Earlier this week, the full House of Representatives voted along party lines to adopt a $3.5 trillion budget resolution framework for fiscal year (FY) 2022, following Senate passage earlier in the month. The budget resolution passed as a part of a House rule that also enabled a floor vote on the Senate-passed $1.2 trillion bipartisan infrastructure bill by September 27. 

As previously reported, congressional Democrats are pursuing a dual-track strategy to pass major infrastructure and economic legislation- including tax increases that would impact real estate- through the budget reconciliation process allows passage in the Senate by a simple majority (rather than 60 vote threshold) 

House and Senate committees will begin finalizing legislation in earnest over the next few days and weeks as congressional leaders give committees a September 15 target deadline to develop their portions of the reconciliation bill. MAA members need to take action TODAY to urge Congress to support and defend our industry tax priorities.

And finally, MORPAC passed an important milestone last week- over $1 million raised from a national grassroots network of thousands of individual donors giving what they can. To learn more, view the 2021 MORPAC Mid-Year Report, which includes a compilation of our achievements this year to date, and a much deserved call-out to our partners and contributors.
 

1. Key Senator Introduces New Housing Affordability Legislation

Last week, Senate Finance Committee Chairman Ron Wyden (D-OR) introduced a new bill that seeks to expand access to housing for first-time homebuyers and low-income individuals by investing in existing programs and establishing new tax credits geared towards renters and middle-income homeowners. The Decent, Affordable, Safe Housing for All (DASH) Act, which includes both tax and spending measures, would increase the production of affordable housing, invest in homeownership in underserved communities, and incentivize jurisdictions to modify zoning and land-use practices to encourage affordable housing.

• Why it matters: Specifically, the bill would expand the Low-Income Housing Tax Credit (LIHTC), establish a Renter's Tax Credit and Middle-Income Housing Tax Credit (MIHTC), and create a new down payment tax credit for first-time homebuyers. Additionally, it would establish the Neighborhood Homes Investment Act (NHIA), a proposed federal tax credit targeted to the new construction or substantial rehabilitation of affordable, owner-occupied housing located in distressed urban, suburban, and rural neighborhoods - a key issue during MBA's virtual National Advocacy Conference earlier this year.
   
• What's next: As Chairman of the congressional tax-writing committee, Senator Wyden is well-positioned to push to include some version of this and other tax proposals in the Senate reconciliation package this fall.
   

2. Biden Administration Urges Supreme Court to Maintain CDC Eviction Moratorium; MBA Continues to Advocate for Emergency Rental Assistance Program Improvements

Yesterday, the Biden Administration urged the Supreme Court to maintain the Centers for Disease Control and Prevention's (CDC) recently reissued eviction moratorium as COVID-19 cases surge in many areas due to the contagious variant. Last Friday, a three-judge panel of the U.S. Court of Appeals for the District of Columbia rejected a bid by the Alabama and Georgia Realtors® to block the moratorium, which they later appealed.

• Why it Matters: MBA opposed any potential attempts by Congress last month to legislatively extend the CDC's evictions moratorium and does not believe this reissued moratorium is appropriate, given the $46 billion in Emergency Rental Assistance (ERA) available. MBA and industry trade groups are urging the Biden administration to work with Congress, states, and localities to improve the disbursement of rental assistance funds to landlords and tenants. 
   
• What's Next: While many jurisdictions are successfully increasing their Emergency Rental Assistance Program (ERAP) disbursement, others are fraught with significant application processing and payment delivery delays. If jurisdictions fail to meet certain distribution benchmarks for ERAP funds by September 30, 2021, these funds could be potentially returned to the U.S. Treasury. MBA will continue to follow developments regarding the CDC's eviction moratorium, including the likelihood of a ruling from the Supreme Court in the coming days.

3. MBA Leads Industry Coalition Efforts on Radon Testing Standards 

Earlier this month, MBA and a coalition of 10 industry trade groups submitted a letter to the Federal Housing Finance Agency (FHFA) that highlighted reservations - and offered recommendations - on the proposed changes to radon testing standards for Fannie Mae and Freddie Mac (the GSEs). The proposed changes would mirror those under the U.S. Department of Housing and Urban Development (HUD) Multifamily Accelerated Processing (MAP) guide. Attached to the letter was a report, conducted by Exponent, of its review of the Kitto "Evaluating and Assessing Radon Testing in Housing" (EARTH) Radon Study that HUD used to adopt new standards. 

• Why it matters: The multifamily industry supports environmental testing that balances the need to protect tenants' health, while not unduly impacting the financing and production of much-need affordable multifamily housing. The new proposed standard of 100% ground floor testing, with an additional 10% upper floor testing, is based on what MBA and many in the industry believe is a biased study that is not risk-based and would result in substantial delays in the GSEs' multifamily pipelines, while also increasing the cost of closing loans.
   
• What's next: MBA and its members will continue to engage with FHFA and industry stakeholders on this important issue.
   

Tell Congress: Preserve Industry Tax Priorities in Budget Reconciliation

Earlier this month, MAA launched a call to action urging advocates to contact their Senators and Representatives and urge them to preserve industry tax priorities to support real estate investment and homeownership during budget reconciliation and tax negotiations. This represents a critical opportunity for our industry weighs in with lawmakers to urge the appropriate balance in of any new provisions - to help preserve tax policies that are paramount to our industry - and to the customers and end users you serve. More than 220 MAA members have sent over 800 messages to emphasize these positions to the US Senate and US House.

A special thank you to the following for leading the way on this issue! Below are the top 5 companies by action takers.

1. JLL - 63
2. CBRE - 48
3. NorthMarq - 38
4. Grandbridge - 32
5. Walker & Dunlop - 16 
    

It's not too late! Add your voice TODAY by taking action on this critical and timely issue!

Advocacy in August

This month marked the start of MBA's annual Advocacy in August campaign, an initiative to keep MAA members engaged with our industry's advocacy efforts during this critical time that your elected officials are back home during the extended Congressional recess. Across the country, MAA members will meet with their legislators to advocate on behalf of the real estate finance industry and the customers we all serve. These in-person and virtual meetings with policymakers are a key component of MBA's advocacy efforts, as they add a name, a face, and personal story to complex industry issues and enumerate their impact on your customers, making them relatable to Members of Congress and Senators, many with, with little to no background regarding our industry.

Last week, Eric Gates, President & CEO of Apex Home Loans, and Nathan Burch, Senior Vice President of Vellum Mortgage, sat down with Sen. Warner's (VA) Sr. Policy Advisor, Michael Beresik, to discuss and underscore the various positions included in the current tax call to action.

These important conversations will continue throughout the remainder of August and into September as MBA and MAA remain engaged on key issues. Please email Rosie Sheehan (rsheehan@mba.org) to lend your voice and join a meeting.

Save the Date for MBA's Advocacy Reception at Annual!

We hope you will join MORPAC Chairman, Jeff Taylor, and MAA Chairman, Steven Plaisance, in San Diego, CA during MBA Annual21 to celebrate MBA's MORPAC and MAA Advocacy programs and get a chance to hear about them in person. Click here to register today. Hope to see you all there!

What: Advocacy Reception to Celebrate MAA and MORPAC
Date: Monday, October 18, 2021
Time: 4:00pm-5:30pm PT
Place: San Diego, CA