Davis Bacon law requires that “prevailing wages” are paid for work done on federally assisted housing to ensure that wages are fair. Bacon rules apply to American Recovery and Reinvestment Act (ARRA) programs such as: CDBG-R, NSP2, Weatherization Assistance Program (WAP), Indian Housing Block Grant and Public Housing Capital Fund programs. For some programs, specific prevailing wage/Davis Bacon rules are being created.

Program administrators express concern that construction costs increase by 30% due to this requirement and that reporting requirements are difficult to meet. There is also concern that Davis-Bacon requirements have delayed stimulus programs such as WAP

HUD Office of Labor Relations Davis Bacon page

Wage Determinations Online

Department of Labor recovery stimulus page

Minnesota Labor Standards

Minnesota Building and Construction Trades Council prevailing wage news

Section 3 in the Housing and Urban Development Act of 1968 requires that recipients of certain HUD financial assistance, to the greatest extent possible, provide job training, employment, and contract opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods.

In October 2009, under Secretary Donovan, HUD ramped up its commitment to the Section 3 program by announcing, for the first time, that entities that do not comply with Section 3 will face sanctions.

Rep. Nydia Velazquez (D-NY) has proposed the Earnings and Living Act (ELOA) to strengthen Section 3 by requiring 30% of new hires, 30% of hours, and 10% of contracts of HUD-funded projects to be directed to low income individuals. Velazquez also introduced the Together We Care Act in December 2009. This proposal does not pertain directly to Section 3, but it has similar employment goals for low-income people through providing public housing residents with training to be home health care aides.

HUD Section 3 page

HUD Section 3–NSP Guidance

In June, 2009, the Surgeon General and HUD announced a plan to promote healthy homes. HUD identified four goals: foster partnerships for a healthy homes agenda, provide key research, incorporate healthy homes principles into ongoing programs, and enable communities to create healthy homes.

On Sept. 9, 2009, Senator Jack Reed (D-RI) introduced S. 1658 to establish an interagency council to coordinate the healthy housing work of nine federal agencies. The council would encourage healthy housing through capacity building, technical assistance, education and public policy. MN Senator Al Franken is one of the bill's co-sponsors. The House companion (H.R. 3793) was introduced by Rep. Robert Brady (D-PA) on Oct. 13, 2009. At the federal level HUD has issued a NOFA for healthy homes demonstration projects which is an annual solicitation.

Commission to Build a Healthier America Issue Brief: Housing and Health and fact sheet (Robert Wood Johnson Foundation)

National Center for Healthy Housing

Sustainable communities provide access to affordable housing, more transportation options, and lower transportation costs while protecting the environment. Sustainable building uses healthier and more resource-efficient methods to construct, renovate, operate, maintain, and demolish housing. HUD has joined with Department of Transportation and EPA to develop six principles for creating sustainable communities.

In February 2010, Housing and Urban Development Secretary Donovan announced the creation of the Office of Sustainable Housing and Communities (OSHC). The office is overseen by HUD Deputy Secretary Ron Sims. OSHC is designed to help build stronger, more sustainable communities by connecting housing to jobs, fostering local innovation and building a clean energy economy. HUD has also announced the beginning of a funding process for Sustainable Communities Planning grants with $100 million available for plan development and implementation (20% of the overall project costs are expected to be contributed by the projects).

Senate Banking Committee Chairman Christopher Dodd (D-CT)has introduced the Livable Communities Act (S. 1619)

• MHP has signed on to a letter of support for the Livable Communities Act authored by LISC, the National Housing Conference, the National Housing Trust, PolicyLink, and Reconnecting America.
• The National Low Income Housing Coalition and other advocates are promoting that the Livable Communities Act explicitly benefits low income households.
• The 2011 budget includes $150 million to be used by the proposed new office.

The American Clean Energy and Security Act of 2009 (H.R. 2454) as passed by the House of Representatives, contains provisions on National Energy Efficiency Building Codes (Sec 201); State Energy and Environment Development [SEED] Accounts (Sec 131); Retrofit for Energy and Environmental Performance [REEP] (Sec 202); and, Green Resources for Energy Efficient Neighborhoods (Subtitle H). On September 30, Senators John Kerry (D-MA) and Barbara Boxer (D-CA) introduced the Clean Energy Jobs and American Power Act (S. 1733). Senators Kerry, Joe Lieberman (I-CT) and Lindsey Graham (R-SC) continue work on crafting and gaining bi-partisan support for the Senate version.

HUD/DOT/EPA 6 principles for sustainable communities

EPA Green Building

HUD Office of Sustainable Housing and Communities

National Green Communities

Minnesota Green Communities

Transportation for America (T4America)

NLIHC analysis in Advocates’ Guide

Authorization of the federal transportation bill occurs once every six years. Authorization presents the opportunity to ensure that transportation policies and funding support the availability of affordable housing near public transit and job centers; supports affordable, transit-oriented development; and encourages communities to coordinate transportation, land use, and housing planning.

The current law (SAFETEA-LU) expired on 9/30/09, and was extended for one month until October 31, 2009, under a Continuing Resolution. Rep. Oberstar (D-MN), Chair of House Transportation and Infrastructure Committee, wants to pass a new authorization bill this year, whereas the Senate and the Obama Administration have indicated they prefer an 18-month extension of the current law to enable more time to develop not only what policies should be included in the new bill, but also how to fund the $500 billion price tag.

