The Senate Banking, Housing, and Urban Affairs Committee held a remote hearing on May 20 regarding “21st Century Communities: Expanding Opportunity Through Infrastructure Investments.” The hearing discussed how the American Jobs Plan Act will include important investments in housing and transit to address the nation’s housing affordability crisis and support low-income communities and jobs. The hearing highlighted the importance of housing as infrastructure. HUD Secretary Marcia Fudge and Transportation Secretary Pete Buttigieg testified.
In her testimony, Secretary Fudge detailed the importance of investing in housing in the next bill:
“Our homes are bedrock, brick and mortar institutions that lay the foundation for a stronger and more connected society—just like our roads, our highways, and our airports. To put it simply, our homes serve as a bridge to greater opportunities and a better life…To pass an infrastructure plan that fails to address our affordable housing crisis would be akin to building a road that leads to nowhere.”
Secretary Fudge addressed concerns raised by Ranking Member Pat Toomey (R-PA) that Emergency Housing Vouchers would be available to illegal immigrants due to documentation-requirement waivers (see Memo, 05/10). Secretary Fudge reiterated previous comments by HUD Senior Advisor Richard Cho correcting this misconception, clarifying that Emergency Housing Vouchers are limited by statute to U.S. citizens and people with legal residency.
Secretary Fudge also addressed Senator Toomey’s concerns about the amount of funding allocated for public housing in the American Jobs Plan and whether it should be shifted to vouchers. Secretary Fudge responded, “The problem is that we have people in public housing now and we do not have enough housing for the demand. We still have to take care of the people in the public housing. . . . For many, many years we have not invested significantly in capital needs of public housing. . . . Even though I agree that we need to find ways to move people into other housing in communities with better opportunities, we still have to deal with the issues we currently have.”
In response to Chairman Sherrod Brown’s (D-OH) question on local leaders’ limitations on transportation and what an extensive infrastructure package can do, Secretary Buttigieg responded, “Certainty local leaders have visionary plans for transportation in their communities but with the resources that have been available, often it’s taken heroic creativity to keep things operating the way they are. . . . With the right resources, the kinds of resources contemplated in the Americans Jobs Plan, we can meet the leaders where they are.”
Some senators raised concerns that exclusionary zoning and discriminatory housing practices have contributed to the ongoing housing crisis. Secretary Fudge addressed these concerns, stating, “NIMBYism (Not in My Backyard) increases the cost of housing and limits where you can build housing. It makes it so you cannot build or makes it more expensive to build. It also says to low-income people and people of color that we don’t want you to live in our neighborhood.” Secretary Fudge further stated that there is funding available and technical assistance in the American Jobs Plan to incentivize communities to address exclusionary zoning, bans on multifamily constructions, and other barriers to more affordable housing.
Senators Tim Scott (R-SC) and Krysten Sinema (D-AZ) raised the importance of manufactured housing and their concerns about disaster recovery and affordability due to construction costs. Secretary Fudge stated that HUD supports manufactured housing, and guidance should be out by the end of the year. Secretary Fudge also addressed the shortage of homes, stating that the American Jobs Plan will assist with this issue on both the supply and demand side.
Senator Tina Smith (D-MN) asked Secretary Fudge how the American Jobs Plan will create more job opportunities. Secretary Fudge stated that through apprenticeship programs, preparing people for construction jobs, and ensuring that contracts and employment are given to people from certain geographic areas, the American Jobs Plan will allow a more focused jobs-creation effort.
Some senators also spoke about legislation they have introduced or plan to introduce related to housing. Senator Kevin Cramer (R-ND) spoke about a bill he introduced with Senator Chris Coon (D-DE) that would increase the number of rental units that accept Housing Choice Vouchers in high-opportunity neighborhoods. Senator Elizabeth Warren (D-MA) spoke about her recently reintroduced bill, the “American Housing and Economic Mobility Act,” which seeks to produce nearly 3 million new housing units, reduce rents by 10%, address the racial wealth gap, and reduce exclusionary zoning laws. Senator Chris Van Hollen (D-MD) and Senator Todd Young (R-IN) plan to reintroduce the “Family Stability and Opportunity Vouchers Act” (see Memo,12/23/2019) which would create 50,000 additional housing vouchers specifically designed for low-income families with young children. Senator Robert Menendez (D-NJ) stated that he plans to reintroduce the “Livable Communities Act,” to fund coordinated development of affordable housing and transit to expand economic opportunities.
A recording of the confirmation hearing can be found at the Senate Committee, on Banking, Housing, and Urban Affair’s website at: https://bit.ly/3u7bcgp
Read HUD Secretary Fudge’s written testimony at: https://bit.ly/3vbqh1H
Learn more about the American Jobs Plan at: https://tinyurl.com/4m6a4cxc