in the suburbs and upstate, and their Senate and Assembly budget plans instead provide $500 million in incentives to encourage new developments. The Governor had also proposed a limited extension of the 421-a tax incentive for development, which was also rejected by both chambers. The Senate and Assembly have proposed “good cause” eviction language but have not included language to tax mezzanine debt. 

• Why it matters: The New York Constitution requires the state to adopt a budget before the beginning of the fiscal year on April 1st, and the introduction of these 18 bills establishes the starting point for fiscal negotiations, which accelerate in the days ahead.
• What’s next: MBA will continue to monitor the progress of discussions among the parties and coordinate any advocacy efforts with the New York MBA and other industry partners.

For more information, contact William Kooper at (202) 557-2737.

Biden Administration Releases Budget Justifications 

Last Tuesday, the Biden Administration released the Analytical Perspective and Appendix portion of its proposed budget for Fiscal Year 2024. The additional documents provide a more detailed look at the recently released proposal. As noted during our high-level review last week, the proposed budget emphasizes programs for first-time homebuyers, renter protections, and recommends increases in certain corporate taxes. MBA staff have put together an analysis of the relevant housing and tax portions of the proposed budget.

• Why it matters: The President’s budget proposal is a blueprint of the administration’s priorities provided to Congress as it begins its budget and appropriations process. 
• What’s next: The Congressional budget process begins shortly, starting with possible efforts to pass a budget resolution, and then followed by expected work on appropriations bills.  

For more information, contact Stephanie Milner at (202) 557-2747.

MBA Launches CONVERGENCE Philadelphia

MBA launched CONVERGENCE Philadelphia, its third city-based pilot program to promote and increase minority homeownership, last week. CONVERGENCE Philadelphia will be led by MBA and three cornerstone partners: Radian, TD Bank and Wells Fargo. The multiyear commitment will involve key community and industry stakeholders working together to identify and address homeownership barriers for people and communities of color. CONVERGENCE Philadelphia joins initiatives underway in Memphis, Tennessee, and Columbus, Ohio.

• MBA’s President and CEO Bob Broeksmit, CMB, said, “MBA is developing stronger and more effective affordable housing partnerships to close the minority homeownership gap and create meaningful change in underserved communities. CONVERGENCE Philadelphia will bring together a local network of housing leaders, non-profits, and other stakeholders to collaborate on sustainable housing opportunities in the city. We are grateful for the generous support from Radian, TD Bank, and Wells Fargo and will work together with housing advocates and city leaders to strengthen existing programs and develop new solutions that increase affordable homeownership opportunities for Black, Hispanic, and other diverse households.”
• What’s next: For more information on CONVERGENCE, please click here .

For more information, contact Steve O’Connor at (202) 557-2867.

mPower Moments: On Making Room for the Next Generation with Nina Tassler 

In this mPower Moments episode, mPower Founder Marcia M. Davies sits down with Nina Tassler, Advisor and Former Chairman, CBS Entertainment and Managing Partner of PatMa Productions. During this inspiring chat, Tassler discusses her journey and how she was able to ascend to Chairperson at CBS, despite a career “full of surprises.” Tassler also talks about her experience and motivation for writing her book, “What I Told My Daughter,” and how she was able to incorporate a collection of essays from other powerful women who were able to share their experiences balancing their careers as well as navigating motherhood.

• What’s next: To watch more mPower Moments, click here. 

For more information, contact Marcia Davies at (202) 557-2707.

Rent Control Map and State Trackers

• Given the ongoing proposals and ballot initiatives across the country, MBA has published an online map that provides an overview of state and local rent control laws. MBA will follow ongoing developments on this issue and will update the map accordingly.  
• The state eviction moratorium and legislative activity tracker available here and here.

For more information, please contact William Kooper at (202) 557-2737 or Grant Carlson at (202) 557-2765.

Register Today: MBA’s National Advocacy Conference – April 18-19

Registration is open for MBA’s National Advocacy Conference on April 18-19 in Washington, D.C. This critical event allows you to connect directly with elected officials in our nation’s capital. Your story matters – share it with key policymakers as they consider legislation that affects all of us.

• Why it matters: The last few years have been unprecedented for millions of Americans, and the real estate finance industry is no different as we navigate new terrain. NAC gives you the opportunity to share your narrative with the key staff and decision-makers while networking with your industry colleagues. When we work together and combine our voices, we can do great things.  
• What’s next: Share your experiences, your voice, and your passion for our industry April 18-19! As in the past, there is a tailored CREF track for our commercial/multifamily members. Register for yourself – and encourage your colleagues to attend – today at mba.org/nac.

For more information, please contact Bill Killmer at (202) 557-2736.

10. Upcoming MBA Education Webinars on Critical Industry Issues

MBA Education continues to deliver timely single-family and commercial/multifamily programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – which are complimentary to MBA members:

• Meet the Homeseeker: 2023’s Most Important Borrower – March 30
• Deciphering ESG in Affordable Multifamily Lending – March 30
• Warehouse Lending: Latest Activity, Trends and Developments – April 12
• Multifamily Finance Faces Headwinds Head-On – April 18
• What Trends will Shape the Lending Space in the Second Half of 2023 – June 1