Congressman Oberstar introduced the Surface Transportation and Authorization Act (STAA) on June 24, 2009, to be considered by the House. This bill includes region-wide planning and encourages coordination of land use, housing and transportation, but funding incentives are needed. Reducing the combined costs of housing and transportation is a goal of T4America and other advocates. The Senate bill has not yet been drafted.

Transportation for America (T4America)

NLIHC analysis in Advocates’ Guide

Center for Housing Policy transportation brief

Manufactured housing makes homeownership affordable to many households.

Timely topics include:

• Senate climate change energy bill (S. 1733) provides funding for energy efficient manufactured homes with building code requirements stipulated under American Clean Energy Leadership Act (S. 1462).
• Energy efficiency replacement of substandard manufactured homes through rebate currently in House-passed American Clean Energy and Security Act of 2009.
• Improving financing for purchase of homes.
• New federal regulations for Title I manufactured home loans take effect mid-November 2009.

Corporation for Enterprise Development (CFED) (national)

All Parks Alliance for Change (MN)

MHP Manufactured Housing Report

Manufactured housing rebate in climate bill

The Fair Housing Act is meant to protect people from discrimination in housing transactions and promote integration. HUD’s fair housing programs include Fair Housing Initiatives Program (FHIP) and Fair Housing Assistance Program (FHAP). Both the CDBG and NSP programs contain fair housing components.

HUD Secretary Shaun Donovan has prioritized fair housing, including foreclosure prevention, anti-predatory lending, and rental discrimination. Policy areas that concern fair housing locally include: Limited English proficiency (LEP) issues; sexual harassment in rental housing; reasonable accommodations for persons with disabilities; the responsibility of municipalities to affirmatively further fair housing through federal stimulus dollars; and housing discrimination based on receipt of public assistance.

HUD Office of Fair Housing and Equal Opportunity (FHEO)

National Fair Housing Alliance

Southern MN Regional Legal Services (SMRLS)

Housing Discrimination Law Project at the Legal Aid Society of Minneapolis

Fair Housing Advocate

Minnesota Department of Human Rights

Housing for seniors is poised to become an increasingly important policy issue as the baby boomer generation ages.

• HUD Section 202 Supportive Housing for the Elderly Program provides capital development grants for building and maintaining housing for seniors with very-low incomes, as well as rental assistance.
• Other important housing programs for seniors include public housing, Housing Choice Vouchers (Section 8), and Section 811 (below).

Housing affordability for people with disabilities is growing problem.

• HUD’s Section 811 program funds development of housing and tenant-based vouchers for people with disabilities with extremely low incomes.
• Other important housing policies for people with disabilities include public housing and Housing Choice Vouchers (Section 8).

Policy issues include:

• President Obama’s proposed FY 2011 budget would provide no funding for the Section 202 Capital Advance program, which would result in no new 202 projects. The proposed budget also eliminates all funding for the assisted living conversion program and Substantial Capital Repairs. Significant reforms are also being proposed for the 202 program.
• On March 17, 2010, Barney Frank (D-MA) introduced the Housing Preservation and Tenant Protection Act of 2010, which would make it easier for developers, lenders, and others to participate in Section 202 and would streamline and simplify the development and preservation of affordable and supportive senior housing.
• Insufficient number of vouchers to assist seniors in accessing assisted living facilities and/or the health-related services they need. The current HUD Section 202 funding is not meeting growing demand. Without sufficient vouchers, frail elderly people must move into a nursing home to get the care they need.
• Integrating Section 811’s supportive housing units within larger rental housing properties Blending Section 811 funding with federal LIHTC financing.
• Limited funding levels for Section 811 preservation of the existing housing stock for seniors and people with disabilities.
• Institutional bias of services for people with disabilities. People with disabilities often can only qualify for services when they are living in an institutional, rather than an integrated community, setting.

Housing for Seniors

• American Association of Homes and Services for the Aging Issue Brief and policy page

Housing for People with Disabilities

• Technical Assistance Collaborative
• Priced Out in 2008 report
• The Arc of Minnesota
• Institute on Community Integration (ICI) at the UMN

Fannie Mae and Freddie Mac are two secondary mortgage institutions created by acts of Congress (in 1938 and 1970, respectively) to attract capital to mortgage markets. The primary business of these Government Sponsored Enterprises (GSEs) is selling securities to raise funds to acquire mortgage loans. Congress sets affordable housing goals for both institutions that require investment in low income communities and affordable homes.

During the recent financial and housing market meltdown, these institutions became financially unstable and required large infusions of capital from the Federal Reserve and Treasury. They are now controlled by the federal government under the oversight of the Federal Housing Finance Agency.

After initial proposals faced political roadblocks, the Obama Administration is waiting until 2011 to propose new reforms to Fannie and Freddie, despite Congressional urges to address the GSEs in the 2011 budget.

The Housing and Economic Recovery Act of 2008 established the "Duty to Serve Underserved Markets" as a new requirement for the GSEs. This requires them to facilitate a secondary market for mortgages on housing for very low-, low- and moderate-income families” in three markets: manufactured housing, affordable housing preservation, and rural markets. FHFA proposed additional rules for 2010 and 2011 for serving low-income families, very low-income families, and families in high-minority/low-income/disaster areas.

Advance Notice of Rulemaking and Request for Comment

Proposed housing goals for Fannie Mae and Freddie Mac.

FHFA Mortgage Market Note on Housing Goals of Fannie Mae and Freddie Mac in the context of the mortgage market.