Last month Congress overcame partisan stalemates to pass a Continuing Resolution to fund the federal government through early December and raise the statutory debt limit by $480 billion - an amount the Treasury Department estimates would be enough to allow the government to continue borrowing through December 3. Both measures set up another consequential fiscal deadline, and congressional leaders are using the intervening time to hammer out a potential tax/reconciliation ("Build Back Better") agreement, which has been stalled by intraparty disagreements over infrastructure, climate and social spending (including housing programs), and tax increases to pay for the package.

Looking ahead, the utilization of MAA remains essential to our robust efforts aimed at impacting policy. Stay tuned for more details as events unfold.
 

1. Congress Passes and President Biden Signs Stopgap Funding Bill to Avert Government Shutdown, Avoids Default By Raising Debt Limit

In late September, House and Senate lawmakers passed, and President Joe Biden signed, a CR ahead of the September 30 government funding deadline to avert a shutdown. Two weeks later, the House and Senate passed a short-term $480 billion debt ceiling extension that the President signed into law. The temporary increase allows the U.S. Treasury Department to continue funding the government's financial obligations through December 3, 2021. 

• Why it matters: The CR also includes a short-term extension of the National Flood Insurance Program (NFIP) authorization and provides $28.6 billion in funding for emergency disaster relief.
   
• What's next: Congressional Republicans remain steadfast in their position that the debt ceiling be addressed through the reconciliation process - a move that has been adamantly opposed by Democrats. Parties in both chambers remain divided on a more well-defined and longer-term solution for the debt ceiling as December's list of pressing fiscal priorities continues to grow. 
   

2. Senate Fiscal Year 2022 "T-HUD" Appropriations Act Released

Last week, Senate Appropriations Committee Chairman Patrick Leahy (D-VT) released the text of the fiscal year (FY) 2022 Transportation, Housing and Urban Development, and Related Agencies ("T-HUD") Senate Appropriations bill. Under the legislation, the Department of Housing and Urban Development (HUD) would receive $65.4 billion in total budgetary resources, which is $5.7 billion above the enacted level in fiscal year 2021. The committee included report language, requested by MBA, expressing concern regarding a backlog of applications and delayed underwriting within the Federal Housing Administration's (FHA) Multifamily Housing program. The report states, "[t]he Committee is concerned with the growing backlog of applications and delayed underwriting in FHA Multifamily Housing. The Committee also directs the Department to provide an after-action report to the House and Senate Committees on Appropriations within 90 days of enactment of this act on the actions taken by the Department in response to recent increased volume, the efficacy of workload sharing as envisioned by the multifamily transformation, consistency of processes between regions, and lessons learned to inform future risk management plans and better prepare for future volume surges." In addition, the legislation also provides up to $5 million for "modernizing FHA Multifamily Housing IT systems ... limited to planning activities and development of the automated underwriting system."

• Why it matters: The committee report language on the FHA Multifamily Housing backlog provides recognition by the Senate of the problem that MBA and our coalition partners have repeatedly urged FHA to address. The requirement to brief the committee should encourage coordination within HUD on finalizing a contract for support services to reduce the backlog.
   
• What's next:  It is unlikely at this late stage in the appropriations process that the Senate will consider individual spending bills, setting the stage for negotiations with the House on an omnibus fiscal year 2022 appropriations.

3. House Financial Services Committee Holds Third Hearing on Housing as Reconciliation Negotiations Continue

Last week, the House Financial Services Committee (HFSC) convened for a third hearing that focused on the importance of investing in housing as part of the Build Back Better Act (BBBA) budget reconciliation package and the ongoing interparty negotiations between congressional Democrats and the White House. This hearing followed a similar theme from the previous week, when the HFSC Subcommittee on Housing, Community Development and Insurance held a hearing focused on exclusionary zoning. On Wednesday, Senate Banking and Housing Committee Chairman Sherrod Brown (D-OH) and HFSC Chairwoman Maxine Waters (D-CA) also held a press conference urging congressional leaders to maintain robust housing investments in the BBBA.

• Why it matters: Throughout the course of the budget reconciliation process, multiple flashpoints on tax policy and spending levels have emerged between progressives - who have pushed for more ambitious proposals on high-income earners and corporations - and moderates who have expressed uneasiness with a sharper hike in tax rates and the overall price tag. As Democratic leadership examines ways to pare back the $3.5 trillion figure for the proposed BBBA, several affordable housing provisions could be curtailed or eliminated as part of the broader package.
   
• What's next: Democratic leaders are publicly aiming for a broad agreement on the reconciliation bill's framework before month's end. MBA will continue its direct lobbying efforts to urge Congress to uphold our industry's priorities in this evolving bill.
   

Advocacy at Annual 21

MBA's Advocacy programs enjoyed a celebratory and productive week with the over 3,500 attendees at MBA's 2021 Annual Convention and Expo in San Diego. Hundreds of attendees visited with Political Affairs staff and our MAA and MORPAC Chairmen at the Advocacy Activation area where we enjoyed "MAA Moments," fun giveaways, and time together. The Activation area gave us the time to talk and connect with attendees about the importance of our industry's advocacy programs. Let us know if your company is interested in running a MAA or MORPAC company campaign - it's never too late!

We capped the conference off with an outside reception to commemorate MORPAC's 50 years of leadership in Washington, DC! We are proud to announce that fundraising efforts throughout the conference, including this in-person reception, raised record-level contributions totaling more than $140,000! Thank you to all of our MORPAC contributors. Check out our 50th anniversary video to celebrate the occasion.

Here's to 50 more years of MORPAC and advocating for the real estate finance industry.

MAA Action Week

Starting next week, MAA will be hosting another MAA Action Week campaign across November 1 - 5, 2021! This national, industry-wide campaign unites real estate finance professionals to become more engaged in political advocacy. Help us maintain a strong, unified voice in Washington, DC, and state capitals across the country by committing to run a MAA campaign with your company, state association or professional network!

MBA staff make these campaigns as easy as possible by providing a host of materials to encourage industry professionals to join MAA and engage in advocacy. It's not too late! If you are interested in learning more about running a MAA campaign, please contact Rosie Sheehan at (202) 557-2933.
 

MAA Quarterly Webinar

As part of Action Week, be sure to join us on Tuesday, November 2 from 3:00 - 4:00pm ET for our next Quarterly MAA webinar! This webinar is free to all MAA members using the code "MAA2021" and the link to register can be found here.

This townhall-styled webinar will feature the MBA Legislative and Political Affairs team to provide a briefing on the current state of play in Washington, DC, implications for our industry, and how you can get involved today! Come ready with your questions.