Velazquez Bill Would Reestablish Program Promoting Affordable Housing
Washington, DC – Rep. Nydia M. Velázquez (D-NY) has introduced legislation that would reestablish the Federal-Financing Bank and Risk Sharing Program, which helped with the creation and preservation of affordable rental housing in New York City and across the country. The bill, entitled H.R. 8824, or the Federal-Financing Bank Risk-Sharing Act of 2020, would reimplement the aforementioned program and expand it to make community development financial institutions (CDFIs) eligible for participation.
“Over the past year, the pandemic has presented our nation with unique challenges, and has magnified our existing housing crisis,” said Velázquez. “The Federal-Financing Bank and Risk Sharing Program has proven time and time again to successfully expand affordable housing, providing homes for working families across the country. Its reimplementation will bring back the profound success the program once had in helping state and local communities meet their housing needs.”
Established by the Obama Administration, the Federal-Financing Bank and Risk Sharing Program was a joint effort between the United States Department of Housing and Urban Development and Federal Housing Administration (HUD/FHA), and the Treasury Department and Federal-Financing Bank (FFB). Through a network of state and local Housing Finance Agencies (HFAs) nationwide, the program provided low-cost financing options for the creation and maintenance of multifamily affordable housing. The Program was responsible for the creation of over 20,000 units of affordable housing nationwide. The New York City Housing Development Corporation (NYCHDC) utilized the program for seven transactions totaling $345 million in loans to create over 3,000 affordable housing units in New York City. Despite its success, the Trump Administration allowed authorization of the Program to expire in 2018. It has yet to be reinstated.
The Federal-Financing Bank Risk-Sharing Act of 2020 has been endorsed by the Council for Affordable and Rural Housing, Enterprise Community Partners, Inc., Housing Partnership Network, Leading Age, Local Initiatives Support Corporation, Low Income Investment Fund, Institute of Real Estate Management, National Affordable Housing Management Association, National Apartment Association, National Association of Affordable Housing Lenders, National Association of Home Builders, National Association of Housing Cooperatives, National Association of Local Housing Finance Agencies, National Association of Realtors, National Council of State Housing Agencies, National Housing Conference, National Housing Trust, National Leased Housing Association, National Multifamily Housing Council, Opportunity Finance Network, and Stewards of Affordable Housing for the Future.
A pdf of the bill is available online here.